No.

192(10)/2022-FC-A/Cs(381575)
Government of India
Ministry of Consumer Affairs, Food and Public distribution
Department of Food and Public Distribution

Krishi Bhawan, New Delhi

Dated :09.12.2022
To

The Secretary,
=Government of
Food, Civil Supplies and Consumer Affairs Department,

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 Telangana and its agencies for the
procurement of Custom Milled Rice (FAQ) for the Central Pool and for DCP scheme during the
Kharif Marketing Season 2022-23.

Sir/ Madam,

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 the
Central Pool and DCP scheme under the price support operation to the Government
of Telangana and its agencies during the Kharif Marketing Season 2022-23

Central
For Pool Operations:

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

Commodi Common (Rs/ Qtl) Grade A (Rs./Qtl)

Raw Rice: 3414.08 3446.00
Par-boiled Rice 3380.48 3411.93

Operation
For DCP

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

Commodi Common (Rs/ Qtl) Grade A (Rs./Qtl)

Raw Rice 3556.15 3589.22
Par-boiled Rice 3521.05 3553.63

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Seerstery
5 VNR Y Govt, uF Inc!
xq Re Mice r
Deptt, of Food 2. मट rae
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Krishi Bhavan,we Nowa
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 Note:
i. SN costing is for procurement of paddy/ CMR as per the policy of usage charges for
packaging of procured paddy issued by this Dep[artment vide letter no 15(14)/2018-Py-
Ill (pt) dated 05.10.2017 & 13.12.2018.
/
ii. | For transportation. of rice from designated depots to FPS, transportation 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 dealer's margin under Section 22(4)(d) of the NFSA Act, 2013.

3. MSP is to be paid to the farmers by the State Government through online mode/DBT without
involving intermediaries and without any deductions. any payment against lifting of stock by
FCI or utilization under DCP may be made only after receipt of written confirmation from State
Govt (along with requisite details like portal access (if required).

4. FRK : Blending of Fortified Rice Kernel (FRK) and CMR should be at a ratio of 1:100. The
food subsidy would be released within the allocation limit. The quantity of FRK blended in the
C M R to convert the same into fortified rice would be a part of Allocation limits . For eg
Supposing the total allocation of CMR fora State is 100 Tons. As per above Ratio, a quantity of
0.9901 Ton of FRK would be required for mixing the same into 99.0099 Tons of Rice to make it
100 Tons Fortified Rice. Therefore, the subsidy of 99.0099 Tons CMR would be as per the
y
av
t
i

above Economic Cost. Remaining subsidy of 0.9901 Ton of FRK would be paid separately as
per the following norms :

An amount upto maximum Rs. 69.35/- per quintal. [i.e. 95 % of Rs. 73 /- per quintal] or actual
amount spént by the State for blending of FRK into rice, whichever is lower may be allowed for
fortified rice Karnels blended for NFSA and other permitted Schemes. State is required
to submit separate claims for Fortified Rice Certifying the cost of per Quintal FRK [including
all incidentals upto distribution of packaged fortified rice], total quantity of FRK used, Name
of Districts where the Fortified Rice distributed under NFSA, overall actual amount spent by
them for fortification of Rice etc.

The calculations of provisional/advance food subsidy for Fortified Rice for CP and DCP
operations would be made accordingly i.e. Acquisition/Distribution- cost of CMR + Cost of
FRK and its blending etc. Besides, the overall cost would be allowed as per the Terms and
Conditions of the BP Div's letters No. 15-1/2017-BP-II(pt.) (e-337997) dated 18.04.2022,
amended from time to time.

5. Milling charges are allowed @ Rs. 10 per qtl. for raw and Rs. 20 per qtl. for par-boiled
rice along with payment of transportation charges from 0 km onwards for transportation of
paddy/rice and from purchase center to mill and from miil to FCI] godowns.

et
Sy

we /Jagdish Gogia
SMT Bea /“Under Sacrotary ax
आारत Wty Gove. of de
Wer Gel सार्दजलिक RET i 1
Dentt. of Food & nar Sievert
जअयन, नई दिल 4-141 00:2
Kah Bhawan, New Celht11000t
 6. The CMR would be delivered by the procuring agencies to FCI, in new 50 kg bags only,
in its local godowns up to the scale-point and the stacking in the FCI godown will be done by
FCI.

7. The rate/cost of CMR and other elements as indicated above are provisional. The State
la should send its claimssfor final incidentals along
! with accounts, duly audited by the
auditors appointed by the Comptroller and Auditor General, and documentary proof, as well as
detailed justification for each item at the earliest after the end of the season and in any case not
later than 12 months from the end of the financial year in which the season has ended.

8. To ensure proper utilization of funds/subsidy being released by the Government of

India, the FCI may insist on requisite certificates from the State Government and its agencies for
previous financial year before release of incidentals on account of statutory charges i.e. Market
Fee etc: as per past practice.

9. These provisional rates/cost sheets are only for paddy/CMR procured by the State
agencies/FCI and not for any other party acting either on behalf of such State agency or the FCI.
These rates would not be bench-marked to fix rate for such parties.

10. State Government is requested to ensure compliance of instruction regarding

implementation of PFMS, issued by MoF from time to time.

11. As per DFPD letter dated 24.02.2020, considering the long delay in submission of
annual accounts and non adherence to timelines by some of the State Govt, additional
withholding of provisional subsidy for defaulting states will be affected w.e.f 31.03.2021. The
States which fail to submit annual accounts beyond 5 years will be deducted 5% of the
admissible. provisional subsidy in the 6th year and further by 2% p.a. The. withheld subsidy will
be released only at the time of settlement of final subsidy of the concerned year

12. This issues with the approval of the Integrated Finance Division vide F.No.
192(10)/2022-FC-A/Cs(381575) dated 08.12.2022.

Yours faithfully,

Aq (Jagdish Gogia)
Under Secretary to the GoVernmehPof India, ish Gogia
wr es
“Und
UVBpiey Gave (७08
OF India
Deptt. ofwe
So
Foeon
od P
&e 1S
Public Ste
ibut
e
utiion
Copy to:
1. The Executive Director (Procurement), FCI, 16-20, Barakhamba Lane, New Delhi-
110001

2. The Executive Director (Finance), FCI,16-20, Barakhamba Lane, New Delhi-110001.

3. The SRM, FCI Regional Office, Telangana SatsanghVihar Vani Vihar, Bhubaneshwar,

4. The Director of Commercial Audit & Ex-Officio Member Audit Board — IV, 10 Bahadur
Shah Zaffar Marg, New Delhi — 110002.

5. The Principal Director of Commercial Audit & Ex-Officio Member Audit Board — IV,
North Zone, 2nd Floor, KhadyaSadan, 16-20, Barakhamba Lane, New Delhi-110001

6. PS to Principal Adviser (Cost)/Director (Fe A/Cs) /Director (Cost)/US (Finance-I)

7. PS to ISP&FCI)
E
No.192(10)/2022-FC-A/Cs(381575)
Government of India
L Department of Food and Public Distribution
: Provisional Rates Custom Milled Rice procured under (FAQ) distribution under
specification retained for distribution 0001
central pool
under central
operations during the Kharif Marketing Season 2022-23 in respect of Government of Telangana and its agencies,
1 (in
Rs./qtl.)

Item of incidentals

° Raw Rice Par-boiled

! S.No. Common Gr.A Common Gr A
, 1 Minimum Support Price (MSP)*** 2040.00 2060.00 2040.00 2060.00

; 2 Statutory charges

(i) Market Fee* @ 1% of MSP 20.40 20.60 20.40 20.60

j| 3 Mandi Labour Charges“ 5.65 5.65 5.65 5.65
ransportation Charges™™*! 31.58 31.58 31.58 31.58
1 .

1 5 |Driage @1% of MSP™ | - | | -+ | | -+ | a

| ९ | Commission to Societies~ 31.25 32 31.25 32

i 7 (Custedy & Maintenance Charges (CAP) @Rs2.40 || . | || | po

if per qth, per month for 2 months!!
pS Interest Charges for 2 months @ 7.14% p.a. on MSP 26.16: 26.40 26.18 26.42
Statutory Charges, Mandi labour charges
; Transportation charges , gunny bags & Usage charges
1 | 9 | illing Charges. | 10 | 10 20 20
1 10 Administration charges @ 1% of MSP 20.40 20.60 20.40 20.60

j .| | Cost of1 gtl. of milled paddy 2185.44 2206.83 | 2195.46 2216.85

12 Out turn ratio 67% 67% 68% 68%

13 Sub-Total 3261.86 3293.78 3228.62, 3260.07

! | 14 | Usage charges for packaging of paddy ** 12.66 12,66 12.30 12,30

15 Cost of new gunny bags $$ 138.06 138.06 138.06 138.06

| [60 | Internal movement of gunnies 1.5 Le | 1S | 15

17 Acquisition Cost of 1 qtl. Of rice 3414.08 3446.00 | 3380.48 | 3411.93

*Market fees will be paid on actual payment basis subject to production of documentary evidence i.e, that the same
is levied based on valid statute/notification applicable for the respective procurement season
ASubject to conditions laid down vide this Department’s letter No.192(12)/2016-FC-A/Cs dated -21.09.2016.State
Govt. ensure that there is no overlapping in the scope of work covered under MLC & scope of work related to the
Societies.
!Transportation charges will be reimburse as per tender rates followed by the guidelines dated 06.05.2019.
AADriage. will be allowed to State Govt. on the basis of-documentary evidences and milling agreement with millers,
‘vouchers etc at the time of finalisation of audited accounts, Presently, State Govt. is keeping paddy in joint custody
and at the provisional level it cannot be ascertain that how much driage is occurring.
~Commission to Societies is payable subject to the conditions laid down vide letter no 192(4)/2003-FC a/cs Vol- 2
dated 26.07.2013 and subject to actual expenditure in regard to societies engaged in the procurement operation by
the State Govt
!!Payment of Custody & Maintenance charges would be regulated as per order issued by this Department vide letters
dated 21.11.2014,26,12.2014,04.09.2015,05.11.2015 and 12.11.2015 in regard to joint custody of paddy with
millers.

Te Wr*rt/Jagdish Gogia
ait afer Under Secrotary
SAE Govt. of india
a SRL Ses
ep rey नचिझारा
“2-2 2८क एश we < Distribution
wet-140004
Kiril Ache New Delhi-110004
 है.
ete
$$ Includes branding charges, safety stitch cess, inspection charges, development charges, terminal charge, railway

pene
freight, and applicable GST from July’17 onwards.
**Payment of Usage charges would be regulated as per guidelines issued by this Department vide letter No. 15-
14/2018-Py.III (Pt.) dated 13.12.2018.
***MSP would be paid to the farmers through direct online mode, without any deductions & without involving any

la Nm
intermediaries. State Govt is required to submit certificate to this effect invariably in at the time of release of Food
Subsidy for the respective procurement season.

“Transportation charges may not be admissible in those cases wherein Rice Mills’ premises are designated as

ne
procurement centers.

pen nd eee
Dated 09.12.2022

Yes00
(Jagdish Gogia) i
Under Secretary to the Government of India
SMT Rar/Jagdish Gogia
Sat Aaa/Under Secretary
VT Baty Govi, of india ३
स्ऋष्य Set सार्वजनिक शिवरप्प rarer i
Deptt. of Food & Public Distribution
कृषि मदन, नर्श दिल्‍लो-41000एव4
Krish! Bhawan, New Delh!-110007

7
 4

EB
4

i {: ३ Annexure-II

| No.192(10)/2022-FC-A/Cs(381575) ;
Government of India
Department of Food and Public Distribution
| Provisional Rates Custom Milled Rice procured under (FAQ) specification retained for
procurement_operations
distribution under _decentralize during the Kharif Marketing
Season 2022-23 in respect of Government of Telangana and its agencies
| (in Rs./qtl.
i| Item of incidentals

Raw Rice Par-boiled

S. No. Common GrA Common Gr. A

} | 1 | Minimum Support Price (MSP)*** 2640.00 2060.00 2040.00 2060.00

2 Statutory charges

i) Market Fee* @ 1% of MSP 20.40 20.60 20.40 20.60

3 Mandi Labour Charges* हु 5.65 5.65 5.65 | 5.65 |

Driage @1% of MSP P| P| | * | | * |

i Commission to Societies~ 31.25 32 31.25 32
Custody & Maintenance Charges (CAP) @Rs2.40 P| | 1 | | || |
Fg | per qtl. per month for 4 months!!
Transportation Charges“! 31.58 31.58 31.58 31.58
7 !
| | nterest Charges for 4 months @ 7.14% p.a. on MSP, 52.33 52.81 52.36 52.84
Statutory Charges, Mandi labour charges, commissio: ,
o Soceities, gunny purchase, usage charges and
Transportation Charge
| __9 __[Milling Charges. |io 20 20
| 10 | Administration charges @ 1% of MSP 20.40 20.60 20.40 20.60

| 11i | Cost of 1 qtl. of milled paddy 2211.61 2233.24 | 2221.64 | 2243.27

॥ 12 Out turn ratio 67% 67% | 68% 68%
i 13 Sub-Total | 3300.91 | 3333.19 3267.11 3298.92
| 14
14 | Usage charges for packaging of paddy ** 12.66 12.66 12.30 12.30

[5 Cost of new gunny bags$$ 138.06 138.06 138.06 138.06

| 16 | [nternal movement of gunnies 15 | 1.5 | | 1.5 | 15
Acquisition Cost of1 qtl. Of rice 3453.13 3485.41 | 3418.97 | 3450.78
17

*Market fees will be paid on actual payment basis subject to production of documentary evidence i.e. that the same
is levied based on valid statute/notification applicable for the respective procurement season.
ASubject to! conditions laid down vide this Department’s letter No.192(12)/2016-FC-A/Cs dated 21.09.2016.State
Govt. ensure that there is no overlapping in the scope of work covered under MLC & scope of work related to the
Societies.
ITransportation charges will be reimburse as per tender rates followed by the guidelines dated 06.05.2019
AADriage will be allowed to State Govt. on the basis of documentary evidences and milling agreement with millers,
vouchers etc at the time of finalisation of audited accounts. Presently, State Govt. is keeping paddy in joint custody
and at the provisional level it cannot be ascertain that how much driage is occurring
~ Commission to Societies is payable subject to the conditions laid down vide letter no 192(4)/2003-FC-a/cs Vol-
dated 26.07.2013 and subject to actual expenditure in regard to societies engaged in the procurement operation by
the State Govt
ora
"eee
Ao
WT /Jagdish Gcgia
Inder Secretary
St /Sovt, of India
mae3ee
al IO
mene sibution,
ee
we Srawen, New De 170004
lhl44 0001
11 Payment of Custody & Maintenance charges would be regulated as per order issued by this Department vide
letters dated 21.11.2014,26.12.2014,04.09.2015,05.11.2015 and 12.11.2015 (in regard to joint custody of paddy with
millers) and 24.02.2020.

$$ Includes branding charges, safety stitch cess, inspection charges, development charges, terminal charge, railway
freight, and applicable GST from July’17 onwards.
**Payment of Usage charges would be regulated as per guidelines issued by this Department vide letter No. 15-
14/2018-Py.I Pt.) dated 13.12.2018.
***MSP would be paid to the farmers through direct online mode, without any deductions & without involving any
intermediaries. State Govt is required to submit certificate to this effect invariably in at the time of release of Food
Subsidy for.the respective procurement season
AM Transportation charges may not be admissible in those cases wherein Rice Mills’ premises are designated as
procurement centers

Dated 09.12.2022 Dtsa M—

(Jagdish Gogia)
Under Secretary.to the;Governmentohhtdia

See S/S a
tary

40004
Sat, Te Re 10004

Acetate,
E contd.
No.192(10)/2022-FC-A/Cs(381575)
Government of India
Department of Food and Public Distribution
Provisional Rates of Custom Milled Rice procured under (FAQ) specifications retained for
distribution under the decentralised procurement during the Kharif Marketing Season
2022-23 in respect of Government of Telangana and its agencies.
(in
Rs./qtl.)
tem of incidentals Raw Rice Par-boiled
5.0. | . Common] Gr.A | Common |Grade A
' ACQUISITION COST | 53-13 | उब85.41 | 3418.97 | 3450.78
A.

1 |Costof CMR >

| B. | DISTRIBUTION COST
Storage charges @ Rs.9.86 per qtl. per month 19.72 19.72 19.72 19.72
> {for 2 months (covered)* हु ‘ ‘ ‘
3 ‘|Transportation Charges! | - | | - pe
| | - |
3(b) [Handling Charges 1.27 1.27 1,27 1.27
4 [Interest Charges @ 7.14% p.a. for 2 months} 40.04 |- 40.41 39.65 40.01
i on the acquisition cost minus admin charges
interest charges and adding storage charges 0
distribution

5 Transit and Storage loss @ 0.35% o

acquisition cost excluding cost of gunny bags} 11.55 11.67 11.43 11,55
and gunny usage charges
6 [Administrative charges @ 1% of MSP of
paddy equivalent to 1 qtl. of rice or actuals
, . hichever is less for the quantity retained b
: he State Government for distribution under] 39,45 | 30.75 30.00 os
PDS.
7 otal Distribution Cost 103.03 | 103.81 | 102.07 | 102.84

ECONOMIC COST OF CMR (Acquisition ss565,

15[8922221 3521.05 - 2583.63
| $ ' cost + Distribution cost (A+B))

! Transportation charges will be reimburse as per tender rates followed by the guidelines dated
06.05.2019.

Note: The Food Secretary of the State is required to give a certificate that the CMR has been kept
under covered storage.

ACustody and Maintenance charges would be released on production of a certificate by the State
Govt. that these charges have been incurred by it.

wera au)
ra 4$agdish Gogia
es ee 1102/- py
= 4 cary
Se mp 20५९5
स्टापस्पय एस सट: कट ahi 1:
Beptts Ler) Fooct: unc Distribution
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Krish! Bhawan,aE New
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wt]
Del ne116004
*The transportation charges at distribution stage is being allowed only for transportation or rice
upto the designated depots. Payment of transportation charges will be regulated as per principle
dated 06.05.2019 for 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

नल चहल जद ल पट जात १० ००००४

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.
Asad
Dated, 09.12.2022
ea एलक

dnc
ennet
(Jagdish Gogia)

meant
Under Secretary to the Government of India

afie
जगदीश गोगिया/>घ9ती ्ं Gogia
r Secrotary
area Unde
marae Gort. of India
wet
सार्वजनिक TLE
झतस्य प्स्वे erent
Distribution
Deptt. of Food & Public
कृषि भदन, पर विल्ली-110001
hi-110004
Krish! Bhawan, New Dei