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PSS Guidelines

Price Support Scheme Guidelines

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PSS Guidelines

Price Support Scheme Guidelines

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20 Amended Guidelines for Price Support Scheme. (PSS) " (Pulses, Oilseeds & Copra) Under. PM- -AASH AL. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE DEPARTMENT OF AGRICULUTRE , COOPERATION & FARMERS WELFARE KRISHI BHAWAN, NEW DELHI October 2018 Lof|28 | Price Support Scheme (PSS) for Pulses, Oilseeds and Copra CONTENT [CHAPTERNO.| ——s—=~C*«*~C*«hapterName = SC* Page Now | Introduction aa | W | Role and responsibility of Govt./ Agencies | 5-12 | am | Procurement, Storage & Disposal Operations 419 | | Anvenire = oa a - Proforma for State/UT Government forimplementing | 20 | Proforma for Undertaking by Principal Secretary (Agriculture) State/UT Government. ‘Proforma for submission of audited account by central nodal | agency as advised by office of Chief Adviser Cost, DoE 1 2of}28 CHAPTER -1 INTRODUCTION Assurance of a remunerative and stable price environment for growers/farmers is very roduction anid productivity. The_m ice for agricultural produce many times tends to be unstable and volatile which may result in undue losses to the, important for increasing agricultural growers and discourage adoption of the modern technology and required inputs. The Government's price policy for agricultural commodities. seeks to. ensure remuneralivé prices to the growers “YOF“thelr produce with a view to encourage higher ~“nvestment_and production and to safeguard the interest of consumers by making available SE ee ee eet Or cone Supplies at resonable prices with low cost of intermediation. The price policy also seeks to evolve @ balanced and integrated price strlicture in the perspective of the overall needs of the economy, i oe Towards this end, the Government announces Minimum. Support Prices (MSP) for 25 wr” i cuitural_com ye: Kharif_and Rabi. Crop seasons after taking into x “Zecount the recommendations of the Commission for Agricultural Costs and Prices (CAGP) — CAGP recommends MSP for twenty two (22) crops and Fair & Remunerative Price (FRP) for wD emia, | AOS ile" iean Be: net FP te ceaien tee Oe Eeeenard Aree, an Public Distribution, fwenty two erops covered under MSP are Paddy, Jowar, Bajra, Maize, Regi, _Arhar, Mong, —_Urad, — Groundni in-shell, Soyabean, Sunflower, Séasamum, Nigerseed, Cotton, Wheat, Barley, Gram, Masur (lenii), RapeseediMustard seed, Safflower, Jute and Copra. In addition to this, MSP for Toria and De-Husked coconut is Wd By the Deparment on the basis of MSP's of Rapeseeditustard seed and Copra respectively. Slbiliclb iim inseam Ne ' The Government organize ‘procurement operations; of MSP notified agricultural commodities through various pilblic agencies such as|Food Corporation of India (FCll.. Cation Corporation of india (CCI), Jute Corporation of India (JCI), Central Warehousing, (we Corporation (GWG), and cooperaive and other agencies such as NletlonalwAgricutural Looperaivecrarketingakeasia Beha DysflationarConsume iGonperative FederalohiNGe), -SS procurement operations, crop wise, state and depending upon the seasonality/cimaticlyeographicallocetional advantages ~2nd disadvantages. The duration of PSS procurement operations for particular pulses and “) BOs Gilseeds.in the marketing season shall be for a maximum period of 90 days. For copra this_} Pertod wil be 6 months. However, in exceptional cases, the procurement period may be wise, inereased with prior approval of DAGAFW. The decision of DAC Rufino final ang (i) Fair Average Quality (FAQ) norms: Fair Average Quality (FAQ) norms shall be decided) approved by the DACBFW for each crop. While, deciding the FAQ norms, it shall be ensured that only those parameters which are variable would form the specification of FAQ norms, (uil| Working capital arrangement: The DAC&FW shall provide the working capital to jis Central Nedal Agencies through Government guarantee , letter of comfort ete. in nature of Sof|28 / revolving fund and the same shall be available to the central agencies once the stock is hypothecated in their name, Such a fund should be utilized for PSS related admissible _expenses only, The amount received from disposal_of PSS slock qeeds to be credited directly to concerned Credit linked to Government Guarantee. DAC&FW shall also make Sufficient provision for payment of interest to the banks on. monthly _basis_and (vil) Fund Management: The funds will be drawn by Central Nodal agencies only against Warehouse Receipts (WHR) for payment of MSP value of procured stock and incidental ‘expenses including servicé-GnarGés For undertaking each PSS operation . @ separate Cash credit accounts will be opened by the Genial Nadal Aganries. The funds will be ~—yeleased by the lender banks from such accounts on the basis of stock hypothecated by the ‘central nodal agency in their name on receipt of clear WHR. DAC&FW in consultation with ‘ailics of Chief Advisor Cost, Department of Expenditure may issue details modalities for ‘operation of Such cash credit accounts against Government Guarantee. DAC&FW will PURSUE THE Matter WIT REI Banwng DNision, Ministry of Finance to allow the funding for PSS operation under priority sector for concessional interest rates. Further, Central Nodal. ‘Agency may also negovate the rate’of interest with the banks irom Time to time so as ‘ensure Tost competitive rates of Interest, The concurrent audit of PSS operations may he —~ underlaken by-DACREW. Funds for concurent audit may be taken from permissible ‘administrative expenditure. ee _ {ix) Vetting of accounts and settlement of claims of central agencies: On receipt of the final audited claims accounts of central nodal agencies with necessary. details, the _.. DACBFW shall examine the audited accounts within a month_of receipt of the same a ST he Coed C8 tng will be forwarded to O/o of Chief Adviser Cost, Department of Expenditure for vetting of claim before THE TINEI Sellement OF claims. () Reimbursement of loss: The, DAC&EW shall__be__responsible for reimbursement of the losses tots ceniral nodal agencies, any, upto 90% of the estimated, loss as "oT SCCOURT payment” on submission of audited provisional Profit and Loss account Sich accounts need to be submitted by Centfal Nodal Agency on disposal of D5%/50%4I75% of PSS stock procured under each operation. The provisional loss wil be computed by the DACBFW in respect of quantity sold The final claim on disposal of 100% quantity will be forwarded for vetting. The DAC&FW will make adequate budgetary provisions for this reimbursement, The remairing 10% loss will be reimbursed to the central nodal agencies after vetting of the accounts by the competent authority |v) Incentives to the central nodal agen: The DAC&FW shall provide 1% incentive to the central nodal agencies on the net profit earned from particular PSS operation on depostion of profit amount in the Main Account at the lead lender bank to Gof ]28 (xi (st) (xiv) bv) (xvi) (8) a (ii) @- whom the government guarantee for PSS is provided. Further, the central agencies may also involve the state agencies for disposal of PSS stocks|and may share the said incentive with the state agencies, as par the terms & conditions mutually agreed. Economic cost sheet defining the operation-wise incidental expenses for every season will bbe submitted by Central Nodal Agencies before commencement of procurement of crops to DAC&FW for approval, Payment or exemption of GST and its extent to be shared between Central and State Government will be informed by DACSFW in consultation with Finance Ministry. Commodity-wise nofmal haridling loss (including storage loss) in PSS operations will be 2s Per the scientific study in this regard and will be finalized By the DAC&FW. In the meantime, CWC norms as followed now for storage loss will remain applicable. The required budget provision for day-to day operations, monitoring, concurrent’ audit, administrative works, monitoring and evaluafion studies etc. will be made by DACRFW. ‘An Empowered Conimittee, constituted under PM AASHA, under the chairmanship of Secretary, DAC&FW with Secretary, Department of Food and Public Distribution, Secretary Consumer Affairs and ‘representative from the other related departments and Stale Governments will monitor the schemes and will take other decisions, Moreover, an Implementation Cell and Cost Cell will also be setup in DAC&FW, State/UT Governments Notification of agricultural crops: State/UT Governments ‘shall be required to notify the expected production, sowing area, average yield, peak arrivalhharvesting period for all those crops for which MSP-is declared and the State Government is willing to implement the Price Support Scheme. The PSS operations shall be taken up in the respective State/UT Governments only after such notification Is issued and copies of the same are sent to the DAC&FW along with proposal at least 30 days prior to its implementation. All the states/UT Govt. wiling to implement the PSS operations shall have to fumish the authenticated details to the DAC&FW, as per the format annexed herewith (Ato C). Exemption from mandi taxilevy etc.: State/UT Govt. shall exempt all state duties in respect of PSS operations (Procurement/transportation\warehousing/Sale etc.)in the interest of its farmers and to reduce the procurement costs. Further these taxes, if charged by | 7of|28 {iv w (vi) the State/UT Government, shall not be admissible / reimbursable to the State/UT Government and State/Procuring agency. Documents required: The State/UT Governments shall also notify the relevant land revenue documents which are required to be produced before the procuring agencies to prove the genuineness of the farmers. PSS awareness/ publicity: The State/UT Governments shall_ make adequate Publicity of PSS operations like MSP for the crops, name and address of procurement centers, procurement period, documents required, contact detalls of authorized person of central/state/primary procuring agencies. The costs of publicity related activities shall be bome by respective StatelUT Government. - Demarcation of area of operation hetween the central agencies: The State/UT Governments shall also decide the area of the operation of various central nodal agencies for procurement of agricultural commodities in the Siate/UT, in consultation with the central government(DAC&FW) so. as to provide a. level playing opportunity to all the procuring agencies and to ensure that the PSS operations are carried out even in the remote areas, Further, while deciding the area of operation, the State/UT Government shall ensure that there shall not be any duplication of work and/or overlap of PSS operations by more than one central agency in the same area, In case of any disagreements/disputes relating to area of operation between the Central nodal agencies, the matter will be decided by DACBFW. Logistics arrangements: The State/UT Government shall make all necessary arrangements like booking of CWGISWC goduwns, identification of procurement centers, arrangement of gunny bags, GPRS enabled transportation facilties, weighing machines, moisture/foreign matters/oil content testing machines etc. in consultation with centralistate agencies, The cost of transportation up to 30 km from procurement center to the storage place will be bore by Central government. For transportation of procured stock beyond 30km, the cost has to borne by state governments The logistic costs shall be reimbursed by DAC&FW as per the norms/expenditure approved under PSS Scheme. Further, these preparatory costs shall be reimbursed 1o the concerned agencies only ‘when the PSS procurement has been implemented for the specific crop during the specific period. Sof |28 a (vil Working capital arrangements for state agencies and revolving fund: The StatelUT Governments shall ensure adequate liquidity to the State procuring agency so as to pay the dues of farmers for their produce within 3 days from the receipt of their produce. The cost of Such investment of State/UT government shall be duly reimbursed by the DAC&FW upto 10 day at the market rate of the interest or actual cost, whichever is less. The State Government fund atleast equivalent to 15% of MSP value and incidental expenses for each commodity as per 25% of estimated production/sanctioned quantity by DAC&FW. In case stale/UT government intends to procure over 25% of production, the state government will do so at their own cost and through its own agencies. If the State government intends to Procure quantities beyond 25% and up to 40% of production through central agencies then the States Government will use the same for their PDS and other welfare schemes, at their own cost. shall create revol (vil) Establishment of godowns, processing mills in the procuring areas: The StatelUT Government shall encourage/launch massive programmes for establishment of gocowns, processing _ mills through public private partnership mode etc. in the rural areas in @ time bound manner, so that the farmers may be able to avail adequate storage, value addition facilities for their produce, at their farm gate. State government needs to Provide adequate storage space (in proximity to procurement centers) to the Central Nodal Agency since reimbursement of transportation expenses will be restricted to maximum of 30 km from procurement center, {ix} Utilization of PSS stocks in various Government schemes: The State/UT government shall take steps to utilize the PSS stocks in their: various welfare schemes/programmes like ICDP, Mid-day Meal, ‘Antyodaya, Annapurna, PDS eto, at the “Issue Price’ as decided by the DAC&FW. The “issue Price” will be the weighted average of wholesale price in selected mandifs in the sourcing state or Dynamic Reserve Price, whichever is more, Dynamic reserve price is defined as ‘weighted average of the last seven days modal price of the specific puises in the mandies situated within 100 km of the godown where the stock being auctionediissued is kept". () State /District level Monitoring Mechanism: A State Level Monitoring Committee (SLMC) under the chairmanship of Chief Secretary with the representative from the Felated/concerned departments like Agriculture, Food and supply, Finance etc and state implementing agency will be constituted to monitor and evaluate the implementation at state 9of|28 level. Similarly, a District Level Monitoring Committee (DLMC) shalll be constituted under the chairmanship of Deputy Commissioner of each District with representatives from the related departments and procuring agencies. The State and District level monitoring committee shall review the progress of the scheme in their State/ District and its effective implementation from time to time. (C) Central Nodal Agencies (i) Procurement and Disposal Plan: fore the start of Kharif and Rabi Marketing season, Central Nodal Agencies will submit procurement and disposal plan, arrangement of funds required and their preparedness for carrying out the PSS operations to DACEFW. (i) Appointment of State/primary agencies and signing of MOU: After (he announcement of MSP, central nodal agencies shall appoint their state/primary agencies in consultation with respective State/UT Governments by entering into an MOU within 15 days with clear provisions of prccurement modalities and corrective measures for disputes if any (iii), Identification of procurement centers: Central agency shall identify the purchase centers in consiitation with state/UT. Govt, stale agency & primary procuring agencies. However purchase centers shall be opened preferably at CWCISWC godowns and close to the processing mill fo minimized the transportation cost (jv) Fair Average Quality (FAQ) norms: it wil be the responsiblity of Gentrai Nodal Agencies to cneure that the stock that fs procured conforms to FAQ norms. Central Nodal Agency may at their own cost engage reputed third party agency to ensure procurement at FAQ rrorms. y) PSS awareness/publicity: The central nodal agencies shall also make adequate publiciy of PSS operations like MSP for the crops, name and acldress of procurement centers, procurement period, documents required, contact details of authorized person of central/statelprimary procuring agencies in conjunction with State Agencies. (vi) Technical support: Central agencies shal provide all technical support to its State and primary agencies relating to the procurement operation. In case of any further clarifications, the matter may be referred to DAC&FW and its decision shall be binding on all concerned. (vil) Financial support. Central agencies shall release 100% of MSP value and 60% of incidental expenses to the state agencies within 8 days fom receiving the stack and hypathecation of it 10 of 28. -® in their name. Central Nodal Agency need to ensure that the stock stored in warehouse conforms to FAQ. If at any staye, itis found that there is any deviation from FAQ norms of Stock hypothecated in their name, loss shall be borne by the concemed Central Nodal Agency. (vil! Disposal of procured stock: Central agencies shall be fully responsible to dispose the PSS Stock within the stipulated time and mode of disposal as Provided in Chapter !!! point no. (xiii) and as directed by the DAC&FW from time to time, : (9) Reimbursement of losses, if any: The central nodal agencies shall submit the final audited accounts of PSS operations to DAC&FW within three months from the disposal of PSS " stocks for final settlement of claims in the proforma A (annexed with this guidelines), (0) State/Primary Agencles/FPO's/Panchayati_Rai Institutions () Appointment of primary agencies and signing of MOU: Immediately after the announcement of MSP, state egency shall appoint their primary agencies by entering into MOU with clear Provisions of procurement modalities and corrective measures for Gisputes if any. In adcition to Primary Cooperative Societies, state agency may also involv: FPOs in procurement operations. {i) PSS awareness/ publicity: The statelprimary agency shall also make adequate publicity @f PSS operations like MSP for the crops name and addresses of procurement centers, Procurement period, documents required, contact details of authorized person of centralistate/primary procuring agencies. The cost of such awareness/publicity shall be borne by State Government/State Procurement Agency. (il) Working capital arrangement: The statelprimary agency shall also make adequate working capital arrangement through State/UT Govt, invest its own fund or borrow the funds from market etc. for a maximum period of 10 days, The state/primary agency whomsoever has invested the fund andor borrowed the funcis from market shall be eligible for reimbursement at the market rate of interest up to 10. days, (Payment to the farmers: The stale/primery agency shall _be responsibie to meke the payments to the farmers within three days from the receipt oftheir produce, A of 28 . %., Custody/hypothecation of stocks: The state take the custody of the stocks and agency shall be responsible to get it hypothecated in the name of central nodal agency within the prescribed period so as to get the funds from central agency. (vi) Verification of documents/quality of stock: The statelprimary agency shall be responsible to verify the documents of the farmers which prove their genuineness. Further, they shall also be responsible to purchase the stock from farmers strictly as per the FAQ norms as notified by Central Government from time to time. At the time of receipt of stock at warehouse for storage, Central Nodal Agency need to accept only stock which conforms to FAQ. If during storage and during disposal, it is found that there is any deviation from FAQ norms, loss shall be borne by the concerned Central Nadal Agency. 12 of 128 CHAPTER III ' A. PROCUREMENT, STORAGE _& DISPOSAL OPERATIONS (0) Preconditions for implementation of the Scheme: % To get the benefit of the scheme, farmers must be registered within the stipulated time Period. A portal is to be specifically developed for this purpose by the respective State /UT Government. The registration data of the farmers on the portal should be integrated with the registration data of other government procurement scheme for MSP crops including procurement tone by FCI or its agencies.,The registration data will include farmers’ details like name of crops sownhharvested, Aadhaar Number, Bank Account Number, Mobile Number and other related land record information maintained in the : respective States/UTS. The registration data shall be verified by the States/UTs prior to Procurement / period notified for the particuler commodity by Revenue Authority Registr N, however, is not an assurance for procurement, b. State to adopt model “The Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017" or commit to do so within specified time frame. (i) Mode of purchase: Following modalities will be followed for procurement under PSS: a. The stocks shall be purchased by Cooperative Societies, Farmers’ . Producer's Organizations (FPO), Farmers’ Producer's Companies, Panchayati Raj Institutions directly from registered farmers. ». State government will notify the procurement centers, send the information of same to Central Nodal Agencies, upload a list of these centers on goverment websites and Publish in local newspapers for information of farmers. © The reporting of purchases shall be made through online mechanism and the centralistate procuring agencies shall display the details of purchases on a daily basis on their website {it} Limit of purchase in one single day: Only 50 bags (50) kg. each) of produce shall be purchased from, one farmer, in one day. 13 of 28. tiv) w wi) wil) wilt) Genuineness of the farmer and his landholding: Before undertaking purchases of any commodity under PSS, the central nodal agencies will contact the concemed slate authorities for deciding the documents to ensure the genuineness of the farmer and his landholding. At the time of procurement, the procuring egency to ensure appropriate measures to establish the identity of farmer selling the crop like Aadher authentication end photograph of farmer etc. in addition to capturing their land records, original registration receipt to establish the identity of farmer selling the crop. There should not be any overwriting oF cutting or erasing ete. in any documents showing the genuineness of the farmer and his landholding in the form of girdawari or any other document of the state government, Copies of these documents are ta.be retained by procuring agencies. Arrival of stocks: ‘The farmer may be advised to bring their stocks to the nearest procurement centre from his farm, The land. records must indicate that the commodity, which is being offered under PSS, has been harvested from his ownvleased land. ‘Average yield district wise: While undertaking purchases of any commodity under PSS; Central nodal agencles may get the estimates .of average yield and production in that area covered by the procurement centers from concemed State/UT government authorities to ensure that in a district quantity of procurement do not exceed 25% of production of that commodity in the district and the procurement of produce is done from thefarmers only. In case the Variation in any district beyond +1-20%, specific reasons may also be recorded for higher procurement. ‘Area of operation: Purchase will be made from only those registered farmers who come into the area of operation of that particular purchase center/APMC. quantity for procurement: The overall quantly of procurement by central government will be restricted to 25% of the actual production of the commodity for that panicular season, In case state/UT government intends to procure over 25% of production, the state government may do so at their own cost and through lis own agencies. In case state/UT government intends to procure over 25% of production, the state government will do so at their ‘own cost and through its own agencies. ifthe State government intends to procure quantities beyond 25% and up to 40% of production through central agencies then the States Government wil use the same for their PDS and other welfare schemes, a their own cost. 14 0f128 ( bs) xi) xii) Display of Information: The procurement centre. shail prominently display the MSP, bonus, operating hours & clays, period of procurement, mila & time of payment to farmers. The updated information of the procured stock and list of beneficiary farmers who have availed the scheme as well as those in Waiting list (if any) shall be displayed at the Procurement centerwebsite of procuring agencies. Payment to Farmers: The payments to the farmers shall be released to their individual bank Serounts though RTGS or NEFT within three days from actual delivery to the procuring agency. For making timely payment to farmers, state government needs to arrange sufficient evolving funds at the disposal of procuring agencies. Further, the procuring agencies shall Ensure that the payments have been made clrectly into the bank account of the farmer provided at the time of registration. The bank account of one individual farmer shall not be used for making payments of other farmers. The state agency will be required to provide Sally Information of the payment made to farmers as. per above stipulation, Storage of procured Stock: Before the start of procurement, State Government will make available list of Scientific Warehouses to Central Nodal Agencies. The Central Nodal Agency wil ensure that procuring agencies store the procured stock only in CWCISWC Godowns. In case of non-availability of CWC/SWC godowns/space, the’ stock may be stored in other Sedowns as approved by the Stale Goverment and Central Nodal Agency. However such Permission may be given only after ensuring that the stock is stored safely and Scientifically so that it does not suffer any preventable loss. Limitation on holding the stock The procured material wil be stored only for its Biological fe and it should be disposed of preferably with in nine months from the closure of PSS operation to avoid increasing holding cost and quality deterioration. Biological life referred to as Futura Expity Date (FED) in the Parlance of commodity Sxohange, is the lfe of the commodity after which it must be re- assessed consumed in order fo remain fit for human consumption. Further, while holding the stock, the Seasonality/curabilty of that particular crop will also be kept in rind, However, in exceptional Greumstanees, requiring stocking over nine months, prior approval of the DAC & FW should be obtained, It will be the responsibilty of the-Central Nodial Agency to ensure that the goods "8 Properly stored. Any loss occurring on account of poor storage in the warehouse will be 15 of [28 the responsibilty of Central Nodal Agency and will be bore by i. The Central Nodal Agency must submit a storage ageing report on monthly basis to DACBW clearly mentioning the ageing and quality of all the stored material. (will) Disposal of Stock: a) ‘Open Matket Disposal: - After end of procurement operation, centra! nodal ageneyfies will prepare disposal ‘plan to ensure disposal of procured stock with the stipulated period. Accordingly Central Nodal Agencyies may fx the monthly target for disposal of the procured stock . The stocks shall be disposed through competitive bidding like e- auctions, open auction, using online platforms as approved by DAC&FW of commodity exchanges! online spot market platforms, future trading ete. Further, the traditional disposal mechanism should Se done only in exceptional case with the approval of DAC&FW for better realization and greater transparency. In other words the disposal shall be carried out in most. transparent and competitive manner well within the biological life of the procured stock and in the off season when the prices of the produced are usually high, to secure highest price and minimum loss and maximum proft to the Government, The procured stock may be disposed within the State or outside. The central/state agencies shall maintain a verifiable data of prices throughout the year to justify its decision to sell thelr procured stock in certain month/season. The Central Nodal Agency will dispose the stock on FIFO (First in first out basis). Central Nodal Agency has to start disposal of procured stock after the close of procurement operation. Any stock which is not disposed off within @ months after the closing of procurement, the carry over cost of such stock (interest on MSP value and incidental, warehouse rent etc.) will be borne by concerned Central Nodal Agencies. ‘The stock postion, centre, quantity, qualiy, value, variety etc. an disposal statement, tuling price shall be kept updated, and placed on line on the website of the Central Nodal agencies as well as sent to the DAC FW through sms, e-mail, fax, ete. on dally basis. Issue of PSS stock to the State/UTs to utilized in various welfare schemes: - The PSS stock can be issued to intending states/UTs at “Issue Price” as mentioned at Chapter Il Para B(x). The. State/UT government shall place their indent to the Central Nodal Agencies for release of PSS stocks to be utilize in their various welfare echemesfprogrammes lke ICDP, Mid-day Meal, Aniyodaya, Annapurna, PDS etc. at the"Issue Price” as decided:by the DACAFW. 16 of [28 xiv) fev) (evi) bai) ¢) Transfer of stock from PSS to PSF:- Based on the request of the Department of Consumer Affairs, Ministy of Consumer Affals, Food and Puble Distibutio, PSS Stock of particular commodity may be transferred to National Buter Stock maintained Linder Price Stabilization Func(PSF), Such transfer. may be done on the cost basis which includes allthe expenses related to procurement and holding of such stock n Such case, the Central Nodal Agency/is wll work out the provisional cost ofthe stocks Proposed to be transferred and after due approval of DACRFW will book transfer the Stock from PSS to PSF on receipt of such cost in advance. The final costing may be done with the concurrence of the Chief Adviser (Cost), Department of Expenditure. The Service charges and other ‘Common incidental expenses of procurement of PSS should ot be charged again for suich transfer of stock, ‘Short recovery: CentialiState agencies should recover the value for any short recovery as Per terms of the agreement entered into with the millers. Further, the common storage norms ‘ke Moisture Adjusted Weight (MAW) for the procured stock must be accounted for by the procurement agency, Procurement and disposal report: All agencies shalt be responsible to furnish the daily PINGTOES Tepor's of procurement &disposal (quantty and value wise) to their immediate hierarchy through SMS, emai, fax etc. Central Nodal Agency wil furnish a daily report to DAC&FW regarding daily procurement, disposal, quality of Procured stock and status of disposal, Maintenance of Documents/Accounts: The Procuring agencies and ‘Central .Nodal Agencies shali be responsible to maintain alt relevant records like samples drawn, checking of FAQ: parameters including the moisture content, quantity and value of produce Procured dally with name and address. of farmers, paymient made to farmers, produce ‘lected, expenciture incurred, ruling market price of the commodity ete Visits & Inspections: All agencies shall be responsible to closely monitor the PSS operations and ensure the strict compliance of the Provisions and conditions of the scheme and its Suidelines. The officers of Central Nodal Agency need to visit procurement centers, Storage Centers curing storage (to ensure scientific storage) and atthe time of disposal. | ot |38 ancial Resources and Accounts : () Fund utilized against Government Guarantee: Central Nodal Agencies shall maintain proper record for utilization of fund drawn from the accounts backed by Government Guarantee, The Central Nodal Agencies shall be able to withdraw money from such secon for payment of MSP value corresponding to WHRs (Warehouse Receipts) roel oe the procured stocks and incidentals expenses backed by the supporting ae entral Nodal Agency will make payment to State Governmentiagencies only jor WHR received within 30 days from the end of procurement period. In exceptional situations, the Committee chaired by the concemed states’ Principal Secretary / Additional Chief Secretary Agriculture may examine the reasons for delay if any, on a case to case basis and extend such period for a maxiinum period of 30 days over and above the allowed period. To avoid time lag in processing of WHRs, efforts should be made to develop an integrated portal with facility of online WHR by CNA State/UTs . The loss, if any , under the PSS will be reimbursed as per the notification by the Central Government. On vetting of accounts by the Ofo CAC , Deparment’ of Expenditure the expenses disallowed should be deposited in the concern cash crecit accounts within 15 days by the central nodal agency. (i) Service charges: The Service charges to the concer central nodal agencies will be payable @1 9% on the MSP value of procured stock and 0.50% on disposal valve on tisposal of procured stock, The service changes linked to procurement may be drawn. by entra) nodal. agency only after entire PSS operation for particular season Is Over and cimilar vervice charges linked to disposal may be drawn on completion of disposal of procured PSS and final vetting of their claims. The service charges by the central procuring agency may be drawn with prior approval of DACBEW. ‘Additionally, a maximum of 2% cewice charge wil be paid to procuring agencies at the, state/procurement level. Procurement by the Stafe level Marketing Federation shall be made through the Primary Cooperative Societies in which service charges @ 1%(out of tctal 2%) shall be paid to Primary Sociotios. However, if there is no Primary Societies functional in a particular area i as certified by the State Government, the State Agencies/Federations would be paid 2% Service charge provided they open and manage the procurement centers as per the guidelines, Besides, the DAC&FW shall also provide 1% incentive to the Central Agencies ‘on the net profit earried for disposal of PSS stocks. Besides this DACBFW shall also provide’ 1% incentive to the central agencies on the ' net profit eamed for disposal of PSS stocks. (it) Finalization of Accounts/Sharing of Loss/ Audit The central Nodal Agency will submit the provisional accounts for reimbursementiof propartionste: provisional loss based on disposal of 18 of 128 fv) 25/50/75 % of procured stock. The final audited accounts must reach DAC&EW within three months from disposal of 100% stock. The State agencies will submit their accounts to centr: Agencies within one month from the last date of procurement. The DAC&EW will examine the Sscounts and after accepting the same, ether ful orin part will send to Cost Cel, DACAFW il {he Cost Cells established in DAC8FW, the claim willbe forwarded to O/o Chiat Adviser(Cost), Department of Expenditure) through IFD, DAC for final acceptance of accounts. The Computation of loss shall be the total cost of procured stock (MSP paid to the farmers, the Stalulory taxes i.e, commission payable to the agents, grading, labour and packing charges, loadinglunloading charges, interest, bank charges, godown charges, service charges to procurement agencies and any other charges directly related with either Procurement orland disposal of the procured stock) minus realization from sale of stock Further, Itthere is any proft in the PSS operations, the same shall be deposited into ‘ain aecount £0 that it can be used for further PSS-operations, All the documents should be available In the public domain and easily accessible to the general public. Booking commodity wise expenses: Central nodal agencies sheuid ensure that corn modity wise expenses are properly booked under exact PSS operation 19 of 128 proforma for StatelUT Government for Implementing Price Support Scht ren A ned yeme (PSS) for Pulses, Oilseeds, & Copra Cony of natfcation of crop calendar year/narvesting erioe Details of crop production inthe State (region/atea Wiss) [hea] Gop sown | pected | Average | Peak [Ruling | Expected | Proposed rrarket | quantity of | duration of | area | production) yield | arcval procurement} scheme period | price C t |. Details of working capital arrangement fo Details of preparatoyilogistic arrangemen -_Detals of processing facities avelablefproposed tb Any other information relevant to the scheme List of documents required and other arrangements made fo prove the genuineness of farmers. immediate payment to the farmer for their produce: of MSP for the crops name and address of procurement Deiails of PSS awareness/publicity persons of central’stetefprimary procuring agency ‘centres, contact details of authorized 1s ke booking of CWC/Godowns and its distance from proburement center, arrangement of unr 255, "ransportation facility ete. .¢ avaliable in and around procurement centres, in support of your proposal mentioned in the guidelines and not indicated above. 20 0f 128 re Annexure. UNDERTAKING i. The overall quantity of procurement actual production of the com; government intends to procure ov their own cost and through its Quantities beyond 25% and States Government will use th cost. i. Exempt al the state duti ‘Nrarehousing /Sale etc,). wy Prewide the necessary documents which prove tha ganunetiess.o the farmers, WV. Provide working capita to the St tatelprimary procuring agency, % State Government shall create revolving fund for atleast 15% of MSP value + incidental Dace nay Ot Gch commodity as per 25% of estimated producion/sanctioned Quantity by DACaFW, Wi Take up the work of establishment of godowns, processin Centres. For transportation of procured stock beyond 30k cost will be bore by stale governments . vi. Utilise PSS stocks in various Guideline, vil, To get the benefit of the scheme, t by central government willbe restricted to 25% of the modity for that particular season, In case state/UUT er 25% of production, the state government will do so at own agencies. If the State govemment intends to procure 'P %© 40% of production through central agencies than the © same for their PDS and other welfare'schemes, at their own fsltanes In respect of PSS Operation (Procurement fransparistion ig Mills in and around the procuring im from the procurement center, the CentralState Government Schemes as. per existing PSS MSP crops inating clude farmers’ details {raisiration data willbe verified by the States/UTs prior to procure the particular commodity by Revenue Department, assurance for procurement. ix, Slate to adopt model “The Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017" ot commit to do so within (specify time frame), ment / period notified for Registration, however, is not an Principal Secretary Agriculture State/UT Government 21 of 28 To, The Joint Secretaiy (Coop,), Department of Agricultu eee ee Cooperation & Farmers Welfare, New Delhi ‘Subject: Request for implementation of Price Support Scheme (PSS) for__ Sir, | am forwarding herewith a detailed proposal for implementation of Price Support Scheme (PSS) for the nofified agricultural commodities in. su (tame of the state). The proposal included following detaiis:- ‘4. Copy of notification of crop calendar yeat/harvesting period. 2. Details of crop production in the State (region/area wise) 3, List of documents required to prove the genuineness of farmers. 4. Detals of working capital arrangement for immediate payment othe farmer for their produce. 5. Detals of PSS awareness/publicty of MSP for the crops name and address of procurement centres, contact details of authorized persons of cenrallstatelprimary procuring 2g=ncy- 6. Deteils of preparatorygistc arrangements tke booking of CWC/Godowns, arrangement of ‘quary bags, transportation facility etc. 7: Details of processing facilities avalablelproposed to be available in and around procurement centres. 8 Any other information relevant to the scheme in support of your proposal mentioned: in the guicielines and not indicated above. You are, therefore, requested to kindly Implement the PSS Scheme for procurement of . (Name ofthe commodities) for the current erop season. Yours faithfully, ( ) Encd: As above. aa 22 0f 128 Principal Secretary, Govt, of... NameofPSSCrop:_______Year:___ Season: Rabi Kharif . }. Basic Information on procurement: a. Abrief write-up on Crop / Operation: b. Nature of procured item (perishable/Non-perishable), © Specification of FAQ of above crap (notified copy). Hesse frit ‘Copies of the clrculars/guldelines issued by Ministry of Agriculture / State Government, % Copy of DACKFW order designating Central nodal agency for procurement under PSS for above mentioned operation and announcement of MSP 5. Period of the commencement of the above scheme (procurement period) with notification from respective State Governments, © Bonus/incentive {if any) announced by DACRFW, 4. Targeted Quantity to be procured - Targeted Qty. to be procured ‘S.No. [Name ofthe State I T I | Total for All india Basis 3, Total Actual Quantity procured of crop: ‘Qty procured under PSS | Qty procured under Non PSS, any | Totalgty procured, 4, Branch wise actual quantity procured at MSP for PSS operation: [Sk [Name of |” State ] Qiy procured | Date of commencement | Date of closure of | | no. branch | | (mts) | of procurement at procurement | branch aan iaaeal GsT Name of | GSTpaldatthe | GSTsetoffat | Amountof | Whéther unadjusted / branch | time of thetime of | 6ST unrecovered amount has | procurement, if | disposal of | unrecovered/ | been utilised towards any | any stock/1OT | unadjusted other PSS/Non PSS | L ‘operation | i t t 23 of |28 6. Procurement Agency Commission payable to State Level Agency & Primary level Agency. [Name of Total Qty, | Total av | ~ Yhage of Total Branch | procured | Commision | procured | commission | Commission | fathy Paid to through | payabletoPLA | paidtoPLA | SU/PLA | PLA a | : (Rs) | I 1 i = I I 7. Branch wise Packing & Incidental Expenses [Nature of Expenses] Finai Approved ‘etual ater | | rates{after HO approval) | pert) {Rs per atl.) | (Tote bags | Marking/colouring/stenciling T Sut I | Labour charges of Loading at procurement centre Labour charges of unloading and stacking atGodown__ ‘Weighment ‘Any other incidental expenses | 8. Details of Branch-wise Carriage Inward & Cartage - [Name [Name of | Name oF “otal | Approved | Actusl rate | of | procureme | cwe/swe | distance | Rate per [pes Amount | | Branch | ntcentre | godawn | between PC | atl to paid (Rs.) | | and | transporter \ | \ Godown | | | | | (inkins) | aa I [ | I 9. Details of total cost of Storage Name of Branch | Godown Godown. Fumigation | Other (ifany-with | “rent. | insurance Expenses | __detail)_ | it 10. Gotiown wise break up of storage cost: ' ‘onth ] Opening | Adetion ofstock | Disporalof | Approved Total | Remarks | Sock | during menth | stockéuring | Rateper | Amount | Typeot | month | bag/at! of | paid (Rs.) | Godown - | Godown | cewe/swe | | | | Niece! [ 2 | | \ } 24 of] 28 = ae tL I i 11. Details of Mise Expenditure incurred by NAFED: | Head of Expenditure] | Amount of Remarks expenditure (Rs.) Pubeiiy Expenses — nes naiure Of charges | [TaxesLew, ites) _[~——— Talbert — | Final Audit Foes Break-up to be provided or Branch BHO | Others (if any) | Natore oF sech expenses may be specified, | 12. Branch wise sales details. [Name of | Total Qty sola | Amount of Date of] Last date of | Braneh | | sales commencement | disposal i Realisation __| ofsates | { [ z| | [ I U3 ease goods have been sold by branch other ‘than branch from where procurement was made Please furnish following details Head of Bxpeninre | “Totat Around 6) | Remarks) | Price a which goods Rave been transferred a tis Baa r | (rate per MTs) [le Oc Transport Bepencs | 2 | (TOT Instance Expenses : [ | t i Handling & packing Charges [Other (it any — with details) i (TPotat Procureisent cost Total sales realization mi — i i j 14 Details of Cost of Disposal — ‘ f Tend of Fpendicore | Brokerage/Commission { Slate level iaxes (ifany) [Others ifany “etal Aran Rs) Renan 1 13° De [Heed of Expenditure] Total Anount tsp I Remarks ql (Dedicated Bank Inerest | Shee period wich interest aimed (Bank Changes | SLA interest | Any other resource TL of financial expenses — 25 of|28 16 Branch wise statement of stock shortage / excess with reasons thereof under PSS operation & shortage / excess in comparison to standard nots. Value of excess shortage than prescribed (Rs.) | [Fetarquantig [Tout quantity Storage” | Wit i i tage | Wer bara pony | saan” | Manet | Prettt sents Gare (Q¢h) l 1 i aos 7. Please specify the amount of claim received from insurance Company/transporter of any other agency with respect to damaged / lost quantity. 18 Please furnish the details of misc income generated from PSS operation. ‘Name of Natureof | Amount | Remarks | Branch income [received | | ‘19 Details of Reimbursement of Interest and Losses:-_ Extra storage period, Delay 1 | upliftment of stocks, Delayed | | payment towards sales ete J 1 ‘Month | Interest Amount (Rs.) | Losses reimbursed (Rs.) Total (Rs) | 20. In case of allocation of expenses among different in the given below format PSS operations, kindly specify’ the information i ' ‘Nature of | ‘Name ] Total amount of [Basis of [Share of | expenses operations for | expenses allocation of, | expenses | which expense | incurred expenses allocated to this i | was undertaken | | BSS operation , l a | J 21. Please furnish following documents: 'A)_ Copy of Agreement with SLA. B) Approval of incidental expenses by HO. | ©) Approval oftrate of gunny bags. ach procurement centre |p) Approved transportation charges per Kin per ath, Fore E) Copies of Branch-wi profit & loss account ofthe specific erop under PSS operation. se Final Audited Profit & loss account & also Audited Final Cons solidated 26 of [28 5 6) uD 23 24 Agreement with Procurement statement of finalizing L-1 Please fumish Bank Statement Details - Date-wise twansaction of funds , outstanding amount from time to time, bank interest payable, bank charges paid rte of nero applicable and stock hypathecsted to bank for funds, Agencies for procurement of gunny bags & comparative Please furnish sample copy of following given below items for the month as cle fo by the office of CAC at the time of vetting of claim (@) Sales bill . (b) Purchase bill (©) Transportation bill, (4) loading and unloading expenses. (e) Incidental Expenses (D Insurance (2) Godown rent. (h) Mandi tax/Market fee, if applicable. ()) Local taxes’State Government taxes, ifapplicable. G) Standardization expenses. (K) Fumigation expenses, () Expenditure, if any incurred én Publicity (procurementdisposal) of scheme, (e)Sample bill of eny other experises claimed, Please furnish soft copy of sales register and purchase register maintained by SLA, In case the period of procurenien, quantum of procurement, storige and disposal has been ‘tended than the period prescribed in PSS Scheme then please furnish eapy of such extension issued by DAC FW, In case Private Godown is hired, then please fumish copy of approval of respective State Government 27 of [28

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