Decentralized Procurement KMS 2012-13

Decentralized Procurement Decentralized Procurement KMS 2012-13KMS 2012-13

AP-CSCAP-CSC(Andhra Pradesh State Civil Supplies Corporation Limited)(Andhra Pradesh State Civil Supplies Corporation Limited)

• CSC commenced paddy procurement 2000-01• CSC operating purchase centres in all districts

through procuring agencies like IKP, PACS 2006-07 onwards

• In 12 years, CSC purchased 77 LMT of paddy from farmers

• CSC makes farmer payments promptly mobilising RBI cash credit (Rs 2,900 crores in 2011-12 & Rs 3,000 crores 2012-13 projected)

• Primarily aims at ensuring MSP to farmer

Paddy purchasePaddy purchase

0

5

10

15

20

00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12

Rabi

Kariff

Year Kariff Rabi Total PPC (Nos)

2000-01 0.45 3.17 3.62 276

2001-02 0.65 1.65 2.30 445

2002-03 0.06 0.05 0.11 233

2003-04 2.56 0.24 2.80 209

2004-05 0.08 0.04 0.12 134

2005-06 0.18 2.67 2.85 232

2006-07 1.04 5.02 6.06 632

2007-08 0.94 4.02 4.96 290

2008-09 2.40 7.25 9.65 683

2009-10 0.36 2.67 3.03 514

2010-11 1.90 19.40 21.30 1716

2011-12 9.46 10.75 20.21 2895

Over decade performanceOver decade performance

Year

Pa

dd

y P

rocu

red

in

L

MT

s

21.3020.21

3.03

9.65

4.966.06

2.85

0.12

2.80

0.11

2.303.62

• Estimated paddy purchase – 11.30 LMT

• 1,779 purchase centres identified (IKP- 998, PACs- 584 & others- 197)

• CSC positioned 3.43 crore gunny bags sufficient for this season while Marketing Dept. provides infrastructure shortfall in certain districts

• Hamali charges paid per Qtl. Rs 13.32 ps. till now and proposed enhancement of Rs 20/-

MSP

contd….

Khariff plan Khariff plan

Variety Rate per qtl.

Common Rs 1,250/-

Grade A Rs 1,280/-

Sl. No

Equipment Requirement Availability Shortfall

1 Gunny bags 3.43 cr. 3.43 cr. 0.00

2 Tarpaulin 36,169 40,215 4,046(+)

3 Winnowing machines 614 89 525

4 Paddy cleaners 1,468 888 580

5 Moisture meters 1,954 1,931 23

6 Beam scales 2,011 1,669 342


(Nos.)

contd….


• Marketing Dept. to provide required equipment out of Market fee (1%) paid by CSC/FCI

• Agriculture Officers to provide technical assistance at purchase centres

• Collectors (CS) to appoint transport contractors and tagging mills with purchase centres

• Collectors (CS) to make Tahsildars responsible for monitoring purchase centres and to coordinate with transport contractors and rice mills

• Procuring agencies to engage @ one technical assistant for each purchase centre

• Marketing Dept. to gradually setup permanent paddy procurement centres

Paddy arrivalsPaddy arrivals

Purchase in LMT

Production vs. purchaseProduction vs. purchase

• Issue of cheques to farmer in 3 days after paddy accepted in PPC

• CSC to issue cheques directly curtailing present delay of 7–10 days

contd….

Farmer payments Farmer payments

1st day Acceptance of paddy from farmer Transport to mill Uploading farmer details, quantity & bank a/c

2nd day Reconciliation of farmer acknowledgements, trip sheets and mill receipts

Confirmation of purchase to head office Release of funds from head office

3rd day Preparation of cheques Disbursement of cheque to farmer

• Permitted Rs 10,000/- per PPC towards engaging manpower (runner) and other contingent charges

• Coordination with bankers for issue of large no. of cheques

• Authorized AMs, Grade I & II staff of District office for issue of cheques from divisional/ mandal level

• DMs held responsible for meticulous execution

• JCs to coordinate and verify disbursement on daily basis

Farmer payments Farmer payments

SonamasuriSonamasuri

• Market intervention scheme• State Govt. directed CSC to purchase 8

preferred varieties of paddy @ 1,500/- per Qtl. in all districts (except Hyd)

• Expected production – 27.62 LMT• Projected purchase – 5 LMT• CSC managed 100 exclusive centres proposed

at AMCs• Quality specifications – 14:2:2:1• After milling, proposed to sell rice through

Rythu Bazars @ Rs 30.50 ps per Kg.

Rice ProcurementRice Procurement

7 Districts

16 Districts 23 Districts

Khariff proposal (raw rice)Khariff proposal (raw rice)

23 Districts

• Out of 40 LMT annual state PDS rice requirement, CSC proposing to procure 15 LMT rice in both CMR & mill levy routes

• Rice procurement target for CMR – 4 LMT and mill levy – 11 LMT

• CSC to operate in 7 districts for acceptance of mill levy and FCI in other districts

• CSC to accept CMR raw rice and FCI boiled rice in all districts

• Primarily aims at achieving self-reliance in State TPDS rice requirement

Rice ProcurementRice Procurement

Sl No

District Target(in LMT)

1 Nalgonda 1.70

2 Karimnagar 2.00

3 Guntur 2.60

4 Prakasam 0.40

5 Warangal 1.80

6 Nellore 2.30

7 Chittoor 0.20

Total 11.00

Mill levy targetMill levy target

CSC rice procuring districts

Godown spaceGodown space

• Requirement for DCP rice storage - 6 LMT godown space

• To hand over 4.25 LMT dehired FCI godowns from SWC/CWC

• Acquiring balance godown space of 1.75 LMT from AMC and private

• Circular instructions issued for taking over godowns

• Payment of rentals as per existing FCI hire charges

MLS Point godownsMLS Point godowns

• 439 MLS Points for distribution of TPDS rice. • 11.37 LMT godown space construction taken up

for storage of 3 months stock.

• 4.64 & 6.73 LMT godown space construction in 189/ 250 MLS Points referred to SWC (A & B) & Marketing Dept. (C) respectively.

MLS Point Godown Govt. land availability

A 108 CSC owned Yes

B 81 Hired Yes

C 250 Hired No

Total 439

MLS Point upgradationMLS Point upgradation

• Scientific godown with a storage capacity of 3 months stock.

• Delivery by weighment – private nearby weigh bridges and rationalized transport contract

• Quality local rice supply – utilization of local rice with in the district with proper infestation/ fumigation measures

• Strict lifting schedule• Computerization, online DD payment & SMS

communication• Assistant and watchman on outsourcing basis

TransportationTransportation

• Transport rates approved for Stage I and II applicable for godowns under DCP operations

• CSC adopts handling charges as approved by SWC/ CWC in FCI dehired godowns

• CSC provides same rates in AMC & other godowns

• JC authorized for entrustment & payments• CSC communicated detailed guidelines

ManpowerManpower

• Creation of procurement wing• 131 CSC technical, accounts staff and depot

asst. deployed for DCP operation• 20 technical assistants deputation from FCI • 131 DT/RIs deputation as MLS point incharges

pending with Dist. Collectors

Status of staff deployment in all districts

Technical (79)

•Deputation from FCI (20)

• Available CSC staff (79)• Retired CSC staff (17)

Accounts (21)

•Available CSC staff (21)

Depot Assistants (30)

• Available CSC staff (30)

ComputerizationComputerization

• NIC requires another 3 months for software updation to capture real time data entry from godown point

• Meanwhile, present accounts software supports DCP operation

.

• Hardware purchase & outsourcing DEOs permitted

District Desktops DEOs

Karimnagar 6 4

Chittoor 2 2

Warangal 6 4

Nalgonda 7 4

Guntur 4 4

Prakasam 4 4

Nellore 4 4

Total 33 26

QC verificationQC verification

• State level vigilance squad conducts surprise inspections on quality of rice acceptance and stock maintenance

• Sate/ district laboratories for analysis of accepted consignments 2% and 5%

• District QC cell to conduct 25% check• AGM (QC) from CSC to conduct 10% check • III party verification of rice acceptance and

stock maintenance on quarterly basis

Stack Unit of sampling 189 MT/ 3,780 bags

Consignment Unit of acceptance 27 MT/ 540 bags

Funds flowFunds flow

• RBI sanctioned cash credit

• 3 month GOI advance of PDS subsidy - Rs 663 crores towards 7 DCP districts

• 7 LMT paddy purchase of 3 month (Oct - Dec) requirement - Rs 1,100 crores

• 5.5 LMT raw rice mill levy of 3 month (Nov - Jan) requirement - Rs 1,500 crores

• Millers payments by RTGS mode

Paddy purchase 23 dist. 2012-13 Rs 3,000 crores

Rice procurement 7 dist. 11 LMT Rs 3,000 crores

Online funds transferOnline funds transfer

• Annual receipt Rs 1,200 crores from 45,185 FP shop dealers towards commodities released under PDS

• Annual farmers payments under paddy purchase scheme of Rs 3,000 crores

• Payment to rice millers in 7 DCP districts this year of Rs 3,000 crores

• SBI agreed for online transfer of Rs 7,200 crores (apprx.)

Training programmeTraining programme

New program/ initiativesNew program/ initiatives

New programs

1.Decentralize procurement of raw rice

2.Sonamasuri paddy procurement

New initiatives

1.Direct farmer payments by CSC in 3 days

2.Strengthening MLS points

3.Online transfer of payments to farmers & millers and receipts from FP shop dealers

Time frameTime frame

SNo Activity Date of completion

1 Taking over dehired FCI godowns 31.10.2012

2 Relief of technical staff deployed 20.10.2012

3 Deputation of DT/ RIs 25.10.2012

4 Engaging DEOs on outsourcing 27.10.2012

5 Purchase of computers 27.10.2012

6 Transport entrustment 27.10.2012

• Target rice procurement – 2.00 LMT

• Godown space required – 1.10 LMT• Rice mills tagged – 546

• Manpower required

Technical – 14

Accounts – 3

DEOs – 14

KarimnagarKarimnagarMonth Target

Oct. 0.00

Nov. 0.20

Dec. 0.80

Jan. 0.50

Feb. 0.25

Mar. 0.15

April 0.05

May 0.05

Total 2.00Godowns hired Rice Mills

Huzurabad SWC 0.15 63

JammikuntaSWC 0.10

63AMC 0.10

PeddapellySWC 0.23

90AMC 0.05

KarimnagarSWC 0.10

160CWC 0.09

Jagityal SWC 0.10 39

Korutla SWC 0.03 10

Metpally SWC 0.05 9

Garrepalli/ Sultanbazar

CWC 0.10112

Total 1.10 546

NalgondaNalgonda


• Godown space required – 1.20 LMT

• Rice mills tagged – 226


Technical – 15Accounts – 3DEOs – 15

Month Target

Oct. 0.00

Nov. 0.55

Dec. 0.65

Jan. 0.45

Feb. 0.05


Dhuppalapally (NLG) SWC 0.10 17

Huzurnagar SWC 0.10

24AMC 0.10

KodadSWC 0.10

39AMC 0.02

VT Palem/MLG SWC 0.15 94

BonagiriSWC 0.08

14AMC 0.05

Wangapally (IG) FCI 0.10

SuryapetCWC 0.10

22AMC 0.10

Chityal SWC 0.10 8

Valigonda AMC 0.05 8

Existing MLS Points 0.05

Total 1.20 226




Technical – 14

Accounts – 3

DEOs – 14

WarangalMonth Target

Oct. 0.00

Nov. 0.25

Dec. 0.75

Jan. 0.50

Feb. 0.30


Enumamula (WGL) SWC 0.10

95

Enumamula (WGL) AMC 0.10

Main Depot (WGL) CWC 0.06

WGL (Fort Road) CWC 0.05

Dharmaram (WGL) SWC 0.13

Dhupakonda SWC 0.04

Rampur PVT 0.18

Jangaon AMC 0.05 38

Raghunathpally SWC 0.10

Mahaboobabad SWC 0.10 34

Khanapur SWC 0.07 36

Narsampeta AMC 0.05


Total 1.10 203




Technical – 15

Accounts – 3

DEOs – 15

GunturGunturMonth Target

Oct. 0.00

Nov. 0.05

Dec. 0.25

Jan. 0.55

Feb. 0.60

Mar. 0.40

April 0.35

May 0.25

June 0.15

Total 2.60

Godowns hired Rice Mills

Bapatla SWC 0.20 49

Narsaraopet SWC 0.10 46

TenalliSWC 0.13 42

AMC 0.05

Sattenapalli SWC 0.05 16

Sattenapalli PVT 0.07

Chilakaluripet AMC 0.05 22

Piduguralla AMC 0.05 32

Repalle SWC 0.05 35

Guntur CWC 0.05 65


Total 0.85 307




Technical – 4

Accounts – 2

DEOs – 4

PrakasamPrakasam

Month Target

Jan. 0.01

Feb. 0.05

Mar 0.10

April 0.10

May 0.10

June 0.04

Total 0.40


Chirala SWC 0.09 41

Throvaguntta (Ongole)

CWC 0.10 48


Total 0.25 89

• Target rice procurement – 2.30 LMT• Godown space required – 0.90

LMT• Rice mills tagged – 273• Manpower required


NelloreNelloreMonth Target

Feb. 0.18

Mar. 0.83

April 0.56

May 0.53

June 0.20

Total 2.30


Nellore CWC 0.30 64

Vedayapalem(NLR) SWC 0.10 60

MVR (NLR) SWC 0.04 62

VRR (NLR) SWC 0.0462

VRR (NLR) PVT 0.06

Gudur SWC 0.08 10

Kavali SWC 0.14 15

Kavali (Hired) SWC 0.07


Total 0.90 273


• Godown space required – 0.30 LMT

• Rice mills tagged – 48



ChittoorChittoor

Month Target

Feb. 0.05

Mar. 0.05

April 0.05

May 0.05

Total 0.20


Reniguta CWC 0.10 11

Yerpedu SWC 0.12 17

Existing MLS Points 0.08 20

Total 0.30 48

Abstract

Sl No District

Target (LMT)

Godown space required (LMT)

Godowns(Nos.)

Rice mills tagged (Nos.)

Manpower req. (Nos.)

Tech. Acct. DEOs Total

1 Karimnagar 2.00 1.10 11 546 14 3 14 31

2 Nalgonda 1.70 1.20 13 226 15 3 15 33

3 Warangal 1.80 1.10 12 203 14 3 14 31

4 Guntur 2.60 0.85 10 307 15 3 15 33

5 Prakasam 0.40 0.25 2 89 4 2 4 10

6 Nellore 2.30 0.90 8 273 14 3 14 31

7 Chittoor 0.20 0.30 2 48 4 2 4 10

Total 11.00 5.70 58 1692 80 19 80 179

Levy schedule

Sl No

District

Target Oct Nov Dec Jan Feb Mar April May June July Total

1 Karimnagar 2.00 0.20 0.80 0.50 0.25 0.15 0.05 0.05 2.00

2 Nalgonda 1.70 0.55 0.65 0.45 0.05 1.70

3 Warangal 1.80 0.25 0.75 0.50 0.30 1.80

4 Guntur 2.60 0.05 0.25 0.55 0.60 0.40 0.35 0.25 0.15 2.60

5 Prakasam 0.40 0.01 0.05 0.10 0.10 0.10 0.04 0.40

6 Nellore 2.30 0.18 0.83 0.56 0.53 0.20 2.30

7 Chittoor 0.20 0.05 0.05 0.05 0.05 0.20

Total 11.00 1.05 2.45 2.01 1.30 1.53 1.11 0.98 0.39 11.00

(Qty. in LMT)

Godown Space – Breakup

Sl No

District Target

Godown Space required (LMT)

SWC CWC AMC Private MLSP Total

No Cap. No Cap. No Cap. No. Cap. Cap. No. Cap.

1 Karimnagar 2.00 7 0.76 2 0.19 2 0.15 0 0.00 0.00 11 1.10

2 Nalgonda 1.70 7 0.73 1 0.10 5 0.32 0 0.00 0.05 13 1.20

3 Warangal 1.80 6 0.54 2 0.11 3 0.20 1 0.18 0.07 12 1.10

4 Guntur 2.60 5 0.53 1 0.05 3 0.15 1 0.07 0.05 10 0.85

5 Prakasam 0.40 1 0.09 1 0.10 0 0.00 0 0.00 0.06 2 0.25

6 Nellore 2.30 6 0.47 1 0.30 0 0.00 1 0.06 0.07 8 0.90

7 Chittoor 0.20 1 0.12 1 0.10 0 0.00 0 0.00 0.08 2 0.30

Total 11.00 33 3.24 9 0.95 13 0.82 3 0.31 0.38 58 5.70

Thank YouThank You

AP-CSCAP-CSC(Andhra Pradesh State Civil Supplies Corporation Limited)(Andhra Pradesh State Civil Supplies Corporation Limited)

Decentralized Procurement KMS 2012-13

Documents

purchase issue of cheques

purchase centremarketing

lmt of paddy

purchase centrescollectors

monitoring purchase

paddy cleaners1

farmer payments

day acceptance of paddy