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Paddy Procurement

CHHATTISGARH

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A.K.Somasekhar, Technical Director NIC, Chhattisgarhsom@nic.in

Paddy Procurement in Chhattisgarh

Govt of Chhattisgarh procures paddy at MSP as a DCP state since 2002

Chhattisgarh amongst the top four contributors of rice to the central pool (36 LMT)

Employment to 3,000 transporters, 20,000 hammals and one lac workers (in 1500 rice mills)

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Stake Holders 10 lac farmers )

1500 millers

1888 Primary Agriculture Cop. Society(PACS) &

Large Agriculture Multi Purpose Society(LAMPS)

Chhattisgarh Marketing Federation (CGMARKFED)

Chhattisgarh State Civil Supplies Corporation (CGSCSC)

Food Corporation of India (FCI)

District Central Cooperative Banks (DCCB’s)

Department of Food 3

Historical baggage

Farmers had to travel long distances to sell paddyDelay in payment to farmers Exploitation of farmers in Mandis by middlemen and tradersDistress sale by farmers in MandisDiversion/Pilferage of procured stockProblems in accounting and auditNo transparency and accountability at any level

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Procurement reforms

Purchase in all PACS & LAMPS which are farmer- friendly

No middlemen, trader or arhtiya allowed. Purchases only in PACS & LAMPS

Purchase at door step – farmers don’t have to travel more than ten kms to sell their crop

Computer generated cheques at the spot, without any delay

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Procurement reforms

Direct transport to millers for milling from procurement centres saves times and money

Quick milling reduces interest loss, pilferage, driage and damage

Accountability at all levels

All information on the web for transparency

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How procurement has gone up

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615

2936 37

3238

4451

59.71

0

10

20

30

40

50

60

70

2000-01 2002-03 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Procurement(LMT)

Computerization Span

1888 Procurement centers

60 Paddy Storage centers

27 Food Controller’s office

27 (MARKFED) DMO's office

27 (CGSCSC) DM's office

119 (CGSCSC) CMR receiving centers

57 FCI, CMR receiving centers

Directorate of food8

Preparation before procurement

Dunnage, Tarpolin at the procurement centresRecord of farmers updated with help of Patwaris in PACS module before each KM Updation of loan records of farmers in PACS

module for purchase in linking Entry of estimated maximum yield (per ha) of paddy in PACS module Cheque rolls to reach the centresRecruitment and training of data entry operators and motor cycle runners on contract basis for online updation

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Custom milling of paddy (CMR)

Only registered rice mills get permission of custom milling by District Collectors. Attached to societies in proximity.

After permission, millers execute agreement with the DMO

Millers deposit custom milled rice in advance as security. Paddy also issued against bank guarantee.

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Custom milling of paddy (CMR)

CGSCSC/FCI procurement centre generates CMR acceptance receipt online. This appears on DMO's module automatically

DMO issues equivalent DO to millers to lift paddy from societies/storage centres

Mill registration, permission for milling, agreement, creation of CMR acceptance receipt and DO issuance through web based application .

Transport of paddy is also enabled through software.

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PACS Module(at each of 1888 procurement centres)

Hardware

One Computer

Two Printers

UPS

Generator

Stand alone module

One Data Entry Operator

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Computer generated cheques

10 lac farmers receiving computer generated cheques on the same day as against 3 to 6 days delay in the previous years

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Paddy Storage Centre(At each of 60 storage centers)

HardwareTwo computersTwo PrintersTwo UPSVSAT

Two Data Entry OperatorsWeb Based Application

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Outcome

State now a major exporter of rice (10 LMT

to 36 LMT )

Procurement of paddy has changed economic condition of rural Chhattisgarh

Technology spread in rural areas

Transparent Uniform Process followed throughout the State. Has helped curb corruption

Optimum daily cash flow to minimize interest burden

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Outcome (Contd --)

Optimum daily movement of paddy from procurement centers to mills and storage centers has minimized time taken in disposal of paddy

Quick disposal of paddy has ensured less damage, pilferage or driage

Bastar divison (7 districts – 4.84 lac BPL card) now self sufficient for its PDS requirements ( total procurement increased from 0.40 LMT in 2002 to 1.8 LMT rice in 2011)

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Outcome (Revival of Co-operatives)

Paddy procurement facilitates recovery of loan for PACS & LAMPS. Rs 1000 crores of credit recovered by way of paddy purchase in linking

Rs 100 crores distributed as commission to PACS/LAMPS. Running PDS better now

Markfed gets a commission of around Rs 75 crores every year

DCCBs get an administrative expense of around Rs 20 crores

Recovery of LDBs started from this year17

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TransparencyAs a matter of policy, all reports generated through the system have been put in public domain on citizen portal

Available on web in public domain

Details of farmers who sold paddy to different

societies and payments received by them

Procurement of paddy by different societies and

its transportation to rice mil or storage centre

Details of registered mills, permission granted for

milling and agreements executed

Details of CMR and levy rice received by

CGSCSC/FCI centres by each miller

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Thank YouA.K.Somasekhar9425202643som@nic.in