DIRECTORATE OF KHADI RAW MATERIAL
KHADI AND VILLAGE INDUSTRIES COMMISSION
3, IRLA ROAD, VILE PARLE (W), MUMBAI-56
Phone/Fax : 022-2620 7624, E-mail : directorkrm@kvic.gov.in
No. DKRM/CSPs/Raw Material Policy/2013-14/
18th June 2013
STANDING ORDER No. 1720
Sub: Methodology of Cotton, Wool & Silk procurement
Policy – reg.
The Commission in its 612th meeting held on 22.4.2013 has
approved methodology of purchase of Cotton, Wool and Silk raw
material. This is in supersession of all previous circulars on
procurement policy of raw material.
The methodology of purchase of Cotton, Wool and Silk raw
material are as follows:
FOR C.S.Ps:
The existing policy as notified vide circular No. DKRM/
CSPs/Cotton Purchase-CCI/2009-10 dated 24.12.2009 shall
continue.
FOR KHADI INSITUTIONS:
1.
The institutions which work on traditional charkha may
be permitted to purchase desi cotton as well as other
variety which is not produced by the CSPs from the open
market, as per approved production target. Proof of source
of purchase of raw material made in other States shall
have to be provided to authorized officer of the KVIC/Govt.
2.
The institutions should also explore possibilities to
procure said varieties through Govt. agencies viz. State
Level Cotton Federations, Local Regulated Market,
Agricultural Producers Marketing Committee and National
Agricultural Federation and such other organizations.
3.
The institution should constitute purchase committee
comprising of minimum 5 members as follows:
i)
ii)
Two representative of the purchasing institution
authorized by the Management Committee.
Secretary or his authorized representative from
nearby institution.
iii)
iv)
State/Divisional
Director
or
his
representative.
Authorized representative of KVI Board.
authorized
4.
One of the representatives of the purchasing institution
shall work as Member Convener of the Committee. The
quorum of the purchase committee shall be minimum of 3
members.
5.
The institution shall arrange purchase of cotton through
an open and verifiable system from reliable parties and
maintain detailed records of purchase as mentioned at
point 9. The Khadi Institutions are advised to purchase
the cotton preferably at the time of first pick or second
pick only to ensure the quality of cotton.
6.
The cotton supplier/trader should be registered under the
Sales Tax Act/Value Added Tax, Mandi Samiti, Shop &
Establishment Act.
7.
The payment of the raw material purchased, should be
made only through Account Payee Cheque/Demand Draft
or in such other mode through banking channel. No cash
transactions should be made and not more than two
purchases per month be permitted.
8.
Proper stock entry should be made for the goods/bales
purchased and proper transit and adequate stock
insurance should be taken by the Khadi Institutions on
the procurement of Cotton. The institution should have
adequate financial resources in its books of accounts at
the time of purchase the raw material from open market.
9.
The following details may be submitted to State/Divisional
Offices within 15 days after purchase of raw material.
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
Name of the institution
The details of Committee (names)
Name & address of the supplier
Variety of cotton
Rate of cotton per candy weighing 356 kgs.
Market position regarding supply and rate on the
date of purchase.
Procedure adopted by the CPC.
Quantity purchased & value.
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
10.
Date of purchase
Date of dispatch
Mode of transport
Mode of payment
RR/LR No.
Details of transit insurance and stock insurance.
Lot test report from Govt. approved testing
laboratories.
On receipt of such report from the institution the
concerned
State/Divisional
Offices
should
take
appropriate actions after scrutiny of the details submitted
by the institution.
11.
The cotton purchased from open market or any other
sources has to be processed through nearest departmental
CSPs or nearby institutions that have facilities to convert
cotton into sliver/roving and maintain transactional
records to provide as collateral evidence as and when
required.
12.
The Khadi Institutions which work on NMC and
produce yarn/khadi there-from should procure sliver/
roving from KVIC departmental CSPs only.
SILK POLICY
1.
In States where regulated markets have been established
by State Govts., silk cocoons should be purchased by the
Khadi Institutions through regulated market only. For
these States there is no purchase committee is required to
buy Cocoon. No purchase committee is required to be
constituted for such States.
2.
In States where regulated
established by State Govt.,
institutions may source their
cocoon) from open market
guidelines.
(i)
markets have not been
the silk producing Khadi
required raw material (silk
adhering to the following
The Khadi institutions are permitted to buy cocoon
from the Farmers and small vendor on spot by the
purchase committee by cash upto Rs.5000/- per
farmer considering the peculiar system prevailing in
the Bihar, Jharkhand, Orissa, M.P., Chattisgarh and
all North Eastern States.
(ii)
3.
Total such transactions per year should not exceed
Rs.5,00,000/- (Rupees five lakhs only).
The institution should constitute purchase committee
comprising of minimum 5 members viz.
i) Two representatives of the purchasing institution –
authorized by managing committee.
ii) Secretary or his authorized representative from nearby
institution.
iii) State/Divisional Director or his authorized representative.
iv) A representative of Khadi Board
4.
One of the representatives of the purchasing institution
shall work as Member Convener of the Committee. The
quorum of the purchase committee shall be minimum of 3
members.
The presence of one of the Member
representing Govt. including KVIC is required while
purchasing cocoon in open market/farmer/small vendor.
5.
The indenting silk producing institution should also
explore possibilities to procure cocoon through Govt.
agencies such as from Central Silk Board, State Silk
Board, Concerned State Govt. Sericulture Dept. or State
sponsored cocoon farmers co-operatives.
6.
Transit and stock insurance should be done properly by
the Khadi Institutions on the procurement of Silk Cocoon,
wherever applicable. Proof of source of purchase of raw
material made in other States shall have to be provided to
authorized officer of the KVIC/Govt.
7.
The payment of the raw material purchased, should be
made only through Account Payee Cheque/Demand Draft
or any other banking channel except ceiling limits
permitted on cash transactions for each transaction and
per year.
8.
As of now, there is no Silk Sliver Plant established by the
KVIC to cater the needs of silk raw materials to silk
producing institutions in the country, therefore till
establishment of Silk Sliver Plant, the silk producing
institutions are permitted to buy Eri, Muga, Tusser and
Matka (Handi) varieties of Silk Sliver only with Private
firms with collateral evidence which will be checked/
verified by authorized Officers of the KVIC, whenever
required.
WOOL POLICY
1.
The policy framed under Cotton is made applicable to the
desi wool also. However, Woolen Khadi institutions are
permitted to buy desi wool from the Sheppard/
Farmers/small vendors on spot by the purchase
committee by cash upto Rs.5000/- per farmer. However,
such cash transaction should not exceed Rs.5,00,000/(Rupees five lakhs only) per year. The presence of one of
the Member representing Govt. including KVIC is required
while purchasing Desi wool in open market/shepherd/
small vendor.
2.
In case of merino and cross-breed wool, the institution
should procure such varieties from the arrangement made
by Rajasthan Khadi Gramodyog Sanstha Sangh, Jaipur or
Central or State Boards. The existing policy and guidelines
on procurement of merino wool shall continue.
The State/Divisional Directors are requested to issue the
above said raw material procurement policy to all Khadi
institutions coming under their jurisdiction for necessary
compliance.
The circular will be operative with immediate effect.
Sd/-
DIRECTOR (KRM)
To
1. All State & Divisional Directors
2. Chief Executive Officer of all State/UT KVI Boards
3. All Project Manager of Central Sliver Plants of KVIC.
Copy to:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
All Zonal Dy. Chief Executive Officers of KVIC
All Commission Members
Director (KC)
Director (KPM)
Director (Accounts)
Director (CCC)
Director (Inspection)
Director (Finance)
Director (Publicity) with a request to publish it in the
ensuing issue of Jagriti.
Director (DIT) for placing it on KVIC’s website
Director (State Board Cell)
Director (KD)
Director (SFURTI)
OSD to CEO
A.O. to F.A.
Circular file
DIRECTOR (KRM)