FOOD GRAIN MANAGEMENT

THROUGH
PROCUREMENT
&
PUBLIC DISTRIBUTION
SYSTEM
IN CHHATTISGARH

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Paddy Procurement

CHHATTISGARH
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 Paddy Procurement in Chhattisgarh
Govt of Chhattisgarh procures paddy at MSP as a DCP
state since 2002
Year(2011-12) 59.70 LMT paddy worth Rs. 6600 crores
was procured from 9.28 lac farmers at 1800
procurement centers, spread all over the state. For
kms-2012-13, 70 LMT worth 9500 Cr Rs. paddy
expected
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
9.28 lac farmers (through 9 lac account holders)
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
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 Historical baggage
Farmers had to travel long distances to
sell paddy
Delay in payment to farmers
Distress sale by farmers in Mandis
Exploitation of farmers in Mandis by
middlemen and traders
Diversion/Pilferage of procured stock
Problems in accounting and audit
No transparency and accountability at
any level 4
 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
Procurement(LMT)
70

60

59.71
50

51
40
44
30 36 37 38
32
20
29

10
15
0 6
2000-01 2002-03 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
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 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 food
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 Preparation before procurement
Dunnage, Tarpolin at the procurement centres
Record 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 centres
Recruitment 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
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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
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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
9.28 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)

Hardware
Two computers
Two Printers
Two UPS
VSAT
Two Data Entry
Operators
Web 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 year
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 Transparency
As a matter of policy, all reports generated
through the system have been put in public
domain on citizen
tiz portal

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 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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