Decentralized Procurement
KMS 2012-13
AP-CSC
(Andhra Pradesh State Civil Supplies Corporation Limited)
Paddy purchase
• CSC commenced paddy procurement 2000-01
• CSC operating purchase centres in all districts
through procuring agencies like IKP, PACS
2006-07 onwards
• In 12 years, CSC purchased 77 LMT of paddy
from farmers
• CSC makes farmer payments promptly
mobilising RBI cash credit (Rs 2,900 crores in
2011-12 & Rs 3,000 crores 2012-13 projected)
• Primarily aims at ensuring MSP to farmer
Over decade performance
21.30
20.21
Paddy Procured in LMTs
20
15
Rabi
9.65
Kariff
10
6.06
4.96
3.62
5
3.03
2.85
2.80
2.30
0.12
0.11
0
00-01
01-02
02-03
03-04
04-05
05-06
Year
06-07
07-08
08-09
09-10
10-11
11-12
Year
Kariff
Rabi
Total
PPC
(Nos)
2000-01
0.45
3.17
3.62
276
2001-02
0.65
1.65
2.30
445
2002-03
0.06
0.05
0.11
233
2003-04
2.56
0.24
2.80
209
2004-05
0.08
0.04
0.12
134
2005-06
0.18
2.67
2.85
232
2006-07
1.04
5.02
6.06
632
2007-08
0.94
4.02
4.96
290
2008-09
2.40
7.25
9.65
683
2009-10
0.36
2.67
3.03
514
2010-11
1.90
19.40
21.30
1716
2011-12
9.46
10.75
20.21
2895
Khariff plan
• Estimated paddy purchase – 11.30 LMT
• 1,779 purchase centres identified
(IKP- 998, PACs- 584 & others- 197)
• CSC positioned 3.43 crore gunny bags sufficient for
this season while Marketing Dept. provides
infrastructure shortfall in certain districts
• Hamali charges paid per Qtl. Rs 13.32 ps. till now
and proposed enhancement of Rs 20/-
MSP
Variety
Rate per qtl.
Common
Rs 1,250/-
Grade A
Rs 1,280/-
contd….
Khariff plan
(Nos.)
Sl.
No
Equipment
Requirement
Availability
Shortfall
1
Gunny bags
3.43 cr.
3.43 cr.
0.00
2
Tarpaulin
36,169
40,215
4,046(+)
3
Winnowing machines
614
89
525
4
Paddy cleaners
1,468
888
580
5
Moisture meters
1,954
1,931
23
6
Beam scales
2,011
1,669
342
contd….
Khariff plan
• Marketing Dept. to provide required equipment out of
Market fee (1%) paid by CSC/FCI
• Agriculture Officers to provide technical assistance at
purchase centres
• Collectors (CS) to appoint transport contractors and
tagging mills with purchase centres
• Collectors (CS) to make Tahsildars responsible for
monitoring purchase centres and to coordinate with
transport contractors and rice mills
• Procuring agencies to engage @ one technical
assistant for each purchase centre
• Marketing Dept. to gradually setup permanent paddy
procurement centres
Paddy arrivals
Paddy purchases expected in PPCs - Khariff 2012-13
5
4
3
2
1
0
Purchase
in LMT
Oct 12
Nov 12
Dec 12
Jan 13
Feb 13
Production vs. purchase
Paddy production & purchase analysis
West Godavari
East Godavari
Nellore
Krishna
Karimnagar
Srikakulam
Nizamabad
Medak
Warangal
Khammam
Prakasam
Purchase
Adilabad
Production
Visakhapatnam
Vizianagaram
Rangareddy
Mahabubnagar
Kadapa
Nalgonda
Guntur
Kurnool
Chittoor
Ananthapur
0
1
2
3
4
5
6
7
8
9
10
Production & purchase in LMT
11
12
13
14
Farmer payments
• Issue of cheques to farmer in 3 days after paddy
accepted in PPC
• CSC to issue cheques directly curtailing present
delay of 7–10 days
1st day  Acceptance of paddy from farmer
 Transport to mill
 Uploading farmer details, quantity &
bank a/c
of
farmer
2nd day  Reconciliation
acknowledgements, trip sheets and mill
receipts
 Confirmation of purchase to head office
 Release of funds from head office
contd….
Farmer payments
• Permitted Rs 10,000/- per PPC towards engaging
manpower (runner) and other contingent charges
• Coordination with bankers for issue of large no. of
cheques
• Authorized AMs, Grade I & II staff of District office
for issue of cheques from divisional/ mandal level
• DMs held responsible for meticulous execution
• JCs to coordinate and verify disbursement on
daily basis
Sonamasuri
• Market intervention scheme
• State Govt. directed CSC to purchase 8
preferred varieties of paddy @ 1,500/- per Qtl.
in all districts (except Hyd)
• Expected production – 27.62 LMT
• Projected purchase – 5 LMT
• CSC managed 100 exclusive centres proposed
at AMCs
• Quality specifications – 14:2:2:1
• After milling, proposed to sell rice through
Rythu Bazars @ Rs 30.50 ps per Kg.
Rice Procurement
23 Districts
16 Districts
23 Districts
FCI
State
TPDS
25 LMT
requirement
CMR
4 LMT
CSC
15 LMT
Mill levy
Mill
Levy
11 LMT
7 Districts
Khariff proposal (raw rice)
40 LMT
Rice Procurement
• Out of 40 LMT annual state PDS rice
requirement, CSC proposing to procure 15
LMT rice in both CMR & mill levy routes
• Rice procurement target for CMR – 4 LMT and
mill levy – 11 LMT
• CSC to operate in 7 districts for acceptance of
mill levy and FCI in other districts
• CSC to accept CMR raw rice and FCI boiled
rice in all districts
• Primarily aims at achieving self-reliance in
State TPDS rice requirement
Mill levy target
Sl
No
District
Target
(in LMT)
1
Nalgonda
1.70
2
Karimnagar
2.00
3
Guntur
2.60
4
Prakasam
0.40
5
Warangal
1.80
6
Nellore
2.30
7
Chittoor
0.20
Total
11.00
CSC rice procuring districts
Godown space
• Requirement for DCP rice storage - 6 LMT
godown space
• To hand over 4.25 LMT dehired FCI godowns
from SWC/CWC
• Acquiring balance godown space of 1.75 LMT
from AMC and private
• Circular instructions issued for taking over
godowns
• Payment of rentals as per existing FCI hire
charges
MLS Point godowns
• 439 MLS Points for distribution of TPDS rice.
• 11.37 LMT godown space construction taken
up for storage of 3 months stock.
MLS Point
Godown
Govt. land availability
A
108
CSC owned
Yes
B
81
Hired
Yes
C
250
Hired
No
Total
439
• 4.64 & 6.73 LMT godown space construction
in 189/ 250 MLS Points referred to SWC (A &
B) & Marketing Dept. (C) respectively.
MLS Point upgradation
• Scientific godown with a storage capacity of 3
months stock.
• Delivery by weighment – private nearby weigh
bridges and rationalized transport contract
• Quality local rice supply – utilization of local
rice with in the district with proper infestation/
fumigation measures
• Strict lifting schedule
• Computerization, online DD payment & SMS
communication
• Assistant and watchman on outsourcing basis
Transportation
• Transport rates approved for Stage I and II
applicable for godowns under DCP operations
• CSC adopts handling charges as approved by
SWC/ CWC in FCI dehired godowns
• CSC provides same rates in AMC & other
godowns
• JC authorized for entrustment & payments
• CSC communicated detailed guidelines
Manpower
• Creation of procurement wing
• 131 CSC technical, accounts staff and depot
asst. deployed for DCP operation
• 20 technical assistants deputation from FCI
• 131 DT/RIs deputation as MLS point incharges
pending with Dist. Collectors
Status of staff deployment in all districts
Technical (79)
Accounts (21)
•Deputation from FCI (20)
• Available CSC staff (79)
• Retired CSC staff (17)
•Available CSC staff (21)
Depot Assistants (30)
• Available CSC
staff (30)
Computerization
• NIC requires another 3 months for software
updation to capture real time data entry from
godown point
• Meanwhile, present accounts software
supports DCP operation
• Hardware purchase & outsourcing DEOs
District
Desktops
DEOs
permitted
Karimnagar
.
6
4
Chittoor
2
2
Warangal
6
4
Nalgonda
7
4
Guntur
4
4
Prakasam
4
4
Nellore
4
4
33
26
Total
QC verification
• State level vigilance squad conducts surprise
inspections on quality of rice acceptance and
stock maintenance
Stack
Unit of sampling
189 MT/ 3,780 bags
Consignment
Unit of acceptance
27 MT/ 540 bags
• Sate/ district laboratories for analysis of
accepted consignments 2% and 5%
• District QC cell to conduct 25% check
• AGM (QC) from CSC to conduct 10% check
• III party verification of rice acceptance and
stock maintenance on quarterly basis
Funds flow
• RBI sanctioned cash credit
Paddy purchase
23 dist.
2012-13
Rs 3,000 crores
Rice procurement
7 dist.
11 LMT
Rs 3,000 crores
• 3 month GOI advance of PDS subsidy Rs 663 crores towards 7 DCP districts
• 7 LMT paddy purchase of 3 month (Oct - Dec)
requirement - Rs 1,100 crores
• 5.5 LMT raw rice mill levy of 3 month (Nov Jan) requirement - Rs 1,500 crores
• Millers payments by RTGS mode
Online funds transfer
• Annual receipt Rs 1,200 crores from 45,185
FP shop dealers towards commodities
released under PDS
• Annual farmers payments under paddy
purchase scheme of Rs 3,000 crores
• Payment to rice millers in 7 DCP districts this
year of Rs 3,000 crores
• SBI agreed for online transfer of Rs 7,200
crores (apprx.)
Training programme
Technical
staff
Training for 80 CSC staff
completed by FCI
Accounts
Training for 21 accountants
completed by FCI
Depot
Managers
Training for 30 assistants
completed by FCI
New program/ initiatives
New programs
1. Decentralize procurement of raw rice
2. Sonamasuri paddy procurement
New initiatives
1. Direct farmer payments by CSC in 3 days
2. Strengthening MLS points
3. Online transfer of payments to farmers &
millers and receipts from FP shop dealers
Time frame
SNo
Activity
1
2
3
Taking over dehired FCI godowns
Relief of technical staff deployed
Deputation of DT/ RIs
4
5
6
Engaging DEOs on outsourcing
Purchase of computers
Transport entrustment
Date of
completion
31.10.2012
20.10.2012
25.10.2012
27.10.2012
27.10.2012
27.10.2012
Karimnagar
Month
• Target rice procurement
• Godown space required
• Rice mills tagged
– 2.00 LMT
– 1.10 LMT
– 546
• Manpower required
Godowns hired
Technical
Accounts
DEOs
– 14
– 3
– 14
Huzurabad
Rice Mills
SWC
0.15
SWC
0.10
AMC
0.10
SWC
0.23
AMC
0.05
SWC
0.10
CWC
0.09
Jagityal
SWC
0.10
39
Korutla
SWC
0.03
10
Metpally
SWC
0.05
9
Garrepalli/
Sultanbazar
CWC
0.10
Jammikunta
Peddapelly
Karimnagar
Total
1.10
63
63
90
160
112
546
Target
Oct.
0.00
Nov.
0.20
Dec.
0.80
Jan.
0.50
Feb.
0.25
Mar.
0.15
April
0.05
May
0.05
Total
2.00
Nalgonda
• Target rice procurement
– 1.70 LMT
• Godown space required
• Rice mills tagged
– 1.20 LMT
– 226
• Manpower required
Godowns hired
Dhuppalapally (NLG)
Technical
Accounts
DEOs
– 15
– 3
– 15
Month
Rice Mills
SWC
0.10
SWC
0.10
AMC
0.10
SWC
0.10
AMC
0.02
SWC
0.15
SWC
0.08
AMC
0.05
FCI
0.10
CWC
0.10
AMC
0.10
Chityal
SWC
0.10
8
Valigonda
AMC
0.05
8
Huzurnagar
Kodad
VT Palem/MLG
Bonagiri
Wangapally (IG)
Suryapet
17
24
39
94
14
22
Existing MLS Points
0.05
Total
1.20
226
Target
Oct.
0.00
Nov.
0.55
Dec.
0.65
Jan.
0.45
Feb.
0.05
Total
1.70
Warangal
Month
• Target rice procurement
• Godown space required
• Rice mills tagged
• Manpower required
Technical
Accounts
DEOs
– 14
– 3
– 14
– 1.80 LMT
– 1.10 LMT
– 203
Godowns hired
Rice Mills
Enumamula (WGL)
SWC
0.10
Enumamula (WGL)
AMC
0.10
Main Depot (WGL)
CWC
0.06
WGL (Fort Road)
CWC
0.05
Dharmaram (WGL)
SWC
0.13
Dhupakonda
SWC
0.04
Rampur
PVT
0.18
Jangaon
AMC
0.05
Raghunathpally
SWC
0.10
Mahaboobabad
SWC
0.10
Khanapur
SWC
0.07
Narsampeta
AMC
0.05
Existing MLS Points
0.07
Total
1.10
95
38
34
36
203
Target
Oct.
0.00
Nov.
0.25
Dec.
0.75
Jan.
0.50
Feb.
0.30
Total
1.80
Guntur
Month
• Target rice procurement
– 2.60 LMT
• Godown space required
• Rice mills tagged
– 0.85 LMT
– 307
• Manpower required
Godowns hired
Technical
Accounts
DEOs
– 15
– 3
– 15
Rice Mills
Bapatla
SWC
0.20
49
Narsaraopet
SWC
0.10
46
SWC
0.13
42
AMC
0.05
Sattenapalli
SWC
0.05
Sattenapalli
PVT
0.07
Chilakaluripet
AMC
0.05
22
Piduguralla
AMC
0.05
32
Repalle
SWC
0.05
35
Guntur
CWC
0.05
65
Tenalli
Existing MLS Points
0.05
Total
0.85
16
307
Target
Oct.
0.00
Nov.
0.05
Dec.
0.25
Jan.
0.55
Feb.
0.60
Mar.
0.40
April
0.35
May
0.25
June
0.15
Total
2.60
Prakasam
• Target rice procurement
• Godown space required
• Rice mills tagged
Month
– 0.40 LMT
– 0.25 LMT
– 89
• Manpower required
Technical
Accounts
DEOs
–
–
–
4
2
4
Target
Jan.
0.01
Feb.
0.05
Mar
0.10
April
0.10
May
0.10
June
0.04
Total
0.40
Rice Mills
Godowns hired
Chirala
SWC
0.09
41
Throvaguntta
(Ongole)
CWC
0.10
48
Existing MLS Points
0.06
Total
0.25
89
Nellore
•
•
•
•
Month
Target rice procurement – 2.30 LMT
Godown space required – 0.90 LMT
Rice mills tagged
– 273
Manpower required
Technical – 14
Accounts – 3
DEOs
– 14
Target
Feb.
0.18
Mar.
0.83
April
0.56
May
0.53
June
0.20
Total
2.30
Godowns hired
Rice Mills
Nellore
CWC
0.30
64
Vedayapalem(NLR)
SWC
0.10
60
MVR (NLR)
SWC
0.04
62
VRR (NLR)
SWC
0.04
VRR (NLR)
PVT
0.06
Gudur
SWC
0.08
10
Kavali
SWC
0.14
15
Kavali (Hired)
SWC
0.07
Existing MLS Points
0.07
Total
0.90
62
273
Chittoor
• Target rice procurement
• Godown space required
• Rice mills tagged
– 0.20 LMT
Month
– 0.30 LMT
Feb.
0.05
Mar.
0.05
– 48
April
0.05
May
0.05
Total
0.20
• Manpower required
Technical
Accounts
DEOs
– 4
– 2
– 4
Target
Godowns hired
Rice Mills
Reniguta
CWC
0.10
11
Yerpedu
SWC
0.12
17
Existing MLS Points
0.08
20
Total
0.30
48
Abstract
Sl
No
District
Target
(LMT)
Godown space
required (LMT)
Godowns
(Nos.)
Rice mills
tagged
(Nos.)
Manpower req. (Nos.)
Tech.
Acct.
DEOs
Total
1
Karimnagar
2.00
1.10
11
546
14
3
14
31
2
Nalgonda
1.70
1.20
13
226
15
3
15
33
3
Warangal
1.80
1.10
12
203
14
3
14
31
4
Guntur
2.60
0.85
10
307
15
3
15
33
5
Prakasam
0.40
0.25
2
89
4
2
4
10
6
Nellore
2.30
0.90
8
273
14
3
14
31
7
Chittoor
0.20
0.30
2
48
4
2
4
10
Total
11.00
5.70
58
1692
80
19
80
179
Levy schedule
(Qty. in LMT)
Sl
No
District
Target
Oct
Nov
Dec
Jan
Feb
Mar
2.00
0.20
0.80
0.50
0.25
2 Nalgonda
1.70
0.55
0.65
0.45
0.05
1.70
3 Warangal
1.80
0.25
0.75
0.50
0.30
1.80
4 Guntur
2.60
0.05
0.25
0.55
0.60
0.40
0.35
0.25
0.15
2.60
5 Prakasam
0.40
0.01
0.05
0.10
0.10
0.10
0.04
0.40
6 Nellore
2.30
0.18
0.83
0.56
0.53
0.20
2.30
7 Chittoor
0.20
0.05
0.05
0.05
0.05
Total
11.00
1.30
1.53
1.11
0.98
2.45
2.01
0.05
June July Total
1 Karimnagar
1.05
0.15
April May
0.05
2.00
0.20
0.39
11.00
Godown Space – Breakup
Godown Space required (LMT)
Sl
No
District
Target
SWC
CWC
AMC
Private
MLSP
Total
No
Cap.
No
Cap.
No
Cap.
No.
Cap.
Cap.
No.
Cap.
1
Karimnagar
2.00
7
0.76
2
0.19
2
0.15
0
0.00
0.00
11
1.10
2
Nalgonda
1.70
7
0.73
1
0.10
5
0.32
0
0.00
0.05
13
1.20
3
Warangal
1.80
6
0.54
2
0.11
3
0.20
1
0.18
0.07
12
1.10
4
Guntur
2.60
5
0.53
1
0.05
3
0.15
1
0.07
0.05
10
0.85
5
Prakasam
0.40
1
0.09
1
0.10
0
0.00
0
0.00
0.06
2
0.25
6
Nellore
2.30
6
0.47
1
0.30
0
0.00
1
0.06
0.07
8
0.90
7
Chittoor
0.20
1
0.12
1
0.10
0
0.00
0
0.00
0.08
2
0.30
33
3.24
9
0.95
13
0.82
3
0.31
0.38
58
5.70
Total
11.00
Thank You
AP-CSC
(Andhra Pradesh State Civil Supplies Corporation Limited)