lnder No

Circu lar B ricf Page No

No

I Principles for rl \ation of incidentals of food grains dated 16.07.200r I

l Principles tbr 'lration of incidentals oiCMR dated 03.11.2004 t4

J Principles for tlxation ofincidentals ofwheat dated 14.03.2005 20

l I ixatiort of ni,. rrativc nr illins charges lbr raw rice & par boiled ltice li, l'\l\ 2-(
2006-07 dalc. rl.()() 1006

) PlinciPles re!.,
'lin-!
lntcrest chalgcs. Adnrin charges & storage periorl ,lul 1 26
1t.10.1006.

6 Commission ro societies (Wheat) dated 27.04.2007 28

1 Commission to societies (Rice) dated 10.10.2007 29

li. Principle rega ,ling the Transit & storage loss in case ofCMR & lrarsil t,,. , rn 30
case ofwheal llted 05.12.2007

9. Cornmission l, nrthil cornmission agents in respect ofwheat darcd t:

0-i.03.2008

t0. Principlcs li)f ', hell in case ol'HaIrana & punjab frorn RMS 20(lli-t),r ,.1...
01.01.1008

lt Principle for,,.,nrnrission to societies & arthia in case of Ricc darcrl i5

01.09.2009

12. Principle for c,,rlntission to societies & anhia in case of Rice dal.rl 36
0i. r 1.2009

li Priuciple rega ,iing contrnission to societies & Storage charges datccl Jl

21.0r.20r0

l.l Principle regaL,ling cornmission to societies dated 18.10.201 | l9

l5 Princ ip le regar',ling storage period for wheat dated 24-02.2012 l()

I6 Principle regariling cornmission to societies dated 16.10.2012 .lt

t1 Delinking of Cl,rnnr ission to societies from MSP dated 26.07.201 i 1?

l8 Paftial amenclrr,:nt in principle rertarding thc C&M in case paddr Lepr ir 1 rrrr .l,l
custody with .L llers tlatcd 21.11.201.1

I9. Partial amendnrent in plinciple regarding the C&M in case paddy kept irr.j,,inr 17
custody with rrillers-Further Clarification dated 26.12.2014
C irc u lar Brief Page No
No

20 Pxrcedure li,
subnrission ofaccounts audited by auditors appoirrteJ br -18

C&AG in or,lct to Ilnalize procurernent incidentals ofcoatsegrritr. ti,r

thc past yeui . datetl 19.08.201 5

2t Partial amen.lment in principle regarding the C&M in case paddl kept in 57

joint custodl rvith rnillers dated 4.09.2015

)2 Partial amendnrert in principle regarding payment ofC &N,I charg.es & 59

interest Charscs fbr delivery of rice to FCI for central pool ort tltc ba:is
of PCS datc,.l 05.1i.2015

23 Partial amendment in principle regarding payment of C &M chargcs & 62

interest Charges for delivery of rice to FCI for central pool on the basis
of PCS dated ]l2.11 .2015

t.l Partial amendmert in principle regarding payment ofgunny deprceiation 63

being allowed for use of new & once used gunny bags dated I 8.ll.l0l5

l5 Amendment in the principle regarding MLC for CMR for DCP & Norr 65
DCP dated Zl .09.2016

26 Consolidate,r tinreline lirr finalization ofaudited accoLrt'tts ofccorrL, Lrie 68

cost ol'fboLl; rrrins rlated I 8.1 I .2016

21 Restricting t ire bcneflts of Procurement lncidentals for dellLrltirg itrttcs 1t

Dated 03.0 1 .10 1 7

Other

C ircu lars

I Revision ol'l sage charges dated 05.10.2017 i

,)
Usage charges for packaging of procured paddy for KMS 20 | 8- I 9
onwards datccl I 3. 12.2018
 I,.risting l'rinciplcs for PCS ( MI{

S. no lncidentals Bric I provision Applicability Page -l

No
DCP NON DCP

Acquisition Cost

I MSP Determined by GOI vide letter no Yes Yes t5

192\4)12003-F c Ncs dated 1 6.07.2003
C ircLrlar
No02
,)
Statutory Delcrmined by GOI on the basis of Yes Yes I5
charges not rication of the state Govt vide letter no
1 92i4)/2003-Fc AJcs dated C ircu lar
No02
16 l)7 .2003

(r.e 'rarhet Fee Nirshrit Shulk. mapri

cha qes & RD fee )

Mr.c +r (i) t\4LC not notifying activity wise-The Yes Yes 65

forliula used will be=R-Avo of CPI of the
curiq|llll C irc rrlar

Wh-.re'R' is the last final rate. No l!

(ii)lvlLC notifying activity wase MLC
unriDrmly across the state not
distllcVmandi wise-

(l) The provisional rate for Fixed

cof ponent of NILC will be allowed as per
the atest notifies rates of fixed component
of I\,lLC of the State without any indexation
on I ior following 4 activities-
(a) Fillrng & placing the unit on the
plaliorm balance
(b)rreighing
O U nloading from balance
(d )si tching

_t
Rerraining Variable components need to
be r rdexed

(vi(le letter no 192('12)/2016-Fc AJcs

dat.d 21.09.2016)
S.no lncidentals Blic t plovision Applicabilitl Page No

DCI' NON DCP

.1. Transportation =R'Avo of CPI of the current vr Yes No l5

Charges# Avg of the CPI of the yr rates were
last finalized C ircular \r,
Where 'R' is the last final rate l
5. Commission to Rs.31.2slqtl for Common Yes Yes 42
Societies Rs.32lqtl for Grade A (Fixed)
(where Arthia Circular no
not allowed) I I, t2 t3. t4,
16,17

6. Arthia charges 2.5%of MSP Yes Yes 35

Circular No
ll
1. Custody & C&N1 allowed at rate of CWC CaP Yes Yes 59 &26
maintenance storage rate (2 months or 4 month)
or (4 months or 2 month) as state (rnax i 2 Circular No-
charges
desrres n.lontlrs) 22 &05

lt. lnterest The amount of interest will be Ycs Yes 59 &26

Charges adnr issible on MSP, statutory
charges and mandi labour charges Circular No-
at FCI rate based on storage 22 &05
period.(Same Storage period as it
was allowed in C&M)

9. M illing Based on Tariff commission Yes Yes 25

charges recommendation the rate of milling
Charges for KMS 2006-07 is Circular No
Rs 1s/qtl for raw rice & Rs.2slqtl for 4
Parboiled Rice.(same allowed since
KMS 2006-07)

The lvlillang charges for both raw

rice & parboiled rice are inclusive of

I-]
transportation charges of Rs.s/qtl
for transportation of paddy as well
as rlce with in a distance of Skms
from mills
S. no Inc idenlals Bricf prov ision Applicabilitr Page No

DCP NON IX]P

10. Administrative (l) DCP States procuring & Yes Admin 26

clrarges distrlbuting crops of both RMS & Charges will

KMS - Admin charges @ 2.5% of be admissible C.no 5

MSI'r at Acquisition Stage for wheat in respect of

admin charges @ 2.5% of MSP at all crops
distribution stage for paddy/rice will I procured in
be admissible. ONE market
(ll)DCP states procuring & season.
distributing crops of one season
on ly
State could
(a) in case rice, admin charges choose one of

@2.5% ot MSP of paddy (in terms

the season
of rice) under distribution cost & 1% either RMS or
KMS
o, MSP of paddy under Acq
stage.
(b) in case of wheat, admin charges
@2 5% of MSP under Acquisition
staqe & 1% of MSP under
distribution stage.

Cost of lqtl of Milled paddl

Out Turn ratio

Subtotal

. Cost of new FCI rate for 2 gunnies Yes Yes t7

gunny bag
C irculal No
2

t2. Usage charges Rs.7.32.no of bags allowed. yes yes :i

(in case of 40 kg paddy filling,1.73
&1 68 bags allowed for raw rice & Other
par ooiled rice respectively or in
case of 37.50 kg paddy filling,1.73 Circular ncr
&'1 68 bags allowed for raw rice & 02
par boiled rice respectively)

Acquisition Cost of lqtl ofpacked rice

S. no lncidentals Br-icl provision Applicabilitr Page No

DCP NON IX'I'

Distribution Cost

13. Storage Cost At CWC rate for covered storage(2 Yes No l8

months or 4 months)
C.No-2

I '1. Handling & =8:Ars-ef eg-sllhe-sulcrf vr Yes Nrr l8

Transportation Avg of the CPI of the yr rates were
cha rges# last f inalized C.No-2
Where 'R' is the last final rate

15. lnterest FCI rate ol interest on the base of Yes No l8

acquisition cost minus interest
charges(with OTR) with C.No-2
consrderation of Storage period

16. Transit & 0.31.'l{, of acquisition cost minus Yes No 30

storage loss CosL of gunnies, usage charges &
inte'nal transportation of gunnies C.No-8

11 . Adrnin istrative l) DCP States procuring & No 26

Charges distributing crops of both RMS & Yes
KMS - Admin charges @ 2.5% of C.no 5

MSP at Acquisition. Stage for wheat

admin charges @ 2.5% of MSP at
distribution stage for paddy/rice will
be admissible.
(ll)DCP states procuring &
distributing crops of one season
on l\
(a) n case rice, admin charges
@2.5% ol MSP of paddy (in terms
of rice) under distribution cost &
1% of MSP of paddy under
Acquisition stage
DistribLrtion Cost

Econonric Cost: Acquisitior Clost + Distribution cost

# indexation to be restricted tl states i.e for 1 who failed to submit the

audited accounts upto KMS :014-15 is termed to be defaulting states .Benefit of lndexation will be
passed on K|\4SYYYY+4 where KMS YYYY is annual accounts submitted by the defaulting states.

Minamum of value of KMS 20 I 5-16

vide letter no 199(5)/2016-Fr: aics dated 03.01.2017 (F- ?l , ('^" -ll)

 @6t
&q,
-.-i^!rPl
. ,i.., ,i, ,,t.i. '.:. l,l.iru:
r;i'g; raul
saN,lav
.ri.' ..,r ..i...r .: ri td.rl,

i'i:.,,i:23381i7/(O)
'Y=':" 2610656t(R)
::. .:.,;. ' .:.:llr. i;i!,;inlill.ji,!tr
. | .;.. ,1:i | .' :' . .i - '_ liri;. i.':'nl
_..;i i, . .. .. ,lil(.1

JulY 16, 2003

D. O M. 192 (4)/20O3-Fc A/c

Deor
i
s€verol Stote ooverxments ore involved in ihe
Procuremenl
opcrotions of foodgroins (rice onci wheat) either through the Deportments
or lhrough fheir Agencies os Agenis of the FCt for deliveryto the Cent.ol
Pool or on their own beholf under the Decenimlized Procuremeni Schame.
Eefore commencement of the morketing Season for the Procurement o{
focdgroins, ihe 513te 6overnments who ore inwlwd tn such operotions
foruord proposols lo the Governmdnt of Indio (60I) for orrivrng at lhe
provisionol acquisition/economic cost of the foodgroins. os the cose noy be.
These ore then finolized oi the end o{ t},e morketing seoson ofier closure of
occourts.

2. ft hos been some tirne. by this DePorrr,lent ond the Stote

fclt, for
6ovsrBrnents, thot on element of tror,sporency ought 1o be introduced in'li:e
meihodology of fixing of these costs. The DePariment hove corried out on
er(ercise ondthe 'principles" for arriving.ct these costs hove bezn drown up
which ore rellectd in the enclosed Tobles. The Slote Governments ore
odvised to bose their pnoposols for orriving ot the ocgulsitior cost/economrc
cost on these'principles". The 6OI woold scrutini:e the proposols ixsed on
fhese'principles" ond concurrence to the some convdyed occordingly'

3. The Tobles encloSed detoil the resPective compchents of orriving ot

ihe costs and the principles for finolizing the some hove been mentioned
ogoinst eoch item.

I
I
',

o
 c
rii'g
rr"tli*:,.:lrun:ffi ::1ffi ,il: ff ri3;
r ;1T"il:;;;ri*i lf :J:::::"..:rldb€,hecos,or,he
d#:
r:mi:i:, tr:#
fu fi : ::linilT#r ;fii :ill,,:::,'-sT"[;ir:
r,i,l[1rh*eose,*d,tl^'"il "
Hjlff::'=['=ill"ili*n:#:i:d.::*;n:i*ffi
jli',*,.1,::,i,o.lri"o' *:#,.
fiil#:li;fifr
oudired by the CA6. documen.rory
r;;*,".l,"lill,iil

irulx#lt",.x jtf i:'jf ,,tff t,.,"1#:;,I:,,::,Jl;

Errc{: Fir,. ?oblcs Yutrs sin6e7.i;y,

(soqiay l<oul)
:,
To
All'Food Secretdries
of Stotes/Union
Teri.iiories) gy
Mme
,,,,,,i131 9,j1,;:*1[:,.]
:l;1 lH H,Tiil?Jfr I ;

(i i
' .0'hJ( otr
t-
.,|t*" ,,'-. --- -
'l;r! "*:ts*:i,*.',;:i,'-l.lJitT_.* ii,,^_ - _ _o-"1 '*n
,u-.:-"P:p#;#ffi ,,pm=, #,$*.H*

c -'..

l.

@
l.lr

Ec,onomic Cost of rice delivcred through

levy toute in thc Siate Pool
Tabl. I :

Tablc 2: lncidcntalChargesforcustommilledrice(cMR)deliveredloFClinthe
Central Pool.
I

CMR for thc Stalcs which undenake de;enrralized

t-
Table 3: Emnomic Cost of i
procuremcnt.

central Pool
Teblc 4: Incidental Chargas for procuremcnl ofwhea( fot

, Tablc 5: Economic Cosl of wheat for tlre statcs which undenake decentralized
procurcment.
 @
l='
Tablc l:
I

India.

ihc ourchase tax pato

(\{rur! rr^"'E
(
the levY rate) on PaddY lnvcneo
t"'Y.
in,o-*'uiu"tint "n'ount or
from tnc
.;"el ii to bc subtracled
to* at lhe
,r-"d" tr* /sal"t PaYablc
rice stage

FCI to CWC for

Samc as giverr bY
i) Storagc rate
:Y"f :;,"#'f i:::T""iii,,v"r
covcred fot
It.r. St"r" it
'"qui'"a
godowns.

of6 mooths oi rice

For a Period
ii) Srorage Period
$orage.

ar Fcl's rate ol InleIE)r uv\'rrt'r6

on ,n. a",".of
."i"'ri"ir '"':"[:T::t:l
Marketing Season' .on
acauisition cost'
fot the Pexoo
ih!
of storagc
 @

Transponation and handling Thc rates will be indexed by thc

charges consumr pricc indcx (oflhe State,
where available, else ollhe
(for loading of rice al storage country) to the last final rate. For
point, transponation and first.time States, the last final rate
unloading a wholcsale ofa ncarby Sialc will be uscd. For
di$ribution centre) o6cr Strtes, the last provisional
rate will be used. The formula
(a) Transportarion rate used will be:
(b) Lead distanca
(c) Handling cost R x Avcr;gc ofthc CPloforc
oncfll ycar

Avcraf,c of(hc CPlof th.

tanr ratcs vcrc lal ,inalizc6

wherc'R' is rhc last final ratc.

(lhe State Govcrnmcnl should

provide detailed juslifica6on for
ary change in the lead di(ancc.)

1 Transit and storage loss @ O.,Yo oo acquisition cost dinus

cosr ofgunnics.

Adminisirarivc chargas @2.5%of MSP of paddy

: rerluired for onc quintal of
rice.This will be applicable to lhc
quanlily ofrice retained by thc
'l Statc Governmenl for distribution

9 Total dislribution cost Sum of items No.3 to I

C. Eronomic Cost = Acquisition Cost + Distribulion Cost

@
 af\
|ID'.,'
lncidcnlrl Chrrz$ ocr ouintal for custom mill(d ricc deliv'r'd to FCI
'f ABLET:
in lht Ccnlrll Pool
I
I

i; d"ffiil by-ovcrnmenl of
i um SuPPon lrice (MSP)

Statu(orv Charqes fd"t"tmGa- t Y Governmcnl of

lndia on the basis of notitrcatloo ol
(il Markct fce
(iil Nirashril shulk th€ State Government
(ii') Arhatia charges /Dami

rh-C;tli-f fiacxed bY thc

(of the State'
consumcr Pricc indcx
*-i"r" a""iiour" or of the country) to
thc lasl final rate. For {rrst trme
Sules. thc last final ratc of a m:rbY
Statc will be uscd. Fot other Sntes,
thc last Provisionel tate will bc
used

The formula uscd will be'

R \ Avctagc of lhc C?l oI tlrc

ouncnl Ycalt

AvcraS. of lhc CPI of lhc

yc5l ralcs luclc hrt fiMlizcd -. '

'qi here 'R' is the last final rate

To-uI-fi o at o 5% as Payment to
cxisl) societies/sub "S"nl: *1"t"::1,-th:1
( whcrc arhatia charges do nol -
wilh thc task of
",i'- "ii.u"a
Drocurcment. This would b€ out ot
ihe ovirall administralive chargcs.ol
7soio On any onc commodlty
(,"heat or rice) Payablc lo Stalc
procurinS, agcncies

l%;ftSP;f Llurntal of Paddy in

case of raw rice and no driage
for
par-boiled rice.
 .:

6 Custody and maintcnancc charges Ar CWC CAP storage rare for FJ1
for 2 months

1 Inlerest charges For ? nronths on itcms at Sr. No. lG

i al FCI'S rate of rnterest obtaining
on the date of the commencemeDl of
Rharif Marketing Season

8 Milling charges (inciuding As determined by Governmcnt- of

transponation charges upto 8 Kms India after taking into accoirnt the
from the mill to rhe FCI godown.oo recommendations of BIQP (66yy
paddy as well as dclivery ofrice) Tariff Commission)

9. Cost of I r1tl. ofpaddy Sum of itcms No.l to 8

10. Cost of I qtl. ofricc At 67o10 out-turn raiio for raw ri:c-
and 68% for par-boilcd ,icc.

ll Cost ofgunnies 2 gunnies (tbr packing 50 kg of rice

each), as ca,culaled FOR.dcstination
by FCI for dre State based on,thc Jute
Commissioner's rate

t?. Gunny dcpreciation 40% of itcm No.ll for rwo bags

(erch lo pack 50 kg ofricc). :

t3 Cost ofCMR Sum of itcms l0 to l2

Note: For transportalion of paddy and ricc bcyond 8 Kms thc charges are payablc Dased
on District Magistrate's rate or FCI's rate whichcvcr is lower

o
 'pc which undertakc
of CMB for thc States
TABLE 3 : Ecolomic cost ocr ouintrl
S!rr4!a!tsdiEslllsllt

Itrm
S!
,aaa-t --a--
No.

of Tablc 2'
A, cai6imt"It"rn tr
I c;st;rEffi--=_-.=-
n nlsrnBur-IuN Lllr t
Jlwieov
Al CWC lates'lor cuYcllv
2 Storagt charges i", rCt for q ,onrtts of rice slotage I
ol
c"iin-'ion bY food Secretary I
;e State is reQuired tor covereo
1

godown I

H-andlinq &nd transporuillotr

ioadinc storagc point' transpoflatron
it
vrE5." \'
*;lmHf:.f':""I:\
I where available, clsc ofthe-coumry' I
c€ntre)
and unloading at disribution l Hr'lffi'il;i rate For firsl tmc I

li$,il1'"fj#jt's'ffi1
wrlr'oe
The formtrla used
luscd. I
I n r rvcngc o( rhc CPI of tltc I
I cunctrl vcat I

l- Awratc or thc cPl-of lllc-,

l'*""-\ ntts t"t" lnfl fimhtI!

I
I "o,

*no.'^' is thc last frnalized tatc

\

\**[i:s.iikh'*i\
eI feit t'tt of intcrest u'
4 on rhe datc of commcncemcnt T

it Kt rif Markcling s-eason.lor

"
months on the base
ol
'qu'sllll
charBes (vloc
cost mrnus interest
item ? of Table 2-'r'

@
tA 0.5% oI acqursrlron *''-'-"::"
Jost of gunnies (item
llol laule
iiri"r:t t t', dePreciation (itcm
l2 ofTable 2)

673% of MSP of Paddy requrr€q

on" qtl. o[ rice This
w l .be
iJ,
'""oot"Jrl' of rice
. ,o,lr't quantity
.iiainca uY thetslate Govcrnmcm
for distribution
7 l9'
\.e: ch^ qs Drr quintal Ior Drocurtmcnt
oiwh'at for Central
TABLE 4: Incidcntal
fse!

6!6rernment of
C*r ot *t'eat (USP)

ni-?----.rctrni
n bY Govemme nr
"a
on thc basis of notlllcatron
India
(i) Markct fce
thc State Got€mmcnl
(ii) Arhatis.chargeYDamr ^1
{iii) Purchase tnx
i*i Nirashrit shulk
bY
ffirareffitrindexed
(of the State'
-*r.", Pti"t index
where available, or ofthc country) lo
the last frnat rate' For llrst lrme
siates. thc la5t llnal ralc
ol a nearby
state will be used' For othd st&tes'
last orovisiooal ralc wlll be use6'
The iormula used will be :

CPI of ttlc I
R s Avcragc o{ thc
cutlenl Y€r I

a!!rar'c of lhc CPI of ll|c

vor nics n'trc las frnaliztd

where'R' is thc last finalizcd rate'

io5e 0.5% 8s prymcnt to

frxA-rxeOat
a8ents whc{cver. lncy
socictieJsub
the t&'k o[
lii'""ii.'Lo"*tnwould
.r.rcurefitent This be out oI
charBcs ol
it. o.,.trtt administrative CoFmooltY
r soz^ dtr any one
to Stale
i*tt*, ot ricc) PEYablc
procuriog agcnotes'

@
 -----

;
5 Storsgc and inter€st charges (at At CWC CAP storage rat€ for FCI
mandi) for 15 days ol storagc at mandi
lntcresl charges for l5 days at FCI's
ralc of intcrest obtaining on the date
of commencement of the Rabi
Markcting Season. oo lhe sum of
items 1,2 and l.

6 Transportation and handling charges Thc ratcs will be indcxcd bY thc

(for rransponing whcat iiom mandi to consumcr pricr indcr (of rhe Statq
storage point, loading ar mandi and whcrc availablc, clse of the country;
unloading at storagc point) to the last Iioal rale. For first time
Sutes, the lasi'final ratc of a narby
Stalc will be used. For other Shtes,
the lasl provisiona.l rale will bc usc/.
The formula uscd will bc

R N AvcrdBc of Ur CPI of llrc

curtcnl ycar

Awn8t of thc CPI of thc {

ycrr rat;s wctc las finalizld
1r
whcrc'R' is the last I'inal ratc. :
I

I
i
For transPonation chatgcs the DM's
rar. or FCI'S ratc which€vcr ls lowcr i
will b€ trkcn inlo considciation I

Gunny cost For 2 gunnies ol )u Kg cacrL as I

calcularcd FOR destination bY FCI !

for tha State based on the Jute
I
Commislioner's ratc

Adminiitrativc char86 ,ffiMSP subject to

cohdition that no administraiive
8

chatges havc bcen claimcd for.ric'c: .

9 Acquisition Cost of I qll. oi Y/hear

TAal ofGilIo. t tt''

x"r*rY'3,9!iu'g1hts#$:,"#,v,,fi "jl'ffi HTIT:":;"{li'"ltJl1':lJffi "fl

cirn owt cttatgc" lroyaUlc to otc Slatc A8'ncy'
''.

TABLE5:EconomicCostofwht,t',€rouint^lforthgstat€swhichtlndenrkt
dccctlltrlizcd Drocurcmcnt

A. Acquisiiion cost
It"r 9 ofTrbt. n

B. Distriblltion cost

l,-rcweti6[E7iror FCI lor

cAP, as lhe
l:l
s% montht 9f^.tl*"q: case t
iit corered ai4(ii) I

)rav be. Cenification bY lo^od I

Sccrctary ofthc State is requrr€i tor !

t.

covercd godowns I
i
I'r rCi-trarc of intercsl obtarnrngot
on the date of commencrment
the
,"i. n"ui r'l"tt"ti"g Scason.on i8

HI;:'ifl :H"i'."i+Jffi [ir:: 6 ol

charges (ltem
"dmi-nistrrti'"
Table 4) for 5% months'

ga-,aTfiarrt".P"nation'chargcs
".""'1llir,$j'{1 ""%*;:l';ru;i[;"j::,:,
fh*rj;:: at distribution
iii#,'-r"rttai"g
centrc)
Tillll,'iilur;' a* orthe country;
ffilt:i:ll ;ffi ::: :i'i :ffi ,
lj**+T:tit",,mi*'*l
CPI ot lhc
R x A$ragc of llE
cllrcnl vcal

*:tt':;ll'::'r,
rr!c'
whcre 'R' is the last final

ofltems I + r
o.ilon r[e56
Y:+6 ofTabte a'
 ' storage gan

@ O.1V" and fot covered

(@ l% on rhe sam. base as
4 above.

g*sc- --1 frtP +6+4P*/ .l'nis ',*U* + lnt--(t.l

*'lt-c-rr-c\
o.r-) +^.,-
fr-^"Ll-*X y' n.11.'--'-0;
f'-,;J**l i^'
*^' 'vv*'/j'b) + T
,v*"!-l')+ Ts''3'' fiUA':
fiU-t':
^:+"---a-
: (l- *Y
1-.-t7u,ro,?f *l'-'u f'o^
l- 4-.*bU,ra,:=-
';;i'; "-',ff:;ffi:h::
*
f'o^'t-ficL*-4/'L' l' ulf1Vc- f"t1t
? --*' "^' ,t4oatlV
W
P'-ra)

-afP-''-.--^'' -.

@
 (D
6"-ccrh"r No'2
No.I92(4y2003-FC A'/cs'
Goveruroent oflndia
Minitrv of Consmir lf"L, fooo om f Dislribution
'""*';'p*;J 'Ulic
Food ard Public Disuibutiilishi gt
"f u,-un, Ncu, Dcthi
Date: 3d Novcmb<r, 2oO4

To,
Tbc Scffdary,
Dcparttr)cnr of Food ard Civil
Supplics'
Govcrnmcd of

of iocilcotalJecononic cost
of
Subjert : Pdncbles to bc *Pled for fir'arion
Cusom Milhl Ricc'
sh'
r a,, diroctcd_ro
"o..1y,Xfril:ffiiffi #;tnffiir{ffi
rmdiftation of lhit DcPsrtsEnt's d

IqAidq' ndd'ciltl'g d ocomffi :#firffi3"tr

-;T1116No, 2 aDd lle. 3.
daltd 16t July' ?003 will rcmaiu
2;.' a[ otlc/tcrrn aoa condiiioas of thc d'o' letter
tbcsc-
claim
has also bccn dec icd tlBt upro, f573 of rhc totql subsidv "liyff
t"'-,1##"H;fX;:r;jiffi
Ctow(@nr will bc'rckasco .-r.tio
oD ProYr5rorta,
i$*l;;**mUX;lT*ffi
n riitfr ri"'C.rtificatc tom
thc

ffiffi
of 5% bahrrcr

Agcocics
stsidy,

subirt lo
tbc Stalc.
&.ffi
ihc t[al
Gc

aojus
, r\r-
;:fii;3',,,i: P"1,:[
r-. .r- E^"i.t {rf Dr@tors of thc St8rc
iJ"oait TffiT..';]*"iff
ccrtificatc of .C&AC

4poincd auditors.

{. Tbb hsurs with $c +nroval

of *r }1ryrent
Authority'

-. lours faithftllY' ,

Eact 'As atow' .rf , P,/.,ro-"-*-t!

Rso)
(P. Ra}'avcodra .:i
Director . -l
Telc: (011) 23389436

oftndis,NewT'
h
(P.
 (ls)

TABLE2,

Sr. No.

?
I ---:.:_+-
Vinimum Supporr

vlsvLu Y
llrm

L||t tgcs
(i) M!*a fcc
triE@SFf--
re Dcciainejrinc-F;;;;E--

t*i,
(ii) ' Nrashrir strulk India on thc of *tit.rion of
thc Stac Covernmen
(iiD tuharia;[rarges/Dami
(iv) Purdrrqc r,'
LruourC@--_
t'tandi
@consume, pnc€ index (of tho
Starc
wlrcrc available or of Uc counrvjli
tbe last_ final ,at". Fo, fint "tii
stttcs, thc last final rllc of r nArbv

Iw:*l
Srstc will"bc uscd. For othcr Srlcs
I

whcre 'R' is rhc last fiiial hti.

..
:: -' .,
! r 4'rPsr..Irolr Llurgcs

Thc rate,pcf quir

bytte Consrmer
Stdq wlrcre
counry) to thc
first"time
rctommended
Commirtc€ herded
Scqttary with S
Muragcq FCI of &c"i
ukcn into considcration.

ri, ,r* .bypo

dctcrmincd 1

iuintal as
qr,ultiPticd: by
 l#,tt'fil*iri,,''r:t*
wirrbc
ill'T.i" iJ;;mittc'c
considered'

Stucs
(ii) For Non-DCP

ifi :'s' :lill,ihlllt',fuifl

i;"r'*tlt as indicatcd
li#J,il'l',
at (i) above'

H*lS|!Hl"iit',irj,H

tri}tt#$f*I,ffi;
ffi i;;; delivered for
"trice
[r cenual Pool

(iii) For -botn':I^*L:HXI

#n [;1x;:'$:,.ffiffi*
x'#'i**rr'sili*fr
I
; not .*i'o
Fm6:,:":':;lL
I
-l
no tri1,-s9, ror
K":Ituf";;;ti
rice '
ili pu-boiled .' :"

! f<ir 2 nonths'
I

fl !'
;t
.

rt
I

I
 f or 2 ntonlhs oll items al 5I i'lo llo
I at FCI's rate o[ itltcresl ']pPlicab!c
on thc date of the conlmc[:ement of
Kharif N4arketing Season.

I er a"r*rni*a UY Govcrnnlenl of
t
transp;rtation charges uPto 8 Kms lndia after taking into accouill the
from the mill to the FCI godown on recommendations o[ BICP (now
paddy as well as delivery of rice) Tariff Commission)

Whcre the State Govcrnn)ent claims

transDortation ratcs for paddy and
rice movetnenl for distances from 0
lo 8 kms. also, thc milling rate shall
stand reduced bY Rs. 3 Pcr
quintal'

Sr itit"rnt No. t to 9
of I gtl. ofpaddY

Cost of
'l q . of rice ,qt OuX- our'tutn tatio lor raw rice
and 68% for Par-boiled rice'

OlTunni* (f* P*t,..+bY51i,s:fFCI for

iice as calculated
"i"t),
the Slata FOR deslination based on
the Jutc Comnlissioner'! rate

(ii) Thc cost of gunnies ihall include

the cosl towards inlernai mcvemenl
of eunnies beyond thc railhcad hased
nn?,nal ratc spproved for that State
Govemment. For lirsl{imc S(aies'

rhe lasr final rale of a sintilarlY

Dlaced Srate will bc
used' For
yeats' lhis. componerrt
iuccceding
*ill be calcrrlated by lnoexrn3 rne
last ,jnal ratc ttsing tltc Consumer
Price lndex ln abscnce ol frnal tates'
ile provisional rates allowed l'oi last
year will bc indcxcd

ny dePreciation
40" of 6Not (i) lor two bags

(each to Pack 50 kg of rice)

;-fitems tl to l3

a
 @

56iliiifu-*'nt"'

z'
f,qorr.ul"
Fffi=------toNcosr

,I
,ffi'::"'T5

!l
I
,l
'#m:rffi:r*rrutt'
ffi fl,*x,*-i:i,*liu

D
" Av"ag'

=":*i;I*:'*l;*m

.{hcrc 'R
of

is rhc
tht Cfl of
rhc

la$ 6nuli-d
t"t
.
\
it
iI
il \5,Jil#rjrirt{iYr'*:
Ions'd"'atiott
ir
il
{
I
l
?.
,tffiffid
'f"li'"i"""'l'

-{

@
?;#*tu;m*l::i*)'

t*$j*:-rij,":*n
 Citcc: lq^r No'3
No. I 9l(1)/2001-IC'A/Cs.
Govbrnmcnt oflndia
Minislrv ofConsurncr Aflairs, Food and Puhlic Distributior:
Depart ncDt ofFood ancj Public D:stribution

Krishi lllrovan' Ncv' l)cllri

Ditc ltn March' 20'J)

' Thc Secreury'

Depe.imeDt of food trnd Ci\,il SuiTltcs
Govcmmcnt of
,_ .t
incidcirt':b/econontic cosl of
Subjeci: Principlcs to b" udoPtcd 1'trt lixaliol of
Uheat.

Sir' io-ry'Yl
I am dircctcd ro rclcr to thc atovc nontioned suhicct cost
arld F'
foodgrairs
'"rilE-Elcs' ro U" aAoptea m n*Aion oi acqtrbitiorr'cconomicruct 'of Juty"'
-rrn*rld vidc thir Dcpartmcn,'t a i'i.tt", riJi'iialnool-rc
-ootcd'l60
;iiffi ,-di; ;id; ktt' n'*u",. a*"d'3d Nou"mbo' 2004 arc tuthrt
or
'*n
Nn.q oid rtht" 'Nt'i Nilh (hc atnrc-rcfcrrcd d o leltcr
#;f;J#i?bl. 'n*"to arc hcrcbv
:fiijT6'ryi' ;i,o: i"g-tains i*u""irt and cco'bn''ic cost of whcat
,"pt ."a *irf, tL Tables No-4 and No'5'
"ro"xed
' ' oflhc rl'o lcttcr dirtcrl'l(ih Jull' 200i will
Z. All othcr 1('ims ai'd (:tinditicru
rcmain thc same.

1 This issucs w hG apyrroval ollhc Co:npc(cd '\ulhority

Encl: 'As abovc'

Dircclo(i'-Ci)
Tclc:23389436

coPI th. of lnr'lia' Nc'r Dclhi'

Mr*ging Dircctor' Food corpontion
I
i. pi;i i" as?ie"',Adviso(cost)Dircctb(riumc)
I

!
I

I
I

t: d'
lit.
!

@
 Centrr'l Pool
per quintrl for nrocurcmtnt 9f wheal for
TABLE 4: Incidenret clrerges

Cost of u'hcar (MSP)

ls-&iiffi ned bY Gouen'ment

Staruton chargcs
As aJ"t"l""O lY Cove.r-n'ncqt ol
i i) Markct fec i"ii, ,1. basis of nolification of
",
thc Statc Govcnuncnt'
ii) Arhariachugcs/Dami
(iiD Purchase,ta:i
(iv) Nirashrit shulli
*rll b. indcxcd bY thc
Th. ,;r"s
t bfi6-g"s (f"r handling
.onr*t Pti* index (of thc Std''
of whcat in mandi) to
uuaii"Ut, ot of the coutry)
thc lasl final rate' For [rst t@"
"rt"r"
i,"t'.t ,u" lasi fin8l ratc of a.urlry
itate will be uscd' For otber''Slalrs'
lit provisional rare vrill bc uscd'
Thc formula uscd will bc :

Rx AvcraEc ofthc CPtofth'

cltlatlt y'ir
Avsaec o[thc CPI ofthc
*.r raics *erc last finalizcd

whcre'R' is the last furalizcd rate'

o Ue fixed at I
do not exisl)
i*i,.t.-n t"ti" "tt*g"s

administrarivc ct9rges-

II-CWC CAP soragc

r". rS ar". of stongc at msiidi
int"r"< fo' l5 daYs ai FC.lls
"t-g* obtaioing on thc dac
.l,l "i at**,
.o.ro-r""*n' of thc Rabi-
"i-
Markctins Scason, on tbc rytr ' oI
itcns I ,i and 3'

!:
rii
o

@
 tic
-@
6 Transportation and handting cbarges Th. r"t.s ,',lX bc iodcxed bY I

(ror tErsporting wh.!t from mandi to coirsumcr pncc indcx (of lhc Surc' I

storagc point, loading at mandi and u,herc available, clse of lh c.rrnt Y) I

Lrdoading al storagc poin0
to the last fina.l rate For fust limc
Statcs, Oc last frrlal rate of a rrartY
Stalc will bc uscd. For othcr Stztcs,
thc lasl Provisionai rate will bc uscd-
fic formula used will bc

R x Avct'rBc ofthcCPl oflhc

ctlilallt )tar /
Av.r.8eofth. CPI oflhc
ycar lalcs Pcrc ht finaliztd

whcrc 'R' is the l&st firlal ratc.

I
For trarsportation chargcs thc ratc
recomnrcnded by ttE State [-.vcl
t. Committe.c hadcd Food b, tlr
Sccrelary with Scnior Rcgiooal
Managcr, FCI of the .State rs I

t-,
I

rrcmber will bc takcn ioto

'i? Gurtrty crs[ O2 Bururi{x of 50 kg cac[ a5

calculatcd by FCI for thc Statc. for
dcstination based on thc Jutc
Cor nissioner's Bte. ,: '
fic cost of gunnix shall includc
(i.i)
tbc cost towards intcrnal ImrrcEadt
of gunnies bcyond tlr railtrcad basd
on final nte appovcd for that Staii
GovcrruDent. Fot ftst-time Stalcs,
the last final rare of a simihrb
placcd Statc will be uscd. For
succrcding years, this corporElt
will bc calculalcd by indcxrtg tlE
last firul rate using the Consuurr
Pricc lndcx. In abscocc of ftul Blcs,
the provisional ntcs sllowcd foi lasl
year will be irdcxcd.
8 Administa ivc charges 2.5% ot tbe MSP subject to
condition that no administruivc
charpc,s havc been clainri for rict.
Ac4uisition Cost of I qtl. of whmt Total of itcms No. I to 8.

<t

@
 s'
ff::"#' ?.' #,*#:1,,". ",,.'".'".'o.l.".",

f fcqubido;
Item 9 ofTablc 4
"or,
n nit it"ti"u .ost

At CWC'S storage ralc

months of storagc for
'ricovered
(i) and (ii) CAI, as rhc casc
rnay be. Ccnificjrion by Food
Sccrctary ofthe State is,equired for
covercd sodowrls

Al FCI'S rale of imeresr obtainios

on th€ date of comrrrnccrocnt o"f
thc Rabi Markcting Scason on thc
basc of ac4uisition cost liss intcrcst
chargcs (item 5 of Table 4) less
administrarivc cMrges (itcm g of
Tablc 4) for 5% nnnths.

H2ndlmg and tran+onat[n cGE ntcs will bc indcxcd b [!

II: hldle ,,or.g.
t'ansponation",to
point, consumer pricc indcx (ofthe Slate.
a]irrd6uil,i wherc arraijable, else ofthc countrv,l
ccntcrs, uJ oading A distribution to lhc last finai ratc. For first tigle
clrlac)
States. the last ,inal ralc ofa nc6rbv
Stalc will be uscd. For orlcl
Stales, the last provisiorral ratc
will
bc uscd, Thc formula usei will bc:

R,i Averrgc ofthcCpl ofrhc

qfiq ),!aI

Avcng. ofthc Cpl ofrhc

y.3r r.tas wcra lesl finaliz.d

whcrc 'R' is the la$ Enal rstc.

0.s% on rhibasciiiEilE
+3+6ofTable4.

@
 @-'
ro'
Diiiii--iioialilarn -

l#r8l***"il:"l
S ffiiffiNo r to 5

@utioncost

:d

:- l :-:
ffi'
L' Ci6cut4x N6'Ll
N[MEDIAIE
$i,tl'
-'lr ' No.r9{12 Yl97-FC NCS'
Crovcrnmcot oflndia
Distribution'
ofFood, Consumci Affairs anrl Public
ii uinisrv
"""'-"'O[rr**r, of Food and Prtblic D'*lfiiitrn","r,
Dclhi-1
'11
Jutrc' 2006
^.r,,
D!tc: 40
li
i ro,
Tlrc SccraarY,
. Food & Civil SuPPlic DcParlrnent,
ffifiil' ii'ffi;i}
.,bvlrnmctr oI J1ss4,\
^- ' ein Pard:: PiYr -il3n:fl I Tffi
Hary r4 Krmrtaka' Kcralq -'t lr, n"g'r-a' oiiss8' Punjab'
Mahara
"i,tJ,-ri
.t irlicLr, f .H., U.p., " w'B'
tluurnctul,
?a
for raw aod parboiled ricc for thc Kharif
I Subjccr: Fixat-ion of normativc milling charges
Mrrtaing Scarcl 2006'07
sir'
:l A lugc nrmbcr of reftrcncts arc bcing rccci'{ q9rn.T""1,
-ii ""fr.gcs inclurled io milliag charges' To clarify this matt
""**rletioo
o iiit rt"r ilp buir of thc T8ritr CoffDissiort's rccomm'rou
on
ft ilril#r,il, r*+rLry--tzs3tJ+*atl i a'x-ritruasdaszt
iltdlcd rhe
t,
2. Thc milling chargcs'for both raw and nrto]led.,1ce arl
trap.ruto" .f-it of lis s pa qtl. for uaruponaion of paddy.u wctl.el ric'
IiffiJJrs ;rffi", iri" .irt in *" orpiaav, itp'div is direalv dclivu
;ffiGio t"tcr*"" poiniwilitc ratcn as mandi/purctpr
Howwtr, if Governmer^iti pro.,nng arc taking.paddy
"g"'i"it' scndbg rc srmc.for Tl:l*lt
rorllins, ro mills,
H;il^d;;"it l*irl.f ir"*-,bcforc account dioancc
",
;H;;dd;;in, un u. uli"celtcr poim-for tating irno
ln casc of ricc' trans?onlrion^GtE4ps t{no I
";;oicrcnct
o? s kl* aod rd irunailprrctasc
ro Fil godo*nt or slalc goilo$ns'
;i;;"fi [,n.,'roiali,.,v or tit" n'ot ,nint chargcs"
ffi;;rili.,1, in"tra"a u,rc.illing
v*r, ni mlty,
[r""il
I
I
i
I

- -'i for inbrgution

Cov ud ncmssary aaion to :
I nt" g*.ortirc Direoo(Commcrcial), FCl, New Dclhi
Z. n c f*cortitc nircdo(Proo[fiEtt), FCI' Ncw Dclhi'
3. Thc Scflior Rcgional Managcr, FCI RcgronrlOfficcs
4. Policy-I Scaio/Corrcemcd Stac Filei
5. Gurd Filc.
': l ; .r'

@
 _-.---
\e-
litglqt No'5
No. t92(4V2001-rC AJCs
Govemment oflndia
N4inistry ofConsumer Affairs, Food and Publrc Distributron
Depanmcoi ofFoori and Public Distribution
i Knshi Bhrvan. New Dclhi
,t
{ Darcd l3s October, 2006
To,
.l Thc Secrctary,
! ' Departmcnt of Food and Civil Supplies,
I
I Govcqmcnt of

Subjed: Principlcs to bc adoprcd for fixation of incidcnul/economic cost ofRicc

and Wheat

Srr,
I am dirccted to ,efer to tlc above mcntioncd subject and to say that thc
"Prinoiplts" to bc adopted for fxation of acguisition/cconomic cost of foodEains,
convcyed vide this Department's d.o. lcltcr No 192(4/?OO]-FC.AJCs dalcd.l6s July,
2003 and modified vidc l€tters of sven number dared 3'd November, 20Ol ard 140'
''.' l,luch, 2005, are firther modificd as undcr :
t
I. (i). Iotcrtst ctrrgcs :-

"Iqtcrcst char86 allowcd undcr Ac4uisition as well as Distribution co$ for Rice
and Whcat will
bc allowed as per ihc prcvailing ratc ofinterest and pattern chargod
by ti|c Statc Brnt of India for food credir fiom rhc State Got./Agencies at ttle
commencement of rcspcctiyc Mari(cting Sssons."

"Undcr Acquisition cost, Intqest chargcs will be allowcd. for Mininrum Support
Pricc, Statutory charges including Arhatia chargcs/Dami, Mandi labour chrgcs and
lraftsportrtion clurges for non-DCP States. lncase of DCP Stqles lnteres chargcs
will.be allowed for Minirnum Suppon Pricc. Statutory chargti includingr Allutia
cturgeslDami and Maodi labour charges only ;s DCP Statcs are given advance
quancrty subsidy."

Adrainbtntivc Chergco:-

"Sbrring with thc KVS 200G07, thc guideirncs for providiog administrative chatgas to
, Non-DCP and DCP Slates havc becn revised as follows:

(a) ln casc of non-DCP Statcs, administrativc chargcs will lx admissiblc rn tcspect

ofalt the crops proerrcd in onc markcting scason i.c., cithcr RMS or KMS. The
Sttc could choosc onc of lhc seasons.

O) in case ofDCP States procuring and distributing crops otboth RMS and XMS,
o.lministrativc cliargcs @ ?.5% of MSP at acquisition \sra8e for whesl and
adninistrativc cbargcs @ 2.5% of MSP at distribution stagc for paddy/rict will
be admissibte

a
 I

i@)
.
-@
'P^ J-
'.

ffir#*|i,ii.I
,"

c ,r,, ,) I 't ...

I .__,.
dt.t .\i- ? )

'ffi',;"t'::fi"T::1t--t"-'^laddv ror DCp surcs wirl remain six

ltquisition
,lM-aro,..,o
cosudisr;ourau;;;::::YM99hangc the ratio of sorace period
. ,l , r'.'

laaddition, it has' ,! 'r.if,

\:: r
\'i:;
-,
[;"iij** H.:^:pound interesr on the difrcrenrial:of
fina.t
f; ffi 'il'1,ffif rTf :i::*:=i.1',r"fi"'":',illi1*[:li:ll1"TIlX
,"lH A.tak\ i i'
il1y3"ffi;,j1ir*j:i::r_;",#-"J'i11lJff
tt"t Sr"r" Cora. sut,miti i 'i:iljfl
'i 'dil:ff
e&cr rhc accounts
; ,#llT*,"?.: p,
i.",i""
"i
i,"i
:ffi HI,:'f l",il'*,,T"J.ll*;il;ffi";[f ff :i;T'|,:
i"*^wt?,ii:friXi

.t

This issucs u,ilh ihc

aprroral oirhc compcrcni
Ar:rhoriry.

Yodrs faithlirlly.

fua
. (RAM PHAL)
Undci Sccrctary to thc Govt.
oflnd'ia
Tcle: 23383046
it
yri;::::.Ht _":_l*di
on or r nai a. Ni* ocftri
/'\ '

Wkj,
I

t.
t" <.........-...-

II
Ir
Under Secrctery ro
(RAM P}IAL)
rfr.'qo"t oilrdi;

-i ,t' 'l

I
l'r
^\
 @
No I ,)l( jl)/lCoi - tjc ar('r " -.'
Govcrnmcnt o ndia
\4inistry ofConsunrer Allerrs, Ftrod & t ulrlic
Disrrilrtr:ron
Dcpaltnrent of Food & public Disrrrhrrtion
.-+.,
(,rshi Bhavan. New Delhi
zl't April. 2007
t)arc(t lhc

The Secrelary
ofFood ard Civrl Supplics
"Dciranment
pradesh. Biha, Rulas,harr
:loveTJnen! :l!.inar Pradesh. Madhva
Uuaralhand,Chhatiscarh.Gujarat anj Maharashrre

. Subjca Principles to be adoptjd for fi^arion of iucidcnralslccononuc

cosr^+r+hear

isir,
I

I, I am dircclcd to rcfer to lhe ahovn ,na^r;^-^,r ...k:^-, -..., . . ...

(.
{.a"e"ii", i,",i",";ffi#,;ff'"ffiI"::i,:l;J,i[::,iIi:i"y;l],iff;llH;i:*.",tj
t. ld.o. lcfler No t 9z(4)/2001-Fc.tucs dared t6,r, lrlv. :oii ,,"., ,",,.., or"u"n numbcr.
jdrtcdJd Novcmber, ?00t t4'h March. 2Oo5 ".,i*i.a ,,,.,.". ."drtied
"""i :nno'r,"
ri; O.,;;;,. as under:
I ""d
iCornmisr{on to Socirt*5/Sub-aScntr:.
( i) 'f lie Cornmission
ro rhc Socicrics/Sub_agcnrs of rhc I,r .l/Sr$ a-rcncics,
(,!,2 5r:1f tvtsp.for Rabi Maiti-cring crc. will bc
lt!1y.y lhat iotal scasor, :.niof .r,rv.1uUj."t to rt e
Eoodrtro0 commission irrrd Anharhii clrar.rc: {\rlrcrc\'cr ..ppti.ait"1 r"t"n
togcther will not e\cced ? 51o of NlSp

(ii) Thc increased Commission i\ill be applicable only for RMS ?007-0g.

The "Principler" conveycd earlicr shai! starrrJ arncnr}cri i,.,

thc e\tent. accrrrriingly All other
and conditioosofthe "Principles'. rcnrain thc sarrc

Thrs issues with ihc approval of rhc Conrpetcnt

^uthoritl.
yours fairhfully,

ili_
(Ashcsh Agrar.t)
Dirccto. (policy)
'l'ct.No.2338S23s

Thc Chairman and Managing Director, Foorl Corpororion

oflndia. New Delhi
PPS to Sccrctary (F&PD/PPS to AS&FA/Advisor (Cosr)/Dirccto(t'urance1.
JD(Movt./US(P-ltl)/Policy-t/poticy- t/Guard Fitc
LL-l $-e-aj-
<, tAshah Agkvrt)
Dircctor (Policy),

D
 /";>
-lI (lteulol No l
No.l92(4)/2ool-FC AJCs
Governmcnt oflndia
Ministry ofConsumcr Affairs, Food and Public Distribution.
Department ofFood and Ptrblic Distribution

Krishi Bhavan, New Delhi

Dated l0 October. 2007
To,
The Secretary,

Subject
iffi ,Tr'i}:"ffi ig;w,a,ff :*;,
ffilprG['6lrioptedfor fixation of incidentals/economic cosl of Rice

Sir,
8m dircxtcd to tefsr to the'abovc lentionsd subject and to say that the
I
"Principlas" to be adoPted for frxation of aiquisition/cconomrc. cos of food,prains'
I6"',July'
*nr.yJ uid" lhis Department's d.o. letter No.I92(4!2003-FC 'aJCs - daed14"'March'
zOO: -a toOifi.l vide lctters of ever number dared 3'd Novcmbcr, 2004'
2005, l3rt Octobcr, 20b6 and 2?'h April, 2007' are further modified as under
I

Ccmmission to Sociclies:'

(D
"
'l'he Commissicin to the Societies and Self-Help Goups undenaking
pro-r"r"nt of paddy on bchalf ol the FCI/Slate agencies' etc' will be
ilorrcd a maximum of 1.57" of MSP for Kharif Marketing Scason (KMS)
' 2007'08 onlY.
For maxiriring procurement of paddy in Uttar rrale;f rn x{.s
2007'08 the '
(iD sub-agenls
FCI and Covt. of Uthr Pradesh may also engrge Anhiyas as thcir
ata Commission of 1.5% of MSP'
(ii) The increased Commission will be applicable only for KMS 200?'08
accordingly'
2 The"Principlcs" convcyed earlier shall st'nd amended to the exrent'
will apply to the
lll oth", ,"rm ani conditions of the "Principles" rcmain rhe.same and

Principlcs for coarsegrains also.

I This issues with the approval ofrhe Competent Authoriry' yours f&ithfully,
' lhl +;'4e-
(Ashcsh A$nwd)
:
?x'rfi,(lil'fl)
Copy to Delhi
L Thc Chairmar and Managrng Director, Food Corporation of lndi4 New
i. pii i" S"ly. G&PD)/PiS io ASQFAJAdviso(Cost/Director(Finance)'
File
i. iOO,i.rt yrlstpolicy-llt)/Policv-l/?olicv-lll/6uard
(Ashesh AErawal)
Director (PolicY)

.,,.,f..,.a-J J Ly l-v*+-'l,e-H-''r
*-lhi2 I e-vt-z'r iv mo'

;e*"4 2 t, I o-rf zo6 -r ^-t $r -'(' zu' zt'+fu t'l^r tot^'^*

P*'er-/+tt f'd q'{.-'t-" A o-'"1 Ra z"l f"va P" LL4--4-

@t
.-t{

-
.
4''ecotorr-+Jo-t-
No.l92(1)D003-FC.A"/Cs.
CovcrnmEnt oflndis
b
Ministry of Consrmer A.ffrir!, Food llld l,ublic Disrnbu:ion
Dcpartnent ofFodd and public Distribution
Krishi Bhavan, New Delhi
Dated 56 Dcccmbq, 2OO?
'To.
Tlx Sccrctary,
Dcpan nG ofFood 8nd Civil Supplics,
Gsvemmdtl of

(
Subjed, TDT?J:s
to be adopred for fixation of incidenralJcconomic con of
RiccnUh.ar
Sir,
"Princiglcs". ro bc adoFcd for fixation
:gly.y.q "f ,i;;;il;;;;i"
vidc rhis Depanmenr's d.o. tetter Noir szllyzoo:.ic
lo"or foo<lc'ins
elcr.
aricd. orl"i_- r
2@3 ad rmdificd vidc letrcrs of even nu*u" o.ij i;No""ri.iiuil,;SlXi;;(
2oo5, l3t ocrober, lcrr.., nh Apil. zooi ,'nilo;
&"u*,'ii.iL"'n ilrlc" mo<tifidt as
undcr :
(r) For C'[tM,ry ricc:
Tn * lt $Brrlc hur i
(D froo- I(MS. 20O7-08, for DCp Stares thc Transil
digrihtion cost for ricc will bc as unda:
& - '.: -" *
Srongc tossi undcr rhc

Ytrr Trrnstr&sron@
KMS 2007-ot
!;ll't.'r acquis@ I

loternal transDonslion of qunnies anil e'rhiv.thr..i,ri^h

KMS 200809
9.!'t.ot acquisit@
lnternal transDonrtion ofEurnics arrl rnrnnv dopriqrinn
KMS 2009- t 0 o-35/" of acguiririon co@
internal transponadon ofgu!!ies and gunny deprcciation

(b) For Whcrt:

Tnr'ir hgs:-
0 Fr.9_m B]'lS 2008-09, for DCp Shrcs, thc Transir los under rlr disrribulion cost
will bc for vhc.at will bc a: undcr:

Ytrr Trrnrit &sro.r@,G tEiErriEoi[n cosr

RMS 20080s 0.,O% on sumofit"*@
clurScs and Trarsportari$ and handling chargcs unda
Acquisitioo Cost.
RMS 200s-10 o.35'/. oo sum of ircms ofMlp, narutoryiffiE]ffii iffi
ohargcs aod Transportatio0 and handling charges undu
Acquisition Cost.

@
>\-:
',1 /T)
l e-.'

*:*S#roffi []i*+]j.'lY;HT,3"11,11ff
ssues rvirh rh€ approval
f; i;:ffi 11,*
oflhc Corro.n, ,iuit
iry*
yours fairhfullx

A' u'
fn u La"rUrir
unoer sccIdary lo tte Crovt. <f
Uai.
Tclc: 23384O55
Copy to:

,rr*'*"*";;m;;#;l;ff*.ffr
1. ffi i.t"JH*$*Xffi i1 ?lx:t l:* .oJpordion or rn di4 Ncw
r Dir.(poricyyrb@;t,arof;fr##:f#-#S]ffitrS'li:
ffi l*1,1$i,..*I
Dcr hi.
inancc)

,r-.r--a--
urmcr secraary
^rkilr=
C*t nfii
to thG of

.i:

I I
 Covcrnmcnt of lodia
N4inistrv ofConsumer Affairs' Food and Public Distlibrrtrrrn
Depanrnenl ofFood atld Public Dtslrrbrr(ionrishi
Bhayan, New Derhi .f
Dared.gT( Mrich, 2008

r{ To'
The Secretaty,
DeDsnmenl ofFood and Civil Supplies.
I
I

Govcrnmcnt of p.gCr Pradeslr. Madhya Pradc-r'h' Bihar. Raiasthan'

Uttarakhand. Chhattisgarh. Oularat ard Maharashlla

Subject: Principles to be adopted for fixation of incidenlals/economic cost olWheat

Sir.
I am dir.atcd to refcr ro lhe above mcntioned subjcot and lo say thal rhe "Principles"
to be adoptcd for fixation of acquisitior/economic cost of.foodgrains, canveyed ''lide this
Deoanmenr's d.o. letter No 192(Ay2oo3-FC AJCs. darc/.16'r'July. ?003 and rnodifred vide
lctiers ofcvcn nimbet dated ld Novembct. 2004. l4d' March. 2005. ll'r' October 2006. 270'
Apri[2oo? End 5't Dcccmber, 2007. are further mqdified as under

Comniari,on ro Anhias/Commission Agcnts /Primrry Cooptrative Socictics ttc, in

rctpcct of pro.urcmcnl of !!g{

(i) Covemmc0t rgcncics 8re allowcd to proclre wheat through ArthiaVCommission

Agcnty'Primar, Cooperative Socielies elc. by giving a commission of ?.5olo of MSP
simila, lo the arthia commission ir?unjab and Haryana subject to condition that total
commission and Arthiya Charges (whcfever applicable) tahau lgpclhcr will llot
excecd 2.5% of MSP

(ii) The above commission

",ill be applicable for RMS ?008-09.

2 The'?rinciples" conveyed earlier shall stand arnended 10 the cxlcnt. accordingly All
other te.ms 8nd conditions ofthe "Principles" remain thc same.

l. This issues with the approval ofthe Conrperent Authority.

Yours farthfrrlly.

fl+'^' r'cr
ln.l..ualtrorray
"
Under Secretary lo the Govt. oflndia
-- Tele 11384055
qoav-la
l. The Chrirman and Managing Ditector. Food Corporation oflndia, New Delhi.
2. PPS to Secy. (F&PDyPPS lo As&FfuAdvisoi(Cos(yDircctor(Financc).
l rD(Movr/US(Policy-lll)/Policy.l/Poticy-lll/GuardFile.
$;.r.^n
-(8..L Malhotrs)-
Under Secrc(ary lo thc Govr. of lndia
P
No t92(4 /10t)l_Fc. A/cs Iparr,Vot ]
Covcrnnlent ol.lndia
Miniury ofCousunrer Allairs. Food and public Disrriburiorl
Depanment ofFood and poblic Disrributiorl
Krrshr Bhavqp. Ncw Delhi
To
Dared Jd Aprit.2ooi
(l) Thc Sccrctary,
Departr*nt ofFood and Crvil Supplies.
Govcmmcnt ofpunjab.

(2) - Thc Secretary,

Depanmcot ofFood and Civil Supplies.
Govcmmcnt ofHaryana.

sub Principles to be adoped for fixat ion of incidenrals/econonric

ofPunjab and Govcmmcnl ofHaryana from n-fr4S:OOA_Oq " -
cosr of wlrcar by Government

Sir,
I am dir€ctcd to rcfer to the above mentioncd subje.cr
and to say thal rhe,.principlcs,.to bc
1d"q+q!*ljgl of acquisiriory'econo.i..or, oiftJs,.in;, ;;;; vide this Depument,s
1.3_.,1yoarc6 A/Cs dircd t6'r' July, u dol ,"jn.a vide tcrrcrs of even i :'.
numDcr J- Novcmbcr.2OO4. 14,, March,2005. ll,r "lJ
-N,".1,32J412003-FC
-
October :000. :f,h ,lprit ZOO{'5-,ii
Decembcr, 2007 and 5t March. 200'g are funhcr moalf --
ea rni", i
"r
P_criod ror Custqdy rnd Meinlenancc Chargo and
lrrrercst Chargcs for procuremcnt of
luttllby tlc covcrnm.oa of punieb and ir -ageniics and co"i-ni*, of Hrryanr end irs
rgcncics for RMS 2@&09.

J .(i). Thc pcriod for Custody and Mliorcnirrcc Chargg and lnlcrcsl Chrgcs for procurcnrcnl
by tlrc Go\,crnmcrr of Puojab ond rts agcnciG and -Govcmmcnr of Whcar
of ;o;;c and ,rs agcncics will bc
rncrcascd fiom prcscnt I j_ dal-s to 30 da$ fof
.gl_rsjlgLQ?_qnlf
(rr) . GovcmDcni of Punlrb/Govcrnmcnt of H-:r_rant rull funrsh Dtonl!!-\ rcpgrrs-on tntcrcsl incrdcncc
ro\nds crcdir rimit cnjo,r,cd by rhcm fonr Banti, sp,.crlic.eri-riiiri[a tili#iro;srct
procurcmcnt during RMS 2008.09. ro.rtia"
"."ait
(iri)
, .Wrrhgi[i honrh afis thc cnd of thc procurcntcnt scason. thc Srarc Govcnuurb rr1ll fumrsh
consoucarco stficmcot ot Drtcrcst paYn)cnts nradc b.).thcnr to\urds procurcmcnt during
a
RMS 20011-09
(iv) Statc-Gott. rrillsubmrt pqnding audircd Jcco r{s tbr prcvious rsitrs. borh lbr rhc liMS and
RMS.
as p,cr a liscd scllcdrlc .

2. Tlc "Principlcs" couvc.cd c.rlcr shr[ stind cn.ndcd ro rrrc c\rcrr. accordingrl,. Air othcr icrms I
ald conditions ofthc ''Princrptcs" rcmarn thc sanrc. l'

(co. d/ 2)
 No. 192(4)/2001-FC A/cs(Pa('vol'll)
MOS1 IMII,]A,IE @
Govcromcnt of lndia
Minisrry ofConsumcr e ffairs. Food & Pubiic Distributior:
Dcpa'tmesr of Food & P'.rblic Distribution
hi Bhavan- r.rcw Derhi
Dated: 4ri ScPtcmber' 2009
'lb.
I Thc Secretary'
Food & Civil SuPPlics DePartment,
Govern$cnt of .enata Pradesh, Bihar, Chhattisgarh, Gujarat' HaryaDa'
Punjab'
lharktrsnd, Kamataka, Kcml4 Madhya Pradesh, Maharashtra' Orissa'
Rdjaslhan, Tsruil Nadu, Uttarakhand, Unar Pradesh and We$ Bengal

Subjcct: hinciples to * adopted for fixation of incidentals/cconomic cost of P'ice'

Mada$/Sn,
with a view to
I am dkcctcd lo rcfer to the above mcritioncd subjecr and to sa)' that
.*i.it"'tl" of rice for thc centrdl pool during KMS ?00s-l0' lhe
pmcurcmcnl
;lil;iplcsi; to bc Edopted for fixation of acQuisitiorvcconornic cos .of :oodEair's'
july'
c.nvcJei vide this Dcpartsnent's d o. lctter No l92(4)2003-FC' a/cs daer( 16"'
20iH' l4rh l4aJch'
2003 rnd modificd vide lcncrs of cven number dated 3'td Novcmbcr,
iOo-s tilfr iu"U"r, 2006 , 10"' october, 200? and 5'r Novcmb$,
2008 are Luthcr
modificd as under:

Connksior to Societies:

i. Thc Commission ro the Socictics' Self lielp Grcups and (:()op'ra!ivc

Socictits rmdcnsking procurcmcni of paddy on behalf tf-the FCl/State
for Klt:rif
ag.n"io, ctc. will bi allowed al a maiir'rum of 2 5o/o of MSP
Markcting Season (KMS) 2009'10.
-l ii. Tte abovi mtc of dommission to sociciies will bc applicablc only
2009- 10.
for Kl"lS

iii.TotalCommissionrosocielicssclfHclpGroup/CooperativcandArthiya
cf MSP'
Chargcs (whererer applicabte) faken together shall nor exceed.2'5yo
thc ex(e '
2. The "hinciPles" conveycd earlier shall sland amcndcd to
will ''ccordingly'
aPPly to thc
lU o,n., ,.*, anb conditioni of "Principles" rcmain the samc aod
Principles for coarscgrains also.

i. This issues urith rhc approval of the Compcienl Authority

A@,
Sn,r?rg6h"rr4
Uoilcr Secretary ro thc Govemmcnt of India
Tel:21071798

CoDY to:-
'"rn" and MansSinB Dirccrot' Eood corporation
oflndia' Nr'w Delhi for
il" ct
"i..*
information and necessary acttcn
2. iffi;liffi @ititfuiS io AS&Faredviser (cost)/Directo(Finare)-
io''' &# :'
n{ffi,irs A;ii'ris))/P''i"rr ;"iitrmc'Ia -
f
lXnur:rg Sham,a)
lndia
Llnder Secrsrar-v to thc Govertrr :cni <;f
 Gove;nment of lndir
Ministry of Cons,.rmer Aflai;s, Fool and [-ublic Drsrnbutro;:
Departmcol ofFood anii ?:rblic Distlibu:ion
Krishi 91,i1'1;,. itlew Delr,i
Pn,"6 1'' 1w.'v3moer, 2005
To.
The Sirrelary,
Dcparlrnent ofFood al}d Civii Supplics,
Oo'u"rnn1"nt of.Andhra Pradesi. Bi!:ar, Chh3ilisgarh' ilzryana- C;Jjarat
Kerala'
Karnatakr. Maharashtra, \ladhya Pradesh, Oit;s,:, Puitjab, iajrsti:an Tanil Nadu'
Unar PraCesh, Unuakhand, West gcngal. Assam inC A&1" lciand
'PrinciplcstobeadopiedforlixationofincidentalVeconomiccostofRice
Subjcct;
.:
sn,
ro rcfer Io lhe abovc mentioned sr:bject and lo say lhar dre "P;inciples"
I
I3r. dir&lcd
to bc adopted foi fixation of acquisilic:r/cconomic cost of foodgains, conveyed vidc this
Deornmcntls d.o. lener No.l92(i)/?003-FC.A"/Cs. datcd.16"\ July :003 and modified vidc
t laicrs of cvcn rtumbcr datcd 3'd November' ?00+. l'l'h Mi tch. 1005. 1l'" O:tobcr' 1006 and
"1 l0s October, 2007 are furthct modificrl i . ui,iti :
I Commission to Sociatiar:-
I
(i) The Commission to the Societier, Sclf-Hclp Groups and Coopefttivc Societi*'-
undenat(ing procurcmeot of paddy on behalf of rhe FCI/State agencies' ctc
wilt !e
Seasot (KMS)
allowcd at a maximum rare of 1.5% of MSP for Kharif Markcting
2008-09 on rhe analogy of KMS 2007-0S.
tbe FCI and
(ii)
'' For maximizing procurcment ofpaddy in Ulta; Piadcsh ir KMS 200909'
iraacsl also ngag,r Arthiyas as rhei, sub-3gems 1l a comnrissiorr
Govt. of unar may e

of 1.5% oIMSP
(M S 2(Oli-09'
(iiD ihe gbove rate of Comhission lc SocieJies \^i ll bc appllcablc only fc:
(iv) iorut Cor*isrion to Societies/Sclf-Hclp Gro,rpl('iooperari'c anci
-
lrthi)'r Ch{gs
t*i,crerer appficaUf") lalien lcgdher shali not o".ol 2 Sl';' nfMSl''

extcxt s;coldingiy All

1.. The "Principles" conveyed earliei shall nand amcnCed ro the
tvill appl'i to lhe
oth", t.r., aod conditions of the "Pnnciples" rerlain the same and
Principlcs for coarsegreios also.

l. This issues wilh the approval ofrhe ConPcleni Authority

Yoyls -fl!!!lly,--

(
.09"'
.Anurag Shrama)

- - Under Secretary lo lhc Govemment oflndia

Telc ?30?3798

--i.'it. Cf,"ir*on end Mrnaging Dircttor, Food Corpora:ion ofh'dia' New Dclhi'
Copy ro:

i. ips 'o sc"y. trapo)PPi ; As&FAJAdviso(ccst)/Dirccto(finance) ,-.

J ]Ur'ro* rud(Policv-lll)Policl--l/PolicvJll/Guari i:ilc /it ,V,t"
L,ndcr secrerarv rc rh. oJli'J:i'Tiiil'']
| . -r- --- ..
-- ----G-u-cp-leardo.--L&-.-.
No. I 92{4)/2003-FC.A/Cs.(Vol. ll)
. Oovemment of lndia
Ministry ofConiumer Affairs,Iood and Public Distribution
Dcpnrtnelt of Food rnd Public Distribution
Krishi Bhavan, Ncu' Delhi
Datcd 23'd M8rcb, 20! 0
To,
The Sccretary,
DcpsrElgnt ofFbod ard Civil Supplies,
Govcmmbot of enrthn Pradcsh, Bihar, Chhattisgarh, Oujarat, Haryan4
Jhnldatrd, Katnalak4 Kcral4 Madhya Pradeih, Maharashtn, Orissa, Punjab,
.. Rtjastuh, Tsmil NEdq Unaiakhand. Unar Pradcsh and Wcst Bengal.

I Subjccr; hinciplcs to bc adoptcd for fxation ofincidcnlalsieconomic cost of Wheat/Rice.

t
-l
t
Mndam/Sir,
I

,l I aIIl diicctcd to rcfcr to thc above mentioncd subject and to say thal thc
'Prirciplcs" to bc adoptcd for fixatioir of apquisition/economic cosl of foodgrains,
1 convcycd vi& this Dcparnncnr's d.o. lcucr No.tSZlapOO:-fC.e;Cs. dated.l66 Julv,
2003 and modifcd vide,lciers of even nunrber &tcd 3d Novembcr, 2004, l4',' Marcb,
2m5, l3m Oaolcr 2006, 27o April 2007, tOh Ocober, 2007 5$ December, 200?, 5d
Novcorbcr, 2008.and 4e Septcmbcr, 2009 are furthcr modified as undcr :

(r) Coqf,ial$16 51u6o'

0 Thc Commission to lhc Socicti€s, Self Hclp Groups and Coopcrative Societia<
pndcrtakbg procurcr&nt of Whcrt on bchalf of lbc FCUStatc agencics will b.,
' allowcd at a maximum of 2.o/. of MSP .for Rabi Marketing Season.
(iD For Kharif Martcting Scsson (KMS) 20lGl l, ihe Commission lo thc Socisties,
SelfHclp Grorips and Coopcrative Socieths undertaking procwemem of ParMy
on behalf of thc FCli State agcnci€s.will be allowed at a.lRaxiinum df 25plo of
MSP.

o) Storagc thergcs:

0 The stomge chargcs for both CAP and covcred stcragehavc bcen revised on thc
basis of indcxation basis form RMS 2010-l I onwards on provisional basis as
undcr :

Crp storrge chtles 2.0E

Covered Slonge cbrrges 4.29

(ii) The abovc mtes 8rc provisional and subject to finalisation on thc
rccommgndations of Ministry of Finance.
 {?
| ',,'l
I
n^ t:
i z?o'
. \_..'-
ir,*"ft *l,Hi*;,ffi',"Jrff
3. Thi" i".u..lu;th
tfffl iHff ilr*: * cxr.nr. accord jn8ry.

rhc approval
of the Compctcnt.Authbdty.

of.lndis, New Dcihi.

(FCD/ JD(Movry
US

@
l----
I
-O?e,r.tsd /?b\
i No.l92(4)/2003-FC.AJCs.(vol. Il) lJ'
Govcmmcnt of bdia
Minislry of Consumer Affairs' Food and Public Distdbution
Departrnelt of Food and Publ.ic Dstribution
shi Bhavas, Ncw Delhi
Daled: l8u' Octobcr, 2Ol I
To,
The Scc'ttary,
Depsrtrlctrt of Food and Civil Supplies,
Hsryano'
Covcrnmcnt of Andka Prsd;L Bih4, cbhattisgarh, Gujaraq
qissa Punjab'
lhrklan4 Xamataka, Kcrala, M;hya Pradesh, Maharasbtra
Rajsslhatr, TEDiI Nadq Uttarakhsod, Uttar Pmdcsh and Wcst Bengal'

Subjccr: Principlcs to be odopted for fixation ofincidcntals/elonomic cost ofwheat/Rice'

ModsdSir,

I m rcfcr to thc abovc mentioned subjcd and lo say thal thc "Primiplcs"
dirccttd ro
b bc ;op;-fot fu*im of acquisition/cconomic cosr of foodgrains, conveyed vide this
Dcoab.ttl's d.o. lctttr No.l92(4)2003-FC.AJCS. d8icdl66 2003 Bnd moiliEed vidc
i"t[ots ot or- alrobcr drcd 3n i'lovernbcr, 20o4, 146 March 2005, l3'r' Ocrober 2006,
'uty,
iii*Lli'iooz. *' 6.*t, z-ooi--se'o**Lt, 2007, 56 Novcmbcr' 2008' 4s
Scd.ml(', 2009 and 23d MErch, 2010 8rc fixtbq modified as under :

C-onrhior to Sochtinr
Thc Comission to the Sociolics, Sclf Hclp Groups and Coopcralivc Socicties '
,rA€rrrfO"S p;tt".*t of Prdily on bchalf of rUc f-ctrsutc T:n?cs will bc allourcd
at a rrximirln of 25% of MSP for K}arif Marheting Scason 201l-12'

2. Thc ?rinoiplcs' convcycd earlier shall stand amcnded to thc encnq accordingly'
All othcr lcrms aDd conditions ofthe "Principlcs" rmain the sarr'
'
3. This issucs wirh thc approvat of thc ComPetent Autbority
YoT f:nu'!!Y,

./Q,yu,
drnurag sharma)
Undcr Sccretary lo thc Govt- of India
TcleNo.23073798
Coov to:

of lndiq New Delhi'

L Ttrc Cbeinnon and Man68itrg Directol' Food Corporation
2. PPS ro Sgcy. (F&.PDyPPS la AS&FA/PS to ts(P&FCD'
3. ;;;*(A;;ii Dil.r (Policv)/ Dirccror (FCI)/ Ds(Financc! JD(Movt'I
ijsfPotiy-urY usfPotl"y'll. ?-
4. pJi"y-#J.y-rrvb,*o riL. ''
".,i)'ry"
(Anurag, Shffma)
Under Secrctary ro ihc Govt ofIndia

@
 No.l92 (4)/2003-rC.A,rCs.(Vol.
Govemmenl oflndia
ll) @
Ministry of Consumcr Affairs, Food aod Public Distributiou
Depanment of Food snd Public Distribution
Krishi Bhavatr, New Delhi
Dated: 24s FebrunD', 2O'12
To,
Tbc Se.xelarY,
D?arfiocot of Food 8nd Civil Supplics,
CovcrnrdaDtof Aidhra Pradcsb, Bibar, Cl,lrattisgarh, Gujarat, Harya$,
Jhrrt}8l{ Karnd*a Kcral4 Madhya Pradab, Mahsnsbta Oriss4 Punjab,
Rajastban, Tamil Nadu, Uttarakhrd, Uttat Pmdesh and Wes Bcngal.

Subjct Principlcs to bc ldoplcd for fixation of incidcohlycconomic cost of

Whcat/Rice.

MsdlrD/Sir,

I am dircclcd to Efcr to lhe above mentioned subject aDd to ssy that thc
"kinciy'cs' to bc adopLd for fixation ol scquisition/c€ouomic cost of foodgraiosr
corvcycd vidc lhis DspsltmcDt's D.O. Ictr6 No.l92(a)2003-FC A'lCs. daled.l66
Julv. i003 ard .oar'*i tiO" lcttcrs No.l92(4)2003-fC.AJG. tlotcd 3" Novqobcr,
zotii, rlt ttscl,2005, 136 oc'tobq 2006,2f APril 200?, lot octobcr' 200? 50'
Dcccob.(, 2007, 5q Novcobcr,2008, 4n Ssptcmbct, 2C09,21'March' 2010 aod
drt d l8o Octobar, 201I are firnhcr modincd as uDde{ :

Storltc Pcriod: - Sluting wi$ thc RMS 201213, in provisiona.l incidettals for
pro",ir"or *h*t for lhe quaotity d.livcrcd to tlre FCI for the CcnLirl Pool by tbc
of
Surce, sroragc pcriod allowed is revised &om ! 5 drys at presc to l % (one ond halfl
mooths till 30t Junc. Ttcrcafter, carryover chugcs as bcing allowed ei preseDt urill
continucd to bc Ellowed.

2. Th€ "Prbciplcs" convcycd carlicr shall stanct amended to the extent,

acaordingly. All other terms and couditiors ofthe 'Trinciplcs" remain lhc sarne'

3. This issues with thc approval ofthc ComPclent Authority

yours ftithfuUy.

r14,
/u
(Arursg thslma)
Undqr Secletary to thc Govt- oflndia
TcIcNo.23073798
gelvla:

l. Thc Chairsun and Maoaging Direclor' Food Corporation of lodi4 Ncw Dclhi'
2. PPS ro Secy. (F&PD/PPS to AS&FA/PS 10 .lS C&rcD.
3. Advisor (iostlt Dircclor (Policy) Dircctor (FCI)/DS Finarrce/
JD(Movt')/
US(PolicyJII! US (PolicYJ).
4. Policy-VPolicy-IlUGuard File.
(Anu'ag Sturma)
Under Secretary to tbe Covt. oflndin

v
 C&c-u-(qu: No,16

No. I 92(4/2003-FC.A,/Cs.(Vot. Il)

Coycmmcnt of India
Ministry of Consumcr Affairs, Food and public Disrribution
Departncnr of Food and public Distdbution
Krishi Bhavan, Ncw p6l[i
Dalcd: 166 oclober' 2012
To,
Ttc Sccrtury,
Dcpoftrsnt ofFood and Civil Supplics,
Govqnmcnt of Aldha Pmdcs\ Bihar, Chbattisgar[ GujanL Harysna
ryryrd Kainaraka IGnh, Madhya prEd6lL Mdar;hb4 Orisss, puDiab.
Raja:rbaa Tr;lt Nadu,InUatbane, Unar prEdcsb a Wcsr Bcngd.
A_SR;L .
subjca: kinciplcs to bc adoptod for fixation of incidcorarvcconomic cost of whcat/Ricc.
Mado/Sir,
I rm.dirEdrd to rcfcr b fh abo]c rocntiorcd srbjcct ard to s8y that thc ..prfuciplcs.
t0 bc t&?rad of rcquisition/ecooomic cm'of foodgraius, convcycd virlc this
Dqrtpt's d.o.I- Frdg
lallf No. f ,(02003-FC.A/Ca. drlcd l6a Jr$, 2003 aqd modifcd vidc
lg:r!. dy3-l'I6lf dacd 3. Novcmbcr, 2004, l4t Malh' i005, t3r Odobcr 2006,
f Aryil ?991, lf
Odobcr, 2002 s6 Dcc;ba, 2007, 56 lLvcmbcr, 2mq ld
Scpbobcr, 20(D, 23T Musb, 2010 ald 186 Octob6, 2dl I ur hrrbcr nodifed
as roder ;

Coutder to Soclcda: '

{,'
Ihc Conmission ro thc Socictid, SelI Ho$ Groups and Coopcr8live Socicries
udcrdiog pocuucnr of prddy on bchalf of tc FCitSrarc ag"Nies will bc allo*ei
d ! ttrDdEuD of 25016 of MSp fo; Khsrif U"*J"|S**, ioii_fl.

?.,. ..
Tt 'itirciplx"..convcyt' o4l s*d amodcd to thc cxtenr, accordingly
"Uff rcmain lhr salne.
AII othcr irrms and conditions of ihc ..primiptcs.

3. This issucs witb tbc appmval of ihe Compc&nt Authrity.

youn fairhftlty,

@
(Sai,,jay KLnaI)
Under Sccretary to thc Gol.t. oflndis
Telc No' 23073798
copv to:
l. Ttc Chniman lnd Managing Direcror, Food Corporation of India, Ncw Dclhi.
2. PS ScDy. (F&pDyPA to AS&FA/?S ro JS@&FCI).
r,o
3.
4qeIcost) Dhctor (Poticy)/ Diro"tor (FCI/ Ds(Firuocey Dir (Mofl.y
US(PoIicy-IIt/ US@olicy-I).
4. Policy-I/PolicyJlVGurd File. . .,::.-
a1F
., (Sanjsy Kumar)
Under Sccrctuy to lhc Govt. of India

@
 Cr"zculor N.'l]- trc ,^lLJ,@
+
No. 192(4)/2003-FC AJcs. (Vol.il) 0Aa:
lr
*, Govemment of India
-a-
Ministry ofConsumer Affairs, Food ald Public Distribution
Departmcnt of Food ard Public Distdbulion

K.ishi Bhavan, New Dclhi.

ated the 26th July,20l3.
To
The Principal Secretary/Sccretary,
Departrnent ofFood and Civil Supplies,
GoventDent of Uttar Pradeslr, Madhya Pradesh, Bihar, Rajasthan, UttaraErand,
Chhattisgarh, Gujaat, Punjab, Haryana, Kerala, Tamilnadu, Jharkhand, Andfua
Pradesh, Kamataka, West Bcngal, Odisha and Maharashta.

Subject: De-linking of'Commission to Co.operative SocietieVSelf Ilelp Groups ftom

Minimum Suppo( Price (MSP).

Sirndadsm.

I am directed to say that at preseot Comrnission @ 2.5% ofMSP for procurement

of paddy in the Kharif Martcting Seasons and @ 2% of MSP on pmcurcment of wheat in
the Rabi Ma*eting Season arc being atlowed to thc Cooperative SocietieVSelf Help
Groups involved in procurement operations. Howcver, the matter regarding de-linking of
Commission to Co-oi,qative Societies/Self Help Groups from MSP has been under
consideration in this Depaftnent.

2. Thc Gov€rnment of India aonounces srpport prices for variow sgricultual

commodities including whea! paddy and coarse grains. Govemmetrt has to increasc thc
MSP taking into consideration cast of cultivation and remunerative prices for farmers on
their produce with a view to cncouraging higher investmcnt and production. With any
incrcasc in MSP, the charges towards 'Commission to Co-opemtivc SocietiedSelf Hclp
Groups' also get incrcased concspondingly without proportionate increase in cost of
procur€rncnt.

3. It hss, thereforc, been decided to delink Commission lo Co-operative Societics

from MSP and fix it at lhc level allowed in KMS 2012-ll and RMS 2013-14.
Accordingly, Commission 10 Co-operative Societies payable from KMS 2013-14 and
RMS 201il15 onwards rvill be as under:-

SI. KMSiRMS Amount to be allowed as

No. Cornmission to Co-operative
Sociaies/Self Help Groups.
I For plocuremcnt of Paddy (Common/Grade Rs. 31.25/qtl for "Common"
A) ftom KMS 2013-14 onwards.
Rs.32lqtl for Crade 'A"
2. For procurement of Wheat ftom RMS 2014- Rs.27.00/qtl
l5 onwards.
ti @
I

i 4- AII States are, therefore requesled to keep Ihe above rate ir view while scnding

ti: ji{ryin^ttt#ff ,;*rr}fi tr?,}th*?,{it:ffi:r,;:r"",ill:ll:

r:..,$ii[i,EI.T1rl:*::r:*iti"fr
oorneby the concemed StateyuTs
fton, ttUro*o
**#,iffiiltrjrt"
ruj..
-..*- -r,v,tr,l

15*,6*$g*.:or;mi:m,,xN*m,'*t*
6. This issues witb the appmval
oftbe Conpetent Authority.

youp faitlr,frrlly,

&rrt-^-^
_
Dcputy Secrctary to the
(H.C. Bbatia)
Govt. of bdia
Tet. No. 23070389
Copy to:

L
2.
3.
fritr3i,H#ffiffiffi*j:r corpomtion of rndia. Ncw Derhi.

4. ;i",:#;f [1?1f il'.+if ,f fi :,f i.?,f,fi l?;*,",.*,,icy_rrrGuard

fr^A'-
QI.C. Bbria)
DcpuD/ Secrctary ro rhc cord. of lDdi8

@
,, I

.\
&culox .^b' &
I

,1
192(4)/2003-Fc Ay'cs(Vot.rrr)
No.
Government of India
Ministry of Consumer Affairs, Food and public Distribution
Department of Fopd and public Distribution

Krishi Bhavan, New Delhi

Dated the November Zt, 2014
To
The Principal Secretary/Secreta ry
Food and Civil Supplies Department
Governrment of Punjab and tHaryana
i

Subject: Partial amendmentr in

principles regarding payment of
Custody and plainteriance Charges (Storage charges) in case
of paddy kept in joint custody with millers

Sir,

I am directed to say tlat as per principles issued by this

Department vide letter of even rfumber dated 16.07.2003 and amended
from time to time, custody and fnaintenance charqes are reimbursed to
State Govts./designated Agencie6 for storage of paddy as per the period
and rate decided from time to time, However, in case of some States like
Punjab and Haryana, where paddy is kept in joint custody with millers,
Audit has raisEd objections on p-Eyment of storage charges on the ground
that . since it iq the responsibility. of the millers to keep and protect the
paddy during the period of joind custody, State Goveinmentfdesignated
Agencies are not required to incur any expenditure on this account. Audit
has,. therefore, raised objecUons on payment of C&M charges for the
paddy kept in joint custody with millers. However, these Stlte Govts.,
especially Govt. of Punjab and Haryana, have repeatedly requested this
Department for reimbursement of actual expenditure on t'his atcount. The
contention of these State Govts. lvere that even during the period of joint
custody, their designated agencies have made some expenditurJ on
upkeep and safety of paddy afld hence these expenditure should be
reimbursed to them otherwise these agencies will be put into financial
difficulties.

2. The request made by the State Govts. have been examined in

Department in.detail in consullation with FCI. Further, a joint team
constituted by; this Department {lso visited punjab and ttiryana to have
an on-the-spot assessment of sitLration. Both FCI as well as joint team in
their report were of the view that as per agreement signed between
millers and state agencies, it was the prime reslonsibility oithe millers
to
ensure safe storage and .upkeep of paddy during the period of joint
custody. However, at the samp time, FCI and loint team has -also
observed/recommended that it i+ a fact that for saflty and protection
of
k:?: in. joint custody, sorfne expenditure on items tike potythene
?^"9-t nets dnd wooden
covers, crated have been incurred by state agenciei
which may be considered for reimbursement.

:
I

k*
 G)
v,6
/
:
given by FCI and joint
3. In the li6ht of recommendation/observations
received from State Govts' from
i"", i" tt'. ,.riii"i unU rep,eseritation in the.Dcpartment in detail
ii-" t. ti.", qne matter nis uein examined
the aiproval of competent authority, it has been decided to allow
';;j;;r;tJ';ent
anJwith
;i; of boni fiqe expenditure incurred bv the state
Govts./aoencies on protection an{ upkeep of paddy/rice during the Period
ii,it"o'i in millers' premisAs subject to following conditions:
"i:"i"i
i)' Storase charses will be rbstricted to + g-Sll*r,n!H:Lsi::1s,:
charg-es for the concerned year or actual ex-penditure'
whichever ls
lower.

ii)
"' state Gbvernment/agencies will have to produce the supporting
J"ir."ttr"w evidenie relating to actual expenditure incurred
by
ihem and it should be fully verified by FCI before payment on this-
account', FCI will have to certify about genuineness and necessity of
such expenditure. I

C&M chdrges will be allowed up to the period worked out by

PI Cell
iii) and
in the ftnal report on the basis of audited accounts other
supporting documents.

While fil'ralizing the claim, PI Cell will examine the documentary

I

iv)
' evidenci such as audited accounts and annual report for verifying-
the bona fide of expenditure besides calling for the comments of
FCI. ,

v) The ex/enditure will be restricted for wooden crates, polythene

covers ind nets which are necessary for protection/ preservation of
paddy and is specifically reflected for storage of paddy in their
iuditld books of accounts. No expenditure on account of rent
charges will be reimbursable.

vi) diture on approved item is incurred by millers at the

/Agencies and it is subsequently
."ilori!"a by Agencies I to Millers then its claim should be-
of
submitt5d with suiportingl document at the time of finalization
accounti
I

vii) State should make appropriate provision in

th eir with regarding expenditure which has to be
by agencies and illers in joint custody.

viii) Expenditure on this nt will be reimbursed onlY after

finalization of accounts that particular year and fixation of final
rate and no Provisional is to be made.

ix) Since, i[ems like covers, wooden crates and nets are
1

reusable and used over period 4-5 years, while fixing the final
storage charges, PI Cell and FCI will work out the necessary
depreciation value of items.
i

O\y)

x(r..
 @
4*/
n x) The claims of earlier years which have not yet been settled due to
non-issuance of final cost sheet, non-acceptance of the
recommended final rate by the State Government, or non-release
of fundq by FCI due to pending audit paras will also be settled as
per the above order.

4. This issqes with the appror4al of the Competent Authority.

I

Yours faithfully,

( Ma
w-
noj{r.
Gupta )
Director
Tel.No.011-2338 9436

Copy to:
s* Fax No.0l1-2338 9358

The Chairman land Managing Dirbctor, Food Corporation of India, 16-20,

Barakhamba Lane, New Delhi.

Copy also to:

PS to Secy(F&PD)/PS to AS&FAIPS to JS(P&FCI)/ pps to principat Advisor

(Cost)/ PS to Advisor(Cost)

DS(Finance)/ US (Fin.)/ DD(Cost), pI Ceil/Guard Fite.

w_-
/.{rr\$
(€r ( Manoj Kr. Gufta )
Director
^.-r6-.L

fr* &fl',
 Ctucr-r{qi
I

g,tg w2@
I

( / 2003-FC A/cs(vol. III)

No. ts2(4)
I Government of India
Ministry of ponsumer Affairs, Food and Public Distribution

Krishi Bhavan, New Delhi

I
Dated the December 26, 2Ol4
To I

The Principal Se reta rylSecreta ry

Food and Civil upplies Department
Government of unjab and Haryana

Subject: Partia I endment in Principles regarding payment of Custody and

a
Maintena Charges (Storage Charges) in case of paddy kept in
joint with millers - further cla rification/a mend ment - reg.
Sir, Il
Iam directed o refer to this oepartment's letter of even number dated
2L.7L,2014 conveyin r the decision/clalrification of this Department on the issue
of partial amendm in Principled regarding payment of Custody and
Maintenilnce Charg (Storage Chargds) in case of paddy kept in joint custody
with millers. In this , FCI vide letter dated 19.12.2014 has informed that
state govts. are facin major challenges in implementation of the directions
of Govt. of india in para No.3(ii) and para 3(ix) conveyed vide letter
dated 21.11.2014.
I

2. Accordingly, e matter has been examined in details and it has

I
been
decided to revise/a end only para do.3(ii) of this Department's letter dated
21.11.2014, as fo I

directions Amended directions

State Government/ State Government/ agencies will have
agencies will have to to produce the supporting
produce the suppo documentary evidence relating to
docu m e rY evr actual expenditure incurred by them
relating and it should be fully verified by FCI
expend re incu rred before payment on this account. FCf
them an it should be fully will satisfy itself about the
verified by FCI be genuineness and necessity of such
pay men on this account. expenditure based on the
have to certify certificate to that effect given by
about genu ineness the State Agency along with the
claims made and vouchers
submitted."
3. The provision f above amend(ent is limited to this part of the point only
without affecting o r directions of thb above-said letter.
I

4. This issues r the approval

.tl of lcompetent authority.
Yours faithfully,

m.1
( Manoj tk-6upta )
Director
Tel.No.011-2338 9436
Fax No.011-2338 9358
i

o
Citc.rhu N",2a @
MOST IMMEDIATE
t{ o.192(29) / 2oo7 -FC.A/cs
Government of tndia
Ministry of Consumer Affa irs, Food and Publlc distribution
Depadment of Food and Public Distribution

Krishi Bhavan, New Delhi

Dated the August 19, 2Ol5
To

(l) The Principal Secretary/Secreta ry,

Food & Civil Supplies Department.
Governments of Andhra Pradesh, Assam, Bihar. Telangana,
Chhatiisgarh, Gujarat, Jharkhand, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tami, Nadu, Uttar
Pradesh, Uttarakhand arcd West Bengalo,*el +lq"d+.q.

(2) CMD. FCI, Ner., Delhi

Subject: Procedure for submission of accounts, audited by auditors

appolnted tJy C&AG by State Governments in order to finalize
procurement incidentals of State Agencies and econornic cost
of rice, wheat and coarse grains foi the past years

MadamlSir,

I am directed to refer to this Department's letter of even number

dated 08.12.2008 and 16,09.2010 on the above subject vide which
procedure for submission of final claims by the States and time llmit for
sending FCI'5 comments thereon was fixed to avoid delay and expedite
finalization of accounts. Subsequently, keeping in vie!, the inconvenience
being faced by sorne State Govemments and also simplify the procedure
for expeditious submission of proposal for fixation of final rate of
procurement incidentals/economic cost vide loint Secretary(Policy & FCI)'s
D.O. letter of even nurnber dated 27.12.2013, proforma was partlally
modified to enable the States to submit the information expeditiously.
Further, vide letter of even number dated 25,2.2015, State Governments
were informed that the proforma clrculated vide letter d,ated 27.72.2OL3
rvill be effective from prospective date.

2. Subsequently. while finalizing the proposals of some States, it has

been observed that the docunrents required to be Submitted along with
proposal for fixation of final rate of procurement incidentals/economic cost
still requires further modification. Similady, it has also been observed
that in case of heads like adminlstrative charges, the items whlch should
be booked or not to be booked are not quite clear. Acco:'dingly, matter
has been further examined ln the Department and lt has been decided to
circulate a list indicating the docurnents lvhich must be submitted along
with :he proposal to enable PI Cell of this Department to examine the.
proposal expeditiously and recommend realistic rates ot various items of
procurement inc:dentals. A lisl oF documents required to be submitted
along with the proposals (Annex-I) along with an illustrative list of items

@
o
which should be booked and not to booked under the head "Administrative
Charges-isgivenatAnnex.Il.Itmaybenotedthatthelistofdocuments
iinol exnaultlve and, whenever required to prove thc veracity of a claim'
production of more documents rrritl be insisted upon by the Department'

3.AllstateGovernmentsarereguestedtostrict'yfollowtheguidelines
given ln para 2 above and issued earlier from time to time while
iubmittinq' their proposals for fixation of flnal rates of procurement
incidenta ls/econornic cost.

4. While examininq the proposals and sending their cornments to this

Department, all Regi6nal offrces of FCI and FCI |leadq uarters . are-also
i.ir"tt"A to ensuri that the proposals to be subrnittedwithbY the State
Governments in future snoutcl be in accordance aforesaid
instructions.
Yours faithfullY,

t ;'ronot Pkptu )
Director

I"l il::3ll:i338 3i33

Copy to: ED (Proc). FCI HQ, New Delhi with a rcq.uest to circulate it to all
io'(zonesllcN (Riqions) for strict adherence to the above procedure'

,^r,@--
f,("

_
-.)
 @
Doc ments/Ccr(i{icrtiorl to be submittcd by Stotts along rvi th Annexuru,l
their s(eounls for of6nal rhle of I'ioculerntn( Incidenlrrls/E conomic CNt _ _

sr. Procurement Particulars/List of Activittcs co[slder€d for lncidenlals Documtnts required

No Incidcntals (To be sulrmltt€d by Slrte

l. Minimum Support - MSPffis !o the apc"if,,ed ,"te pd,t to tt e f"m,crs l. Sclf declara:ion/cenilialte by
Price by lhe GOI for tl)eir Pmd'rc€. M.D :?ren:ioning tha( they ha" c
actually paid MSP to the fanners.
- MSP is fixed by lhe COI for Paddy, Wheal, Jowar,
Bajrn, Ilarlcy, Moize & Ragi every ycer on p:r q(l 2. Certi(icate of FAQ quanlhy
hrsis. pnrurcd lor MSP opcration.

- OOI issues separaic cost shect for URS a0d allows

a snecifictl amounl as vue cua from MSP.
7. 'r ce&
(D Market fce/Mtndi - Markcl fcerylanji fce is a statutory duty payablc to l. Notifi cation of Mandi board.
Fec t\,larkel Commitccs rYherever there is purchase of
:ood grains ai thc eslatllished mandi places, for l$e 2. Utilkation cenificate of previous
mainlenaDce of mardi and facilities providcd in the year from the Mandi Board for thc
mandi premiscs for lhc {kmets- proper utilization of ttre marxli fees
for developrnent ofthe mandL
(i0 VAT VAT is pa1rablc as applicable in the resPectivc that VA; cirrmed rs alter
State. Thc ralo & calculation of VA'l' varics from adjustrnent of CENVA-T,
Statc 1o Sletc. thcreforc. ttc sarne is rccommertdL'd MODVA f, other Input crcdits, etc.
by way of a foolnole in the finalized cost sheet
slating th"Reinbw'sene /faynte of ?urchase
Tax/YAT is to be made bosed on proof of its actuol
payueul b.v -9tute Govt. ds F€r the y'4T Ac(
dpplicable lo
the State GovL ond suAect lo
odjtstueht ol CENVAT, MODVAT, othcr lrtpt.l
credils, elc".
(iiD Rural Dcvelopment - As perihc provisioos oflheRD Cess Act. Certificate by lhe Campdent,
Cos Agriculrural Authority of the Slale ,hot the
Produce Fee onotott collected by we'of RD Cess
has ocually been utilized /or the
purytse for which it hos been
collecled.

(iv) Nirashrit Shulk This is applicable @ 02o/o oI MSP and this is l. Mandi Notiticatioo showing
payable forthe faciiilies pmvided in the mandi. Nirashrit shulk.

2. Utilisaliofl ccrlificale

3. Samplc bills of paymerr

(v) Commercial'fax - lt is claimed by Chhaftisgaft State levied on Paddy. l. Notilidtion of Comme{cial tax

2, Sanrple bills for payment of

commcrcial tax.
(vi) Itfapari Chargcs - These chorges arc clairned by the Maharashtra Stale t. Notificaliorr a3 pcr N4aharaslrtra
only and the Slate Covctnrnenl co[sidcrs thise Agricuhurc Produce Marheting
charges is lr'landi l:bour Charyes. (Rcgulado ) Act, I96i.
z. Ssmple bills for Payment.

3. The Statc shoul<i submit

cerlificalo duly signcd by Monaging
Dircctor/Secntary that octivities thr
rvhich Mapari Chargcs arc
oaid. &es ,rot oYcrlaD \vith ihe

Page I 1

--3- @
 ;i;iiiE;o,","d and Pairl untler ,

Mar.di labour Charges hcad' I

4. Each Slale Procuring agencY I

should submit certificate fiom I
Ma:raging D'rcclor ccn;lylxg - l

imr"tsdlale lmenoEu)a' ) il- Noti{icatiott

bami/Arthia .-trrhi* ,en&r the iervices of^thc notification showing Arhthia
chargcs.
charges
T*r{::,:11,,*",i**"1*',".:';'r:ilj"'^tl:lfl'}
'l'o'",nitt.."
illul'.."iir,*r,* of Ihe respective
(APMc) 2. SamPls bills showing actr:al
payment'

3. The Stale should :ubmit

cedincate duly signed by Mllac:le'
ior
l):rectorlsecrebry lhat activlllcs
*hich Dami/ tuhalia Chargcs arc
caid does not overlaP with the
,rctivities covertd and Paid under
Mandi Labour Chargcs hcad'

age-ncY
4- Each Statc Procuring

"i
;#;'h;;"t werc'actuallY urilised

1. APMU nollllvdr'
j. verifioalion oi
Mandi
I }landi uauour
fiffiil,tffiffii'u tl" Giii the Platforr'r/Balance'
chargcs (activitY-wisc)
Iii \ \Yeishnrqrll
)iiilunt-oroine tap ftom ths Bslsnce 2. Activity-rvise dctails of cxpenscs
iivi ManuallMachine Stitching charges incurred bY cscit Stats Agency
iri U,trnOi Marka (labelling) Chargcs rcconcilcd with thcir Alnual
ivi) Tcmporary Stacking at Mandr.
,ri"ornts atong with the 'rveiBhl€d
i"iil Weiehment for Stordgc/l oa5rng average consotidated claim'
I-oalalng orsrocks fiorrr valrli bills for the aclu:l
i"ili; J. SamPlc
oavnrent of mandi labour charges
covering major pocuring districs
4. ln case oxpcraaive sociclies are
i:rvolvcd, list of oPerations berng
perlbmrcd on bchalf of Slate C'ot'i.
IrJ r"."r" bills for thc JmYmcnl of
rrrandi libour charges incuned bY
the societies.

is
5- Each Statc Procurilg agcncY
r*ritaO to ProYide weiglrted
a,rcraqe rate of
Mcndi Labdur
if,"rio Orfy ccnifial bY.Chartcred
Acmunlent at thc Slale levcl as a
*i"i". rt should be ruPPortd bY
rwo bitls by cac! ig9!lY-!Siggi!
PaBe l2
u-
@
 liiiE op.ratioos
er:-,ner:t ard shuultl
cover three mcjor PrDcunnt
distics.
the qua ity
tra$frorut-,on cost Aapends on th?
Handling rranspofled lo
diilerent locations,
&Tramportatio[ belrvee;r orocurenc.tl cuntrqs to slonge Foints, storaClc
averaue ieai disuncc and avcragc
cha rges pnintr rn',i"" ruills ancl rice miils ]*.:]'.':t), f.'1t:-1] rates in
itill'e;".i"i etd.wn ctc (iD case of cMR) an<l Purchasc transio.ration Prcscdbcd
forinal. Actual expenses clairncd to
cenlrc to storage Point (for
"vhcat)' bc rcconcilcd \\'iih Annrnl
Accoullts.
2. Copy of thc Agrccment with
traflsportcrs.

3. Sample bills for the actual

Dayntent of
transPortation chajgcs
.or"ring trajo. ptocuring districts'

4, Slab rstes for tralEporlotion fixcd

by Dlv?DC of the State (lt
applicable).
5. Cenificare fior least cost of I

transportalion. I

6, Stale Covt. should give details of

-in I

;,'J;;'--i;";r,.a handli'e
chargcs with samplc bills I

?. Frch agency is rcquired to submit

onc bill
1

at least (owards
I

transportation & hardling chargcs I

for each district along widr daails as I

per prescrib€d proforma. Howcscr, i

ior tire" ,uajor ptrcuring districts of
the Stat€, the number of bills to be ' I

tub;{SedjhoCElSat !ca{!fg- I
t, & ccrtified detai;s ot=
ffioifoodgraindue Auditcd
losses ro$,ards driage. storage
I

to i.iu",ion in moisture content curing storage' lt is rcturl I

trdnsit loss scprratcly.

allowcd in case of parkly during storage at Iuss und
I
acquishion stago for Raw Rice only' I z. Stock Flow $atcmenl showing I

- In the case of Coarse Grains' driage is allorved only

I ::ffiH,r,o,.*,."o"".i.,
I

if slorage period is morc lhan six months'

I f.orr the kaflspo(er,
irlsurance
is also
- ln ihe case oF whert, no driagc !s allowed' I agency. stonge godowns etc
lrcquired.
4. Ce iticate from PrinciPai
Secret$y for allowing driage @) l%
of MSP or aclual, whichever is
lower, in casc of
fiuantities procured

Co-operative societi€s fot MSP oPeraiion only' through socictics and thc quantitic-s
procured rvilhoua ergaBrr)B
Societies.
Expcnses rcimtrutsed to the Societies for additional
functiom "like lemPordry storage, Mandi labour 2. Copy of Agrcernem with socictics
autivities, ctc. is aliowerl under propcr head eg' is required lo be furnished
labour c'harges under 'Mardi t,abour Charges" spccifying the Yarious :rctiviliqs
stomglx under'C & M Charges' ctc.i !l()t under this assigned ro thc socictics' paymcnt
hcad. terms and othcr relcvant details.

Page l3

- s-.'"
@ -.--_-
of clmmission
4. Certificatg ttrat activ:(ics of Mandi
Labour chargcs & Societies arc
not
overlupPing with each other'

l. 'lhe State should submit

certificate duly signed t'Y Y:Tei:te
Dircctor/Sesretary lhat actlYrlres lor
rvhich Commission to Sociery
Charses ore Eai( does noi overlaP
.,liin ir," covercd and paid
".rirlti.t
under Mandi labour Chargcs head'

4.Esch Stale Procuring agcncY

'
should submit cer''ificate - fiom
Managing Dircsor certttytng
ouantitv Drocured lhrough socieies
dut of' total Pro"u'entenl bY '

I. Audllcd montll-tYriE and

at
ar]E;l|61,rcaG stot"g" of food-grains variery/grade wise (FAQruRS)
godowns / miller's place or "florv SlaEment
lllaintenance ;,f';i";;ilJ cwcrswc
average storagc period based otr
actual Stock o[ thc
chrrges ["i"i"i-i"t' tr'. foodsrain involved with ihe breukup
of lh"e quantitics slored under C'\P
or Covered g,odowns'
2. SeDaratc stock flow Statcment for
Acquisition ard for Distrihution
Stage.

3. Details/suPPoning documcnts
resarding the 0?e of storage i'e At
oin Codot*u or Privatc Godown ot"
millen Placdgodowns ot
CWOSWC godowns elc-
4- Conv of sampie billg Irriller's
aBrccErent, CWOSWC storage raie
certificate etc
5. Copy of lhE lelder form for
disposal of cousc grain'

6. ln casc cozrsc grain is lifted

ttuough lenders, normallY the
storaEc cbatEes and inlercst cost
nfter tlp frec lifting Pcriod arc
recovered fmrn &c tendererltuyer'
Details of such rccoveries made
from tlle paflies for delayed tifting
alongwith scheduhd & actual lifting
datei are to be Pmvidcd alongwith
tlre claim.
7. ln case milling period is exlcndBd,
GOI permission loner for the
cxtended Period should b!
subr ittcd.
& tn casq after lhc ProYisional
findings, the SG/SA claims reviscd
higher CWC/SWC stofage rates,
SG/SA's revised t rvould bt

Page l4

@ -6-
 *nsiaer.O ;t accomParried b1

Ceclaration that the rcvised stor.rge

rolcs have bcen Paid ond coPies o[
paymcnt voucher, bills etc. sul>jccl
to maximum oi revised CWC/SWC
srorage iatcs sPecificd lbr the
respctivc year.
9. S1atc CoY1. should givc details ol
quanrity handed over to FCI at
mandVpurchase ccnlrcs' if
applicrble.

10. For each districl, cach Statc

procuring agency should ProYiic
onc bill towards C&M cturges l'or
atleast onc storage godown. Thc
lo1al q'Jantum of bills should coye{
ali engaged warehousirrg agencles
l:kc SWC etc.

Interrst Chargcs f-fiCffirarscs te allowcd bnscd on compounding ercsaJh=arges

basis for ihc actual averagc storagc Pcriod inurncd by il in the rclcYart
calculaled based on stock flow statemsnt ond at markaing season duly reconciled
inlcrest ratc applicablc duriog the rclevant with their Annual Accounts i.c
nrarketing prcriod ar-s undcr:- Sourccs of funds interest charBcs
actually Wid, slotage Period
- At acquisition stage, on MSP, statutory charges inrolved, smount borroted anC
(includirrg notional VAT, if apllicablc) & ManCi Bank ce ificate of (he intercst raie
labour charges. [n
case of
non-DCP st3les, payableJpaid dxring thc telcvant
hnnsponation charges are also lo be added for ;narkeiing season etc.
calculation of intercst chargcs.

- At disltibution stage, or Acquisitio:r cost exctuding

intcrcst chargc.s & adrninisrativc chargcs (admin
not 10 bc dslucted in ca:ic of
Adulirlistrrtive
rclated io MSP op$alions booked lowards r"arious
Snte A6r.cy for lhe rclevanl
chx rges period.
provisionVwrile-offs and abnormal expcnses i:kc
provisions for bad arrd d(xrbtful dcbts, caPitd 2. Each State pmcuring agencY
works, busirress txorrotion cxpenses, comrrlsslon should submit the. breik-uP oI
and discounts, donatio$s, loss cn sale of fixed diffcrent subheads ol
ftsscts/slorcs, odvertisencnt and Publicity and Admiftistration chargcs aiong with
warehousing cxpcnscs etc, arc cxclLtded, in order to dctails of oipcnditurc irtcurml
work out the eligible administrativc cxpenses. urder head of niscellanco'Js
erp3nscs a:rd iocomc.
Calculariofl: These common cxpcrses, as worked
above, are thereafler appodioned to MSP and non-
MSP procureanenl activities iaking into accounl the
value ol'MSP of all crops i.a PaddlAVhuat/Levy
Rice,'Coarscgrain. IlroPortiorl of administralivc cost
determined for MSP operalions may thcn suitably
be dividcd unort the various conmodities
(PaddyAl',hcar/Levy R.icdCoarsegrain) under
-ftlc administrativ€
various marketiog scasons.
charges witl be rcstric:ed to the maximutn limit ol
a<lministntivc charycs prescritred ry thc COI i.c.

@
Page | 5
 l)e\l L. Slatemen! tegalolng ulrnz'rrrLtrr ur
Cunny Cost guinj- bags showin8.openlt:g sroc'q
i""i'ir"i" as HDP' bdss) for MsP
u.gt as rvell ancl closing
Brr"'ti^esi
of
prirurencni operations ft)od-Clains' itock d.uly"ontu.ption
rcconcilcd with arutuzt
accoun!3.
cess' central salcs
- ccss, edrrcadon
UEnding chargcs,
sragc.. handling
;;,--t.,i*;y frciglrt' sccond (inclu'ling 2. Where the Sta:c Covernmqlt
;obsarl & lnrp"Jun charges" scrvrcc dircclly prtrcllascs Gunrtics from
hancling ci'arges a:rd interest for 5
DCS&D, lhe brcakTP oi actual ccst
,t-i-[*"
rnonlhs ?uc allowed in g'rntty cost' i-e- basic Dnce, bmding charges'
taxcs drr:ieJccss dcpartlnenlid
am1
chargcs, trd.nsportatior. chargt:s
inspcctios charEcs are to be
orovided. ftrrther in most of Stares'
now VnT is ePPlicahlc which oft:
sets :he laxes on :Le inpJts-
Thercfore, breakup of all the t es
ofCutics should be shown s'parttciy
and appropriaie adjusmient inay bc.
made for ad.iustmott under VA'l ot
any ()ther ox as aPPlicabie in the
Slatc.

3. Sufficient salnple bitts i'e' of

DGS&,D etc. for lh€ actual PaYment
of gunny cost.

.4. Copy of Permission from GOI lo

use non-iutc bags like IIDPE ba3's
?.nd dcl;ils cost b{cakup ol' such
bags aod rrumbc-r of such bags used
should lr Providcd-

5, Delails of once used gunnY bags

along with i:s rate [oI Procwc:en:
of clmmoditY, if anY, and coPY of .l
GOI pern:ssion are also lo bc
provid;d aiongreiih thc clainr'

6. De{ails regarding gu:rnies

FCI,

It. GunnY DePr€ciation i tre C'rnrf-Uepr-ccialon is oiio*cd in case

paridfCMR and \\'heat.
paddy onlY.

As per GOI prillciple,4 (Irour) Gunly bags arc

*o"ii.a f* Paddy,' proc.rrcarcrt o"rt ol' which tlte
lor, of Z tr''ro) gunni U"U are separatciy provided
foi ni." a'"fir"ty and {S/o deprccialion on balancc
2 (lr'to) gunnl'bags have bccn pmvided'

paddy in
Somc of thc Statc CoYerrL'ncnls fill 40 i<g
io tg t"g while some fill less than 40 kg ofpadd.y
i" i"o tg bag, therefore, gunny dcprccialion is
calculated

'fhe tc,lnsporlalion cost is al:owcd showing the

Handliog rnd rranspolted to difterenl location3'
tribsportition i"i.ti"n 6"*l*noted Slalc Codowr to inlerme'diatc s(ordgc
areraee lead distancc and avcraS,e
Chrrges n,inioi stutiai.uihutiotr certrd basc depot The cost also transn-ortation rarcs in
qult a.l Pn-scril'r'J
C"o"n,L, on thc iarcs of trarBporla:ion Pcr km Pcr
which fonnar. Acrual expenscs Glaimed io
,piriUUf" for such distances at differcnt places' with

Page l6
t'
@ --
I
AccounB.

2. Sample bills for the achral

paylnent of trans portati on chargcs
ccvering major procudng districts.

3. Copy of the Agreement widr

transporters.

4, State Govt. should give details of

activities involved in h:andling
chargcs.

5, Eaclr agencY should submit at

least o,)c bill towards transporlalion
& handling charges fi-rr each tlistrict
a:oug with deta:ls as per prescribed
proforma- However, for ttree najor
orocurilrs districts of the State. tlte
number 1f bi,ls to be submitEd
should be at lea$ five.
same as
ffi Storage Charges is sa$e as Cu!
?'
Slorage
Custody & Mainlenancc Chargcs
Charges di.scrssed above at point no
no7
nr.l;t"r.sf t""e tar discuss€d in the chaJges
"t"tg"s disctssed in tbe 8 above,

from H & T comractor / lnsurance

Jrnrit r**L, storage loises, damage etc The break-up agency / Stomge godowns etc. are
in this roprd haie to be provided by the Slate required to be submiuing bY the
Govemmenl so/sA.
- Beering the storage loss over lhe pcmissible limits is 2, SeDarale audiled cerlified &
the resfonsibility of Provider of thE sbrage ftci Iity' detaif of actual losses towards
storatse loss and trensit loss.
- [n of recoveri€s from the llandling and Tra$port
case
contractor/ inslrer, lhe adjustment of those recoveries
must be rnade while caloulating storagd transit loss'
regarding
moisture gain irl the stock of whcst
therefore, dedurio; oi moisture/storage gain ls beingmade
ior wheai only @ 1% for wheat storcd in covcred grdowns after 30$ June is required to bc
iia O.ty. roi i'tr""t stored under CAP is prescribcd for submitted, separately for cAP
quantity ol' wileat corttinued to be stored afler 30- June of Slorage and Coveted storage.

Notes:-
consolidated claim'
!, Slate Go\t. should submit audited agency-wise and weighted average

?- Reconciliation Statemetlt of incidetllals rvith Annual Report'

3. S@arate ctaim for FAQ & URS.

guidelines'
4, State Cov!. should subrnit 0ll the Annexures of the

5. Printed copics of Annual Accounls'

PaBe I 7

^1- @
 I

Cfrrcutqr Na. 2|
69
t I

No. 192(4)y'20o3 -FC Al cs. (Vol.III)

"&'-
Govi:rnment of India
Min , of Consumer Affairs. Food and Public Distribution
Department of Food and Public Distribution
Krishi Bhavan, New Delhi
Dated the September 4, 2015
To
The I Secretary/decretary.
Food Civil Supplies oepartment,
nent of Punjab and Haryana,
Chand a rh. I

Subject: artial amendmerlt in order regarding payment of Custody

nd Maintenance Charges (Storage charges) in case of paddy
in joint custody with millers
Sir,
Iam irected to say that vide this Department's letter of even
number 2L.Lt.2Ot4 and 26.12.2014, the principles regarding
payment of tody & malnt{nance charges were partiaily modi-fled to
facilitate the rent of C&M gharges to those States where paddy is kept
in joint with millers.r A copy of the letter is again enclosed
herewith for reference. In para 3(viii) of the.aforesaid letter, it has
been that the expenditure on this account will be reimbursed
only after ation of accouhts oF that partlcular marketing season and
fixation of rates and 6o provisional payment is to be made.
Subsequent the amendmenit. this Department received representation
from nts of Punjab &l Haryana requesting therein for revising the
provision in
charges at
linking the
in blockage thelr funds as.fixation of final rates of a particular KMS
generally

2. In th
discussions
cost sheet well as pending iFsues of States of Punjab & Haryana matter
has been imined in this Department in detail in consultation with
Finance D on. In order tp facilitate the bona-fide dues of State
it has now been decided to make followlng amendments in
the order vide letter of dven number dated 21.11.2014:

3(viii) Exp iture on this 3(viii) After end of particular procurement

account wi be reimbursed season, State Agencies will submit
only after finalization of consolidated provisional bill along with
accounts that particu lar supporting documents for expenditure
year and of final rate incurred on C&M charges to FCI which will
and no onal payment is verify the bills and after fully satisfying
to be made. itself about genuineness, bona-fide and
admissibility of the amount, will make the

I
I
,

@
i
 t waiting for fixation of final rates.
making the provisional payment, FCI will
strictly follow the other conditions
stipulated vide letter dated 21.11.2014
and 26.12.2O14.

Further, the provisional payment will be

subject to fixation of final rates of
procurement incidentals and final

3. The
numbei dat

yours faithfully,

w
( Manoj'tidpta )
Director
\-Iie- Tet.No.011-2338 9436
i Fax No.O11-2338 9358
Copy to: : irman and M{naging
Chairman Md Director, Food Corporation of India,
16-20, Ba ba Lane, NeW Delhi.
:l
Copy also to I

1. PPS ,e^cy.(F&PD)/ps d., nsana/ppS to JS (p&FCr)/ppS

Secy.(F&PD)/pS
to principat
AOVtI (Cost)/PS to Advisor (Cost).
2. Ds( rnce)/US (Fin. )/DD(Cost), pt Ce /Guard Fite.

tu__
( Manoj K{-rcupta )
Director

./')"
x>''"@
{,Y"

tG)
 Cia.utar,,rio.>y

.^.%:d;;{lli1:l:T#,,.:':ii,,,iJ"*,.,,""

xrrsti ojavan,
New Oethr
o"'o'n" iw"*riJ)?!o"l?
Jli*Im::*zsjc,eri.y.
ff silft* ":Fx i!
?!..,tii,*;,,"".
I
I
ft"i:1,jilp;'j,6jryi'J.*#,?i"":,"*n",ro:".n..n.j".,,.
I
l#:rlx$.rii.,i''#"-"i,x,l[i."*i]l]!.fi
ff ra,?kha
ft
u'

Subjectj
il; u;;;' ;i; ;J#:?. tilli
|i[ j
::ji;:[j:]i;f;'j",#""?"'-"i:"]"::"+#$jjii.,,,."f"l:*; if il
ffffl."},?i,T::j,i".[".1".J:,?:.,::l:1,r,
.;r',;,i*f*iT"{i,!!t,it;Hj;if
p-ayment o,
.n',::',::l-f
Madarn/ii.,
ca',", 0"" i."'
ti'u'i'"
c&M
:,:Iffi ,l::,..;.li cost sheet il

ffi#ffiffffiffi
ffiffifff*ffi
ffiiu'fr#*$-*-*f**ffi

t
ff :,,,.#:,|f,,fi..,.:i,,,:.";":::,:;,";,,i;,,;"
me,t the ,",".*io"oi,ll'=[i:"JJ:Hil:
'n
".
ll". tl;"",i";"""1,::
vrc., thai there ie
T
itH:1T::il:Jt,,;1fi "liT:[1:;:fi ":#'.jh?i:l?.Jx.:;:1,::
Itcm Exlrtlng
(fo. dcliv.ry o, rtc. to rci ro, c."r,,r
poot)
rr cwc -EF ( l)rn e c&H ctri rgci wiiite-
rro;eZ-rr
storage rate to. r.tc of CWC CAp jtorigr
chrrges FCI lor 2 months rrt! tor fd.
('r) For the D.ddy procured w[htn 6pD.oved
peirod ol p4o(urement and ,t,s dettv€rv (o
mitls wrthrn, app.oved mlitrng penod, thr
p€.'od lb. Cl.t1 charges d, b€ h.[ o, th.
Ptriod ,roin bcginhlng o? .rprovcd
p.tlod ol procurcfl.nt ot p.ddy to t r.
d.tG ot th. .cturt dctiv.ry ot p.d.ty ro
rrlfll' lubte(t to (ondilrons strort.t.d tn
p.rd 5 ol thrs reller.

For 2 moothr on lh! rtle ol rnterest will be .dmtsstbtc on I

Charg€s llem5 ruch as MSp, HSp, vdrlour Slatu[ory Ch.ro.s End Msndr I
St.tutory L.bour Ch.rger at FCJ'r ratE ol
Charges I
and Mandr Lab$t appllcabl. .on th€ d.r€ ol'.terEsr thr I
Ch..ges d tct's aohmancernant of xhrr,, Ma.teling Sa.son I
r6te ol lntliest lor the p.rlod as unde.:. I
lpplicable on the I
d.!e o, lha (') For the rice d.Wered to FCI u.lder I
comlnencement ol (entral pool relthh spDro{.o prrro.l ol I
Xharif Marteling proorr?ment ol paddy ihcludlng any I
.rtended peiod, uc ,nt.rcrt ,ill bc p.id I
tor hal, ol tdc pEilot, lrom bcglnnlng ol I
.pprovcd procuEhant pliiod to lh. I
drtc of rcturt d"liY.ry ot rlcc. I
I

0r) fo. rhe rice ocllvered lo fCI under

aentrar pool 6ft€r.the snd ol app,oved
period ol procrjr.rnent oI paddy lnduding
any exleoded 9enod. the int€rast v$ll be
.llowed ,o. hnll ol ihc rpprovld prrlod
ol p.o<!r.mcnt ol prdd, rnd to, th.
p.rlod from th. Gnd o, .pprovld
priocur.nllht of plddy to th. d.ta ot
.clu!l dGrlvcry 6l.lit.

,s

@
 io.rn,lfr" uoo'" .mehd,neaisr

I
l, fd**,.',*'..,; {,1,,:-ffi,*#.*
liL",ff ':":il?[?.Jj_*,i!:::1;:il
ll*; J""ilTJ;,11f1,,""1"";,;
;iT

Iit*r*iffi *,.r*ff "#,#1fi::,*ur'*,x

This amendrnent
wiI be apDIc

,y,,ry,1i+ss*u#r,.5r!*#*u"r,**

m*,N*ffimffi
. This issu6 wittr
the appfovat of the
conrp€tent authortty.
I

Yours
qh'
falthlulv

( nr.xKupt"
t
Direc.or
ret. No.0ll.233g
copy to: 9436
.nx No.o!.t.2JfB gis8 .
1. Th€ €hslrmao ahd

;:** j#.i:Ii.Ufli3?tiJiffi#l;, jEi,t:.rr,

2.
3.
Ics)/ os (rinanci roill"'on""ou"
4. il.l;'f.lii','l!':"i$fi!fft $it.,t''.E,1,',',:.',:fi f
x;:yl;:lr:r.lfirU*;;','9,1,3*i,[:rrrl'",,.,
 @
\--,r
Cft.culqt Alc, ,ZJ 11ry
t

No. 192(4)/2003-rc.Aic, (vol.Ir)

Government o! lndia
nthist.y oI Cohrumer Al|.irs, Food 6nd pubri. Dij$ibur,on
Depa(rnc^t of food and pubtlc Olstribut,on

xnshr B;.v.n, Nev, Oetht

onted the Novembe. 12, ?ol5
,o
The Princ,pal Secretary/ Sec.etary,
Depnnhent ol Food.nd Civ,r Srrpptres.
Governm€nt of Anohra p..desh. &nar, Chh.ttisgarh, GuJarat,
tl!ryana, th.rkh.nd, Karnar.l., t(erata, UaOlrya ara'destr,
Maha.a9htra. Odiihr, puhJab, R.l.9th.n, T.mit N.du, Tetanoan..
UttBrathand, Uttar pradcah and We5t B€nqat
Slbject: Pa.ti.t arneodment- in priorlples r€9erding payment of
Custody ald Hainlenan(e Charqes & lnt€r;sr Charoes fo.
d.tiv€ry ol ii(e to FCt ro. Ce;tral poot on lhe b;;is ;i
p.ovrsionati cosl sheet

xad.m/sir,
l
, . , l_afn
o.led
d{ec-t€d to rrler !o thrs Depa.trneht.r te$er of
o5.lI 2015 rega.ling p.rtiat amendmcnr in prtnciotes cveD nu,rrbe.
pdYment Cuslody and Mainteolrce Chrrqes Dei.tnino to
& Intercst Crrarocs_foi
o€[va.y ot rtca to rcl tor Central poot on the oasts ol provrsorial cost
sheet.

2.
to. tn
b.
thls rcgird, lt is ct.rlncd ih.t lo 9o l!, .s ratc o,
rllowEd to Sbt.5 ,or Gxt hdcd pcaod ie.onc,ern.a, tilntercat
FcI'! r.tc o, lntcrcrt .ppliclbtc in c.r! ol st t.s on wiiE
cornrnlnrcmcnt of respcctiy. tftlrit ttrr aati oi
ttarftG ng {;;;-;;
alloryad ln provirion.t cost sh..i.
3. .. The_ lmendment. tssued vlde lctt r oI even number
05.1.1.2015 datad
tr/rthe. ah.nded a.coraingry anj otr,Ir";;.;;
cohditlons of-st.^dr
the aforcsald lett€. wiI rcmaln lhe seme.
I
This isiuel {ith the..pprovrl ot lhe rornpetent authority

Yourg f.ithlulty,
gr{_
( Saaj.y XumBr !
Under Scc.et.ry to the Govr. of lhdt;
Ter. No.otr-2307 3798
Copy to:

:, fu$#ri#,f#H*[[1fi,"i:la{i,,Dhe.,.(Fc

@
 ,r'e-\,--..-.
Cfocu(ar lr,..2q ."rC7
\-----r--
/ ro\

o
tio t 9til j/ 2rl r 4-FC
4lCs.
, "., T:i :lH;,f.j;,;ii:I:i.i*lkm::.* ",

]o o,,",1;:^;"t1";i:;l;l%"j?

ffi5*!ft1;I":ffi i:$r,i-r#$,
2 fhe Cha,rmsn and
Mandging Dirertor, FCI, l.tew
oeth;.
; subject: paroal arhendment
in prl,'
a"r,...,".i, iiliii,",il",JT"y,::"T1"^,".f
:^:?ff T,:: ilff I
t4aO6r./Sl-,

;i,*!p,fNlij.,il,:ft i;,!;l:iTiillff
iniifr ",H":ff

*tH*ffsffi*ffiffffi
3. Since.this prthciple was In vogue. for qulte
-_ a loog ttme, ihts

luf,1f,riq;ff'Jllffi};,ffit{'
$ftli$iJ#p.i#xi'r:rfiirlri
j'i,ffi ihifr r+j
comprete.the srudy with cledr recommendari;.".
submitted it.reporL In ts report, trre Committeen i-iir]""iiici:illirill
(€epthg in view the resale value his--reilil;:i,ili
of a b69, usabl.
ractors. depreci.don rroy be allowed lit",;;;;;;il"il;
Da9s agAin!t €xtsting norm of 4Oo/o.
O Jgq" or *,"-.oii oi;;;fi;;

(.n I t_-

@
 'q6
.2-

4, The .cacrt cl the Commlrlee has srrtsequently beeo erointneo.

the Departm;nt and with lhe approvol of Compelent Authoriry' il has
'n
and alloN gunnY
beeo de;rdei to amend the existinq Prr(crplet
depreciarion @ 3a% kom existing 406.6 subj.ct to lolloering condiiions:

(e) The orovillon ln thc orovisional cost shect allowing gunny

deprcciation O 3a'/o is strblect to (ixttiori of final ratct on
th; basit of ar.ldit€d to b. submitted subseqi'lntly'
d.precllatron will G).ceed 3a'lo ot the
i"*.',"i, m no case,"".oun-tt
cost of new gunny ba99 ol SO kg cap.city.

(b) ThE amendmeni tirilt bG rtfectlve lrom Xt'ls 2015'16 itlt6l'

and accordinglY all provision.l colt shects ol KHS 2015-16
g..ii o.piccatlon @ 4o'lo stand amcndcd, €vcn l'
"ii"*iiJ
already issued.

(c) ; stat€ Govt,/oetignated Agcncict/Fct wlll have lo re-

calcolatc the adqrisslble amount snd m.k' nec€lJtry
recovery, ifany.

5. :Yhls amPndment will be applic.ble lrom KEs 2015-16

onwirds.
6. The 'Prrnciqlcs" conveyed earlle. vide hie DaP.tlmeni's D O. letter
No.t92(4 )/2003-Fc,A/cs. ddted 16'i lulv, 2003 and mod{ficd vide letters
No.l9 244 i/2 003-rc.A/cs dated 3d Novehber, 2004 stand further
ameMed ,n so far ae nllowing rate oI gunnY dtP.eciation in the provislonal
cost sheet ,e concemed. All ;ther tenns 6nd conditions ol the'princlp,es'
shall remaln the same.

Thls lssues with the approv.l of the competent !uthority.

You'5 frilhtully,
6)
( u.x7upta )
I
Dlrector
Tel. No.01r'2338 9436
Far No.o1r-2338 9358
Copy toi
ST.PPS to Secy-(F&PD)/PS to AS&F,V/PPS to JS(P&FCl)
.Princrpal Advisor(Cost)/ Advisor (Cost),/ Dlrector (Pollcy)/
Director(Fc A,/cs)/ DS (Finance)/US (polry-l)/US (Policy-llt).
l. Pollcy-I Section/Policy-lll Sectioo/Guard File.
 @-^,,
9"zartcm N.r-25, Cj9
, No. .192(12)/2016-FC A,/Cs

! Ministry or c*.,.n:if,;:,ff?'"'#X1]i ,,0,,. Distribution

Department of Food and puOf ic Olstritulon.
. ,i Krishi Bhavan, New Delhi
Tg, , Dated the 21sr September, 2016

I I!. principat Secretary/ decretary,

Dppartment of Food and Civil Suppties,
, Government. of Andhra praaes'tr, - issam,
Haryana; ,Jharkhand. Karnataka, 'K";;L, 'd;;;
,. Bihar, Chhattisgarh, Gujarat,
pradesh, Maharashtra,
odisha,,puniab, Raiasthan, rui"ng;n",',r;rnii',iuir,
Predesh and West Bengal : - " ''-."" utr"ruthand, Uttar
2. CMD, FCti. New Dethi

Subiect:, Amendment in the orinoiples for fixation

of Mandi Labour Charges (MLC)
in the. provisionar bost.'steer
' Central poot appticable for oCp
eCs')-;-ilil; ir,rirr"o Ri"" (CMR) for
ind rion-D# sA;;
Madarn/Sir,
i
,' lam direoted to sav lhat in the existing rpl;n"ip1". of-numler'oated
(PPl)
procurement lncidentals.
issued vide this benarrment's tettJr or e'ven
03r11.2004 and d4.3.200s. there is a provision 16.7.2003.
(MICJ' jn-ih9 provisionat cosr Sheet
i", ;;;il";:;; ;,"ndi Labour Charges
sl. No, 3,ot Tabre-2). The same is ippricioie ioi'iidi ;."
pool (at ti,csl oi Curtom;i;# (CMR) for cenkat
ano non-Dcp srates.
.*. ':i t, , l :i..i I ': r.
2,, , Based on:proposals from the State Gqvernments,
. Department issues pCS to
ilte Stlt9: Indicating various incidentals of ttre piocurem-eii-"*pun"..
One of the incidentats a owed. through pCS as per ppl.
indexation method as per exisling principles.
i. fiid,'*ni"i i" nreo by way of
Whif. i.i*ilJi"g their proposat for
fixation of PCS in a particutar Khari Mrrt.iting
MLC based on their notification at State r"r"i
S"".* tXirrtl'"o_" States propose
,no.ieg'ri;riii'rrt proar"" Marketing
committee (APM.) Act and some st.t"" propo".
in this head in the previous vear. However, frfLC -fixedi,iid;;;';.
acluat expendilure
existing PPt by way of indexini of tast avaitaure
i"t*
in pCS as per
"i" rate and lhere is no
Rn-ar;;;;"i
I differentiation behareen the Staies which notify U.C
J. rni.l epMC Act and States
I which do hol do so.
i 3 .... lome States have raised the issue of less MLC allowed in pCS
than.the
by the State Government ilrroush AiMi Act
T*d__Yl9_:S
rermDUrsement of procurement incidentals
Further, actuat
including MLC is done atler finalisation of
th.e cost sheet rates for each incidentar uaseo
orisuumissLn oraudited accounts
with.supporting documents by states p"i CFf , wf,i"f.,;;;;;;, few years after rhe
markeling season. With a view lo ao ". wit in;il;'; tesser rate in pcs
compared with. final rates and facilitate "way
Staie C.*i^r""ii *ith reimbursement of
:T,,Ef* yf ,:"?J,[",[*; *:tsfl [i*'#f gH:i],*#ffi ,,,
..,.Nritl&-
ffi lj,trlil#ffi ffi
Page 1 of 3
ru

w
 (MLC) in the Provisional Cost Sheet (pCS) of Custom Miled
@
Rice (CMR) for central
pool applicable for DCp and non-DCH Stales as under:

S. No. Item ProDosedameffi

3(0 Mandi Laboui Jhe rates witt be indexed by tne eonEumEiFfr6e tn-iEi
Charges for (CPl) (of Slate, where available or of the country) to lhe
States not last final iite. For first time State, the last rinal ;ate of a
notifying nearby state will be used. For other States, the last
activity-wise provisional rate will be used. The formula used will be:
MLC
R.Avo of p,Pl ot the Current year
= Avg. of the CPl of theyear rates were last {inalized

wherb 'R' id the lasiRnat rate.

3 (ii) Mandi Labour (a) The provisional rate ioi frxed cornp;nents of Mlfiill
Charges for be allowed as .per the latest notified rates of iIqO
States notifying comDonent of MLC. of the State wilhout any indexalion-
activity-wise only for following activities:
MLG uniformly
across the (l)- Filling and placing the unit on the platform balance
Slate 6nd not (ii) Weighiog
DiskicUMandF (iii) Unloaciing froir batance
wise (iv) Stitching
.l i,lote: The State is 'required to provide the scope ot *orf I

bovered under Ml-C and . scope of work related to

Arhatia/Socielies '(wherever applicable)
I

to avoid I
duplicalion ofpayment. I

(b) The provisional rates foi variable comoonEnG

towards remaining activlties at Mandi labour will be
calculated as per lhe indexation method i.e. lhe rates for
variable componer{ts of MLC will be indexed by the
consumer price index (of the State where available, else
of the country) to the last final rates of the varlable
component of MLC of the State. For flrst lime Stli;;I}re-
last rinal rate of a nearby State will be used^ The formula
for indexation will be:

= R x Averaoe of the CPI ofthe current vear

Average of the CPI of the year rates:rt'ere last finalized

Where 'R' is the last finalized rate tor variable

ggrnpelg.lls {!ILA.
(c) The MLC allowed in provisional cosGheet[ilt bE slm
of the fixed component of MLC and variable component
ofMLc- :

4. The above amendments are subject to following conditions: (_

r! !r

Page 2 of 3

65t
 @
a-re
' (a) necessary
state Governments/agencies
proof
are required to furnish certified detairs with
regarding notirications issued under epMc nct
activity-wise MLC rates apptiiabte in the en{ire ioi
r Siate.
(!) autive paylr-ents wi be subject to the finar rates of
rhe
procuremenl_p'ovisionar
-rhe. indidentals and final set'ement 6t iire ctaims. tn
.' excess payment made at.provisionar stage, the same
wifl be";;;;i;;;
recovereJ
from,the State Governmenl by gor"rnm"rir or'tnoir.
(c) ln.case of non-DCp State.s gelivering CttR to fct,
FCt wil ring-fence the
reimbursgmenl ttjwards MLb to con-cerned CCiaccounvtoan
account of
lhe State Government for that particular XffrlS p.riaua Sf"t" i.
CCL/toan facitity. "r"ifi"g
(d), ln case of DCp States . distributing CMR within the States/delivering
excess CMR to FCl,. State will ensure ring_fence lhe reimbursemeni
towards MLC to concerned CCL accounVt6an accounl of th;
Government for that panicular KMS provided State
ai;i;
ii availing CCUloan
facility.

5., This amendment will be applicable for both DCp non-OCp States from
KMS 2016-17 onwards "nO
6,. ln regard to
reimbursement of MLC and admissible interest component on
- is.no change in existing principtes. frre existtng piocedure for rinatizalion
l1!9t lh.l: -'
or me hcidental rates will remain
-: unchanged,
.t I
Z .The 'Principles" conveyed
_d-arlierr ;ide this
-rni-'i,oOified Department,s D.O. letter
No.'192(4)/2003+FC.A./Cs. dated 16rh Juty, ZOOi
_
N..192(4)/200!FC.A/C.. dated 3'd Novem#i, ZOO+, rafr'lvrrr"'n,-Z'ooS,
vide letrers
ol:1rlltq,' iS" dt"..
?fl
4- Ueptember, :ggl, 19: october, zooi si o".."iu11, i67,
2009, 23,o March, 20j0 and dated lBth October, 2011 accordingly
;"-"r,il#be;;fi:
stand amended in so iar as Maridi uabour charges payabre iniougtr provisionar
cJsi
sheet at Acquisition stage for derivery of rice.io rbt'for clntrat poor
and for the
SjlJelyndeJ Oecentralized procuremdnt is concerned. All other terms and conditions
or Ine -pnnciples" remain the same.

8. This issues with the approval ofthe competent authority.

, Yours faithfully,
/'
1 llr
i ( uanoif<&-pt" )
, Direclor
Copv to: ' Tel. No.01 1-2338 9436
1. ST.PPS to Secy(F&pD)/pS to AS&FA,rppS to JS(p&FCr)
2 Pr..Advisor (Cost)/Advisor (Cost)/Di(poticy)/Dir(ict)/Di;(Finance)/US
(poticy-
l)/US (Poticv-llt)
3. Policy-tsectiontpolicy-lllsection/GuardFile.

Pa ge 3 oF 3
 -.<\
C6cotar No'2L /*.).
....---_- - \*
a No.199(12)/2016-FC tucs
Governmoni of lndis
(9
lrinistry of Consumet Aflairs, Food & PD
Department of Food & PD
:
krishi t)harvan, New Oelhi
Dated the Nlvember p-. 2016
To,

The Principal Secrelary/Secretary.

Food & CivllFuPPI€s DePanmenl.
Jharkhand,
Govemmenll of Assam. Andhra Pradesh' BihBr. Chhatlisgarh, Gujarat, Haryana,
Tamil Nadu, Uttar
Kerala, Karnataka, Maharashka. Odisha. Punjiu, nalasttran, Telangana,
Pradesh, Utta.akhajd..Wesl Bengal

Cons6lldatEd Umellnes lor linaliz6tlo[ of Audited AcGounts of

Strie GoYEmmont ln
Subject : economic cost of
order lo rinallre procuremer incldonlals of State Agcnciea and
rice, whoat End coarso gralns : regarding'

Si. / Mgdam.

I am directed lo refer to lhe above

plted subjocl End to say lhat.lt has boen obseNod most of
; Accounts ol State Govemment
lhe Slate Government ar€ laggiog behind finalization of ih6 Audited
procuremlnt lncidentaLe ol Stste Agencles and Bconomlc cosl of rice' whoel and
in ordet to finatise
requlred lor fnalisetio{t of iho
coarse graills. $Idh delay in tlme, arranging ol supporting documents
Stale Govemment! have boen
claims becomes v€rv dlfficult lor tne imle Govemment A'l tha
but the desked result has nol beon
il;;; tlr"'1lirnre ror tlnerv nnalisstion of lhe accounls
is very ffucial to ptepare more
achieved. lt may be'appr€ciated that linallsation of provision cost 6heet
of food subsidy reimbursed to the Siale
accurate budget eslhates which ensures pioper utllisarion
linalisation of
cir"rr""t. fn**"re, s need has been L[ to llx a consolidated timelines for tim€ly stricl
timelines have b€en deciJed
lhe Accounts at vadous.levels, Accordingly, tollowing
'or
compliance ol all cqncemed:

accounts, slter tho end of States lhrough each PCS.

annual
auditing bY Auditors lhe season and
sppointed by CAG in any case, not
and submlssion of later lhan 12
sudiled accobnts monlhs from the
along with end of linancial
documenlary Proof year in whlch
and detsf,ed season hss
iustification for qach snded.
hem oI lncide^tals
lor finallzation' oI
cost shoel . and
submit it to FCI RO
lor clmmentv

@
'.t @
@
the Stale's claims including any 8.12.2008.
and subnrit lo DFPD clarification and
wilh conrnrents resubrnission
bptween State
Governmenl
and FCI
I. Scrutiny of Slale's vfdhin I week DFPO/
clalm $rith FCI FC A,/cs
commenls, and
subfiission io Pl I

Cell for finalization

lv. Preparation of Wilhin two oFPp/
Provisional Fhding monlhs trom Pr ci
(PF) by Pl Cell and rec€lpt date
sending to FC lJc
Section

lssue of PF for Within IPJo DFPD/ Alohg with PF, the dst6 o, joint
comments and mooths FC A/c llreting ,or discussion on PF
holding of joint wll be commuoicated io Stste
me€tin0, by FC A,lc Section.
Eublnission of I

commenls on lhe I Dale of meeting will be withln

PF by the Stetes
i
orp month fiorn lh€ issue datg i.a
I
ot PF.
ri&
r"ir* .
I DFPD Mll v{ait lor comments
froan Slates uplo turo weeks
af,er ioifit meetlng. ln case it:
comments not roceived upto
lhlee monlhs ftom the date of
lssue of PF, final cosl sheot wlll
b€ pmcessad bY FC A/cs ! .-.
wiliout waltlng futthat for :
comments troan Slato6.
{__..:-
Commsnls recsfusd after ihe
psr indlcaled above will not
be coDsidered for linalization of
accounb bY FC A/cE S€ctlon or
Pl C€ll.
Not holding of joinl DFPD/ Thercwill nol bs any Joinl
meetino wilh State FC Nc meeting 'rrith the Slstg
on PF Governmgnts to diEcuss
cofironts on PF whll6 finalizlng
oldet accounts of t
1. Thr€B Ysar or more for
RMS
2. Fo$ Ye or moi6 ,or
KMS
Ttle Ums shall bs reckoned from
the date of submlssim ol thE
audAed accounts bY tho State
GovemmentS.
vll. Flnal Flnding (FF) by withln t weok / DFPDl Pl cell to is8ue Final Findng
Pl Csll and 6ent lo 3 vrBeks' Pl Cell (FF) based on lhe avallablo
FC A/c sectlon clBimJ doflments/
tecommsrdatons/comments on
PF submitted bv the Stsfe aryL

9- .:
)I

( 8t
 (a
L @
'ln case Slate Governmenl
does not submil any additional
documenl in respgnse to PF -
one week llme ,.vill be allotled
Ior issuo ol final finding. ln 6ase
Stale Governmeni submi6
sddilional documents ln
response io PF - lhree weeks
lirne $rtll be allowed for issue of

issued with the IFD concurrence

fom the datb of

issue of linal

3. oFPD will issue linal findings on lhe basis ol lhe available clatms / documeflb /
and FCI
recommendations / ctmmenls oo provislonal tindings subrnifled by the Slat8 Govemments
RO as per given llmelines.

4. lt may Ue noted that no requesl fo( relaction in the Um'lines lodicalgd above thall bo
eotertained wllhoul properJustmcations and shall be con6ldered oo case to case bssis'

5. As regards review ot the linal cct sh€€i, State GovemrEot is r€quired lo scrutinko the fual
propoGals
cosl sheet ca;tufiy bofore sendhg soy review propo66l lo DFPD and ensures lhat such
ars received in DFPD within on6 rnonih of lhe lssoe of ihe litEl oosl sheet. Proposal re@lved afler
6upul8!6d pedod of ong month will not be considar€d- Thero }|Jill not be Bny revlow of lha find cDsl

6heal is&ed by this Departn€nl excepl lor thB audit bbjsdions and exceptional circumslancas lo lhe
sstisfadiofl of *pretsry (F&PD). D€taiod hstnidions tor codslderslion of reviow has slready b€en
lssued vidc DFPD lstter No. 192(4/200&FC Nct dat€d 24-3'2015.

6. This issues with lhe approvslof the competont sulhority

Te1.N0.23309436
Copy to:.

1. CMD, Fcl, New Delhi

2, PPS ro Secy. (F&PDyPPS to AS&FNPS to JS(P&FCI)
3. Pr. Advi8or(Cod)
a. Dirscto(Pollcy)rDheclo(FinanceyDirecto{Fcly-US(Policyjlly
5. Pollcy-l/Pollcy-lll/Guard Flle
 @"
-@9
C;tcr-rtcrr No. 2+
No. l99(5)/2016-FC A,/cs
GovehmBnt of lndia
Mioistry ol Consumar Arralr6, Food & PO
Dapariment of Food & PD
'Krie New Delhi
. Datr 3,2017
To,
The P.incipal Se$elsry/Seoret8ry,
Food & Clvil Suppllas Departm.nt,
Government o, Assam, Andhra Prsdesh. Bihar, Guiarat,
l-laryana, Jharkhand. Kerala, Karnaiaka, MaharaBhlra, Punjab,
Rajasthan, Telangana, Tamil Nadu, ullar Pradesh, Utlarakhand, Bangal

Subiect: Restricting bEncfit ol lhdcxetion ot procuramoni Incldonrati defsirtttng

. Siates - rog.

Madam/ Sk,

I am direc{ed to r€fer to lhe Principles laid doyJn by thi8 lor timgly

finelization of provisional cost by State Govemments towards €xp6n8es
in partrcular markoting seaBon. For this, annual audited accountg are lo aubmitted
iisl by Slate Govemmont lor finall6aton of tho c,ost aftB, the and ol mark6Ung
season and in any c!se, not lat6r than 12 months rrom lhe end of IQ
whlch the season has endod. This limelln6 is inlormed to tha Ststad I Gach
proviBional co6t she6t issued by this Department rogularly...Desplte this, of ttle
States ar€ lagging sven in submissbn ot audited accounts for flnalizalir withln thc
stlpulEted lime frame.

2. As per PdnclpleE of PlosfemBnt lnddg mls (PPl), rates lor

lncidenlals for c!,rrent nErketing 66ason arB fo(od bascd.on ot the hst
tinal or provisional rate of parlicular marketing seaEon for I Stste. beftofit of
indexation uplo cunent year l€vol t{as belng eIou,ed- unilormly to all |8 uithout
any differentiation betw€en States Gubmitting thoir accounts igr fnalilau ii time or
late. Despil€ regular requesls by this Oep8rtmsnt, eubmlssibn of audiied tor
finalizatlon of ih€ cost she6t has be€n inordinatsly iialaysd by BomEi o the std$.
One ot the reasom b€hind this delay may b€ higher,rete€ I proviBional
stage as compared lo actual 6xpense6. Lato submlsEion of affecis the
€ntire process cycle of finalisaiion.

9 With a view to strsamllnlng the Iinaltsation of accounts by

has been docided lhat while issulng particular
StateE, it
PCS for a murketing beoofit of
indexation will not bB passed on for lncidentals of Mrindi- . Charges,
Transportatlon chargBs et Acqulrition Siegs and Handling &. Trangpo Chirrger
el
el. Dislriburlon Stage ror delaulttng
delaul0ng States. Remalning incidentali sf, will b€
allowod as per existing PPI which includes pl ot lix€d;eturo i.e. MSp coct,
statutory charqeE. respBcl lc
chargeE. With resoBct above, (ie
10 attove rhc ihflrn{rart .n6n.laa^r i6
approved amendment in ls glvsn
as below:

(a) g:lryl ls stelB for cun€nt mErketing EEason wi b€

.r"''''|ti# Il"
who faited to 6ubmit audtted e6qun15 ;.r finanlBtion Slates
after I- end ol cach
.. .,-, r ")" marketing season and in any c€se. nol laler
than 24 months 'lho end
ol ttnancial year in which the E€a6on has endod.

(b) FoJ d€lautting States, the benefit of

l- 'i -
followkto incidentals:
indexauori will b€ lor
.'',1!.i6f,:
i;(J'

ffi
f;

a. Msndi.Lrbour charg$ (MLC)

b. Transportatiqn Charges

At Dlstribstton StB;o
c. Handlirq and lransporlailon charges
(c) Vvhile issuingPcS for current markellng 6ooBon, benofil ot indl
above incidenials Mll be rosbicted io lhe levols as gtvcn bolov/:-

0) lncldentals of PCS lor cunert RMS - baneit ol will b€

restrlcted lo thkd y€ar lev€l lrom tho yeBr of lhe latest
cla}ms by 5l,616.
(it) l[cidenlals of PCS for curgnl KMS - bonefrt of wlll b6
restricled to lourth year level Lom tha ycer of lhe
clalm8 by St8te.

ol lBLEt subrnlhld daknr are of RMS )od and KfiS

(1... ln caBq
lnditroon will b€ r6.liclcd rrols x)c(i.:, )EDa to( RrS aod upto
rc!p!cdYolyl

(d) The incldeniEb iD PCS of dofaulting StetB shall bs flxed

of 20M8 l6vels.

(q). Statos should suhflii rhek proposal tof firial?aton of

chronologhi{ order.

4, A detoiled illuatralbn lor hplementBtlon ot abors Pdncido is

5. tfiUr above enlendmenti lo proardure,:DFPo espectr {Er

of pEndiog ec€ou s bv laoeins State3.
''i-
6. All other teo!6 and coMillons ot th€ PPI ,unain.lhe Stat
u for
finalization o, Eccounb al tha osrliesl-

7. Thb lssuEs trith thc spproyal of tls cornpotatl aultioriti-

Encl: as at ove

fd. No.oll - s436

Fa)( No.011 - 04-8.3

!r'i.;J'nr ',11.,,rffi|i;
 accountstol the ma*elno
soason aRer wlt not bi
consid6r6d aB
Slates

Staloe Go t"ifuo fo ,ri,ii

lhsi audiled acclunls uplo
marlieliog season

ennual audlted a"coune 'oJ

marketing season ot

pa6sed on upto marketino

ssason as montioned whi6
lssutng curr€nl matketng
-

lr
'?.1 | l

@
-

OTHER
CIRCULERS

@
 6Se Cfx.ul.,^r No':L
iio. I 5 l8l/2C'r',.1-t\. I{pt.i
Uovcrnmcirt of lrrdLr
:!iilistrv o[ aoosr.llne r ,{f[air..r. food $. Public Distr.ibuOon
%
Dcp.ntfleol of ioo(l ;-(, Pub)lc Disrributio!l

'j$":i1"jm*J:::
:r,n 0 4der_
l;ly
l. ]'hc Priricilral SecrcLitt.// 1;ecr?li{r-v {fiooclI.
(;t)cc )l[cnts of Atrdl]r;t PiaCssh. As,iant. Bihar, Cllllat tisga, Il, (iuial.at, [tar]atra.
.Iharkhurrd. ii.rflatali*. ilarlhyalJr.adcsh, [,laharashr^r, Odisha, punjab, naja*i},an.
lelangar)il.'l'amil i.laciu. tjla[ nadcsh, UtLa,.akhand and !V€sI BcnBal.
2. 'thr: tjlr{O. FCl.HQ, flcN Detlri.
Subject: Revisioo.of Us;rge clrnrgcs lor pacl<irgirg o[ proculecl parJ<iy for l(ivlS 2Ol./_lg
pcr c\istiog grrrdelrncs. as
t'i,
I arD dirccted lo relcr to tllis (lcl)artmcrrt l,.,ttcr olcven ,lo. dated I LOS.20I? \vhcrcin
usagc ,;halges olr tire carlicr r.ec o-nlrrenda t:pn s tron: FCI i,.i Rs lO/qfl for.-packaging'qf
i.,:'rcr)rc(l paddl as p,,ri.iGEiffi itlchnes rvr.r.c conrrnrrr:icarc<I--
r
2. . Consi,.lcrirrg the ,oqur:sts t.r.:garding cnltaocctlrclrt of rrsaBe charBes maclc by Stales &

'#trq-
olr th,r basis oJ .cvised rccomme xlations ,.cciysd from FC"i, it is :o inform that this

f<rllotr'i nc corrd-riiA6=1-.-------l-..---
r

;P,#d*i'iH"ftr#;";
al ttrc satd usage chargcs shall be.qdnlissible subject to thc Slalc's principal/Food
Sccrctary.or M.D of Srate n8cncy.shall cerrif:/ thar for nlling of padtly, tf.,"'ofj fr"g"
arrauged by r}c srarelnrirle' is being usrd orlry olrct aftcr purchise. btqtc shail allo
providc nccessary suppot.tinB documcrrts,/ccrtiliiarions of grr.,y a."ount".
i:i ln Ease St6i.e fails (o pr.cvide appr.opriete doctrrnentationTccrtilrcaiion, the usage
rha.ges.sh.ll bo li..rit"d ro ns 3.75/bag ii,r pa...l(agi'E of procu'ur.l padrly in ot<l bags lr
actual claim q,hichcr.c'r. is lo$,cr-.
cl (i) 'fhc cosl associared lr'itlr propo$crl usaBc chargcs i.c Rs 7.32lbag 6hall bc
corrsicle|ed as per practicc of lilling of atcr\ge 37.5 Kg paddy in a bag of iO l(g caiacity.
ln case Stare Govr litls rrrorc (har 37.5 tig paddy in a cqpacir-v of io kg luti uig, Uic
aclual nunrb€r of otd bags fille(l vith padd-t required for I quinral of CtilRlaftcr apltying
t'eleva,rt tJ-l-ll) shall bc coosidcred. For cxirmplc, if StEte co!,t acrualJ nlls 40 Kg;;dd;
in S0 l(g cnpacit! jut. Lags, lhc actuirt rrunrbcr of old bags coDsidcred shall 6; 1.73
ba6s for liau,-r'ice and 1-(rll t)ags fol.par.hrilc(t ricr aftcr appJying O'fR o( 0.5? & 0.68
r€spccti!el\'.
{iil In case State Gort l'ills 37.5 l(g'paddy or lcsser t}ran 37.5 kg padrJy in a.capacity o(
50 I(g Jutc bag, reimburscrncnl rv.r-t I quintal ot CMR {cortsidering OTR as 0.62l sirsll
bc considcred for cost oI 2 ncw bags & usrrge charges will be admissible (or 1,99 oid jutc
bags as per standar.l practice oI |illir.Ig aserage 3z_5 Kg paddy in a capacity of SO kg
bag.
d) Thc usage charge rvill bc allorved Ior hirli l,f rhc quanritv o[ paddy procured by Sratc.
Rcst llalf of padriy is to be-pa(l(c(l ir! nc(\r glrrlnv bags in rvhich ricc is to be d;Ivarcd
subsequently.
. c) Provisions of GFR of 2005/2017 shoLrt(t bc followed by Sratcs/Fcl wl)ite arrangin8
ba6s for packagirrg of plocurerl paddJ as fJer cliisrirrg guidelin.cs.

3. nris issucs lr,ith th'r irppr.J\,^| of compcrelr authol.iqy.

Yours (airhfully,

t"\t)' (8H*.f{ur,}
Under Secrclary (Py.llU
I,h: 011.23384448
 Other Civeulqs N<,'2
a No, t5_ t4l2018_fo.rrr
Government of In clia
l\linistry of Consumer Affairs, Food & public
Distribution
Department of Food & pubiic Distributio, - - ---'
Krishi Bhavan, New Delhi.

To
Dated Nov, 20 IB
I The_Principal Secretary/ Secretary (Food), \5t\a
-
!^-..-

Vl.irr t
All Srates/ UTs.
-x,'
. 2. The CMD, FCI-HQ, New Delhi.

Subject: Usage charges for packaging oI procured paddy

onwaros as per extsting guidelines. for KMS 20 1B- 19

Sir/ Madam,
I am directed to refer to thjs department
lerter no. IS_g/ 2004.ry.II1{pt
".i,,.g.. )
s' to proviJe sag.
iff 3.:: ::.'.tl I J::::T-Tfi[e u ror pac ka gi n g'or

bI states reratins to^ r'r.1:!rc{ probrems

i;"* Sr?ti.Xi'T:, ih::",r:X::': ri9'-
r etter dited 0s. 1 0 2 0 i, ;;:::,,:iiiffi
r,]
that this Departmenr has decrded to fix ti,.
paddy {or xr,, s zo r e- i e u.
i[,:"ff :n"HJt,:.i Jy,',3 *#
";;;.".1
;;; ;; ;:"::,;:i:1.,", 1"":Sl..fiT-,#
l r?
I. 7.32 bag"subj;;i
Stare covr, if ir is tower rhan Rs
/ ;;;" fo,owing condidons:
a)The concerned Agency/state Government shar
maintai* a proper account or
the number of used jute b^ags procured
";;-;;;;';". packaging
procurcd in a Pr-ocurement Season in the format-l"ifo."a
as
of ^mddv
Annexure-j.
elccount of bags shall have to.be .".i"tui"J-"iifr" ThL
the procurement of old bags.is done by them, ,"a .f,".
i.".1 of the miller/gpA, if .

information, rhe Srare shall have. ro piouiae if,.' compilation of said

with the consolidated account of bags white ilf ilwrng declaration st6nq
charges: ";;;iil"g ii_,. .1.i", i". ,i""gE
',This is certifted that of gunny bags fumished_ in the
prescibed in Annexure--t :c:ol:nt format as
of tettei no '. . |"iia .... For KMS/
,;::jr;;,"rff:tr:,, detaits oy c"""y
-"ii{" .... is
maintained. uo ,iZ

Signature:(SpA/ Secretary
Food), State)
Full Name:X
XY
.r'
nlc
(
D ^).
 .'#
--'/3)
b) The clainr of rhe Srate/UT for the reimbursiment o{ usage charges shall
be considered if the State/UT lails not ({
to Iurnlsh the aloresaicl
_
undertakjng./ certificate and account of bags in prescrrbed lormat
Annexure-1.
a5 O".
-c) States/SPAS musl keep the record of procurement o[ used bags,
Iike p6pL
::i::",1:::1.'":"*',-:l:":0.::8:::,t"v,::i:I:"."y.,"
being
** ;i
procured by millers, the records.rn support of procurement"a;s 6,I*:
:i i:j3t?1P-11s:11:_
::: Tli': j:i,11:, :".::lo.' ef i,i"i1,*1*i, *,,,i" r;i;;
"G[T:;;
for the inspection by highe r u",rl"ritil"?r
:llll..:f "%
Stater' Cenlral Govt :hull^b.,uluitabre
and Audit.
d) The cost associared with.p_roposed usage charges i.e Rs 2.32/bag shall
i- considered as per pracdce of filling of average az.5 Xg paddy in u U"i of 'i]
be
capaciqv. In case, State Govt.fills more than 37.5 Kg paddy ln , capicity
io
6a !fi
kg jute bag, ihe actual number of o.ld bags filled with p"aay ,.q";."j io."i
quintal of cMR (after apprying rerevant orR) shan be coniidered, Fo. exa--.,t.-
if State Govt actually hlls 40 Kg paddy in 50 I(g capacity jute bags, th. ;;;;;i
number of old bags considered
:L4lof!. 1.73 bags ior Raw-rice u"a f .Oe t"i
for parboiled rice after applying OTR 0.67 and b.68 respectively.

e) ln case, State Govt hlls 37.5 Kg paddy or lesser than 37.5 kg paddy in a
capacity of 50 Kg Jute bag, reimbu-rsement w.r.t l quintal or crtan
lio"srie.ing
OTR as 0.67) shall be considered for cost of 2 new bags & usage lfr"rg." *ifi
be admissible for 1.98 old jute_b-ags as per standard piactice oitittii-rg iu.."g"
37.5 Kg paddy in a capacity of 50 kg bag.

f) Provisions of GFR of 2oo;sl2or7 shourd be forlowed b.y states/FCl # e

arranging bags for packaging of procured paddy as per existing guidelines.

q) Further, the competent authority of State Agency/Oovt should also cerdfy

at
the. time of subsidy claim and settlement of claim that ,.the applicable teims
and
_condition of usage charges which are modified from dmJ io time as per
DFPD order/letter for usage charges has been duly compiled by State
Agency / Govt".

3. These instructions shall remail in force for KMS 2018-19 onwards.

4. This issues with the approval of competent authodty.

Encl: As Above.
\ \ yours faithfullv.
\.{f:(.r'''tort
(Inderdeep Kandawal)
Under Secretary (gr.III)
Ph:011-23384448
Copy To:
-v
1. 'Ihe Joint Secretary (Jute), Ministry of Textiles, Udyog Bhavan, New Delhi.
L
i P,i
rr.
XI lJ,',: I [*;il-+53.-,
to Piv ( f c Rf <-r). )Yzz5"'
S {'s +' l)ir ( fr,.,a* t')-W(
6 Pf (ttr, DtPO.
a
 l-fr
\_5,',

!91_urenrcnr Sca56n,;
oi paddy Actual
cost of
No No. ot
Annex ura-f @
Ilrocured bags
of new bags No. of
1o olJii
procured
thal Carricd
old oags thar
.,i.ct uii
bags rcmained bags rernained cost of
(3,
Llnused. [or the
from culrent
Ior {s} the bags
CMR
Drevious
season
season cui-renI . t8)
te)
({l (6a)
{6b)
season
(7)
-t

.i.
i

. Signed by competent
at
sd/-
Govt/Agencv and Lnartered
* * usagc Accountant
charge, ,n,, o, .r0,,::,". ;1 ::;;. .
J).".-"-
-:2

-i

^I
 \"\ t ,t
I

PaddY I no. * ulstiiro*"0

in ecs
1
S.No. States
Fikkine (in I
(d
Raw Rice PB Rice

g 1
40,00 1.73 1.68

40.00 t.73 1.68

2 Assam
37.50 2.00 2.00
3 Bihar.
40.00 1.73 1.68
4 sgarh
37.50 2.00 2.00
5 Suiarat
37.50 2.00 2.00
6 '2.00
37.50 2.00
7 Jh:rkhand
40.00 1.73 1.68
8 Kerala
9 Karnataka ,
45.00 7.12
10 Madhva Pradesh
1_t Maharashtra 4O.OO I 1.73
40.00 r.73 1.58
12 Odisha
37.5 0 2.00 2.00
13 Punjab
40.00 r.73 1.68
14 Telangana
40.00 1.73 1.68
15 Tamil Nadu
40.00 !-t5 1.68
16 Uttar Pradesh
40.00 1.73 1.68
11 Uttrakhand
2.00 2.00
West Bengal 3r.I9
k t(S -l
re t,II1ji ,'r co,.,.iaru-l t*'t "' f,r
<j J'"'.. -r- J o16

i @