tt. No. 192 (25) / 2ot7-FC.A/Cs.

Government of India
Ministry of Consumer Affairs, Food and Public distribution
Department of Food and Public Distribution
Krishi Bhavan, New Delhi
Dated: the 31't October, 2077.
To,
The Secretary,
Food & Civil Supplies Department,
Government of Madhya Pradesh
Bhopal.

Subject: Fixation of the Provisional rates of Custom Milled Rice (CMR) (FAQ) and cost of new 50
kg. Gunny Bags used by the Government of Madhya Pradesh and its agencies for the
procurement of Custom Milled Rice(FAQ) for Central Pool and Decentralized procurement
Scheme during the Kharif Marketing Season 2017 -78.

Sir,

I am directed to convey the approval of the Government of India for payment of the
following provisional rates of Custom Milled Rice (CMR) (FAQ) and the economic cost for Central
Pool and DCP Scheme respectively under the price support operation to the Government of Madhya
Pradesh and its agencies during the Kharif Marketing Season 2Ol7-18

For Central Pool Operations:

(i) Incidentals for the stocks of CMR, which are handed over to the Food Corporation of India
for Central Pool fltem wise details of the procurement incidentals are enclosed at Annexure-l):

CommodiW For Gunny baqs

Common Grade'A'
Raw-rice 2606.80 2670.M
Par-boiled Rice 256L.53 2623.64

[For central pool stocks for transportation of paddy from purchase centres/mandis to mills and for
rice from mills to storage godowns, transportation charges from 0 kms onwards will be payable
based on the rates fixed by the District Collectors of the State or FCI's rate whichever is lower.)

For DCP Onerations

(ii) Economic Cost for the stocks of CMR retained by the State Government for distribution
under the decentralized procurement operations (ltem wise details of the economic cost are
enclosed at Annexure-ll):

CommodiW For Gunnvbags

Common Grade'A'
Raw-rice 2866.99 2934.44
Par-boiled Rice 2BLA.63 2884.49

Note:
ti) This costing is for new gunny bags for paddy/Rice as per guidelines of usage
charges for packaging ofprovided paddy.
 (ii) In this regard, it is stated that transportation charges allowed in the provisional
cost sheet fAnnexure-Il) for distribution stage are only for transportation of rice
from storage point to designated depots. For transportation of rice from
designated depot to FPS, transpoftation charges will be regulated as per gazette
notification dated 17.08.2015 regarding Central Assistance to States/UTs for
meeting the expenditure on intra-State movement and handling of food grains
and FPS dealers margin under Section22(4xd) of the NFSA Act,2O13.

2. The payment of commission to Societies will be subject to the conditions laid vide this
Deptt.'s order no. 792(\ /2003-FC A/cs[Vol-ll) dated 26.7.2013.

3. Milling charges have been allowed @Rs. 10,00 per qtl. for raw and Rs. 20.00 per
Since
qtl. for par-boiled rice, transportation charges from 0 km onwards for transpoftation of
paddy from purchase center/Mandi to mills and for rice from mill to FCI Godown will be
payable.

4. The Custom Milled Rice would be delivered by the procuring agencies to FCI, in new 50 kg
bags only, in its local godowns upto the scale point and the stacking in the FCI godown will be done
by FCL
5. The rate/cost of Custom Milled Rice (CMR) and other elements as indicated above are
provisional. The State Government should send its claims for final incidentals alongwith accounts
audited by the auditors appointed by the Comptroller and Auditor General and documentary prool
as well as detailed justification for each item at the earliest after the end of the season and in any
case not later than t2 months from the end of the financial year in which the season has ended. The
States who have not submitted finalization claims within four years of commencement of marketing
season, only MSP, statutory charges, gunny charges will be given at prevailing rates, Indexation of
other incidentals has been frozen on the basis of KMS 2016-17
6. To ensure proper utilization of funds/subsidy being released by the Government of India,
the FCI may insist on previous year's requisite certificates from the State Government and its
agencies before release of incidentals on account of statutory charges i.e. Market Fee etc.
7. The provisional rates/cost sheets are only for paddy/CMR procured by the State
agencies/FCl and not for any other party acting either on behalf of such State agencies for the FCL
These rates would not be benchmarked to fix rate for such parties.

8. This issues with the approval of the Integrated Finance Division vide their Dy. No.
339 0 14lSS &F A I 2017 dated 30.70.2017

Yours faith fully,

Dated: 31..LO.2OL7

(Abhay Kumar)
Under Secretary to the Government of India
Tele: [011) 23073798
!l

Copyto:
-itre
f. Executive Director (ProcurementJ; FCI, L6-20, Barakhamba Lane, New Delhi-110001.
2. The Executive Director (Finance), FCL,L6-20, Barakhamba Lane, New Delhi-110001.
3. The Senior Regional Manager, FCI Regional Office, Madhya Pradesh, Chetak Building Maharana
Pratap Nagar, Zone-ll, BhoPal.
4. The Managing Director, MPSCSC, Bhopal.
5. The Managing Director, MP Marlded.
6. The principalbirector of Commercial Audit & Ex-Officio Mernber Audit Board - IVl0-Bahadur
Shah Zafar Marg, New Delhi.
7. The Principal Director of Commercial Audit & Ex-Officio Member Audit Board - IV North Zone,
2na Floor, Khadya Sadan, L6'21,Baraldramba Lane, New Delhi-110001'
B. to IS(P&FCI)/Pr. Adviser(Cost)/Director(FC A/cs)/Director(Cost)/DS(Finance)/Us(Fin-l)
pS
9. Guard File.

(Abhay Kumar)
Under Secrearyto the Government of India
 Annexure-I
No.19z(zS) / ZOLT -FC/ Acs.
Government of India
Department of Food and public Distribution
Provisional Rates of custom Milled Rice (FAQ) delivered to FCI for central pool
during the Kharif Marketing
Season 2Ol7'LB in respect of Govt. of Madhya Pradesh and its
agencies

S.No Item of incidentals Raw Rice Par-boiled Rice

Common Grade A Common Grade A
1 Mihimum Price 1550.00 1590.00 1550.00 1590.00
2

Market Fee of MSP 31.00 31.80 31.00 31.80

3 Mandi Labour ndl 8.64 8.64 8.64 8.64
4 D L% of MSP 15.50 15.90
5 Commission to Societies $ 3t.25 32.00 31.25 32.00
Custo dy & Maintenance Charges (cAP)
6 @ Rs 2 .40 rl month for 2 months # 4.80 4.80 4.80 4.80
Interest Charges for 2 months @10.03o/o p.a. on
MSP, Statutory charges and Mandi labour
7 ch 26.57 27.26 26.57 27.26
Milling Charges excl uding Rs. 5.00 per qtl. as
transportation charges upto B kms on each side
from Mandi to mills for paddy as well as mill to
B for rice 10.00 10.00 20.00 20.00
9 Cost of 1 of milled 1677.76 1720.40 1672.26 1714.50
10 Out turn ratio 0.67 0.67 0.68 0.68
11 Sub-Total 2504.12 2s67.76 2459.21 2521.32
12 Cost ofnew 93.02 93.02 93.02 93.02
13 on {.*
9.66 9.66 9.30 9.30
T4 Cost of 1 of rlce 2606.80 2670.44 2561.53
2623.64
$ Commission to Societies is payable subject to the conditions laid down
vide letter no 792(4)/ZOO3-FC
a/cs Vol- 2 dated 26.07.2013.
^ Custody and Maintenance charges and interest charges are payable subject to the conditions laid
down
vide letter no l92g)/2003-FC a/cs Vol- 3 dated 05.11.201s and tz.tr.zl1.s.
#custody and maintenance charges would be released on production
of a certificate by the State
Government provided these charges have been incurred by it. it
will further be restricted to State Govt.,s
claim.
$$ Includes branding charges, safety stitch cess, inspection charges, development
charges, terminal
charge, railway freight, sales tax @2o/o upto and applicable
June,17 GST from July,17 onwards.
** Payment of Usage charges would
be regulated as per order issued by this Department vide letter No.
-15(8)/2004-Py.lll [Pt.) dated os.to.2ot7.which inter alia sripulates thar-
(a) The said usage charges shall be admissible subject to state's principal/food
secretary of M.D of state
agency shall certify that for filling of paddy, the old bags ,..rng"d
by the state/miller is being used only
once after purchase' State shall also provid" nu.".rriy supporting
documenis/certifications of gunny
accounts.
(b) In case state fails-to provide appropriate documents/certifications, the usage charges
limited to Rs.3.75 bags for packaging oiprocured paddy in oid bags shall be
or actual claim whichever is lower.
Dated:

(Abhay Kumar)
Under Secretary to the Government of India
 Annexure-II

No. 192(52)zlt7 -FC/ A/ cs.

Government of India
Department of Food and public Distribution
Provisional Economic cost of Custom Milled Rice(FAQ) retained for distribution under decentralized
procurement operations during the Kharif Marketing Season 2077 -1,B
in respect of Government of Madhya
Pradesh and its agencies

S.No Item of incidentals Raw Rice Par-boiled Rice

Common Grade A Common Grade A
I Minimum Price 1550.00 1590.00 1550.00 1590.00
2
Market Fee 5% of MSP 31.00 31.80 31.00 31.80
3 Mandi Labour 8.64 8.64 8.64 8.64
Transportation Charges for transportation of 25.52 25.52 25.52 25.s2
paddy from purchase centers to temporary
4 to mills from 0 kms onwards
5 @Lo/o of MSP 15.50 15.90
6 Commission to Societies $ 37.25 32.00 31.25 32.00
Custody & Maintenance Charges (CAP)
7 Rs2.40 r r month for 2 months #" 4.80 4.80 4.80 4.80
Interest Charges for 2 months @10.03%o p.a.
on MSP, Statutory charges and Mandi labour
B 26.57 27.26 26.57 27.26
Milling Charges excluding Rs. 5.00 per qtl, as
transportation charges upto B kms on each side
from Mandi to mills for paddy as well as mill to
9 for rice. 10.00 10.00 20.00 20.00
10 Cost of 1 of milled 1703.28 1745.92 1697.78 7740.02
11 Out turn ratio 0.67 0.57 0.68 0.68
12 Sub-Total 2542.21 2605.85 2495.74 2558.85
13 cost ofnew nles $$ 93.02 93.02 93.02 93.02
L4 on 9.66 9.66 9.30 9.30
15 Cost of 1 of rrce 2644.89 2708.532599.05 2661,.17
$ Commission to Societies is payable subject to the conditions la id down vide Ietter
no 1.92(4)/2003-FC
a/cs Vol- 2 dated 26.07.2013
^ Custody and Maintenance charges and interest charges are payable subject to the conditions
laid
down vide letter no 792(4)lzoo3-FC a/cs Vol- 3 dated 05.11.2015 and t2.ot7.20ls.
#Custody and maintenance charges would be released on production of
a certificate by the State
Government provided these charges have been incurred by it. it will further
be restricted to State Govt.,s
claim.
$$ Includes branding charges, safety stitch cess, inspection charges, development charges,
terminal
charge, railway freigh! sales tax @20/ouptofune,17 and applicable
GST from fuly,17 onwards.
*l
fllment of usage charges yvould be regulated as per order issued by this Department vide letter No.
(Pt.) dated os.ro.zoLZ.which inter alia stiputates thit-
-15(B)/2004-Py.ltt
(a) The said usage charges shall be admissible subject to state's principal/food
secretary of M.D of state
agency shall certify that for filling of paddy, the old bags by ihe'state/miller is being used only
once after purchase. State shall also provide nec"ssaiy "..rng"d
supporting documents/certificationi of gunny
accounts.
(b) In case state fails_to provide appropriate documents/certifications, the usage charges
shall be
limited to Rs.3'75 bags for packaging of procured paddy in old bags or actual claim
whichever is lower.

Dated:
(Abhay Kumar)
Under Secretary to the Government of India
 Annexure-II (Contd.)
No.192 (2 5) / 2ot7 -FC/ Acs.
Government of India
Department of Food and Public Distribution
Provisional Economic cost of Custom Milled Rice(FAQ) retained for distribution under
decentralized procurement operations during the Kharif Marketing Season 2Ol7-lB in respect
of Government of Madhya Pradesh and its agencies

A. COST
1 Cost of CMR 2644.89 2708.53 2599.05 2661,.L7
B. DISTRIBUTION COST
S.No Item of incidentals Raw Rice Par-boiled Rice
Common Grade A Common Grade A
Storage Charges @ Rs. 8.30/qtl. per month
2 for 4 months # 33.20 33.20 33.20 33.20
3 Handling & Transportation Charges* 35.07 35.07 35.07 35.07
Interest charges @ 10.03% p.a. for 4
months on acquisition cost minus interest
4 charges 87.10 89.19 85.59 87.63
Transit and Storage loss @ 0.35%o of
acquisition cost excluding cost of gunny bags
5 and usage charges. 8.90 9.12 8.74 8.96
Administrative Charges @ 2.50/o of MSP of
paddy equivalent to q qtl. of rice for the
quantity retained by the State Government
6 for distribution under PDS. 57.84 59.33 56.99 58.46
7 Total Distribution Cost 222.1,1 225.91 219.59 223.3r

C. ECONOMIC COST OF CMR

B Acquistion cost + Distribution cost [A+B) 2866.99 2934.44 zBtB.63 2884.49

Note:
(i) The Food Secretary of the State is required to give a certificate that the CMR has been kept under
covered storage.
# Storage charges would be released on production ofa certificate by the State Govt. that these charges
have been incurred by it.

*The transportation charges at distribution stage is being allowed only for transportation of rice upto
the designated depots. Payment of transportation charges for transportation of rice from designated
depots to FPS will be regulated as per gazette notification dated 17.08.2015 regarding Central
Assistance to States/UTs for meeting the expenditure on intra-State movement and handling of food
grains and FPS dealers margin under Section 22(4)(d) of the NFSA Act, 2013. It is also clarified that
designated depots means depots to be specified from time to time by Govt. of India for the purpose of
distribution of food grains under NFSA. While submitting its claim for sanction of advance/provisional/
final subsidy state Govt. should certified that transportation charges for transportation of rice from
designated depot to FPS are not claimed under food subsidy as same is being separately claimed under
Central Assistance for NFSA.

Dated: 3t.LO.2Ol7

(Abhay Kumar)
Under Secretary to the Government of India