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Rabi Policy




With a view to extend the benefits of Price Support Scheme to the farmers, the purchase of

kharif crops on minimum support price will commence w.e.f 1st October, 2005.  For this,

paddy and Bajra will be procured on MSP fixed by Govt. of India in various regulated mandis of

the State. In consonance with the directions issued by Govt. of India, the Department has

prepared detailed policy guidelines.  Details of which are given as under:-

I. Prospects of production of Kharif foodgrains

(a) Paddy

As per estimates of the Agriculture Department, paddy has been sown in an area of about  10.25 lac hect. as against 10.00 lac hect. of the previous year.  The likely production of paddy may be around 44.59 lac MT out of which about 36.00 lac MT may arrive in various mandis of the State.  Out of this, about 10.00 lac MT paddy may be of Basmati and superior varieties and about 26.00 lac MT Leviable.

.(b) Bajra:

Bajra is stated to have been sown in an area of about 6.00 lac hect. and its production is likely to be around 9.00 lac MT.  It is expected that about 2.30 lac MT Bajra may  arrive in the mandis of Haryana.  If the prices of bajra tend to fall below MSP, arrangements of its purchase on MSP will have to be made and the Procurement Agencies (excluding FCI) will effect the purchase of the commodity in the mandis allocated to them.


(c) Other coarse grains:

Jowar and Maize have been sown in an area of 1.10 lac hect. and 20,000 hect. respectively.  Their production is likely to be around 30,000 MT and 52,000 MT respectively.  However, as per experience, their arrival in mandis may  not be much and there may not be any necessity of their purchase on MSP.




 (a) Commencement of season

Govt. of India has communicated vide letter No.156(ii)/2005-PY.1 dated 31.8.2005 that procurement of paddy (Kharif crops) will be made from 1.10.2005 to 31.01.06. 



(b) MSP of Kharif crops & coarse grains

The MSP of various kharif crops for the KMS 2005-06 is as under:-


                                       COMMON                                          = Rs. 570/- per Qtl.

                                       Grade “A”                                           = Rs. 600/- per Qtl.

                    COARSE GRAINS:-

Bajra  & Jowar = Rs. 525/- per Qtl.

Maize = Rs. 540/- per Qtl.


(c)             Milling & delivery of rice


The MSP of various Kharif crops for the KMS 2004-05 is as under:-


COMMON Rs. 560/- per Qtl.
Grade “A”  Rs. 590/- per Qtl.


Bajra  & Jowar Rs. 515/- per Qtl.
Maize Rs. 525/- per Qtl.


(c) Milling & delivery of rice

The leviable paddy purchased by the Procurement Agencies will have to be got milled and the entire custom milled rice manufactured from such paddy will have to be delivered to Central Pool by the end of Feb., 2006.   Similarly, the millers purchasing leviable paddy will have to give 75% rice manufactured from such paddy to Central Pool by the end of Feb., 2006. 

(d) Specifications of paddy

The Govt. of India has communicated specifications of paddy and bajra for KMS 2005 vide letter No. 8-6/2005-S&I dated 1.9.2005  as under:-


i). Paddy


Foreign matter

Damaged, discoloured, sprouted & weevilled grains

Immature, shrunken, shriveled grains

Admixture of lower classes









Max. Limits(%)








Within the overall limit of 1.0% for organic matter, poisonous seeds shall not exceed 0.5% of which Dhatura and Akra seeds (Vicia species) not to exceed 0.025% and 0.2% respectively.


(e) Specifications of rice



Maximum Limit (%)














Foreign Matter**  

       Raw/  Parboiled






Damaged/Slightly Damaged










Discoloured grains










Chalky Grains







Red Grains

     Raw/ Parboiled






Admixture of lower class







Dehusked  grains







Moisture content***

     Raw/ Parboiled






*      Including 1% small brokens.

                   **      Not more than 0.25% by weight shall be mineral matter and not more than 0.10% by weight shall be impurities of animal origin.

                    ***      Rice (both raw and parboiled) can be procured with moisture content upto a maximum limit of 15% with value cut. There will be no value cut upto 14%.  Between 14% to 15% moisture, value cut will be applicable at the rate of full value.




(f)  Specifications of  Bajra

Specifications of Bajra during this season would be as under:-

Foreign matter

Other foodgrains

Damaged grains

Shrivelled and immature grains

Slightly damaged and discoloured

Weevilled grains


1.0 *








* Not more than 0.25% by weight shall be mineral matter and not more than 0.10% by weight shall be impurities of animal origin.


g) Levy price/CMR price

The prices of levy rice and CMR for the current season have not been received so far and the same would

 be communicated immediately on receipt from Govt. of India.  However, the prices of levy rice and CMR

 fixed by Govt. of India for KMS 2004-05  were as under:-

Levy Rice

(per qtl.)


(per qtl.)


Rs 1003.00

Rs 1042.95


Rs  1053.00

Rs 1093.65



III. Mode Of Procurement Of Khariff Foodgrains and Coarse grains

                  (a)            Entering the Mandis

All the Procurement Agencies will ensure that their staff enters in the Mandis  allotted to them on the commencement  of Kharif Marketing Season  2005.  In case the prices of paddy/bajra fall below MSP, the same would be purchased on MSP as per specifications laid down by Govt. of India

(b)            Entering the arrivals in record

The arrival of foodgrains and coarsegrains in Mandis  will be entered in PR-1 Register by the inspectorate of the Food and Supplies Department.  Such entries will also be made by the staff of Market Committees in their own “H” Register.  The details of variety of foodgrains i.e. paddy invariably should be given in the register alongwith the details of owner of the foodgrains etc..  Simply writing of paddy in record will not serve the purpose. The categories  of paddy viz. Common, Grade-A, Basmati etc. alongwith their varieties must be mentioned.

 (c)            Auctioning of stocks

 The CA, HSAMB has issued instructions vide memo No. ME-1-2005/53408-513 dated 9.8.2005 to all the E.O-cum-Secretaries of     market  Committees    that     auction of heaps  will be under taken everyday from both sides of mandis at 10.00 a.m. and 3.00 p.m..  simultaneously.  The offices of the Market Committees will also remain open on all holidays i.e. Saturdays/Sundays and gazetted holidays during kharif procurement season. The Deputy Commissioners and all concerned will ensure that auctioning of heaps takes place regularly and any violation in this regard is not allowed to take place.  The CA, HSAMB’s instructions dated 9.8.2005 have also separately been circulated by the Department to all concerned.

 (d)            Purchase of foodgrains & coarsegrains

(i)                 The purchase of foodgrains and coarsegrains will be made by the agencies on MSP strictly as per parameters/specifications already discussed in the foregoing paras.    Procurement Agencies will ensure that the farmers do not in any way get price lower than the MSP and the farmers do not resort to any distress sale of their produce.  In case, however, any stocks arrived in Mandis  do not conform to specifications,  the same should be got improved by cleaning or blending with good quality of foodgrains.  In this connection, the farmers will be advised/ educated by the staff of the Market Committees as well as the Procurement Agencies.

 (ii)               The Procurement Agencies must ensure that the purchase of foodgrains/       coarsegrains  is made as per specifications and by carrying out proper visual inspection of stocks.  The laboratory staff i.e. Head Analyst & Junior Analyst should also be associated while effecting the purchase of the foodgrains and coarsegrains.   To ascertain moisture contents in paddy, moisture meters may be kept in every mandi by each procuring agency.

   (iii)             For the convenience of the farmers, two boards in Hindi indicating specifications of paddy/bajra        as laid down by Govt. of India and the price payable should be displayed at prominent and conspicuous places in each mandi.  In case of  big mandis the number of such boards may be increased according to need.


(iv). It would be the responsibility of the Procurement Agencies to ensure that representative samples of foodgrains and coarsegrains are properly drawn everyday in each mandi and analyzed in  order to determine its proper quality.  While ascertaining the quality of foodgrains and coarsegrains, it must be ensured that the interest of the farmers are fully protected.


 (v). It is necessary for the Procurement Agencies to exercise strict supervision and control at all stages of operations so as to ensure that there are no malpractices or manipulations in transactions of the procurement.


(e)            Method of sampling/analysis

(i) The representative sampling of foodgrains and coarsegrains be drawn/ analyzed daily to determine its quality.   For this purpose, a Register, should be maintained in each mandi in which such samples together with the results are entered.  The register should contain the columns such as date, time of drawing the sample, name of the arhtias/farmers etc..  This register should be maintained in each mandi/purchase center which can be inspected by any visiting officer.  A report giving details of the samples so drawn be also sent daily to the Headquarters of this Department.


(ii) The method of sampling of foodgrains as communicated by Govt. of India vide letter No. 8-6-2005-S&I dated 1.9.2005 would be as under:-




(Common & Grade-A)



BIS No. IS:4333 (Part-I &II) 1967 and terminology for foodgrains IS:2813-1995 as amended from time to time.

BIS No. IS:4333 (Part-I &II) 1967 and terminology for foodgrains IS:2813-1995 as amended from time to time.


BIS No. IS:14818-2000.

BIS No. IS:14818-2000.



(f)         Cleaning arrangements in Mandis

The CA, HSAMB has already made mandatory for every Arhtia to have an electric fan/ jharnas, sufficient labour, crates, polythene covers etc..  This facility can be availed by any farmer, whose produce is not conforming to the prescribed specifications.  The staff of the Market  Committees and Procurement Agencies must ensure  that every arhtia in the mandis has made arrangements of this cleaning facility.  The instructions in this regard have already been issued by HSAMB.


(g) Check against un-necessary rejection of foodgrains and coarsegrains in  Mandis

(i)                 Complaints are generally received in some cases that the stocks of paddy/bajra are rejected by the Procurement Agencies on the plea that these do not conform to the prescribed specifications and such stocks are purchased by the trade at very low rates and then passed on to the Procurement Agencies the next day or after a few days at the procurement prices. The procuring staff have to be very vigilant and take all steps to ensure that the farmers are not exploited in any way and that there is no collusion of any kind between the procurement staff and the trade.


(ii)               Whenever the stocks of foodgrains and coarsegrains  are rejected by the Procurement Agencies it should be personally verified and checked whether the stocks were actually not in accordance with prescribed specifications and were rightly rejected and that these could not be improved  by cleaning or otherwise. Further, in order to ensure that the stocks rejected are really beyond the prescribed specifications, samples of all such rejected stocks should invariably be drawn and analyzed in the District Food Grains Laboratory. A report about the rejected stocks showing interalia the name of center, number of heaps rejected and their quantity with the name of farmers and his proper address as also the results of analysis may be sent daily to the Director Food and Supplies Department, Haryana by name.


(h).   Mandi level committees for determining correct prices of foodgrains

A committee consisting of Inspector Food & Supplies/AFSO, Secretary Market Committee or any official of the Market Committee, representative of BCPA, representative of the growers and local representative of FCI, Hafed, HWC, HAIC and Confed be constituted in every mandi to determine the quality of foodgrains especially in case of doubtful nature and to settle disputes connected there-with.

 (i)               Stenciling of bags

The stenciling of bags on the purchase of foodgrains/coarsegrains be made as in the case of wheat.

 (j)             Filling of bags

The paddy will be filled in  new 50 kg. bag containing 35 kg. and bajra  will also be filled in new 50 kg. bag containing  50 kg..

                    (k)   Stitching of bags

The stitching of paddy bags be made manually and 14 to 16 stitches  are to be made on every bag as per standing instructions of Headquarter dated 17.4.1984.  The stitching of bajra bags should be double machine stitch or manually stitched as per demand of FCI.   In case any deduction is made by FCI on account of poor stitching etc., the recovery should be effected from the concerned labour contractors.




(a)           Mandis  and allocation thereof

During KMS, 2004, 227 mandis  were made functional for the purchase of paddy.  However, it has been considered that those mandis/ purchase centres, in which there was no arrival of paddy during KMS 2003 and 2004,  may not be made functional  during KMS 2005.   Accordingly, 168 mandis for purchase of paddy will be made functional this year. Similarly, for the purchase of bajra, as against 40 mandis of the last year, 41 mandis will be made functional this year.  One more mandi namely Kaithal has been added for purchase of Bajra this year.  Allocation of these mandis (paddy and bajra) amongst the Procurement Agencies will be communicated to all concerned in due course.   It may be ensured that mandis are equipped with basic amenities such as drinking water, electricity, pucca platform, sheds, parking place etc..  After receipt of allocation of mandis,  the concerned Heads of the Procurement Agencies in the State and the Districts will ensure that all mandis are inspected and cleared well before the commencement of season  so as to facilitate uninterrupted  procurement operations.


(b)    Procurement Agencies

           Six Procurement Agencies will effect the procurement of paddy namely: Food and Supplies Department  25%, Hafed 33%,  FCI 15%, HAIC 9%, HWC 9% and Confed 9%.  The bajra will be purchased by the State Procurement Agencies excluding FCI in the mandis allocated to them.  The staff of the Procurement Agencies will remain present in the mandis on the day allocated to them and they will effect purchase of foodgrains and coarsegrains in the event of market price falling below the MSP.


(c)    Rice Millers

           The number of functional rice mills in the State is about 856.  The millers may be buying  leviable paddy as well as doing custom milling of paddy purchased by the Procurement Agencies.  The rice millers doing the levy/CMR work will be under obligation to adhere to various terms and conditions and guidelines issued by the Government. 


(d)          Packing Material

           The State Govt. agencies have made arrangements of gunny bales of 50 kg. gunny bales which will be used for filling foodgrains and coarsegrains as well as delivery of CMR.  FCI also has adequate  stocks of gunny bales which will be used for this purpose.  The agencies also have sufficient qty. of polythene covers, tarpaulins and fumigants etc..  The agencies will have to ensure the stocking of the packing material at the strategic points well before the commencement of the season so that no difficulty is experienced when the actual procurement starts.


(e)    Cash Credit Limit and payment to the farmers

           The State Govt. is committed to make the payments to the farmers within 48-72 hours.  For this, cash credit limit of Rs 836 crores for purchase of paddy and 126 crores for purchase of Bajra is being arranged from Reserve Bank of India. The allocation of funds would be communicated to the Procurement Agencies [except FCI] in due course of time.  The Food and Supplies Department will place sufficient funds at the disposal of  DFSCs for this purpose.  


(a)            Billing-Cum-Payment Agents

           For all the mandis Billing-Cum-Payment Agents  will be appointed as per requirement.  These BCPAs will collect the bills from all the arhtias and prepare one bill of each day and will submit the same to the concerned agency for payment.  These BCPAs  will ensure timely payment to the farmers through arhtia, proper weighment of foodgrains, maintenance of proper accounts of foodgrains purchased, lifting the stocks from each kachha arhtia and  storing the same at storage points.  Besides, BCPAs will be responsible to perform their duties as per terms and conditions of their agreement.  They will be paid commission @ Rs 0.15 for 50 kg. and Rs 0.11  for 35 kg. filling as per sanction communicated vide letter No RP-1-2005/16079  to 16085  dated  1.9.2005.


(g).   Labour & Transportation

           The contracts of labour and transportation finalized during the Rabi season 2005-06 will also be valid for the current KMS, 2005-06.  The concerned agencies and district administration will ensure that the contractors function smoothly and bottlenecks if any, are removed promptly.


(h)         Storage capacity

Sufficient covered space is available in the State.  It is reported that 7.43 lac MT covered storage capacity is already available and another space about 6.75 lac MT is likely to fall vacant on the evacuation of foodgrains stocks in the coming months.   No constraints on this front are likely to be experienced.


(i)         Control Rooms

The Food and Supplies Department will start functioning control rooms at the State Headquarters as well as Distt. Headquarters  well before the commencement of the season.   Similarly, the Procurement Agencies will also set up their own control rooms at their State Headquarters as well as Distt. Headquarters.  The Procurement Agencies will ensure to communicate information about the procurement to the control rooms of Food and Supplies Department on day to day basis.  The Food and Supplies Department in turn will communicate the procurement information to Govt. of India also on day to day basis


(j)         Deployment of staff

Each procuring agency will deploy sufficient staff in the mandis allocated to them so that they resume the procurement operation as and when warranted by the situation. 



In order to ensure smooth operation of custom milling of paddy during KMS 2005 procured by the State Procurement Agencies, the following instructions shall be followed in letter and spirit by the State Procurement Agencies:-


(a)           Storage of Paddy

Paddy procured by the Agencies will be stored in the premises of the allotted rice mills (Milling Committee) in joint custody as per details given in subsequent paragraphs. However, any Agency is at liberty to store paddy in its own custody in view of the prevailing circumstances.  The responsibility for  quality and quantity for the paddy stored in own custody will be of the concerned Agency. The paddy  be stored preferably within 8 kms. in the rice mills allotted to the Procurement Agencies. The handling charges viz. transportation charges from mandis/purchase centres to mill godowns within 8 KMS, shall be borne by the Agency.  However, in case miller lift paddy from mandi at his own, the milling charges will be paid as sanctioned by Govt. of India.  Such paddy stocks are to be got milled from the mills allotted by the Agencies at the earliest possible so that Agencies do not incur avoidable financial expenditure.


The paddy stored in the premises of the rice mill will be under joint custody of the rice mill and the Agency/DFSC, DFSO, AFSO, IFS and SIFS for which responsibility for quantity and quality will be of the concerned rice millers and the Agency/DFSC, DFSO, AFSO, IFS and SIFS.  The millers will ensure the storage of the paddy stocks of the Agencies separately from that of his  own purchase of paddy stocks by erecting a physical barrier such as a boundary wall or a proper and durable fencing.


Each miller will prepare in triplicate a pictorial chart/ sketch depicting the positioning of the stacks, stack No. with the number of bags in each stack.  He will retain a copy of the above at his mill premises while the second copy will be available with the Inspector Incharge/concerned agency and third copy will be kept in the District Office of the Procurement Agency.


The joint physical verification of the paddy stocks shall be conducted on a fortnightly basis.  The District Heads of the Procurement Agencies and the millers will be responsible in respect of quantity and quality of paddy stocks found at the time of physical verification.   The physical verification reports will be submitted regularly by the District Heads of the Agencies to the Milling Committee as well as Heads of the Procurement Agency.


(b)         Milling Committee

The State Govt. has constituted a Milling Committee under the Chairmanship of Deputy Commissioner for every Distt.. The Distt. Heads of Procurement Agencies and one nominee of Rice Millers,  nominated by the Rice Millers Association its Members and Distt. Food and Supplies Controllers as its Member Secretary.  Further an officer from the Headquarters of one of State Procurement Agency shall also participate in the proceedings of the Committee.  This committee will meet from time to time (at least once in a week) for allocation of paddy to the millers and reviewing the progress of custom milling of paddy operations.  The Committee will also ensure that the time schedule for custom milling of paddy, the delivery of CMR and levy rice to Central Pool and other terms and conditions of the Agreement are adhered to.  


(c)         Shifting of paddy

The surplus paddy, if any, at a centre will be shifted with the approval of Milling Committee for its storage to the nearest milling centre keeping in view the availability of milling capacity.  In case, the nearest centre does not have adequate or surplus milling capacity, the surplus paddy will be shifted to the next nearest milling centre and so on.


If paddy is surplus as a whole in whole district, each Procurement Agency will chalk out a detailed plan and shift its paddy with the approval of the Milling Committee to the nearest district in the State for milling, where adequate milling capacity is available.  The barest minimum quantity of paddy should be shifted, which the Milling Committee feels cannot be milled in the district and in case, where it is found economically and advantageous for the concerned Procurement Agency in specific case to shift the paddy to the nearest milling centre out side the district having idle milling capacity.  It should be ensured that paddy is shifted directly from the purchase centre/mandi to the mill premises and no cross movement of paddy stocks take place.  The approval of shifting of paddy be obtained from the concerned Head of the Procurement Agency.


(d)         Allotment of Rice Mills

Allotment of rice  mills for custom milling of paddy will be made by District Milling Committee.  The rice mills, which have satisfactorily completed entire milling of paddy stocks during KMS 2004 and have delivered the resultant rice, are to be considered as eligible for allotment of paddy.   All the allotments of rice mills should be completed by 20th September, 2005.    The rice mills are to be allotted  to all the Procurement Agencies in proportion to the paddy to be procured by them. In case, one agency completes its milling of paddy stored with a rice mill and does not want to get any more paddy milled then the same mill can be formally allotted to other Agency by the Milling Committee.


A list of defaulter rice mill of all the Procurement Agencies be prepared and the same should be submitted to the Milling Committee. No defaulter rice mill (including defaulting premises) shall be considered for allotment of paddy.  The default will be on the following counts:-


i). If a rice mill has to deliver CMR of any Agency pertaining to the previous years.

ii). If lessee rice mill has to deliver CMR of the previous years and the owner had given guarantee for the lessee, the rice mill and the partners of both lessee as well as the owner of the mill would be considered defaulter.  In every case, the guarantee of the owner of the eligible rice mill will be mandatory for allotment of rice mill taken on lease.

iii). If a partner of a lessee/owner rice mill becomes defaulter and is a partner of a new/lessee rice mill, the mill in question will not be considered for allotment.

iv). If a miller has misappropriated paddy or rice of the previous years including KMS 2004 and criminal and civil proceedings are pending against him.

v). Premises of a defaulter miller will be treated as defaulter and no such mill even if leased out to any third party by the defaulter owner/ previous lessee will be eligible for allotment during KMS 2005. 

vi). A defaulter mill not be permitted to deliver levy rice under any circumstances.

vii). Only a miller having a valid electricity connection on the date of commencement of KMS 2005 shall be considered for allotment of paddy. The Agency will not store paddy in such mill where there is no electricity connection ready on the date of commencement of KMS 2005, even if the mill has been allotted.


(e)          Allotment of paddy

The allocation of leviable paddy purchased by the Procurement Agencies,  will preferably be allocated to the millers, whose mill premises are safe for paddy storage, are having boundary walls around the said premises and also having gates.  The paddy will be made to the rice millers as under:-  


        Mills having capacity upto 1MT/hour - 2000 MT

        Mills having capacity upto 2MT/hour - 3000 MT

        Mills having capacity upto 3MT/hour - 4000 MT

        Mills having capacity upto 4MT/hour or above - 5000 MT


No pick and choose policy will be adopted while allocating leviable paddy to the millers.  However, the millers having dryers and sortex facilities can be allotted more paddy on the recommendation of Milling Committee and with the approval of Heads of the Procurement Agencies.  Besides, the District Milling Committee may, after due consideration, allocate more paddy to the rice millers of the District keeping in view the local conditions but this will be so done with the approval of Heads of Procurement Agencies.   The following instructions should also be adhered to before allotment of paddy:-


(i)                 Minimum 100 tonne of paddy shall be released in every period of five days, excluding Sundays and holidays, to the miller having one tonne capacity against receipt of cheque/s and two sureties for milling.  The next lot of paddy shall be released on the delivery of rice to FCI manufactured out of paddy of previous lot.

(ii)               Paddy should not be allotted to those rice millers, who failed to deliver CMR during previous KMSs or mis-appropriated paddy/rice stocks.

(iii)             The rice millers against whom  civil/criminal proceedings have been initiated, should be black listed alongwith their mill premises.

(iv)              The paddy should be allotted to the millers in equal proportion depending upon their capacity so that no rice miller get paddy more than his milling capacity.

(v)                Preferably one rice mill be allotted paddy of one agency exclusively so that millers get paddy of one agency at a time.

(vi)              Paddy should not be allotted  to defaulter millers as mentioned above and whose reputation as well as financial position is poor.

(vii)            The dues of the agencies against the rice millers be got adjusted in consultation with FCI, against their due payments on the deliveries of levy rice.

(viii)          Paddy be allotted to those rice mills, which are taken on lease, after taking  cheque/s for Rs. 10.00 lacs and two sureties of equal amount in addition to the cheque/s of Rs. 10.00 lacs and two sureties from millers other than lessee.

(ix)              Paddy may not be given in advance without obtaining cheque/s and two sureties of Arhtias of mandi/ purchase centre.

(x)                The paddy stocks shall remain in joint custody of the rice miller and of Agency. In case of Food and Supplies Department it shall remain in joint custody of miller and DFSC/DFSO/AFSO/IFS/SIFS till its conversion into rice and delivery of rice to FCI.  The Agency concerned and the rice miller will be jointly responsible for quantity and quality of paddy stocks stored in joint custody.

(xi)              In case the miller lift paddy without release order or unauthorizedly converts it into rice, it shall tantamount to defalcation and Agency will take any action deemed appropriate against the miller.  The miller will be liable to pay the interest @ CCL interest of the value of paddy for the duration of defalcation.   In addition, the miller alongwith his mill premises will be black listed.


(f)          Execution of Agreements

Millers doing custom milling of paddy shall execute an agreement  with the concerned Procurement Agencies by 30.9.2005 in the prescribed proforma and complete all other formalities in this regard, failing which the allotment of paddy shall be cancelled.  Signatures to the agreement must be authorized by the partners/Directors through a legally executed General Power of Attorney. They will have to adhere to the various terms and conditions incorporated in the agreement.  No paddy will be stored in any miller’s premises without executing proper agreement.


(g)         Guarantee

Guarantee in the shape of cheque/s of Rs. 10.00 lacs and two sureties of reputed Arhtias be taken/obtained from the millers having one tonne capacity, which shall be increased proportionately as per their milling capacity before releasing paddy for milling.  In case the rice mill is taken on lease by the miller, in additon to the the surety of the mill owner/ proprietor, two sureties of reputed arhtias/commission agents  will be taken.   These sureties will be in addition to the abovesaid guarantee.


(h)          Security Amount

Security amount of Rs. 1,00,000 (Rs. one lac) for one tonne capacity and Rs. 50,000/- (Rs. Fifty thousand) for additional one tonne capacity in cash or D.D within one week of issue of letter of acceptance.  The security deposited shall not carry on any interest at the time of interest.


(i)               Delivery of Rice

Delivery of CMR/levy rice will be governed by the following instructions/ guidelines:-

(i)                 The miller shall utilize the milling capacity strictly on the basis of paddy stocks  stored by the Government/Agencies and paddy purchased by millers at his own. The miller has to maintain the ratio for delivery of custom milled and levy rice.  However, this ratio will not be applicable on those rice millers, who will purchase leviable paddy for delivery of levy rice only.

(ii)               In case the milling of paddy of the Agencies is delayed, Section-10 of the Levy Order, 1985 be invoked.

(iii)             The rice miller shall be required to manufacture entire rice as per specifications laid down by the Govt. of India and deliver the same to FCI at its depot by 28th February, 2006.  The transportation/incidentals charges, if any, shall be paid in accordance with the instructions issued by the Govt. of India from time to time.  The delivery schedule of CMR shall be regulated as under:-


October & Nov., 2005 = 30%

                                                December, 2005                            =            30%

                                                January, 2006                                   =            25%

                                                February, 2006                                =            15%


In the event of failure to deliver CMR, within stipulated period, the miller shall  be liable for interest @ CCL rate of interest for delayed period on the delivery of CMR from the date it becomes payable till the date of realization towards the left over quantity/stocks of paddy. However, if any miller requests to give relaxation in the delivery schedule a Committee of Heads of Procurement Agencies will take final decision in this regard.  The concerned agency, in whose case miller has requested for relaxation, shall convene the meeting of this Committee.

(iv) Delivery of CMR/Levy rice will start immediately w.e.f. 1st October, 2005.  The rice miller shall be required to deliver CMR of the same variety of the paddy allotted to him for custom milling.  Interchangeability of common rice into grade-A rice shall be made by the miller at his own risk.  Normally no differential payment of interchange of rice may be made.  However, in exceptional circumstancs, by recording reasons, Heads of Agencies may decide for any individual’ case.  The decision made by Government shall be final.  

(v) The liability of quality cuts on rice, if any and other deductions made by FCI, shall be that of the miller.

(vi)              In order to streamline and regulate the delivery of CMR/Levy Rice contract numbers will be issued by  a Committee headed by IFS of PR Centre, one representative of State Procurement Agencies and one representative of rice miller nominated by the Rice Millers Association.  In this regard, instructions were issued vide department memo No. R.P-2-2005/13705 dated 22.7.2005.

(vii)            The contact number for the delivery of levy rice will be issued on receipt of fortnightly reports from the millers.  The contract numbers for the delivery of levy rice, produced out of the paddy purchased by the millers from other districts, shall be issued on receipt of confirmation/certificate given by IFS/AFSO/DFSC  of the district from which paddy is purchased “that arrival of such paddy stocks have been reduced from his accounts”.

(viii) The rice miller will deliver rice to the Central Pool in 50 kg. bags (B-twill gunny bags).  The cost of surplus gunny bags retained by the millers used for purchasing of paddy by the Agencies will be realized from the miller at the rates fixed by Govt..

(ix) In case, rice miller fails to deliver the CMR of KMS 2005 of the Agency as per the stipulated schedule and the Agency has to shift the paddy stocks, it would be done at the risk and cost of the miller concerned giving him due notice for this purpose.  The miller and his mill premises will be blacklisted.

(x)                As per Govt. of India instructions, conveyed vide letter No. 15(10)/2003-Py.III dated 31.5.2005, for the identification of the crop year rice stocks,  colour on gunny bags used for filling rice will be as under:-

(a)       Colour coding or identification marking on every bag at a distance of   about 150 mm away from any one side of the selvedge shall be in “Red” colour.

(b)  Stencil or Branding as per indentors requirement shall be in “Blue” colour.

(c)    Marking or Stitching on the mouth of the bag after filling the grain will be done by the FCI/State Agencies in “Red” colour.

(d)   A single blue stripe running along the length of the bag at the centre shall be kept unchanged.


(j)               Payment of milling charges

The rice millers will be paid milling charges for custom milling of paddy as fixed by the Government of India and as per agreement executed with them. However, all bye-products viz. broken rice, rice kani (rice husk and rice bran etc.) shall be the property of the rice miller.  The rice millers will be bound to follow any change  in the policy made by the Government of India or the State Government from time to time.  The following services are to be provided by the millers for custom milling of paddy and for delivery of rice:-


i). Drying of paddy stocks.

ii). Katai of paddy bags before dehusking.

iii). De-husking of paddy stocks.

iv). Filling up of bags of rice prior to dara making.

v). Dara making of rice bags and filling/ sewing of bags with double line machine Stitching.

vi). Delivery of acceptance notes, weight-check memos and other relevant documents for claiming payment from the Food Corporation of India.

vii). Miller shall stitch a raxin slip/canvas slip with each bag bearing name of the mill/ Centre/ District/ category of rice/  net weight/ contract No./ crop year on the bags.



VI.  Thrust areas during Procurement


                    (a)          Review and co-ordination

The District Milling Committee will rigoursly review and co-ordinate the procurement operations from time to time and its information will be given to the Heads of the Procurement Agencies.  Similarly, the Heads of the Procurement Agencies will also conduct review of the procurement operations on periodically.  Review meetings will also be held at higher level in the State and invariably  at the level of DFS and FCFS.  The Heads of the Procurement Agencies will ensure proper co-ordination and monitoring procurement operations.

 (b)         Inspection of mandis

The Deputy Commissioners will ensure that the mandis  in their jurisdiction  are inspected by senior functionaries.  Major events taking place in the mandis are reported to higher level and appropriate action, as warranted by situation, is taken promptly.  Similarly, the mandis allocated to various Procurement Agencies will be inspected by the Heads of respective Procurement Agencies periodically so as to sort out any problems/bottlenecks on the spot. 


                     (c)         Clearance of Mandis

The District Administration and the Heads of the Procurement Agencies will ensure that the stocks purchased by them are lifted and  the mandis are cleared on the same day.    No glut  be allowed to take place in the mandis.  In fact, the Procurement Agencies must finalize/execute the custom milling agreements with the millers well before the commencement of the season and the paddy purchased by them must be lifted from mandis and stored for its custom milling immediately after purchase.   The arrangements to ensure proper weighment of  procured foodgrains  be made in all the mandis and random checking be made before lifting the procured stocks.


                  (d)         Proper and safe storage of foodgrains

It would be ensured that  the foodgrains purchased by the agencies are stored properly and kept under safe custody so that there is no chance of any pilferage or damage to stocks taking place.


                     (e)         Education of farmers

The Procurement Agencies with the co-operation of the Market Committees,  will educate the farmers through Press, Television, All India Radio and Public Relation Department of the State.   This will be with a view to advise the farmers to bring their produce to the Mandis  in a neat and clean condition.  The farmers must know the prescribed parameters of quality so that they bring their produce accordingly and the same is purchased by the millers/ Procurement Agencies immediately on its arrival.  In the event of any heap of foodgrains not conforming to the prescribed specifications, farmers would be advised by the staff available in the mandis to dry and clean the stocks or blend it with  good quality stocks so as to bring it upto the prescribed specifications for which infrastructure has been created with each Arhtias in the mandi.

                  (f)           Watchful eye on the Role of BCPA

                          It may be ensured that the BCPA collects the bills from all the arhitas, compiles                   and submits the same to the concerned agency for payment.  This be also ensured that the                  t concerned agency makes the payment to the BCPA on the succeeding day positively so                    so as to ensure that the payments to the farmers are made within the stipulated time.


                        (g)            Functioning of labour and transportation contractors 

A watchful eye has to be kept on the functioning of all the labour and transportation contractors in the Mandis.  Efficient functioning on their part   makes the procurement operations smooth  and avoids any glut in   the   Mandis.  It be ensured that these contractual arrangements  function    smoothly   and   in case of any failure on their part, alternate arrangements  are  made   promptly so that the procurement  operations  are  not  hampered.

 VII. Maintenance of Accounts on the purchase of foodgrains

                       (a)    The accounts of the foodgrains purchased on MSP by the DFSCs are  to be maintained as per provisions of the P.R. Manual of the department as well as instructions issued from time to time.  Necessary accounts and returns must be sent to Headquarter regularly.  


(b) Government takes a serious view about the incomplete and improper maintenance of various documents particularly PR-1 register. Complete and proper documents, record and accounts  as required be maintained  and special stress is laid on the correct maintenance of PR-1 register.  Every heap of the foodgrains must be entered in the P.R-I register and no heap is allowed to remain unaccounted far.  The PR-1, PR-3, PR-4, PR-6, PR-7, PR-16, PR-9, PR-14 (gate pass), PR-38 and PR-86 be maintained as per provision of P.R. Manual of the Food and Supplies Department.  In case the forms prescribed in the PR Manual particularly indicated above are not maintained regularly on day to day basis, it will render the official concerned as well as the supervisory officers including District Food & Supplies Controller /officer responsible for stern disciplinary action. It should be particularly noted that for every movement of foodgrains taking place from mandi to miller premises or godowns within the centre for storage, PR-14 (gate pass) is invariably prepared.  Similarly, all operations involving financial implications must be recorded in the daily Roznamcha in form PR-86 on the day of their performance.

 (c)    Recording  of  paddy  variety-wise  i.e. PR-Sarbati, Muchchal or Basmati and leviable paddy etc. (common/grade-A) instead of word ‘Paddy’ in the PR-1 register of the Department, be ensured. ‘H’ register of the Market Committee as well as commission agents be ensured. It  is  also necessary that at  the close of day the PR-1 register and H  register maintained by market committee and arhtias is signed by the concerned Inspector / Sub Inspector and the authorized employee of the market committee.

d) The staff of the other Procurement Agencies will also ensure proper maintenance  of accounts as per their laid down procedure and guidelines and will also maintain every detail about the procurement operations.

 2.        All disputes pertaining to custom milling of paddy between the millers and the agencies shall be resolved through arbitration by an arbitrator to be appointed by the Head of the concerned Procurement Agency.  There shall be no objection to any such appointment by the miller concerned.









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