Paddy Procurement CHHATTISGARH A.K.Somasekhar, Technical Director NIC, Chhattisgarh som@nic.in 1 1

Paddy Procurement in Chhattisgarh Govt of Chhattisgarh procures paddy at MSP as a DCP state since 2002 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) 2

Stake Holders 10 lac farmers ) 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 3

Historical baggage Farmers had to travel long distances to sell paddy Delay in payment to farmers Exploitation of farmers in Mandis by middlemen and traders Distress sale by farmers in Mandis 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 5

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 6

How procurement has gone up 7

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 8

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 9

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. Paddy also issued against bank guarantee. 10

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 . Transport of paddy is also enabled through software. 11

PACS Module (at each of 1888 procurement centres) Hardware One Computer Two Printers UPS Generator Stand alone module One Data Entry Operator 12

Computer generated cheques 10 lac farmers receiving computer generated cheques on the same day as against 3 to 6 days delay in the previous years 13

Paddy Storage Centre (At each of 60 storage centers) Hardware Two computers Two Printers Two UPS VSAT Two Data Entry Operators Web Based Application 14

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 15

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) 16

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 17

Transparency As a matter of policy, all reports generated through the system have been put in public domain on citizen portal 18

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 19

Thank You A.K.Somasekhar 9425202643 som@nic.in