1. Paddy Procurement CHHATTISGARH
A.K.Somasekhar, Technical Director
NIC, Chhattisgarh 1 1

2. 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

3. 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

4. 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

5. 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

6. 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

7. How procurement has gone up7

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. 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 to 1.8 LMT rice in 2011) 16

17. 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

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

19. 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

20. Thank You
A.K.Somasekhar