Government of India

Directorate General of Supplies & Disposals

Jeevan Tara Building, 5 Sansad Marg
New Delhi-110001
Tel Number 23360610/23360537

Directorate: Information Technology Section:IT-2

Circular Number:HDPE-PPBAG / IT-2 / RC-R3060000 / 0109 / 82

Circular Issue Date:15-10-2009
Sub: MINUTES OF THE MEETING FOR SUPPLY OF HDPE/PP BAGS
DIRECTORATE GENERAL OF SUPPLIES & DISPOSALS
(IT DIRECTORATE)
5, JEEVAN TARA BUILDING, SANSAD MARG
NEW DELHI
Dated: 15.10.2009

SUBJECT : MINUTES OF THE MEETING HELD AT 11.00 HRS. ON 6TH OCTOBER 2009
WITH ALL THE STAKE HOLDERS FOR SUPPLY OF HDPE/PP BAGS UNDER CHAIRMANSHIP
OF DIRECTOR GENERAL (SUPPLIES AND DISPOSALS), NEW DELHI.

Please find enclosed herewith a copy of the minutes of the meeting as

mentioned in the subject for your information and necessary action.

(Raj Singh)
Section Officer
For Director General of Supplies & Disposals

To

Department of Food & Public Distribution

Shri Neeraj Kumar Maurya, Joint Director (Movement)

Food Corporation of India

Shri D R Parmesh, General Manager

Haryana

Additional Director (Food & Supplies), Govt. of Haryana, Chandigarh

(kind attention : Shri A.R. Godara) Fax No. 0172-2702759

1. Chhattisgarh

Shri SS Sisodhia, Secretary, MARKFED, Chhattisgarh

AIFTMA

Shri Gurdeep Singh

--------------------------

MINUTES OF THE MEETING HELD AT 11.00 HRS. ON 6TH OCTOBER 2009 WITH ALL
THE STAKE HOLDERS FOR SUPPLY OF HDPE/PP BAGS UNDER CHAIRMANSHIP OF
DIRECTOR GENERAL (SUPPLIES AND DISPOSALS), NEW DELHI

The following were present:-

1.Shri M Raman, DG (S&D)---In Chair

2.Shri I S Garg, ADG(G)
3.Shri S Krishna, ADG (QA)
4.Shri A K Jain, DDG (J)
5.Shri S N Srivastava, DS (IT)
6.Shri Raj Singh, SO (IT 2 & 3)

Department of Food & Public Distribution

Shri Neeraj Kumar Maurya, Joint Director (Movement)

Food Corporation of India

1. Shri D R Parmesh, General Manager

2. Shri Chandresen Kumar, AGM

Haryana

1. Shri K K Goyal, District Food & Supplies Controller, Gurgaon,

Haryana

Chhattisgarh

1. Shri SS Sisodhia, Secretary, MARKFED, Chhattisgarh

2. Shri ND Durj, Consultatnt, MARKFED, Chhattisgarh

AIFTMA

1. Shri S Choudhary
2. Shri L Tulsian
3. Shri Manoj Aggarwal
4. Shri Dinkar
5. Shri Sanjay Jain
6. Shri Dinkar Maheswari
7. Shri Gurdeep Singh

FIRM

1. Shri Anup Gopalka, Umashree Text plast, Ahmedabad

2. Shri Sunman Nayer, Kanak Polyfab, Dhanbad
The complete overview of the entire procurement of HDPE/PP Bags
commencing from 2007 as adhoc procurement followed by conclusion of rate
contract on 18 firms through E-tendering competition basis in 2008-09
and subsequent lateral induction of new firms to the RC valid initially
upto 30th April 2009, extended upto 31st May 2009 and thereafter upto
30st June 2010 including the supply orders placed was presented. It was
informed that the total numbers of RC holding firms are 75 as on date
and are on the rise. The supply orders totaling about Rs.250 crores
were placed during 2008-09 on 47 firms for supply in various States
followed by new orders placed on 42 firms for FCI demand of 50000 bales
and 20 supply orders placed on firms for the demand of Haryana for 20000
bales in KMS ¿ 2009-10. 13 firms have not been allowed to continue with
the RC who have not achieved the performance of 85% and also those firms
who have been reported for inferior/poor quality for which joint
inspection are being carried out including forfeitures of Performance
Security for non performance of the contract as applicable under the
contract terms. The agenda points as circulated in the brief dated 5th
October 2009 were also read out for discussions in the above back drop
seeking feedback, delay in supplies, inferior quality supplies &
complaints, lateral entry to RC for NSIC registered firms, demand for
the coming RMS season vis-a-vis Jute bags shortfall, status of ongoing
supplies for FCI and Haryana, policy regarding distribution and
allocation of quantities amongst past suppliers and new firms including
necessary system driven software for the same and conversion of RCs from
Centrally operated to DDO operated.

2. The representatives from AIFTMA informed that the woven sack

industry, first time in history, have supplied these anti slip bags for
food grains packaging and achieved performance of 95% which is
remarkable. They assured that the industry is committed to meet the
target to achieve 99% to 100% performance in the second year. AIFTMA
admitted that there have been quality issues against the past supplies
which primarily relates to individual firms supplying poor/inferior
quality. They, however, stressed that the use of HDPE/PP bags for food
grains is well established, as the like the cases of Cement, Sugar and
Fertilizer, not only in India but also worldwide, for which they also
explained the history of transition from Jute bag to woven sack HDPE/PP
bags. AIFTMA representative further submitted that it is not possible
for them or their zonal Heads to visit/monitor/control the quality of
fellow manufacturers as all of them are member of the association and
some of them are also the office bearer of the Association. For such
purpose, they have already appointed an Independent Agency for adequate
quality control in-house of all the manufacturers to supply these bags.

3. It was clarified to AIFTMA that despite aforesaid promises made by

them in the past in several meetings, AIFTMA did not submit any report
of such agency regarding quality of bags of any manufacturer and also no
reply have been received from them regarding poor quality supplies made
by the firms in the past despite categorically asked by DGS&D. Such
assurances by AIFTMA would be of no avail as the Government can ill
afford delay in supplies as well as poor/inferior quality bags
irrespective of any constraints. AIFTMA was also requested to furnish a
copy of their Memorandum/Article of Association & updated list of its
office bearing including functions & responsibilities so far as all
matters related to HDPE/PP Bags supply through DGS&D R/C is concerned.

4. Representatives of user Department informed that there is always

reluctance in the fields to use HDPE/PP bags and the priority goes to
use of Jute Bags. They further informed that the storage time of food
grains is normally 2-3 years followed by transportation of food grain.
Packaging of food grain, whether Wheat or Paddy, in HDPP/PP woven sack
is not disputed, but there are various issues which may be broadly
categorized under following two categories as under:-

(a) Quality of Bags with respect of inadequate UV, anti slip properties
and weight of the bag vis-a-vis specifications provided in the IS.

(b) Handling of Bags including storage in Open/Closed condition,

stacking problems for the required height, collapsing of stacks,
liquidating the stocks, handling by the labors on the back and itching,
using of hooks repeatedly etc.

5. AIFTMA representatives assured that they would continue providing

necessary demonstration and user guide for proper and adequate use of
HDPP/PP bags in fields as it requires careful handling. They have been
providing such services in the past to various States.

6. It was observed that recent orders for 50,000 bales for FCI have been
placed on 24.8.2009 on 42 firms with D.P. of 30.9.2009 originally, which
have been extended/refixed upto 31.10.2009. The details of consignees
have been received & issued for only 32,880 bales and these details for
17,120 bales are still required from FCI. The firms have been pressing
hard for consignee details to enable them to complete the supplies after
inspection as they have manufactured the bags. In addition, the Road
Permits & CST /TIN number may also be provided to the firms by FCI
consignees including M/s Kanak Polyfab, Dhanbad who have been trying
hard for last 2 weeks but of no avail. FCI representatives informed
their problem of storage and, however, assured to provide the same
urgently.

7. It was clarified that distribution of quantities amongst the firms

though supply orders have been made on the basis of 80% quantity to past
suppliers and 20% quantity to new firms for FCI requirements of 50,000
bales and past suppliers of quality bags to Haryana Govt. for Haryana
requirement of 20,000 bales as required by the indentor for KMS 2009-10
season. Other factors like quantity, %age performance and geographical
location were also adequately considered & accounted while distribution.
However, there have been unrest & criticism amongst Industry in this
regard. Firms like M/s Oripol Industries, Orissa and M/s Plastene India
have been making representations in these regard and also for the
extension of RC.
8. After discussing various pros and cons including cost benefit
analysis and also guidelines for the use of HDPP/PP bags available with
the Department of Food and also the ECO brand which could be
manufactured by the firms as informed by the AIFTMA, DG(S&D) finally
decided that :-

(a) There cannot be any compromise on the quality of bags for which
purpose third independent outside agency may be appointed to carry out
tests audit checks at consignee place(s) after the bags are delivered
through inspection by QA, DGS&D. The cost of such inspection agency
shall be borne by the Government. This will be in addition to the
quality functions being performed by QA, DGS&D.

(b) User Department should provide the necessary data about the quality
of bags including the name of the firms/suppliers supplying
poor/inferior quality, if any, and related quantities for taking
suitable necessary actions.

(c) The existing technical specifications may be reviewed in

consultation with firms during CCM meeting and also the BIS to provide
much superior quality to withstand the prevailing usage condition in
India including open storage condition as the State of Haryana and
Punjab are using these bags in open storage condition whereas FCI are
normally using the same in the covered go-down.

(d) AIFTMA as well as the firms shall submit within 10 days a policy
regarding distribution/allocation of quantities amongst the firms and
necessary software so that it could be made system driven. It is
necessary to have an open transparent policy in this regard to stop
inflow of any criticism and unrest amongst the firms. The policy should
meet the expectation of all the firms as well as the requirement of the
Government Departments.

( RAJ SINGH )
( SECTION OFFICER )