Badayuni

Visit
Observations
DR.CIJO JOSEPH

24 T H TO 26 T H OF MAY 2022
 Basic info
Current Operations Current Manpower

1 District 1 CEO

2 Blocks 1 FM

10 D3Cs 1 Fin Exec.

1 Commodity (Wheat) 1 PM

4 PAO

• Over & above the FPC staff, 1 BM & 1 MT from FDRVC are also working in Badayuni FPC

• Though clear differentiation & bifurcation of job rolls to be performed by the CEO, BM & MT has not been
done by FDRVC team, the concerned team members have figured divided the tasks among themselves
 Observations during the visit
Commodity procured : Wheat

Current procurement price of FPC : Rs.1900/Qntl

Mandi Price : Approx. Rs.2000-2040/Qntl

Local village price : Rs.2000/Qntl

Current status : Procurement is not happening in any D3Cs

Major reason : Lower price as compared to competitors

Other reasons : Farmers concerned about weight of material lost during cleaning in vibro-seperator

• Current procurement price is lower than the price paid by traders in the village
 Distribution of D3Cs
• Existing D3Cs are very scattered
• Resulting in Higher operating cost

46 KM blank run to • New D3Cs are proposed near old D3Cs will
warehouse after last village reduce cost in future
• Still there is a lot of unexplored villages

• Selection of D3Cs need to be improved if cost of

operation has to be kept in control

Central team should ensure that the village

selection is done from the procurement point of
view – ensuring that all the villages are clustered
Isolated D3C together. Currently it is done from the block
coverage point of view of SRLM – reaching out
to the targeted number of blocks with the limited
number of villages. This might not be the ideal
commercial model
 Other key observations
Members Members who Total Proc Proc/Patronising Median proc/
D3C Sanchalika Name Block enrolled patronised FPC (MT) Member memb (Kg)

BHAMORI Nagma Asadpur 90 6 7.9 1317 445

HARDASPUR Babita Sharma Asadpur 84 10 13.1 1310 827
JAITPUR Parvesh Asadpur 79 9 21.8 2422 2100
KAURERA Durgesh Pal Asadpur 104 23 35.7 1552 702
SIKRI Fareen Asadpur 104 9 13.5 1500 600
BARKHAIN Pooja Kumari Salarpur 70 8 5.7 712 331
BYAUR Mithlesh Kumari Salarpur 73 25 8.8 352 60
RAFIABAD Bindeshwari Devi Salarpur 95 15 7.8 520 633
SANAI Sarita Salarpur 111 8 4.4 550 95
TITAULI Urmila Devi Salarpur 58 15 17.5 1167 650
 Total     868 128 136.1 1063 537
• Huge variation in the number of members enrolled & the actual number of members patronising FPC
• Low procurement per farmer
• Some sanchalaks very inactive

Lower procurement price indicated as the key reason but door to door visit by sanchalika may also be a reason
 Share of commodity supplied by
patronising members
% of commodity Number of % of members • Highest supplying farmer supplied about 7.5
supplied Producers
% of total wheat procured
Lowest 1% 30 25%
• Highest 3 farmers together supplied about
Lowest 5% 52 43% 19% of total wheat procured
Lowest 10% 64 53% • Highest 6 farmers together supplied about
Lowest 20% 81 68% 30% of total wheat procured
• Highest 15 farmers together supplied about
Lowest 51% 106 88%
51% of total wheat procured
Lowest 77% 116 97%

Lowest 92.6% 119 99% • Majority of procurement has happened from a

100% 120 100% very limited number of farmers.

• Producer farmer base is very weak. Sanchalikas & PAOs should play a more active role in farmer engagement
 Lack of proper infrastructure for testing

Sanchalika using moisture meter

Improper viewing – Wrong compression – Wrong moisture reading

Introducing a system of measuring, quantifying & fixing accountability for variation will automatically improve the practices
 Moisture meter reading - Unreliable

Compression ratio wrongly set Variation in compression results in variation in reading of same
sample
This issue can not be addressed without proper monitoring & fixing accountability
 Quantity of wheat used for moisture
testing is critical

Some sanchalaks do not measure the quantity properly – resulting in wrong moisture testing

Inactive/uninterested sanchalikas need to be retrained or replaced

 List of testing done & moisture %
Moisture
Sample –No Source Type Remark
%
Very High. Bought on 21st - Moisture – 9.2%
Sample-1 Korera D3C D3C 14.6%
Tested on 24th @ D3C - Moisture – 14.6%
Sample-2 Hardaspur D3C D3C 11.1%
Sample-3 Barkhim D3C D3C 12.0 % Purchased & stored @ D3C
Purchased & stored @ our Warehouse
Sample-4 Warehouse Warehouse 11.0%
Weighted average of moisture was 9.36%
Sample was not sold to us due to price issue, but farmer
Sample-5 Sikri D3C D3C 11.2% did not take it back. (Not reliable as crucible was missing
@ D3C)

Sample-6 Barkhim D3C D3C 11.6 % Farmer’s own wheat – Not sold to us
Sample-7 Ujhani Mandi Mandi 11.0 %
Local Freshly bought that day & was to be sold to Delhi on that
Sample-8 Korera Trader 11.8%
Trader day itself

• Since the sampling done by me @ warehouse was not representative, part of the variation in the warehouse sample
might be due to sampling error
 Foreign material testing by Sanchalak

1.46 % FM in the wheat procured @ Korera D3C

Sanchalikas are checking for foreign matter & shrivelled seeds during procurement
 Bags stored on floor @ D3C

• Improper storage of wheat procured

• Higher moisture of procured wheat when tested @ a later stage

• We will not be able to address these issues without laying down the rules clearly, monitoring the same, documenting deviations,
fixing accountability & then rewarding.penialising stakeholders to promote desirable action & discourage undesirable actions.
1 Other Issues
• Identification marks or tags not evidently visible on many
of the bags dispatched by the D3Cs and stored in the
warehouse.
• Stitching machine & thread issue – A major contributing factors
without fixing which tags cannot be enforced
• Tags tear off during multiple stitching
• Thread supplied is of very poor quality & breaks off easily
In case of doubt about quality, the user department should be
able to check & approve the sample quality before purchase

2 3
 Packing/Bag Stitching related issues

• Stitching machine not stitching properly

• Thread breaking off very easily.
• Sanchalaks are forced to stick by hand

Quality approval from user department should be taken before paying the final instalment to the vendor
 Equipment standardisation

• The both the sieves originally supplied by the

manufacturer had to be replaced for
procuring wheat.

• FPC staff had to work all by themselves with

limited or no support from the central team
for standardisation of the equipment (Vibro-
Seperator)
• The replacement had to be done by the senior
FPC staff as adequate support was not
received from the vendor

• Equipment standardisation should be co-ordinated by the HO

 Infrastructure in certain D3Cs
need to be improved

• Dilapidated condition of D3C building

• Route vehicle does not go very close to collection area. So, labour cost of loading the vehicle is higher

• Concerned Commodity lead should visit & approve the location of every D3C before operationalisation
 Infrastructure in certain D3Cs
need to be improved

D3C location was changed by Sanchalak without informing the FPC management. Such systems should not be encouraged
 But many of the D3Cs are good…

• There are no incentives for good D3Cs & no penalties for bad D3Cs
 Equipment Storage @ D3C

Vibro-seperator stored outside – Not covered. Will lead to rusting & other damages once the summer season ends
 Warehouse

• Maintained very well • Well connected to main road.

• Capacity very high compared to procured quantity • Kacha stretch in front of warehouse

• The commodity received at the warehouse should be weighed & tested before stocking.
• No amount of alertness & vigilance from the FPC staff will compensate for the lack of proper systems & documentation
 Mandi visit

• Sample drawn from every bag in mandi @ every stage & visually inspected.
• We don’t do it at our warehouse
 Trader

• Traders quickly dispose off the wheat procured at very low

margins – High turnover

• Traders with access to huge funds hold part of good quality

wheat & dispose off the rest at the earliest.

• Not procuring due to doubt regarding the future wheat price

movement is not a desirable option

• Commodity turnover rate should be improved

Fund status (as on 26th May 2022)

• Budgeted fund allocated for working capital - Rs. 58,02,800/-

• Fund utilised for working capital - Rs. 27,79,955/-
• Fund for procurement operations in bank - Rs. 30,22,845/-

• Fund in other heads in bank - Rs. 94,45,865/-

• More than half of the fund allocated for procurement is kept idle in the bank account
• More than three times of this amount is kept idle in other heads
 Costing
Item Head Unit Rate Period Amt (Rs) Cost/Kg (Rs/Kg)
Average procurement price Rs/Qntl 2043 2778999 20.43
Sanchalika Commission Rs/Qntl 45 61215 0.45
Sanchalika fixed payment Rs/Mon 1500 2 3000 0.02
Cluster co-ordinator commission Rs/Qntl 5 6802 0.05
Cluster co-ordinator fixed payment Rs/Mon 5500 2 11000 0.08
Transportation cost Rs 76140 0.62
Unloading cost Rs/Qntl 10 13603 0.10
Warehouse cost Rs/Mon 60000 2 120000 0.88
Pest control charges Rs 0 0 0.00
Manpower cost Rs/Mon 350000 2 700000 5.15
Staff commutation Rs/Mon 12500 2 25000 0.18
Total 3795759 27.90
• Handling loss - not accounted. So, the actual cost/Kg of commodity stored in the warehouse will be higher
• Quality of commodity stored in the warehouse has not been ascertained. So, realisation may be lower.
• Average engagement time for this season’s procurement is more than 2 months. So, the actual cost incurred should be higher
• The FPC operations in the current form is not viable as it will not be able to sell the wheat at a much higher cost.
• Increasing commodity turnover should be the main focus.
 Other Issues
• Total lack of accounting/documenting system to track seepages
• Quantitative & qualitative tracking of the Commodity procured at D3C is not happening in subsequent stages
• Need to track at least moisture & weight of
• Commodity loaded from D3C on to the vehicle (Only weight is recorded. Moisture & other quality parameters not tested subsequently)
• Commodity offloaded by the vehicle at the D3C (Quantity & Quality not tested at this stage)
• Hope we test the quantity & quality of commodity dispatched to the buyer.

• We have made a perfect system with total lack of accountability to fool ourselves

• Inventory turnover too low.

• Commodity procured has not been sold till date. Holding the commodity for longer period is not desirable as whole wheat is usually
traded on very low margins. (It is a high turnover low margin business)
• Pest control needs to be done if long term storage is planned

• Sufficient fund is available in the FPC’s bank account, but procurement stopped because the price offered is lower than
rate in the village.
• If the central management believes that the price will reduce in future, we should dispose off all the stock stored in the warehouse. On the
contrary, we have stored the wheat as we are expecting a higher price in near future, then it is ideal to purchase wheat from the farmers.
• Procurement targets affected due to lower price offered

• Leadership’s inaction during times of uncertainty is unacceptable

 Other Issues
• Not able to enter higher quantity/weight gained due to higher moisture (Gained after procurement &
other issues
• Quantity gained after D3C purchase needs to be accounted & documented. If not, it will be lost in transit
• This MIS issue need to be resolved at the earliest
• The ERP needs to be updated to accommodated practical concerns from the field

• Tabs not locked. Some sanchalaks using Facebook on our tab

• If we have locked whatsapp in certain PCs, then why should we allow Facebook in some tabs?
• Central team needs to ensure that all the tabs are locked – if we wish to continue with the same old policy
• Central team has to enforce uniform policies for all the FPCs & D3Cs

• Sanchalikas, Cluster i/c & PAOs should do regular door to door farmer visits.
• These visits & its outcomes should be documented, tracked & supervised by senior officials

• PAOs & the PM need to travel more than 1,000 Km per month; but get reimbursement of
Rs.1,800/month only (ie., 450 Km per month)
• Regular Door to door visit of PAOs cannot be enforced without addressing this issue
• Stationing PAO in catchment area will reduce the travel distance, but still the numbers need to be reconsidered
• Lack of systems & processes can not be compensated by any amount of extra effort & vigilance by field staff
 UNOLO
• 2 PAOs travelled together
• Part of the path was not detected in one mobile
• Certain areas where network connectivity for airtel was
not there, the distance is not measured.

•PAOs might start early for work, but the same is

usually not captured in UNOLO

•When the PAO moves through internal routes between

villages, it does not get captured in UNOLO or might
get recorded through another alternate route.

•When the PAO spends more time in a remote village,

he gets automatically logged out & might loose his
attendance.

•Assigning 2 or more tasks or village visits on a single

duty is not possible in UNOLO

UNOLO is not 100% reliable for distance calculation

Mentha….

Mentha…. another unplanned adventure

Thank you