GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Civil Supplies – De-Centralized Procurement – Policy for Kharif

Marketing Season 2018-19 – Orders – Issued.

CONSUMER AFFAIRS, FOOD & CIVIL SUPPLIES(CS.I) DEPARTMENT

G.O.MS.No. 20 Dated: 12-09-2018

Read the following:
1) A.P.R.P.(Levy) Order, 1984
2) MoU with GOI on DCP from KMS 2015-16 communicated
with GOI letter No.3(4)/2015-Py.I, dt.13.10.2015.
3) G.O.Ms.No.18 CA,F& CS(CS.I) Dept. dated 08.11.2017.
4) GoI.Lr.F.No.6-1/2018-FES-ES, dt.11.07.2018 from the
Adviser (FE), Directorate of Economics & Statistics, Ministry of
Agriculture and Farmers Welfare, Krishi Bhavan, New Delhi.
5) GoI.Lr.No.8-3/2018-S&I, dt.21.08.2018 of the Deputy
Commissioner(S&R), Min. of CA, F & PD, Dept. of F & PD,
Krishi Bhavan, New Delhi.

***
O R D E R:

With a view to ensure payment of Minimum Support Price to the

famers and to improve outreach of procurement system to the farm
gate for their better coverage, and to avoid exploitation of farmers by
the millers/ traders, to ensure all the States in the country to acquire
self sufficiency in procuring rice for Targeted Public Distribution
System (TPDS) and Other welfare Schemes (OWS), De-Centralized
Procurement (DCP) has been taken up in the entire State w.e.f., 1st
October, 2015.

2. As per the De-Centralized Procurement scheme and MoU

executed with Govt. of India, from the KMS 2015-16 onwards, the
State Govt. shall procure Paddy, mill the paddy and retain the
resultant raw rice for TPDS and Other Welfare Schemes as per
allocation made by the Central Government and hand over the excess
rice either raw or boiled to the Food Corporation of India for central
pool. A MoU has been signed with the Govt. of India for procurement
of paddy / rice under DCP scheme from KMS 2015-16 (i.e.,
01.10.2015) onwards.
 2

3. The following orders are issued as “Procurement Policy” for the

Kharif Marketing Season 2018-19.

4. The Minimum Support Prices(MSP) fixed by Government of India

for the KMS 2018-19 are as follows, read GoI letter 4th cited.

Price per Quintal of Fair Average Quality of paddy

Grade “A”: Rs.1,770/-
Common: Rs.1,750/-

5. The FAQ specifications for paddy and rice prescribed by the

Govt. of India vide GoI letter read 5th above are enclosed as
Annexure-I & II.

6. The estimated annual requirement of raw rice for TPDS/Other

Welfare Schemes with 3 months buffer is 36.00 lakh MTs and this
quantity of rice has to be procured through CMR route only. For this
purpose the APSCSCL has to procure about 53.00 lakh MT paddy
from farmers, custom mill it and retain the raw rice for TPDS and other
welfare schemes in the State.

7. The objective of operating the Paddy Purchase Centers is to

ensure Minimum Support Price to the farmers at their nearest place as
far as possible. The AP State Civil Supplies Corporation Ltd., shall open
as many purchase centres as required for purchasing paddy from the
farmers at MSP by getting them opened through Women Self Help
Groups(Velugu), PACS, DCMSs etc., in all the paddy growing districts.
The AP State Civil Supplies Corporation Ltd. shall also ensure that
adequate gunnies, other equipment are available at the purchase
centres.

8. The AP State Civil Supplies Corporation Ltd. shall invariably

make payments to the farmers for the paddy purchased direct to the
bank accounts of the farmers by electronic mode through RTGS/NEFT.
The entire transactions of paddy purchases, payment made to farmers,
transportation of paddy, paddy delivered to the mills, CMR delivered
by the rice mills, etc. shall be monitored online on real time basis. The
daily information shall be monitored and informed to the
Commissioner of Civil Supplies.
 3

9. The millers may also purchase paddy of FAQ at a price not less
than the Minimum Support Price. They shall invariably make payment
to the farmers direct to the bank accounts of farmers through RTGS or
A/c payee cheques.

10. As per the Govt. of India orders, the millers need not deliver rice
under levy. The millers shall maintain the details of paddy
purchased, rice produced, sold, balance stock etc., duly
computerized in real time in form ‘A’ and ‘B’ registers
prescribed in the A.P. Rice Procurement (Levy) Order,1984 and
make available online for verification.

11. Every miller shall maintain and submit online true

accounts indicating the total transactions of custom milling
right from receipt of paddy, paddy milled, CMR delivered and
balance stocks available at the end of the day in Form-A1
indicating the details of Custom milling for the paddy of
persons other than Govt. agencies for and in form A2 for the
indicating the details of Custom milling for the paddy received
from the Govt. agencies.

12. Every miller shall maintain separate account for the stock
of paddy purchased on his own account, paddy milled, rice
produced, sold within or outside state etc., in Form-B and
submit online report to the concerned authority.

13. As there is no levy, the entire quantity produced by the millers is

levy free. Millers can sell / move the Non-preferred varieties of rice
anywhere in the country without any permit.

14. In view of high demand for superfine preferred varieties of rice

in the state, and to ensure that prices of preferred varieties of rice are
available at affordable rate in the open market in the State, the
superfine preferred varieties of rice shall be sold in 2:1 ratio between
within and outside the State. For sale / movement of superfine
preferred varieties rice within the state, no release certificate/ permit
is required by the miller. For sale / movement of superfine preferred
varieties rice outside the State, the miller shall take release certificate
from the district administration consequent on sale of 2 units of rice
within the state for sale of 1 unit of rice out side the state.
 4

15. The A.P. State Civil Supplies Corporation Ltd., shall make
necessary arrangements for procurement of paddy at MSP and retain
the resultant CMR raw rice from out of the paddy procured in the
entire State for TPDS/OWS and deliver the boiled rice and excess raw
rice of 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 ensure MSP to
farmers. The AP State Civil Supplies Corporation Ltd., shall commence
MSP operations w.e.f. 01.10.2018 by opening adequate number of
purchase centers.

16. The V C & MD., APSCSCL shall make necessary arrangements

™ for opening of paddy purchase centres as many as required.

™ Identification and tagging of rice mills to the PPCs for custom

milling and delivery of CMR.

™ Transport arrangements for immediate shifting of paddy to the

rice mills or to the intermediary godowns if necessary.

™ Identification and hiring of SWC / CWC/ FCI / Marketing

godowns for storage of CMR.

™ Private scientific Godowns, if necessary, may also be hired for

storage of CMR.

™ Appointing required Technical, Accounts and other maintenance

staff on outsourcing/ retired persons from FCI / APSCSCL at the
godowns for receiving CMR as per FAQ specifications and for
proper storage.

™ Advance plan and agreements with Railways for transport of rice

from surplus districts to the deficit districts.

17. The A.P.State Civil Supplies Corporation Ltd., shall move the
paddy procured at PPCs to the rice mills simultaneously for custom
milling and delivering raw rice to the AP State Civil Supplies
Corporation Ltd., boiled rice and excess raw rice as ordered by the
Govt./ Commissioner of Civil Supplies to the FCI. 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
 5

with a view to protect the stocks from vagaries of nature, and avoid
deterioration of quality.

18. The paddy like IR 64, MTU 1010(long grain) which is not
preferred to eat by the people of Andhra Pradesh, if any procured
under MSP operations, the resultant CMR can be sold out by the VC &
MD., APSCSCL in the open market within or outside the state and to
export.

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, CMR delivered to them and to the FCI, the quantity of rice yet
to be delivered etc., and submit the details to the Commissioner of
Civil Supplies.

20. The VC & MD, AP State Civil Supplies Corporation Ltd. shall take
action to ensure that raw rice as delivered under CMR is accepted by
having adequate godown space at MLS points and other buffer
godowns. He / She 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 / She shall also
explore the possibility of godown construction on own and 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 CMR raw rice by the AP State Civil Supplies Corporation Ltd.
for want of godown space.

21. The Swarna (MTU 7029) variety rice procured under CMR in the
Procuring districts like Srikakalam, E.G., W.G., Krishna, after meeting
the requirements of districts, the surplus Swarna variety rice shall be
moved to other districts for use in the Mid-day-Meals, Social Welfare
hostels, Anganwadi centres and other welfare schemes. The Swarna
variety rice shall also be earmarked and used for fortification of rice.
The transportation shall be taken up at an optimal movement.

22. The CMR raw rice retained by the AP State Civil Supplies
Corporation Ltd. shall be utilized for the PDS and Other Welfare
Schemes in the State. If the rice stocks procured is in excess of the
requirement for PDS / OWS, such excess stocks shall be delivered to
the FCI. The deficit raw rice for the requirements would be made
available by the FCI as per the terms and conditions of the De-
Centralised Procurement.
 6

23. The Rice Millers shall 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 to deliver,
misappropriation, etc., the millers are liable for prosecution, black
listing, etc.

24. The Rice Millers shall undertake 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 as stipulated in clause 9(1) of
the A.P. Rice Procurement (Levy) Order, 1984. The Collectors may
allot the paddy purchased at the Purchase centres of women Self Help
Groups(Velugu)/ DCMS / PACSs / GCCs / Market Yards etc., to rice
mills for immediate custom milling without storage of the paddy. The
rice millers shall commence milling of paddy received from the PPCs
within a week from the date and time of receipt and shall complete
custom milling of paddy and deliver the resultant rice, within 15 days,
either as raw rice or boiled rice to the APSCSCL / FCI, as prescribed by
the Government or the APSCSCL for the paddy handed over by the
A.P. State Civil Supplies Corporation Ltd. 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 A.P. State Civil Supplies Corporation Ltd.

25. 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 / redressal.

26. 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 Collectors concerned in consultation
with the Collectors of the districts to which paddy is proposed to be
moved. The expenditure incurred by the A.P. State Civil Supplies
 7

Corporation Ltd., shall be booked to the MSP operations of paddy and

the same shall be included in the audited accounts of KMS 2018-19, so
that the Government of India will be requested for reimbursement of
the same.

27. The Commissioner of Marketing shall issue instructions to all the

Secretaries of AMCs to prepare a contingency plan well in advance to
tackle the paddy 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.

28. The Marketing Department will provide required number of

Moisture meters, 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 Velugu / DCMS / PACSs / GCCs / Market Yards without
fail. One additional Moisture meter per PPC 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.

29. 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.

30. 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, Cooperative,
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.
 8

31. The District Supply Officer shall tag the PPCs for shifting of
paddy procured to the nearest rice mills. Only in exceptional cases,
such as non-availability of Rice Mills, or the existing Mills are not in
working condition, or the paddy procured is over and above exceeding
the milling capacity of the nearby mills, and in order to avoid damage
of the paddy due to rains, pests, insects etc and also to avoid delay in
milling and to obtain the CMR at the earliest, the paddy procured at
PPCs may be transported to the mills of beyond 8 KMs. Rice mills shall
be selected based on the milling capacity and past performance in
custom milling operations. Paddy shall be allotted to the rice mills for
custom milling and delivery of CMR strictly as per the milling capacity
of rice mills and obtain MOU from the designated rice mills in the
prescribed format along with Bank Gurantees @ CMR Cost 1:1.5
before commencement of Khariff 2018-19 and handover the same to
DM, CSC to file the same in DM Office.

32. The Collectors shall ensure that the enforcement officials and
any other teams as prescribed by the district administration inspect
the rice mills periodically to ensure that the paddy handed over for
custom milling is stored under proper conditions, milling of paddy,
delivery of CMR, balance stock available etc., and to take immediate
action if any discrepancy is noticed.

33. If any shortage in stocks is found, the miller is liable to pay one
and half time (1 ½) the value of stock in shortage and also liable for
criminal action for criminal breach of trust and misappropriation of
govt. stocks under section 405, 420 of IPC, etc.

34. The enforcement officials shall also ensure that millers made
payment to the farmers at not less than the MSP through A/C payee
cheques or RTGS transfer by conducting random verifications.

35. The enforcement officials shall also follow and take action as per
the provisions of the Andhra Pradesh State Targeted Public Distribution
System (Control) Order, 2018 in respect of recycling, diversion and
other wise mis-utilization of the PDS rice.

36. 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.
 9

37. Detailed operational guidelines are enclosed in Annexure-. The

Government or the Commissioner of Civil Supplies may issue any
further guidelines or orders from time to time to ensure uninterrupted
procurement of paddy and CMR.

38. A copy of this order is available on the internet and can be

accessed at the address- www.ap.gov.in;http://goir.ap.gov.in

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

B.RAJSEKHAR
E.O.PRINCIPAL SECRETARY TO GOVERNMENT

To
The Commissioner of Civil Supplies, A.P., Vijayawada.
The VC & Managing Director, A.P. State Civil Supplies Corporation
Limited, Vijayawada.
All the Collectors.
The General Manager (A.P.), Food Corporation of India, Hyderabad
The Chief Executive Officer, SERP.
All the Joint Collectors,
All the District Supply Officers / DMs, APSCSCL.
The Commissioner for Cooperation and Registrar of Cooperative
Societies, A.P.,VJA.
Copy to:
The Secretary to Govt. of India, Min. of Consumer Affairs, Food &
Public Distribution, Dept., of Food & Public Distribution, Krishi
Bhavan, New Delhi.
The Director General, Vigilance and Enforcement Dept, A.P.
The Principal Secretary to Govt., Revenue(CT), Dept, A.P.
The Principal Secretary to Govt., Agrl. & Cooperation, A.P.
The Special Chief Secretary to Government, Agriculture, Mktg&
Coop.Dept.,
The Managing Director, A.P. State Warehousing Corpn. Ltd,
Vijayawada.
The Regional Manager, Central Warehousing Corporation, Hyderabad.
The Commissioner & Director of Marketing, A.P., Guntur.
The Commissioner & Director of Agriculture, A.P., Guntur.
The Commissioner, Transport, A.P., Vijayawada.
The Commissioner, I & PR, A.P., Vijayawada.
The Secretary to Hon’ble Chief Minister for information
The P.S to Hon’ble Minister for Price Monitoring, Food, Civil Supplies &
Consumer Affairs, A.P.
The P.S to Hon’ble Minister for Agriculture and Horticulture, A.P.
 10

The P.S to Hon’ble Minister for Marketing Department, A.P.

The President, Rice Millers Association, A.P.,
The President, DRMA, EG/WG/RMWA, Krishna district
SF/ spare.

//FORWARDED ::BY ORDER//

SECTION OFFICER
 11

:: A N N E X U R E – I ::
UNIFORM SPECIFICATION OF ALL VARIETIES OF PADDY
(KHARIF MARKETING SEASON 2018-19)

(GoI.Lr.No.8-3/2018-S&I, dt.21.08.2018 of the Deputy Commissioner

(S&R), Mininstry of CA, F & PD, Dept. of F & PD, Krishi Bhavan, New
Delhi.)

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 5.0*
weevilled grains
3. Immature, Shrunken and shrivelled 3.0
grains
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 food grains’
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.
 12

(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.

…
 13

:: A N N E X U R E – II ::
UNIFORM SPECIFICATION FOR GRADE 'A' & COMMON RICE
(KHARIF MARKETING SEASON 2018-19)

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 (Khesari) in any form, or colouring agents and all
impurities except to the extent in the schedule below. It shall also
conform to prescribed norms under Food Safety & Standards Act,2006
/ Rules prescribed here under

SCHEDULE OF SPECIFICATION

S.N Refractions Maximum Limit (%)

Grade ‘A’ Common
1 Brokens * Raw 25.0 25.0
Parboiled/Single 16.0 16.0
parboiled rice
2 Foreign Matter ** Raw/Parboiled/Sing
le parboiled rice 0.5 0.5
3 Damaged # / Raw 3.0 3.0
Slightly Damaged Parboiled / Single 4.0 4.0
grains parboiled rice
4 Discolored Grains Raw 3.0 3.0
Parboiled / Single 5.0 5.0
parboiled rice
5 Chalky Grains Raw 5.0 5.0
6 Red Grains Raw/Parboiled/ 3.0 3.0
Single parboiled
rice
7 Admixture of Lower Raw/Parboiled/ 6.0 --
Class Single parboiled
rice
8 Dehusked Grains Raw/Parboiled/ 13.0 13.0
Single parboiled
rice
9 Moisture content @ Raw/Parboiled/ 14.0 14.0
Single parboiled
rice

* Not more than 1% by weight shall be small brokens.

 14

** 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.
@ Rice (both Raw & Parboiled/Single Parboiled) can be procured with
moisture content upto maximum limit of 15% with value cut. There
will be no value cut upto 14%. Between 14% to 15% moisture,
value cut will be applicable at the rate of full value.
…
 15

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.
 16

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.
…
 17

STANDARDS OF RICE FOR ISSUE TO STATE GOVERNMENTS/UT

ADMINISTRATIONS FOR DISTRIBUTION UNDER TPDS AND
OTHER WEFARE SCHEMES.

Guidelines for issue/disposal of wheat and rice have been issued

vide Department letter No.8-2/98-DR III dated 27.01.1998 and
13.11.1998. Gist of standards of rice for issue to State/UTs for
distribution under TPDS and OWSs alongwith updated illustrations for
KMS 2018-19 is as under:

1. Ready issuable stocks are fit for human consumption which

should conform the standards of Food Safety and Standards Act
and Rule framed there under.

2. Rice stocks falling within A,B & C categories (categorization is

based on damaged and discoloured grains) conforming to food
safety norms and free from insect infestation are ready stocks.
Ready stocks may be issued under TPDS and OWSs provided the
refractions in respect of broken grains, chalky grains, red grains
and dehusked grains are upto 20% in excess of the uniform
specifications.

Illustration of maximum permissible parameters of ready to issue

stocks of rice based on uniform specifications for KMS 2018-19 is as
under:

S.No Refractions Maximum Maximum

limit (%) as permissible
per uniform limit(%) for
specification Grade ‘A’ &
s for Grade Common
‘A’ &
Common
1 Damaged/Slightl Raw 3 5
y Parboiled/Single 4 5
damaged/Pinpoi parboiled rice
nt Damaged
Grains
2 Discoloured Raw 3 7
grains Parboiled / Single 5 7
parboiled rice
3 Broken Raw 25 30
 18

Parboiled / Single 16 19
parboiled rice
4 Chalky Grains Raw 5 6
5 Red Grains Raw/Parboiled/
Single parboiled 3 4
rice
6 Dehusked Raw/Parboiled/ 13 16
Single parboiled
Grains
rice
7 Foreign Matter Raw/Parboiled/ 0.5 1.0
Single parboiled
rice

…
 19

:: A N N E X U R E – III::

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) 2018-19

OPERATIONAL GUIDELINES

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 registration of farmers has been started from KMS

2014-15 at respective PPCs and new farmers if any leftover
during the last season may register this year KMS 2018-19
and the process may be undertaken.

• The documents like Pattadar Pass Book, letter from the

Village Revenue Officer about tenancy and area covered
under the paddy are to be produced by him in his land while
registration.
 20

• The land details and its ownership/tenancy shall be verified

with reference to the web land portal of the Revenue
department.

• The farmer land extent should not exceed 10 Hectares and those
farmers exceed the limit have to obtain permission from the
concerned District Manager to sell their paddy at PPCs. However,
the TCS will create an option in the software to alert in the DMs
login for smooth functioning of paddy operations.

• The Chief Commissioner of Land Administration (CCLA) shall

be addressed to provide access to the data bank of land
details contained in the web land portal and epanta for crop
details.

• 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

Velugu (Women Self Help Groups), PACs, DCMSs, etc. In
consultation with the Joint Collectors.

• Identification of areas for opening the exclusive Paddy

Purchase centres in addition to the AMCs;

• Assess and position the required number of gunnies and

suthli at each of the purchase centre;

• Availability of equipment like Paddy Cleaners, drying

machines, 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 one technical assistant

for quality analysis and certification shall be
positioned by the Agriculture Dept.
 21

• 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 paddy crop area and
estimated production.

• 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;

• Farm gate purchases of paddy shall be done with the support of

Tabs compatible to feed data and to generate purchase voucher
and truck chit at field level. This will also record the geo
coordinates of the agricultural fields from which purchases are
being made.

• Storage arrangements at the purchase centre like tarpaulin

etc to cover them till paddy is moved to mills;

• Transport agencies to make available adequate transport

fleet;

• Permission to millers/farmers 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 and
excess raw 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 online

directly through RTGS to the farmers account through
integrated banking system.

• The mandi labour charges like filling and placing the unit on
the weighing machine; weighment; unloading from the
 22

balance, stitching of bags, loading, marking and temporary

stacking at PPC 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 mandi labour charges shall pass on to the agencies who

undertakes the handling of paddy stocks at PPCs and the
amounts should be passed on to the genuine persons.

• The possibility to have RFID tags to the CMR bags may also
be explored gradually to ensure that there is no scope for
recycling of PDS rice at any stage.

• APSCSCL shall enhance the capacity of the MLS point

godowns;

• Godown requirement shall be assessed for receiving the

CMR 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;

• 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.
 23

• 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, utilization of services of the retired
officials from FCI/CS Corporation and hiring on contract
basis so as not to hamper procurement operations due to
lack of staff.

• The required staff shall be taken from the outsourcing; 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.

• 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;

• Samples taken shall be analysed to ensure that rice is as

per specifications;

• Payment to be made to the rice millers through "Online" RTGS

system.

• Proper weighment at the time of receipt and issue is

essential.

CUSTODY AND MAINTENANCE OF STOCKS OF PADDY / RICE:

• The District Administration shall declare every trading Rice

Mill as Storage Points for storing of paddy for custom
milling.
 24

• The paddy shall be supplied to the designated Rice Mills for

undertaking custom milling on behalf of APSCSCL.

• The Rice Millers shall be made responsible to receive the

paddy stocks, storage and maintenance until entire custom
milling is completed during the season.

• All the incidentals right from receipt of stocks and

completion of custom milling have to be borne by the
respective rice mills only. As such the custodian &
maintenance charges as admissible as per provisional
costing sheet of GOI will be passed on to the respective rice
mills on account of declaring as storage points.

• The Supervisory Officers viz., ASO, MCSO, RI, appointed by

Collector (CS), shall physically verify the paddy / CMR
stocks in the premises of designated rice mills periodically
by every week and submit the PV reports to the District
Collector(CS) .

• In case of non-availability of paddy / rice during inspection

by any inspecting authority, it amounts to criminal breach
of trust and misappropriation of Govt. stocks and action
shall be taken under IPC.

• Any seizure of the stocks and filing report by the

Enforcement Officer before the Collector, if there is any
paddy and Rice under the CMR Scheme belonging to the
APSCSCL, the Collector shall immediately order for release
of the paddy and Rice under CMR to the District Manager,
APSCSCL concerned.

• In case, the paddy is issued to the rice mills for milling from
intermediary storage points hired by APSCSCL, then the
APSCSCL shall retain the custodian & maintenance charges
as admissible as per GOI costing sheet will be retained by
PSCSCL.

• Proper dunnage at the godowns to be done;

• Custody and Maintenance system to be followed as per the
Warehousing norms;
 25

• Stacking to be done properly as per the standard norms

being adopted in the FCI godowns;

• Stock procured under CMR 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 of stocks shall be done both at the time of

receipt and issue.

• 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, computerization of accounts

to be done immediately. In other places, it shall be done in
a time bound manner.

• 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.
 26

• Godowns shall be clean and tidy to deny access to rodents

/snakes etc. and as per prescribed standards.

• Improper maintenance of godowns leads to deterioration in

quality and quantity of rice. Hence prompt 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 CMR 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 subsidised

rate, the subsidy amounts received from the Govt. of India
and the State Government to be credited in the cash credit
account;
 27

• 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.

• To ensure quick delivery of CMR and to maintain buffer

stocks as incase of FCI, movement of raw rice/ Paddy have
to be done with least cost to the corporation.

• Criss- cross movement (movement to another district and

getting back from the same district) of rice not to be
resorted.

• During the KMS 2018-19, the APSCSCL has to move raw

rice through rakes /road and make available in the deficit
districts for the PDS and other welfare schemes.

• APSCSCL to be frequently in touch with the FCI for

undertaking buffer operations by FCI, delivery of boiled rice
godown spaces etc.

• The paddy Procurement Software should be updated to the

requirement and for capturing all the details right from PPC
to delivery of CMR at the godowns.

• MIS shall be worked out for proper monitoring. District

Managers of the APSCSCL shall be responsible for proper
quality check, maintenance of stocks and accounts in the
godowns, preservation measures.

• The APSCSCL may explore the possibility for appointing

third party godown operators for maintenance of stocks.

• 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.
 28

• Timely reconciliation of accounts with the sub-agencies

like Velugu (Women Self Help Groups) groups, PACSs,
DCMSs, Rythu Mithras etc. to be done for payment of
commission due to them.

• Other than farmer payments, all incidentals including

transportation should be made only after reconciliation
of accounts.

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, CS Corporation for accepting paddy and CMR
rice; 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.
 29

• The Collectors(CS) with the assistance of DSOs shall map

the PPCs with the rice mills and tag the PPCs to rice mills
for unloading of paddy without any interruption and monitor
the unloading of paddy at the rice mills. Issue appropriate
order in case of exigencies of unloading of paddy at the mill
point.

• No distress sale should take place in the district.

• The movement of paddy should be optimal to the mills.
• Realisation of CMR within the guidelines.
• Provide necessary assistance of the DMs to DSOs by
providing date-wise quantity of paddy unloaded at each rice
mill for monitoring of delivery of CMR within the stipulated
time and for realizing the CMR rice from the rice millers.

• Joint Collectors shall appoint Joint Custody Officers in the

cadre of not less than MRI or DT s for Physical verification
of paddy / CMR stocks at designated rice mill points
periodically and fix up responsibility to furnish PV reports to
the Joint Collectors concerned.

• The Collectors(CS) with the assistance of DSOs and DMs

shall monitor on day to day basis the paddy handed over to
the mills by APSCSCL and delivery of rice and submit report
to the CCS on weekly basis.

• Conduct regular weekly meetings with rice millers for

delivery of CMR within the stipulated time.

• 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.
 30

• Allot lands to the Civil Supplies Department for getting the

godowns constructed by the APSCSCL for storing the rice.

SPECIFIC ROLE OF DISTRICT SUPPLY OFFICER:-

• Obtain MOU from the designated rice mills along with Bank
Gurantees @ 1:1.5 ratio of paddy value before
commencement of Khariff 2018-19 and handover the same
to DM, CSC to file the same in DM Office.

• Arranging joint custodian officers for each designated rice

mill and overall supervision on the field officers and obtain
weekly physical reports from each rice mill.

Name & Designation of the

Name of
Name of local officer designated by the
Sl. the Rice
the Joint Collector as Supervisory
No mill &
Mandal Officer
Village

• Identification of rice mills in all divisions for fortification

and deliver the same through CMR to the Buffer godowns
for earmarking the stocks. Arrange meetings before Joint
Collector with MEOs, Rice millers and with DM, CSC to
identify the Swarna (MTU 7029) Variety especially in
Srikakulam, East Godavari, West Godavari and Krishna.

• Arrange frequent meetings before Joint Collector, Millers

Associations, FCI Area Manager, Joint Director of
Agriculture, Asst Director, Marketing and District
Procurement Committee for smooth functioning of MSP
operations and CMR deliveries without any hurdles.

• Not mapping defaulted mills under any circumstances.

• Supervising movement of CMR within time frame.
 31

• Supervision on Millers regarding maintenance of accounts

separately Under MSP Gr:A: and MSP Common and
identified Swarna variety.

Role of Supervisory Officers

• They should ensure that the paddy is attached only to the

Rice Mills which have given Bank Guarantee and MOU.

• They have to cross verify the A & B Registers of the Rice

Millers with reference to the truck sheets generated
online by the PPCs. lf any discrepancy is noticed they
should submit detailed report immediately.

• They are responsible for safe custody of the paddy with

the rice mill to which paddy is sent for custom milling to
avoid damage from rain etc. till the delivery of custom
milled Rice.

• They should ensure timely delivery of custom milled rice

as per rules to the APSCSC Ltd. / FCI.

• They should ensure that the rice millers who were

supplied paddy for custom milling shall commence milling
within a week from the date of receipt of the paddy and
deliver resultant raw rice to the AP State Civil Supplies
Corporation Ltd., / FCI within 15 days, without fail, failing
which action should be initiated under the provisions of
A.P. Rice Procurement (Levy) Order, 1984.

GUNNIES

• The DMs should regulate the issue of gunnies to the PPCs

for filling of paddy and gunnies shall be released
proportionately to the paddy arrivals in the respective PPCs
under proper acknowledgement. Proper gunny account shall
be maintained at all the DMOs with regard to receipts,
issues and closing balances. However a software package is
developed by HO in consultation with the TCS and
necessary entries shall be made online accordingly.
 32

• The PPCs will render account of gunnies to the DMO

concerned after completion of paddy procurement
operations.

• The DMs and AMs (Tech.) shall ensure the quality

parameters of new gunnies received from the Jute Mills
while unloading at good sheds/godowns.

PADDY TRANSPORTATION:

• Earlier the District Procurement Committees (DPCs) are calling for

tenders for discovering the market price of transportation. With this
system in many districts disputes arose between transport
contractors, the rice millers and the farmers, who actually
transported the paddy. To avoid such disputes, it has been decided
to dispense with the tendering system to find out the market price.
Instead of that, the District Collector (CS) along with the District
Procurement Committees (DPCs) shall fix the transport rates in
consultation with the District Transport Authority (DTA), local lorry
owners associations and rice millers associations. The price arrived
at previous KMS can be taken as a benchmark price. The paddy
transport distance slabs of 0-8 kms less and beyond 8 kms will be
issued as per the guidelines in vogue.

• As per the convenience and availability of transport vehicles, either

the rice millers or the farmers can transport the paddy from PPCs to
the rice mills. In the case of non availability, the transportation can
be entrusted to any agency with the price fixed by the DPC. Such
arrangements should to made much before the commencement of
the procurement season. The PPCs should maintain a truthful record
of the vehicles engaged and the details of ownership which should
be reflected in the truck chits generated online. The payments for
paddy transportation should be made on monthly basis.

• In nutshell, at a price determined by the DPC, whoever transports

the paddy from PPCs are eligible for paddy transport charges.

• In case the mandi labourers are engaged by the truck

operators for handling of paddy at PPCs and its shifting to the
designated rice mills for custom milling, the mandi labour
charges as per GOI Provisional Cost Sheet shall be passed on
to the labourers engaged by them. Otherwise, the above
 33

handling of paddy is the responsibility of the PPCs.

INTER DISTRICT TRANSPORTATION OF PADDY

■ The paddy purchased in surplus district shall be moved to

the deficit districts for custom milling as the millers of non paddy
grown area have come forward to bear 33% of transportation
charges voluntarily.

■ On the representation of the Rice Millers’ Associations of the

deficit districts like Chittoor, Kadapa, Kurnool, Ananthapuramu
etc., a decision to be taken to allot MSP paddy from surplus
districts to deficit districts for custom milling for consumption
resultant CMR in the deficit districts under PDS to minimize the
expenditure on transport cost avoiding transportation of Rice from
buffer godowns of surplus districts to a considerable extent.

The JC & EOEDs of the surplus districts are authorized to

allot the MSP paddy accordingly by earmarking the PPCs to the
rice millers of deficit districts during KMS 2018-19 (Both Kharif &
Rabi).

The JC & EOEDs of deficit districts have to coordinate with

the JC & EOEDs of surplus districts for regulating the paddy
transportation to their respective districts for custom milling and
for PDS distribution.

■ The CMR rice deliveries in such districts will be utilized

under PDS as per their requirement.

■ The District Administration, DSOs & DMs of non paddy

procurement districts (deficit district) shall designate the mills
for receipt of paddy for custom milling as per the milling capacity
and monitor the paddy arrivals in their respective districts from
surplus districts. Such lists of designate mills shall be
communicated to the DMs concerned of the surplus districts to
have control upon the paddy movement.

■ The millers of non paddy procurement districts also shall

furnish the Bank Guarantee as stipulated in the guidelines to
their respective DMs, APSCSCL.
 34

■ The millers should invariably be furnished the details of

paddy receipts to the DSOs and DMs for monitoring of CMR
deliveries and its proper storage in the respective districts.

■ Confirmation of paddy receipts shall be furnished to the

respective District Authorities and the consigner districts.

■ Separate accounts should be maintained by the millers for

paddy and CMR deliveries and daily report on receipt of paddy
and CMR deliveries should be intimated to the respective DSOs &
DMs.

■ The resultant rice delivered by the millers of the non paddy

procurement areas shall be utilized for PDS as per the monthly
requirement from out of the custom milled rice.

■ Proper planning shall be drawn for accepting of CMR in the

respective districts to avoid Cris Cross movement and intra
district movement.

■ The DMs APSCSCL of such districts shall identify the

Godown space in their respective districts to make the CMR
available in all over the district.

■ Wherever possible the DMs should prefer all the MLS points
for accepting of CMR to the extent of storage capacity and
turnover of the stocks secondly CWC/ SWC/ investor godowns/
private hired godowns (scientific) for storage of buffer stocks.

■ The DMs of surplus paddy districts shall dispatch the paddy

to the deficit districts parallel to the transportation of paddy in
their respective districts. Separate account shall be maintained
for inter district movement of paddy with all details.

■ APSCSCL shall also appoint transport contactors for inter

district movement of paddy from surplus districts to deficit
districts for custom milling.

■ Such dispatch of paddy stocks shall be reconciled with

reference to the receipt particulars of recipient districts.
 35

CUSTOM MILLING OF PADDY:

• The District Managers of Paddy Procuring districts shall

obtain a list of designated rice mills in consultation with the
Collectors (CS) and the formalities viz., bank guarantee,
agreement with the designated rice millers shall be
completed well in advance prior to commencement of KMS
2018-19.

• The allocation of paddy shall be made proportionate to the

milling capacity of the designated rice mill as
disproportionate allocations of paddy may lead to
misappropriation and also verify the track record of the rice
mill. A meeting with rice millers associations shall be
convened prior to allocations for coordination to regulate
the system.

• The District rice millers associations shall be taken into

consideration while allocation of paddy for custom milling to fix
up responsibility on the respective associations to avoid
misappropriation and delay in CMR delivery.

• Agreements with the designated Rice Millers and MoU with

Rice Millers Association to be entered into by the Dist.
Managers of the APSCSCL and it will be uniform and the
model will be communicated.

• A detailed agreement between the miller and the District

Manager, APSCSCL concerned shall be executed for kharif
and Rabi seasons separately with specific terms &
conditions.

• Milling capacity based on Rubber Sheller shall be finalized

before entering the agreement with miller

• Paddy allotment shall not exceed the milling capacity.

• Agreement shall be executed well before allotment of the
Govt. paddy, after fixing the milling capacity and
obtaining bank guarantee.
 36

• After allotment the miller shall maintain the Govt. stock of

paddy/ CMR in safe custody and should show to the
inspecting officials at any point of time during the visit to
the mill.

• If any shortage in stocks is found, the miller is liable to

pay one and half time (1 ½ ) the value of stock in
shortage and also liable for criminal action under section
405, 420 of IPC, etc. for criminal breach of trust and
misappropriation of Govt. stocks. The BG furnished by
the millers shall be invoked and en-cashed towards
recovery of the value of the stocks.

• If the miller fails to mill the paddy within one week from
the date of receipt to paddy, further allotment of paddy
shall not be made to such miller.

• Bank guarantee towards security for the value of paddy

delivered to be obtained @ 1:1.5 ratio of paddy value to
recover the value in case of any defaulter as per the
instructions of GOI from the recipient miller. The value of
the BG shall depend upon the milling capacity. Paddy shall
be released to the extent of the value of bank guarantee
furnished by the individual rice miller. It is the
responsibility of the District Managers to maintain the
validity period of bank guarantees obtained and
confirmation from the concerned banks. The bank
guarantee period limit is observed minimum 9 months with
extended period of 3 months total up to one year.

• Every rice miller to whom paddy is delivered by the State

Corporation or its agencies shall do custom milling of paddy and
deliver rice as per the out turn ratio fixed to the State
Corporation / Food Corporation of India as ordered by the State
Corporation from time to time.

• Provided that for custom milling of paddy, the rice millers shall
be paid the milling charges as per the charges prescribed by
GoI.

• Monitoring of the stocks of paddy issued for custom milling,

custom milled rice to be delivered as per the ratio fixed
(@67% for raw and 68% for boiled rice), rice delivered to
the CS Corporation (Raw rice) or to the FCI (boiled rice) on
 37

behalf of the Civil Supplies Corporation to be done daily by

the District Manager concerned at district level and VC &
MD., APSCSCL at Headquarters.

• Milling of paddy shall commence within a week from the date

and time of receipt and shall and deliver the resultant rice,
within 15 days or the time specified from the date of receipt
of paddy by the District Managers concerned. The frequency
of CMR deliveries should strictly be watched keeping in view
of bank guarantee and the flow of paddy issues should be
consistent to the quantity prescribed against bank
guarantee. For this purpose escort officers should be
appointed and follow up should be done closely.

• The Government or Commissioner of Civil Supplies or District

Collector, may direct any rice miller to convert within (15) days
or the time specified, any stock of paddy into rice on behalf of
the Government or its agencies viz; Food Corporation of India,
A.P. State Civil Supplies Corporation Ltd., A.P. Markfed or any
State Corporation on such terms and conditions stipulated
from time to time by the State Government. If any miller
fails to comply with this direction, he should be liable for
imposition of penalty @ 1.5 times CMR cost along with interest
as per the agreement entered into by the State Corporation and
Rice millers for doing custom milling operation.

• The Custom milled rice to be delivered to the Food Corporation /

State Corporation, as the case may be, shall conform to the
specifications of rice for fair average quality as prescribed in
Schedule-II and shall not contain refractions beyond the
rejection limit and in case any stock of CMR offered for delivery
does not conform to such specifications, it shall be reconditioned
or rectified by the miller or the dealer as the case may be,
before being so offered so as to bring it in conformity with such
specifications.

• The miller has to deliver the CMR same grade and variety
of the paddy received from PPCs. In case, the miller fails
to deliver specified variety under CMR i.e., common
variety instead of Grade-A variety, a penalty of 20% of
MSP shall be imposed in addition to collecting the
differential cost of Grade variation in advance through
Demand Draft. However, such cases should be restricted
 38

to bear minimum in the exigencies of natural calamities

etc.

• The Collectors (CS), DSO, DM-CSC and other enforcement

staff working in Civil Supplies ordered by District
Administration are held responsible for non-receipt of CMR
in time.

• The paddy issued to the millers for custom milling should

be stored in hygienic conditions and in countable manner by
the millers to facilitate for inspections by officials
authorized.

• Every designated rice mill should contain a display board

prescribing that "this rice mill is designated for custom
milling of Govt. paddy on behalf of APSCSCL and stocks of
paddy, rice and other by-products shall not be pledged by
any Financial Institutions for release of loans. By Order-
District Collector"

• District Manager and DSO/ASO concerned to be held

responsible for non-receipt of CMR rice on time.

• Rice millers are entitled for milling charges, custody and

maintenance charges, Driage etc., as prescribed by GOI and as
per eligibility. T he DMs shall send proposals to the Head Office
seeking to release the respective amounts, season wise.

• Every miller shall maintain and submit online true accounts

indicating the total transactions right from receipt of paddy,
paddy milled; CMR delivered and balance stocks available at the
end of the day in Form-A1 and A2.

• Every miller shall maintain separate account or the stock of

paddy
purchased on his own account, paddy milled, rice produced, sold
within or outside state etc., in Form-B. He shall furnish
fortnightly abstract of the accounts for the periods ending on
15th and the last date of every calendar month to the Collector
exercising jurisdiction in the area.

• No rice miller shall undertake custom milling of paddy of his own

/persons other than Govt. agencies when CMR delivery is
pending to APSCSCL / FCI.
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WAREHOUSING AGENCIES:

• The godown managers should follow the FIFO while

issuing the stocks only after quality inspections done by
the district officers and Head Office after clearance.

• Digital keys should be provided to all the Warehouse Managers

of acceptance points for acknowledgement of CMR.

• 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.

• Curative and prophylactic treatments should be given to

the stocks periodically to keep the stocks free from
infestation.

Trainings imparted by the experts to the staff of the APSCSCL:

• Trainings given by the experts 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 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 number 1967 is functioning in the

Commissionerate of Civil Supplies. Dy. Director
(Procurement) will be in charge for monitoring the
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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 or
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.

B.RAJSEKHAR
E.O.PRINCIPAL SECRETARY TO GOVERNMENT