Consumer Affairs, Food & Civil Supplies

Government of Andhra Pradesh

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a) Procurement
Objective: The main objective of procurement of levy rice is to provide sufficient rice stocks to the Central Pool at F.C.I. for distribution through Public Distribution System and other Welfare Schemes.

As per clauses 3 and 4, of A.P. Rice Procurement ( Levy) Order, 1984 the rice millers / dealers will have to deliver levy rice to the Food Corporation of India at the rate of 75% of the rice milled out of paddy procured at MSP.

b) MSP operations

Minimum Support Price

Objective: The main objective of the MSP operations is to provide remunerative price to the farmers, Government of Andhra Pradesh has been implementing the M.S.P. operations for the purchase of paddy, maize and other coarsegrains and pulses. The Government have taken timely and prompt action by opening of required number of paddy / maize purchase centres in the districts by the Collector(CS) concerned.

Commodities covered under MSP operations:
1) Paddy
2) Maize
3) Jowar
4) Bajra
5) Ragi and
6) Pulses

MSP rates fixed by the Government of India for the KMS 2006-07 and 2007-08 .
Uniform Specifications of Paddy, Maize, Bajra, Jowar, Ragi and Rice for the KMS 2007-08 are as follows:
Paddy will be classified into Grade 'A' and Common groups.
Schedule of specification.

As there is no statutory levy for procurement of paddy, to ensure remunerative price for the paddy, Government have undertaken a pro-active and massive MSP operations for paddy. To achieve this objective, the following three strategic instruments have been adopted.
               1. The main instrument to ensure remunerative price to the paddy farmers, is procurement of rice through
                   Food Corporation of India.
                2. The second instrument is to effectively intervene in procurement of paddy through F.C.I., and State Agencies.
                3. The third instrument is procurement of paddy by millers / traders through regulated markets yards.
           With the above objectives, M.S.P. of paddy was ensured. The State Agencies viz; the FCI, and AP State Civil Supplies Corporation Ltd., have entered the market and purchased paddy of FAQ from the farmers at MSP. In order to facilitate disposal of paddy which was not conforming to the specifications, the Government relaxed specifications or purchase of paddy by the rice millers imposing value cuts.

Guidlines for MSP
                       1) The farmers before bringing the paddy and coarsegrains to the PPCs / Market Yards / have to dry
                            their produce exposed to the sun so that the moisture content will be reduced and there will
                           not any problem at the PPCs for purchase.

                       2) To segregate the foreign matter from the paddy, coarsegrains etc so that the farmers will get remunerative
                            price for their produce.

                      3) If the prices of paddy / coarsegrains are ruling below MSP, the farmers can utilize the facility of “Rythu
                         Bandu Scheme” and to store their stocks in the AMC godowns and avail to loan facility up to Rs 50,000/-
                          without any interest for a period of (3) months.

 For details see Operational guidelines  G.O. Ms. Nos. 40,41 and 42 of Consumer Affairs, Food and Civil Supplies Department dated 13.10.2008.
The Salient features of M.S.P Operations:

The Office of the Commissioner of Civil Supplies & Ex-Officio Secretary, Food & Civil Supplies, Govt. of Andhra Pradesh shall be the “Nodal Agency” for MSP operations of paddy, custom milling of paddy and procurement of levy rice.
ii) The procurement of paddy by FCI, State agencies such as A.P State Civil Supplies Corporation shall be supplemental to the paddy purchases made by the millers at MSP and above price, which will entitle them for delivery of levy.
iii) All the Heads of Departments, Collectors and procuring agencies concerned with the procurement of paddy and rice, shall furnish weekly reports on paddy purchases at MSP/below MSP, in case of value custs for non-FAQ paddy, levy rice procurement, prevailing market rates for paddy in market yards and movement of rice to other States.

Role of Commissioner of Civil Supplies:

Commissioner of Civil Supplies & E.O. Secretary shall be in constant touch with Govt. of India on procurement and movement of stocks by railways. Reserve Bank of India on the matters of credit, flow of finance and the district administration for levy delivery and MSP operations.
Commissioner of Civil Supplies will open a Control Room in his office with phone No. 040 - 23394637 for communicating details of paddy. This Control Room will obtain daily situation report/progress of procurement/MSP operations throughout the State and report to Government of Andhra Pradesh and Government of India. This Control Room shall receive complaints pertaining to MSP operations and get them redressed at the earliest.

Commissioner of Civil Supplies shall conduct frequent video conferences/ review of the various operations with the Collectors and other District Officers and report to the Government on the progress of procurement of paddy by the millers, FCI. Civil Supplies Corporation/ Markfed, delivery of levy rice to FCI and delivery of custom milled rice to the FCI.

Paddy / Maize for the last seven years and also procured during the present KMS 2007-08.


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