Procurement Policy of paddy and rice for Kharif Marketing Season 2014-15

GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Civil Supplies – Procurement Policy of paddy and rice for Kharif
Marketing Season 2014-15 – Orders– Issued.
CONSUMER AFFAIRS, FOOD AND CIVIL SUPPLIES (CSI) DEPARTMENT
G.O.MS.No. 23 Dated: 25.11.2014
Read the following:
1 Lr.No. 4(9)/2013-Py.I dated 7.7.2014 of the Dept. of Food and
Public Distribution, Ministry of Consumer Affairs, Food and Public
Distribution, New Delhi.

2 Lr.No.F.6-1/207-Py.III dt.07.07.2014 of the Joint
Secretary(P&FCI), Ministry of Consumer Affairs, Food and Public
Distribution, Dept. of Food and Public Distribution, New Delhi.
3 D.O.No.6-1/2007-Py.III dt.04.08.2014 of the Secretary to Govt.
of India, Ministry of Consumer Affairs, Food and Public
Distribution, Dept. of Food and Public Distribution, New Delhi.
4 Lr.No.5(6)/2014–PY.I dated 14.8.2014 of the Dept. of Food and
Public Distribution, Ministry of Consumer Affairs, Food and Public
Distribution, New Delhi.
5 Lr.No.8-1/2014- S& I, dated 01.09.2014 of the Dept. of Food
and Public Distribution, Ministry of Consumer Affairs, Food and
Public Distribution, New Delhi.
***
O R D E R:
In the references 2 nd and 5 th read above, the Government of
India directed that State Government shall not impose any levy on rice
from the millers exceeding 25% of the rice purchased or processed or
held by the millers.
2. The following orders are issued as “Procurement Policy” for the
Kharif Marketing Season 2014-15.
3. The AP State Civil Supplies Corporation Ltd. shall receive raw
rice under mill levy under De-Centralised procurement during the KMS
2014-15 in the allotted districts of Guntur, Prakasam, Nellore,
Chittoor, Vizianagaram and Kurnool. The Food Corporation of India
shall receive raw rice under the mill levy from Rice Millers in other
districts and boiled rice in the entire State as per Andhra Pradesh Rice
Procurement (Levy) Order, 1984.
4. The Minimum Support Prices fixed by Government of India for
the KMS 2014-15 are as follows:-
Price per Quintal of Fair Average Quality of paddy
Grade “A” : Rs.1,400/-
Common : Rs.1,360/-
(These rates may vary from time to time depending upon the revision
by the Government of India.)
5. The levy procurement prices and the rates for Custom Milled
Rice for the Kharif Marketing Season 2014-15 shall be communicated
separately. Pending fixation of procurement prices for rice to be
delivered in Kharif Marketing Season 2014-15, the Food Corporation of
India shall pay procurement prices of KMS 2013-14, subject to
adjustment of the difference between the procurement prices of 2013-
14 and 2014-15 later. This shall be subject to the MSP certificate
issued by the district administration that the rice is milled out of paddy
of KMS 2014-15 and was purchased at the MSP fixed for 2014-15 and
above. The AP State Civil Supplies Corporation Ltd., which receives
raw rice from the rice millers towards the mill levy under the De-
Centralized Procurement shall also follow the same procedure. If the
amount paid is less, the F.C.I./APSCSCL will pay the difference to the
miller. If the payment made is more, it will be recovered from the
miller.
6. FAQ specifications for paddy and rice are enclosed (Annexure-I& II).
7. The millers shall purchase paddy of FAQ at a price not less than
the Minimum Support Price. They shall invariably make payment to
the farmers through cheques account payee/RTGS. They shall produce
to the authorities about the quantity purchased and the payment made
to the farmers by cheques, based on which they shall deliver levy to
the FCI/ AP State Civil Supplies Corporation, as the case may be,
directly as per the quantity fixed to them and no MSP certificate is
necessary as was in the previous years.
8. The Commissioner of Civil Supplies shall fix the quantity of levy
to be delivered to each of the Districts, keeping in view the 25% levy,
to the FCI or the AP State Civil Supplies Corporation Ltd., basing on
the production of paddy, marketable surplus and milling capacity. The
Collectors in turn shall fix mill wise quantities based on the milling
capacity after consulting the rice millers and their district associations
if any.
9. Once the millers complete delivery of levy, they shall obtain a
certificate from the District administration about the quantity of rice
delivered. They can also take certificate of delivery of levy as and
when they want on delivery of part quantity. Based on this certificate,
they shall sell levy free rice both within and outside the State. The
millers are not required to take any permit for sale of rice within or
outside the State. However, they shall inform the Collector about the
quantity of rice moved out of mill premises for sale within or outside
the State, as and when any consignment is moved. The Collectors
shall compile this information and furnish to the Commissioner of Civil
Supplies every month to reach by 5 th in the proforma being
communicated by the Commissioner of Civil Supplies separately. Sale
may however be regulated by Commissioner of Civil Supplies as per
requirement at any time to moderate open market price.
10. In respect of boiled rice and non-preferred varieties of rice, the
millers shall be permitted to sell the entire levy free rice outside the
State. However, in case the situation demands, the raw rice levy free
eligibility can, at any time, be regulated for sale within and outside the
State to ensure that the prices are under control.
11. In respect of purchases of non-FAQ paddy by rice millers value
cuts will be allowed as in the past viz.. for every percent over the
permissible limit under FAQ, i.e., Rs.13.60 for Common and Rs.14.00
for Grade ‘A’ will be permitted as shown in the Annexure III. The out
turn ratio of raw /boiled rice from paddy shall be the same as in KMS
2013-14.
12. In view of high demand for superfine preferred varieties of rice,
the superfine preferred varieties of rice shall be allowed to be sold
within and outside the State in the ratio of 2:1.
13. The AP State Civil Supplies Corporation shall open as many
purchase centres as are required for purchasing paddy from the
farmers at MSP by getting them opened through women self help
Groups, PACS, DCMSs etc. in all the paddy growing districts. The A.P
State Civil Supplies Corporation Ltd. shall also ensure that adequate
gunnies, other infrastructure and equipment is available at the
purchase centres.
14. The AP State Civil Supplies Corporation Ltd. shall invariably
make the payments for the value of paddy purchased from the farmers
on line. If, for any reason, this is not possible in some districts, the
payment may be made through cheques only. The entire transactions
of paddy purchases, payment made, transportation done to the mills,
paddy delivered to the mills etc. shall be on real time basis by making
computers and a software available at purchase centres. The daily
information shall be monitored and informed to the Commissioner of
Civil Supplies.
15. The millers shall not purchase FAQ paddy at less than the MSP
and levy rice shall be allowed to be delivered to the rice millers who
purchase paddy at MSP and above price only at regulated markets,
notified markets, godown points, including CWC & SWC godowns, and
at rice mill premises as declared by the Collector / Marketing
Department for the purpose of purchase of paddy. The millers can also
purchase paddy at farm gate keeping in view the condition 23 of the
operational guidelines for KMS 2007-08.
16. The A.P. State Civil Supplies Corporation Ltd., shall make
arrangements for procurement of paddy at MSP through decentralized
procurement and retain the resultant CMR raw rice from out of the
paddy procured in the entire State for the PDS and deliver the boiled
rice under CMR to the Food Corporation of India for the Central pool.
The FCI shall also purchase paddy at MSP as offered to them. The
procurement of paddy shall be done on large scale to protect the MSP.
Since early crop is expected in some districts, the AP State Civil
Supplies Corporation shall commence MSP operations immediately by
opening adequate number of purchase centres. The AP State Civil
Supplies Corporation Ltd., shall retain the CMR raw rice obtained from
paddy purchased by it at MSP under decentralized procurement of
paddy in all the districts of the State while delivering the boiled rice to
the Food Corporation of India in all the Districts.
17. The Rice Milling Industry shall deliver not less than 18 lakh
tonnes of raw rice as levy to F.C.I/APSCSCL during Kharif Marketing
Season 2014-15, (i.e., from 1st October, 2014 to 30 th September,
2015) i.e., a quantity of 14 Lakh MTs of raw rice to the FCI and 4.00
Lakh MTs of raw rice to the APSCSCL. The entire 18 Lakh MTs of raw
rice under mill levy shall preferably be procured in Kharif season so as
to meet raw rice the requirement for PDS and other welfare schemes
in the State. Since the levy percentage is reduced to 25%, efforts
shall be made to procure more raw rice from the millers by the AP
State Civil Supplies Corporation as well as the Food Corporation of
India. The FCI shall make available raw rice to the State Government
for the PDS in the districts as per the allotment given by the
Central/State Government. The Food Corporation of India may make
arrangements for procurement of Boiled rice required for other states.
These performance expectations are indicated based on the advance
estimates of rice/paddy production of Kharif and this can be revised
depending upon the production prospects of rice in Rabi season. These
targets may undergo changes at any time depending upon the actual
production of paddy/rice, procurement progress, availability of godown
space, need of rice for PDS and other welfare schemes in the State.
18. The State Govt. agencies viz. the A.P.State Civil Supplies
Corporation, IKP groups and other agencies have to move the paddy
procured by these agencies to the rice mills simultaneously for custom
milling and delivering raw rice to the AP State Civil Supplies
Corporation Ltd., and boiled rice to the FCI on behalf of these
agencies. If for any reason, there is delay in the transportation of
paddy to the rice mills and it becomes inevitable and unavoidable, they
may transport the paddy to the intermediary storage points for storing
in the CAP storage model with a view to protect the stocks from
vagaries of nature, which result in deterioration of quality.
19. The AP State Civil Supplies Corporation Ltd. shall also monitor
on a day to day basis, the paddy handed over to the mills for custom
milling, raw rice delivered to them and boiled rice to the FCI, the
quantity of rice yet to be delivered etc. and submit the details to the
Commissioner of Civil Supplies.
20. The rice Millers / Traders shall deliver 25% of the raw rice milled
pertaining to all varieties other than superfine preferred varieties to
the FCI and AP State Civil Supplies Corporation Ltd., under mill levy in
the districts assigned to them and boiled rice in all districts to the FCI
only. If any miller / trader wants to deliver the super fine preferred
varieties of raw rice, the AP State Civil Supplies Corporation Ltd., / FCI
may accept such varieties also under levy.
21. The Commissioner of Civil Supplies is authorized;
i) to fix the district-wise performance expectation of raw
rice and boiled rice for delivery under mill levy to the
Food Corporation of India / AP State Civil Supplies
Corporation Ltd., depending upon the production of
paddy, rice milling capacity and the past performance in
consultation with the representatives of the Rice Millers
Association, A.P., Food Corporation of India and the A.P.
State Civil Supplies Corporation Ltd., keeping in view the
requirement of A.P raw rice for P.D.S. and other welfare
schemes with the approval of the Government. The
Collectors will in turn distribute the same among the
district rice millers in consultation with the District Rice
Millers Association.
ii) to revise the performance expectations from time to time,
depending upon the progress in purchase of paddy at
MSP, rice mill levy delivery and other priorities of the
Government.
iii) to issue orders to the Collectors(CS) to issue of release
certificates for sale of levy free rice within the State
expeditiously so as to make adequate quantity of raw rice
available in the open market and keep the price of rice
under control. This is necessary in order to ensure that
while procuring rice for Central pool for meeting the
requirements of PDS, the prices of rice in the open
market are also kept under control. The Collectors (CS)
will permit the movement of levy free rice other than
superfine (preferred) varieties by railway rakes as per the
entitlement of raw rice as per the ratio fixed for sale
within and outside the State and boiled rice for sale
anywhere in the Country.
iv) in respect of any modifications for issue of levy free
release certificates may consider and issue orders after
obtaining the approval of the Government.
22. The VC & MD, AP State Civil Supplies Corporation Ltd. shall take
action to ensure that raw rice as delivered under mill levy is accepted
by having adequate godown space at MLS points and other buffer
godowns. He shall be in constant contact with the SWC, CWC,
Marketing Dept. etc. and take action to get the godown space placed
at their possession; in case suitable scientific private godowns are
available, they may also be taken on lease/rent. He shall also explore
the possibility of godown construction through Government.
Warehousing agencies and other private entrepreneurs under PEG
schemes etc. for taking on 7 years/5 years/2 years guarantee. Under
no circumstances should there be any non-receipt of raw rice by the
AP State Civil Supplies Corporation Ltd. in the districts allotted to them
for want of godown space.
23. The raw rice procured under mill levy in DCP districts and the
raw rice retained under CMR by the AP State Civil Supplies Corporation
Ltd. shall be utilized for the PDS and other welfare schemes in the
State. The deficit for the requirements in these districts and also the
requirements of other districts would be made available by the FCI
through procurement of raw rice and transporting to the needy
districts as per the terms and conditions of the De-Centralised
procurement.
24. There may be no objection for accepting raw rice from the
boiled rice mills, as the boiled rice mills can produce raw rice.
However, there shall not be any acceptance of boiled rice from the raw
rice mills, as raw rice mills cannot produce boiled rice.
25. Rice under mill levy may be delivered in 50 kg gunny bags only.
The Food Corporation of India shall take delivery in 17 MT truck loads
or as may be decided from time to time by the FCI, Rice Millers and
the Civil Supplies Department.
26. In respect of any dispute including quality parameters of rice
between the miller and the FCI/CSC, a Committee headed by the Joint
Collector and consisting of technical experts may resolve the dispute
immediately.
27. The farmers and the Farmers’ Clubs / Associations and Self Help
Groups may be allowed to mill paddy of their own or on behalf of
farmers, and deliver whole or part of raw rice to the AP State Civil
Supplies Corporation in the districts allotted to them and to the Food
Corporation of India elsewhere at procurement prices. They have to
maintain the details in the ‘B’- Register separately, as they are doing
business of sale of rice to the AP State Civil Supplies Corporation /
Food Corporation of India. The farmers’/ farmers’ clubs are required to
obtain Registration Certificate from Commercial Taxes Department for
delivery of rice to the AP State Civil Supplies Corporation Ltd/ Food
Corporation of India. While paying procurement price, the Food
Corporation of India/AP State Civil Supplies Corporation may deduct
such taxes / fee, which are payable by the farmers on such delivery of
levy rice and the Food Corporation of India/AP State Civil Supplies
Corporation shall pay such taxes / fee so deducted to the respective
Departments of the State Government.
28. For accepting delivery of rice by the Food Corporation of India/
AP State Civil Supplies Corporation from the individual farmers,
Registered Farmers’ Clubs / Associations and Self Help Groups, a
certificate issued by the Village Secretary / Agriculture Officer /
Sarpanch of the village is necessary with regard to cultivation of paddy
and the extent of land recorded in the Pattadar Pass Book / Adangals
etc.
29. The Rice Millers have to undertake custom milling of paddy, as
and when the farmers bring the paddy to the rice mills, keeping in
view the explanation under clause 10(1) of the A.P. Rice Procurement
(Levy) Order, 1984 at the rate stipulated or on mutually agreed terms/
conditions between the millers and the farmers. Failure deliver,
misappropriation, etc., the millers are liable for prosecution, black
listing and cancellation of licenses etc.
30. The Rice Millers shall simultaneously undertake the custom
milling of paddy procured by the State Government Agencies and Food
Corporation of India, as per the agreed terms and conditions and at
the rates and norms fixed by the Government of India. The Collectors
may allot the paddy purchased at the Purchase centres of SHGs like
IKP / DCMS / PACSs / PPCs / Market Yards etc., to rice mills for
immediate custom milling without storage of the paddy. The rice
millers, within 15 days from the date of receipt of paddy, have to
complete custom milling of paddy and deliver the resultant rice, either
as raw rice or boiled rice, as prescribed by the Government or the
State Agency concerned, for the paddy handed over during the Kharif
Marketing Season 2014-15 by the A.P. State Civil Supplies Corporation
Ltd., and S.H.Gs /DCMS / PACSs of IKP. The Collectors may direct the
rice millers to mill the paddy handed over to them by the State agency
and deliver custom milled rice to the FCI/ APSCSCL along with the levy
rice, if necessary by fixing a ratio between the mill levy delivery and
the custom milled rice delivery. The Collectors shall review the entire
process of custom milling operations regularly and take necessary
action against the rice millers, who fail to do custom milling of paddy
procured by the Self Help Women Groups and A.P. State Civil Supplies
Corporation Ltd., duly following the procedure in vogue. In cases of
failure by rice millers in converting the paddy to rice within the
stipulated time, the Collectors may furnish to the Food Corporation of
India/AP State Civil Supplies Corporation Ltd., the details of defaulters
together with mill-wise quantities given for custom milling, quantity
milled and the quantity yet to be milled so that the Food Corporation
of India may deduct the equivalent quantity of resultant rice for the
paddy yet to be milled against the levy rice being delivered by such
rice miller. The delivery of custom milled rice will be in addition to the
performance expectation of 18 lakh tonnes of mill levy rice indicated to
the State. It shall be the responsibility of the Collector (CS) to ensure
that the CMR rice is delivered by the rice millers as expeditiously as
possible. The APSCSCL shall monitor the delivery of CMR rice on daily
basis and ensure that the delivery of CMR rice is made promptly. If
there are any issues, they shall be brought to the notice of the
Commissioner of Civil Supplies or the Collector concerned for
immediate assistance.
31. In case of any delay in custom milling of paddy due to non-
availability of adequate rice milling capacity in the district, non-
availability of godown space due to non-provision of railway rakes and
also with a view to facilitate early delivery of CMR rice, the paddy may
be transported from the paddy procured district to the rice mills
directly in other districts by the Joint Collectors concerned in
consultation with the Joint Collectors of the districts to which paddy is
proposed to be moved. For example; i) the paddy procured in
Anantapur district may be transported to the nearest district like
Kurnool district or Kadapa district ii) the paddy procured in Guntur
district may be transported to Prakasam district or Krishna district for
custom milling. The expenditure incurred by the A.P. State Civil
Supplies Corporation shall be booked to the MSP operations of paddy
and the same shall be included in the audited accounts of KMS 2014-
15, so that the Government of India will be requested for
reimbursement of the same.
32. The Commissioner of Marketing shall issue necessary
instructions to all the Secretaries of AMCs to prepare a contingency
plan well in advance to tackle the additional arrivals, for smooth
market operations during the season to get the equipment / machinery
available with the AMCs in working condition, to maintain log books for
each equipment, to make a note of the usage particulars and to take
into account the equipments / machinery available with the nearby
markets (Non-functional) and with self help group centres while
planning for procurement of additional equipment to meet the
seasonal requirement. The Godown space available in the AMCs should
also be kept ready for occupation and wide publicity should be given
about MSP rates, equipments and godown space available with AMCs.
33. The Marketing Department will provide required number of
moisture meters (Best quality), Tarpaulins, Paddy cleaners, Winnowing
machines, etc., equipment to be determined with reference to the past
performance and to make them available at all the Purchase Centres
operated by S.H.Gs / DCMS / PACSs / PPCs / Market Yards without fail.
One moisture meter should also be provided to the progressive group
of farmers / S.H.Gs / Gram Panchayats to enable the farmers to check
the moisture contents of the paddy before they bring the paddy to the
purchase centres for sale.
34. The Collectors shall fix uniform Hamali charges in the entire
district by conducting meeting with the Hamali Unions, Secretaries of
AMCs and Procuring Agencies. The Handling Charges should include
weighment, stitching and stacking / loading at PPCs / AMCs. The
Hamali Charges, thus, fixed will have to be borne by the buyers of the
stocks at PPCs / AMCs including the State Procuring Agencies.
35. The Collectors shall review the progress of procurement on daily
basis. The Collectors shall send daily reports on the progress of
procurement to the Commissioner of Civil Supplies as stated above.
The Collectors will also bring to the notice of the Commissioner of Civil
Supplies, problems, if any, faced by them in procurement of rice
including requirement of funds for items of expenditure other than cost
of paddy procured by A.P. State Civil Supplies Corporation Ltd and / or
any other agency so as to take immediate appropriate action in the
matter. The Collectors shall constitute a District Procurement
Committee with the Joint Collector as Chairman with District Level
officials of all connected departments, namely, Agriculture, Marketing,
Civil Supplies, Transport, DRDA, ITDA, I&PR, Warehousing Agencies
(CWC, SWC), Procurement Agencies (FCI, APSCSCL) and also Sub-
Collectors / RDOs as members to coordinate and decide on all the
activities and monitor the work on day-to-day basis as per the
operational guidelines.
36. The Collectors shall ensure that the enforcement officials under
the A.P. Rice Procurement (Levy) Order, 1984 inspect the rice mills
periodically to ensure the purchase of paddy at MSP, paddy milled,
levy delivered, levy utilized etc.
37. Wide publicity of the location of the paddy purchase centres,
specifications of FAQ paddy, MSP and prescribed value cuts for the
non-FAQ paddy shall be given through press, pamphlets, leaflets, and
electronic media besides organizing extensive training programmes for
the farmers through the Agriculture Extension Staff / Quality Control
Officials out of the funds earmarked by Marketing Department in this
regard and other funds available at their disposal.
38. The Government or the Commissioner of Civil Supplies may
issue any guidelines or orders from time to time to ensure
uninterrupted procurement of paddy and levy rice and utilization of
levy free eligibility.
39. A copy of this order is available on the internet and can be
accessed at the address- www.ap.gov.in
( BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
B.RAJSEKHAR
EX. OFFICIO SECRETARY TO GOVERNMENT

: A N N E X U R E – I ::
UNIFORM SPECIFICATION OF ALL VARIETIES OF PADDY
(MARKETING SEASON 2014-15)
Paddy shall be in sound merchantable condition dry, clean, wholesome
of good food value, uniform in colour and size of grains and free from
moulds, weevils, obnoxious smell, Argemone maxicana, Lathyrus
sativus (Khesari) and admixture of deleterious substances.
Paddy will be classified into Grade 'A' and Common groups.
Schedule of specification
===========================================
Sl. No. Refractions Maximum Limits (%)
===========================================
1. Foreign matter
a) Inorganic 1.0
b) Organic 1.0
2. Damaged, discoloured, sprouted
and weevilled grains 5.0*
3. Immature, Shrunken and shrivelled grains 3.0
4. Admixture of lower class 6.0
5. Moisture content 17.0
===========================================
* Damaged, sprouted and weevilled grains should not exceed 4%.
N.B.
(i) The definitions of the above refractions and method of analysis
are to be followed as per BIS Method of analysis for foodgrains’
Nos. IS: 4333 (Part-I) 1996, IS: 4333 (Part-II), 2002 and
‘Terminology for food grains’ IS: 2813 – 1995, as amended from
time to time.
(ii) The method of sampling is to be followed as per BIS method for
sampling of Cereals and Pulses IS: 14818-2000 as amended
from time to time.
(iii) Within the overall limit of 1.0% for organic foreign matter,
poisonous seeds shall not exceed 0.5% of which Dhatura and
Akra seeds (Vicia species) not to exceed 0.025% and 0.2%
respectively.
:: A N N E X U R E – II ::
UNIFORM SPECIFICATION FOR GRADE 'A' & COMMON RICE
(MARKETING SEASON 2014-15)
Rice shall be in sound merchantable condition, sweet, dry, clean,
wholesome, of good food value, uniform in colour and size of grains
and free from moulds, weevils, obnoxious smell, admixture of
unwholesome poisonous substances, Argemone maxicana and
Lathyrus sativus (Kesari) in any form, or colouring agents and all
impurities except to the extent in the schedule below. It shall also
conform to PFA Standards.
SCHEDULE OF SPECIFICATION

* Not more than 1% by weight shall be small brokens.
** Not more than 0.25% by weight shall be mineral matter and not
more than 0.10% by weight shall be impurities of animal origin.
# Including pin point damaged grains.
NOTES APPLICABLE TO THE SPECIFICATION OF GRADE 'A' AND
COMMON VARIETIES OF RICE
1. The definition of the above refractions and method of analysis
are to be followed as given in Bureau of Indian Standard "Method of
analysis for Foodgrains" No's IS : 4333 (Part-I) 1996 and IS : 4333
(Part - II) 2002" Terminology for Foodgrains" IS : 2813 - 1995 as
amended from time to time. Dehusked grains are rice kernels whole or
broken which have more than ¼ of the surface area of the kernel
covered with the bran and determined as follows:-
ANALYSIS PROCEDURE:
Take 5 grams of rice (sound head rice and brokens) in a petri dish
(80X70 mm). Dip the grains in about 20 ml. of Methylene Blue solution
(0.05%by weight in distilled water) and allow stand to for about one
minute. Decant the Methylene Blue solution. Give a swirl wash with
about 20 ml of dilute hydrochloric acid (5% solution by volume in
distilled water). Give a swirl wash with water and pour about 20 ml. of
Metanil Yellow solution (0.05% by weight in distilled water) on the
blue stained grains and allow to stand for about one minute. Decant
the effluent and wash with fresh water twice. Keep the stained grains
under fresh water and count the dehusked grains. Count the total
number of grains in 5 grams of sample under analysis. Three brokens
are counted as one whole grain.
CALCULATIONS :
Percentage of Dehusked grains = N X 100
W
Where N = Number of dehusked grains in 5 grams of sample
W = Total grains in 5 grams of sample.
2. The Method of sampling is to be followed as given in Bureau of
Indian Standard "Method of sampling of Cereals and Pulses" No IS :
14818- 2000 as amended from time to time.
3. Brokens less than 1/8th of the size of full kernels will be treated
as organic foreign matter. For determination of the size of the brokens
average length of the principal class of rice should be taken into
account.
4. Inorganic foreign matter shall not exceed 0.25% in any lot, if it
is more, the stocks should be cleaned and brought within the limit.
Kernels or pieces of kernels having mud sticking on surface of rice,
shall be treated as Inorganic foreign matter.
5. In case of rice prepared by pressure parboiling technique, it will
be ensured that correct process of parboiling is adopted i.e. pressure
applied, the time for which pressure is applied, proper gelatinisation,
aeration and drying before milling are adequate so that the colour and
cooking time of parboiled rice are good and free from encrustation of
the grains.

:: A N N E X U R E – IV::
GOVERNMENT OF ANDHRA PRADESH
CONSUMER AFFAIRS, FOOD AND CIVIL SUPPLIES DEPARTMENT
DECENTRALISED PROCUREMENT
OF PADDY AND RICE
IN
ANDHRA PRADESH
DURING KHARIF MARKETING SEASON (KMS) 2014-15
OPERATIONAL GUIDELINES

DECENTRALISED PROCURMENT OF PADDY AND RICE:
• Government of India desired that Andhra Pradesh should adopt
the decentralized procurement (DCP) of Paddy/rice and to increase
direct procurement of paddy from farmers instead of depending
heavily on the levy route.
• Government of Andhra Pradesh decided to adopt the DCP which
was in principle approved by the Government of India.
• Decentralised procurement of Paddy/Rice would be taken up by
the Government of Andhra Pradesh through its agency viz. the AP
State Civil Supplies Corporation Ltd. (APSCSCL) from KMS 2012-13.
Salient features of the DCP are:
i) Procurement of Paddy from the farmers at MSP and rice from the
rice millers/dealers at FCI procurement (Levy) rate under mill levy;
ii) Utilise the raw rice so procured for State’s PDS and other schemes
as per the allotment made by the Government of India;
iii) Deliver surplus rice, if any, to the Food Corporation of India for
Central Pool;
iv)Shortfall of raw rice, if any, for the State’s PDS will be made
available by the Government of India through FCI;
v) Government of India undertakes to meet the entire expenditure
incurred by the State Government towards the procurement
(acquisition) cost and distribution cost as per the approved costing
by the Govt. of India;
vi) Govt. of India releases provisional subsidy based on 100% of fixed
items such as MSP, taxes and statutory levies including VAT, milling
charges, driage (for raw rice) and at 95% on the balance
incidentals;
vii) Govt. of India releases advance quarterly subsidy at 90% of
admissible claim at the beginning of the quarter and the provisional
quarterly subsidy at the end of a quarter at 95% of admissible
claim on receipt of the claim of the State Government; and releases
the balance 5% after finalization of accounts and fixation of final
economic cost on the basis of audited accounts and supporting
documents furnished for the year.
ADVANTAGES OF DECENTRALISED PROCUREMENT:
a) Ensures MSP for paddy to farmers due to direct
involvement of State agencies;
b) Timely payment of MSP to farmers – preferably within 48
hours;
c) Self-reliance in procurement of rice for distribution under
PDS and other welfare schemes; and
d) Increases employment in the State for smooth operation
of procurement process etc.
OPERATIONAL GUIDELINES
Procurement of Paddy at MSP:
Measures required to be taken by the AP State Civil Supplies
Corporation Ltd. in coordination with the Joint Collectors:
• Wide publicity of the MSP for paddy for Common and Grade A
along with the specifications prescribed for getting MSP through
print and electronic media, tom tom (beat of drum) and through
pamphlets/leaflets, posters etc.;
• Paddy shall be purchased from the farmers directly by
eliminating the middlemen.
• The documents like Pattadar Pass Book, letter from the Village
Revenue Officer about the paddy are to be produced by him in
his land;
• Paddy at MSP shall not be accepted at Paddy Purchase centres
from the millers and dealers;
• Identification of sub-agencies for procurement of paddy like IKP
Groups, PACs, DCMSs, Rythu Mithras etc. in consultation with
the Joint Collectors.
• Identification of areas for opening the exclusive Paddy Purchase
centres in addition to the AMCs;
• Computerisation of all procurement points to be ensured before
commencement of procurement.
• Assess and position the required number of gunnies and suthli
at each of the purchase centre;
• Availability of equipment like Paddy Cleaners, Winnowing
machines, sieves, moisture meters, calipers etc. which are
required for MSP operation.
• Assistance/Support from the Marketing Department to be taken
for getting equipment at AMCs / purchase centres.
• Marketing Department shall assess the requirement of
equipment required at all the PPCs, present availability and
make available the balance to the PPCs etc.
• At each Paddy Purchase centre of IKP one Tech. Assistant from
their side shall be positioned by the SERP.
• Position the staff required for taking samples for analysis of the
quality and its acceptance and helpers and others;
• Assess the quantity of paddy likely to arrive at each of the
purchase centre depending upon the neighbouring villages;
• Prepare the schedule to regulate arrival of paddy from
villages/areas nearer to the purchase centre so that there is no
stampede/congestion at the purchase centre;
• Storage arrangements at the purchase centre till paddy is
moved to mills;
• Transport Contractors to make available adequate transport
fleet;
• Permission to millers who want to transport the paddy from PPC
on their own for custom milling;
• Rice Mills to be identified for doing custom milling of paddy and
delivering raw rice to the APSCSCL and boiled rice directly to the
FCI on behalf of the APSCSCL;
• Purchase centres to be tagged on to the rice mills;
• Wherever inevitable and unavoidable, interim storage for paddy
to be identified and CAP storage technology to be adopted;
• Payment to the farmers to be done within 48 hours normally
through cheques / RTGS to the Bank accounts of the farmers.
• The mandi labour charges like filling and placing the unit on the
weighing machine; weighment; unloading from the balance,
stitching of bags, loading, marks and temporary stacking should
be borne from out of the Mandi labour charges provided in the
costing sheet. If the cost is more than the charges permitted in
the cost sheet, the balance shall be borne by the farmer, who
delivers paddy to the APSCSCL.
• The possibility to have RFID tags to the levy bags may also be
explored gradually to ensure that there is no scope for recycling
of PDS rice at any stage.
LEVY RICE:
• APSCSCL shall enhance the capacity of the MLS point godowns;
• Godown requirement shall be assessed for receiving the CMR
raw rice and the levy raw rice for State’s PDS;.
• Available Godowns of the SWC, CWC, Marketing Department
etc. and scientific godowns of the private parties should be
taken;
• Godowns dehired by the FCI to be taken over by the APSCSCL.
• APSCSCL to be in constant contact with the SWC, CWC,
Marketing Department for taking over the new godowns and
also to make a request to the concerned for reservation of the
godown space to be created either by dehiring them or from
new construction.
• APSCSCL shall take action to construct buffer godowns either on
their own or getting them constructed through other sources
wherever needed by adopting modern technology.
• In the alternative, expression of Interest to be obtained for
construction of godowns at required places by the interested
parties for taking on rent / lease by the AP State Civil Supplies
Corporation on 10 years/ 7 years/5 years/2 years guarantee.
• One agency shall be entrusted with the study of construction of
godowns by following the procedure for appointing such
consultancy.
• Godowns shall provide space to have access for the trucks
coming for delivery of rice apart from weighing machines/beam
scales;
• Adequate movement space for carrying on the operations by the
hamalies and staff to be available in the godowns.
• Required technical staff to be positioned by the AP State Civil
Supplies Corporation by engaging the staff on deputation from
the FCI and utilization of services of the retired officials from
FCI/CS Corporation, so as not to hamper procurement
operations due to lack of staff.
• Over and above the Quality staff provided by the FCI on
deputation and from retired employees, the balance required
staff shall be taken from the out-sourcing; but, after the season
is over, the surplus staff shall be terminated.
• Necessary staff like Technical, Accounts and the supporting staff
shall be deployed in the godowns and they shall be under the
supervision of the Godown in charges.
• Samples taken shall be analysed to ensure that rice is as per
specifications;
• Raw rice as per the quality-control-acceptance to be received
based on the MSP certificates issued by the District Supply
Officer concerned.
• Payment to be made to the rice millers through “Account payee”
cheque/RTGS system.
• Proper weighment at the time of receipt and issue is essential.
CUSTODY AND MAINTENANCE OF STOCKS OF RICE:
• Proper dunnage at the godowns to be done;
• Custody and Maintenance system to be followed as per the
Warehousing norms;
• Stacking to be done properly as per the standard norms being
adopted in the FCI godowns;
• Stock procured under CMR/levy to be verified physically before
issue under PDS or any other schemes by the team consisting of
District Manager and Assistant Manager (Technical) to ensure
quality as per the specifications.
• FIFO (First-in-First Out) for delivery of rice for PDS and other
schemes to be followed;
• Tags for the stacks as required under the godown procedure to
be followed;
• Preservation methods for storage of stocks to be followed;
• Fumigation, spraying etc. should be done as per the time
schedule prescribed as per the quality maintenance norms;
• Accounting system should be fool proof.
• Receipt and issue of stocks to be properly maintained.
• Weighment at the time of receipt and issue to be done.
• Transport Contractors shall be held responsible for short
delivery.
• Recovery of cost for short delivery of rice shall be made as per
the Contract/agreement.
• Wherever facility is available, computerisation of accounts to be
done immediately.
• In other places, it shall be done gradually.
• Godown staff shall be responsible for proper accounting of the
stocks, payment process and maintenance of stocks.
• District Manager and other superior officials including the
Revenue Divisional Officers, who are already empowered to do
physical verification, to frequently visit the godowns to ensure
that there is proper management of stocks.
• Godowns shall be clean and tidy to deny access to
rodents/snakes etc. and as per prescribed standards.
• Third party annual verification of both quantity and quality of
stocks in the APSCSCL godowns to be organized to avoid
misappropriation.
• Improper maintenance of godowns leads to deterioration in
quality and quantity of rice. Hence, need for proper
maintenance.
Duties and Responsibilities of the APSCSCL:
• Assess the requirements of Cash credit limit for procurement of
paddy and rice;
• Furnish cash flow statements periodically to the RBI through
Government;
• Ensure that the stocks of rice/paddy match with the outstanding
cash credit;
• Daily monitoring of availability of funds in the districts for
procurement of paddy and levy rice and making available the
required funds through on-line transfer.
• There shall be no non-receipt of stocks either under paddy
procurement or raw rice procurement for want of funds. VC &
MD APSCSCL shall ensure this.
• Proper monitoring of offtake of rice for PDS and other welfare
schemes for claiming subsidy from Govt. of India;
• Prompt Claim of the subsidy from the Govt. of India every
quarter as per the provisional costing sheet – initially at 90%
and subsequently at 95% as per the DCP scheme;
• Audited accounts to be furnished to get the balance 5%;
• Subsidy requirement from the State Govt. (the difference
between the GOI’s rate – Re.1 per kg) to be worked out every
quarter and claimed from the Government;
• The sales realization of rice from the FP Shops at subsdised
rate, the subsidy amounts received from the Govt. of India and
the State Government to be credited in the cash credit account;
• Periodicals to be obtained from the District Managers on every
aspect of the transaction – right from purchase point till the
distribution point – including intermediary transactions.
• As far as possible, as this is the first year of operation of DCP,
the movement of raw rice to deficit districts should be avoided
and should movement be inevitable, it shall be planned only to
the adjoining/nearby deficit districts without the need of moving
for a long distance.
• Criss cross movement (movement to another district and
getting back from the same district) of rice not to be resorted.
• During the KMS 2012-13, the FCI consented to move raw rice
through rakes and make available in the deficit districts for the
PDS and other welfare schemes.
• APSCSCL to be frequently in touch with the FCI and through the
Commissioner of Civil Supplies indicate in advance the districts
to which raw rice to be moved for the PDS and other welfare
schemes;
• Computerisation of all the transactions at various levels is
essential and hence immediate action for end to end
computerisation to be taken up.
• MIS shall be worked out for proper monitoring.
• Necessary software and hardware to be arranged with Data
Entry Operators.
• District Managers of the APSCSCL shall be responsible for proper
quality check, maintenance of stocks and accounts in the
godowns, preservation measures.
• Frequent inspections reduce the mismanagement and
misappropriations; Dist. Managers of APSCSCL besides RDOs
and DSOs to verify periodically to curb the diversions for
recycling or shortages; Surprise inspections by officials from the
Headquarters of APSCSCL to be done.
• A vigilance wing at the State Headquarters of the APSCSCL to
be constituted for surprise inspections or on complaints.
• Timely reconciliation of accounts with the sub-agencies like IKP
groups, PACSs, DCMSs, Rythu Mithras etc. to be done for
payment of commission due to them.
CUSTOM MILLING OF PADDY:
• Agreements with the Rice Millers/ Rice Millers Association to be
entered into by the Dist. Managers of the APSCSCL
• Security for the value of stocks delivered to be obtained from
the recipient miller.
• Monitoring of the stocks of paddy issued for custom milling,
custom milled rice to be delivered as per the ratio fixed for raw
and boiled rice, rice delivered to the CS Corporation (Raw rice)
or to the FCI (boiled rice) on behalf of the Civil Supplies
Corporation to be done daily by the District Manager concerned
at district level and VC & MD., APSCSCL at Headquarters.
• Time within which CMR rice to be delivered has to be fixed in
coordination with the Joint Collectors concerned.
• District Manager concerned to be held responsible for non-
receipt of CMR rice on time.
ROLE OF JOINT COLLECTORS:
• Joint Collectors as Ex-officio Executive Directors of the APSCSL
to play a pivotal role in implementing the DCP under their
guidance, gauze and scrutiny.
• Shall organize publicity through the electronic and print media,
posters, leaflets and posters besides tom tom wherever possible
about the MSP, specifications, location of purchase centres, time
schedule for different areas for delivery of paddy;
• Ensure Positioning of gunnies, suthli, required equipment like
Paddy cleaners etc., Deployment of required staff Quality check,
acceptance of paddy at the purchase centres, transport fleet for
movement of paddy to mills, intermediary storage wherever
needed; Funds requirement by the DM, CSS Corporation for
accepting paddy and levy raw rice ; issue of MSP certificates for
delivery of levy raw rice to the Civil Supplies Corporation Ltd.
and both raw and boiled rice to the FCI and all other related
matters to the DCP.
• Shall oversee the functions of the District Managers of APSCSCL
on a daily basis and suitably advise them for proper
implementation of DCP.
• Shall inspect the purchase centres and the godowns as
frequently as possible to ensure that there is no hardship to the
farmers, paddy stocks are procured without any hardship to the
farmers, quality check is proper, payment is done without delay,
stocks are moved to the mills for custom milling, proper
accounts are maintained etc.
• Provide necessary assistance of the DSO to the DMs wherever
needed for realizing the CMR rice from the rice millers;
• Initiate action against the rice millers who fail to deliver the
custom milled rice as per the agreement;
• Check the godowns frequently to ensure proper stacking and
maintenance of stocks, issues as per FIFO, proper weighment,
maintenance of records, stock verification etc.
• Ensure acquisition of suitable godowns of the private parties for
storing the stocks of the APSCSCL if needed by requisitioning
them and also by negotiating with the Warehousing
Departments for placing the available godowns at the disposal
of the APSCSCL.
• Allot lands to the Civil Supplies Department for getting the
godowns constructed by the APSCSCL for storing the rice.
WAREHOUSING AGENCIES:
• SWC, CWC, Marketing Department etc. to consider allotting the
godowns available/to be vacated/to be constructed to the
APSCSCL in preference to others.
• SWC may also take over private godowns and place at the
disposal of the APSCSCL as is being done at present for the FCI.
• Wherever their godowns are used as buffer godowns, the
custody and maintenance to be done by them as is being done
at present for the FCI.
Trainings imparted by the FCI to the staff of the APSCSCL:
• Trainings given by the FCI to the APSCSCL staff in respect of
quality checks, maintenance of godowns, preservation of stocks
etc. to be followed mutatis mutandis.
• Operational manual for godown maintenance supplied by the
FCI to be followed by the staff in charge of the godown
maintenance.
COMPLAINT CELL AND REDRESSAL MECHANISM:
• Control rooms to be opened in every district and a toll free
telephone to be operative in the Dist. Manager’s office from 8.00
am. to 8.00 pm. A senior officer shall be in charge of the
complaint cell to attend to the complaints immediately and
redress them.
• Toll free Telephones with numbers 18004252977 and
18004250082 are functioning in the Commissionerate of Civil
Supplies. Joint Director (Procurement) will be in charge for
monitoring the complaints, bringing to the notice of the CCS or
the CS Corporation and to send them to districts for Redressal.
• The telephone numbers at the districts and the Commissioner’s
office to be notified by the APSCSCL to enable farmers, millers
and others to make complaints are suggestions etc. The names,
designations and the telephone numbers of the officers in
charge of the Complaint Cell shall be notified.
• Complaints received to be attended on priority and the
grievances of the complainant to be redressed without loss of
time.