Speed Post

No. 8-17/2008-S&I

Government of India

Ministry of Consumer Affairs, Food & Public Distribution

Department of Food & Public Distribution

Krishi Bhawan, New Delhi,

Dated 2nd November, 2010

To,

The Principal Secretary,

Department of Food, Civil Supplies & Consumer Protection,

Government of Maharashtra,

Mantralaya Annexe,

Mumbai- 400032. Fax. No. 022 22025449

Subject: Relaxation in percentage of broken grains in Custom Milled Raw Rice for Kharif Marketing Season 2009-10 - regarding.

Sir,

I am directed to refer to letter No. Dhanabh-1209/C.R.4203 Part III/C.S.29, dated 1.9.2010 from Minister, Food, Civil Supplies & Consumer Protection, Government of Maharashtra regarding relaxation in percentage of broken grains in Custom Milled Raw Rice for Kharif Marketing Season 2009-10 and to state that following relaxations have been allowed for balance quantity of custom milled raw rice that is yet to be delivered in Maharashtra, out of the paddy procured in Kharif Marketing Season 2009-10:

Percentage of broken grains in custom milled raw rice has been increased from existing 25% in uniform specifications of KMS 2009-10 to 28% without any value cut in the State of Maharashtra.

Separate account should be maintained for raw rice procured under relaxed specifications and this will be consumed in the State of Maharashtra only..

State Government is advised to complete delivery of this rice by 31st December, 2010.

The above relaxation will be in operation with immediate effect.

Yours faithfully,

(B.C. Joshi)

Deputy Commissioner(S&R)

' 23384398

Contd..P.2/

:2:

Copy to:

1. Chairman and Managing Director, FCI, New Delhi (FAX No.23411554).

2. Executive Director (Commercial), FCI, New Delhi.

3. General Manager (Q.C), FCI, New Delhi.

4. General Manager (Procurement), FCI, New Delhi.

5. Executive Director (West Zone), FCI, Mumbai

6. General Manager, Maharashtra Region, FCI, R.O., Mumbai

7. Sr.PPS to Secretary (F&PD) /PS to AS&FA/ JS (Impex, EOP & SRA)/ JS (P&FCI)/ JS (Stg.)/JS(BP&PD).

8. Director (P)/Director (FCI)/Director (PD)/Director (Finance)/DC(S&R)

9. IGMRI/ QCC offices.

10. US (Py.I)/DD(S)/DD (QC)/AD(Lab)/AD(QCC-I & III)

11. S.O. (FC A/c).

12. Director (Technical), NIC.

(Dr. S.C. Bansal)

Assistant Director(S&R)

Reference note on prepage.

The issue of request of Government of Maharashtra for relaxation has been examined vide note on page 14-15/N.

2. Food Minister of Maharashtra vide DO letter dated 01.09.2010 has stated that during KMS 2009-10 about 232650 tonns of paddy has been procured by state agencies but only 20% CMR has been deposited with FCI due to various problems and requested for

(i)  Approval of transport rates for 2008-09 and 2009-10

(ii)  Relaxation in percentage of broken rice,

(iii)  Higher milling charges and

(iv)  Permission for 20% par boiled CMR.

3. So far as S&R Division is concerned, earlier we had received a copy of letter regarding removing bottlenecks in procurement and milling of paddy with similar request (P.45-46/c) which was forwarded to FCI on 30.7.2010 (P.47/c) for their comments on relaxation requested by the State Govt. on broken grains in rice. Subsequently, another representation from Govt. of Maharashtra (P.40-44/c) requesting for relaxation in OTR and broken grains in CMR raw rice was received which was again sent to FCI vide letter dated 3rd August, 2010 (P.50/c) followed by reminders dated 12.8.2010 (P.52/c), 26.08.10 (P.53/c), 16.09.10(P.61/c) and 22.09.10(P.62/c .)

4. FC A/cs. while forwarding the D.O. letter of Food Minister of Maharashtra (P.63/c) has stated that Hon’ble MOA,CA,F&PD has desired that the decision on the lines of Punjab and Haryana may be taken immediately on the issues raised by Govt. of Maharashtra.

5. Now we have received comments of FCI vide their letter dated 11th October, 2010(P.83-84/c.). Other issues pertaining to transportation charges, milling charges, etc. are being dealt with by Policy-I and F.C.A/cs. Sections. With regard to relaxation in specifications of rice, FCI has stated that most of the raw rice consignments during KMS 2009-10 have been rejected in Maharashtra on account of brokens exceeding the prescribed limit. It has also been stated that in the milling test, conducted by the State Government, the brokens have been observed upto 38%. However, due to shortage of time to undertake test milling, the FCI has recommended that the broken percentage may be enhanced upto 28% on the pattern of Punjab.

6. FCI has not stated anything about value cut, whether the relaxations should be with value cut or without value cut.

7. During KMS 2009-10, the relaxations in custom milled raw rice have been allowed to Punjab and Haryana without any value cut in respect of damaged/slightly damaged grains, discoloured grains and brokens grains as detailed in page 14/N.

8. Since, State Government has requested for relaxation in percentage of broken grains in custom milled raw rice and Hon’ble MoA,CA,F&PD

From prepage

has desired that decision on the lines of Punjab and Haryana be taken immediately and FCI has recommended to relax the broken grains upto 28% on the pattern of Punjab, we may allow relaxations in broken grains upto 28% in custom milled raw rice for the balance CMR of 2009-10 with the stipulation that the relaxed rice will be consumed in the State itself. It is for consideration whether the value cut is to be imposed on the relaxation in broken grains or relaxation is to be allowed without value cut as in case of Punjab and Haryana.

Submitted for consideration please.

( B C Joshi )
D.C.(S&R)

12.10.2010

JS(P&FCI)

Discussed with JS(P&FCI) along with JD(Movt).

The issue of request of Government of Maharashtra for relaxation has been examined vide note on page 14-15/N.

Food Minister of Maharashtra vide DO letter dated 01.09.2010 has stated that during KMS 2009-10 about 232650 tonns of paddy has been procured by state agencies but only 20% CMR has been deposited with FCI due to various problems and requested for

(v)  Approval of transport rates for 2008-09 and 2009-10

(vi)  Relaxation in percentage of broken rice,

(vii)  Higher milling charges and

(viii)  Permission for 20% par boiled CMR.

So far as S&R Division is concerned, earlier we had received a copy of letter regarding removing bottlenecks in procurement and milling of paddy with similar request (p.45-46/c) which was forwarded to FCI on 30.7.2010 for their comments on relaxation requested by the State Govt. on broken grains in rice.(p.47/c). Subsequently, another representation from Govt. of Maharashtra (p.40-44/c) requesting for relaxation in OTR and broken grains in CMR raw rice was received which was again sent to FCI vide letter dated 3rd August, 2010 (p.50/c) followed by reminders dated 12.8.2010 (p.52/c), 26.08.10 (p.53/c), 16.09.10(p.61/c) and 22.09.10(p.62/c). No comments have been received from FCI so far.

FC A/cs. while forwarding the DO letter of Food Minister of Maharashtra (p.63/c) has stated that hon’ble MOCAFPD has desired that the decision on the lines of Punjab and Haryana may be taken immediately on the issues raised by Govt. of Maharashtra. From the file noting of FC A/cs.(p.66-67/c) it appears that comments of FCI has been sought on the issues of fixation of transportation rates of rice by FCI for KMS 2008-09 and KMS 2009-10 as also on increase in quota of parboiled rice for CMR which are still awaited.

As desired, we may take up the issue with CMD, FCI at the level of Secretary(F&PD) for obtaining comments of FCI on the issues raised in the DO letter of Food Minister of Maharashtra for taking immediate action. Accordingly, draft DO is put up please.

( B C Joshi )
Deputy Commissioner(S&R)

8.10.2010

JS(P&FCI)

Secretary(F&PD)

D.O. No.8-17/2008-S&I Dated : 8.10.2010

Dear

Food Minister of Maharashtra vide his DO letter dated 1.9.2010 (Copy enclosed) intimated that during KMS 2009-10 out of 232650 MTs of paddy procured in the State, only 20% CMR is deposited with FCI due to various problems and requested for fixation of transportation rates of paddy and CMR for KMS 2008-09 and 2009-10 by FCI; relaxation in broken percentage in CMR (raw rice); higher milling charges and permission for deposition of 20% parboiled CMR.

The matter regarding relaxation in uniform specifications has been taken up with FCI vide letter No.8-17/2008-S&I dated 30.7.2010 and 3.8.2010 followed by reminders dated 26.08.10 , 16.09.10 and 22.09.10. Similarly, comments on other issues have also been sought from FCI, which are still awaited. Hon’ble MOCAFPD has reviewed the position and noted to take decision on the lines of Punjab and Haryana immediately.

I would request you to look into the matter personally and send the comments immediately so that appropriate decision can be taken.

Yours sincerely,


Secretary(F&PD)

Chairman-cum-Managing Director,

Food Corporation of India

16-20, Barakhamba Lane,

NewDelhi.

No. 8-17/2008 – S&I

The Under Secretary, FC A/Cs has forwarded a copy of D.O letter of Food Minister of Maharashtra Govt. and stated that the issue raised by Govt. of Maharashtra were put up to MOACAF&PD for his perusal. Hon’ble Minister has desired that the decision on the lines of Punjab and Haryana may be taken immediately on the issues raised by Govt. of Maharashtra.

Food Minister of Maharashtra vide DO letter dated 01.09.2010 has stated that during KMS 2009-10 about 232650 tonns of paddy has been procured by state agencies but only 20% CMR has been deposited with FCI due to various problems and requested for

(ix)  Approval of transport rates for 2008-09 and 2009-10

(x)  Relaxation in percentage of broken rice,

(xi)  Higher milling charges and permission for 20% par boiled CMR.

Earlier, we had received representation from Govt. of Maharashtra (p40-44/C) requesting for relaxation in OTR and broken grains in CMR raw in Konkan region. FCI was requested vide this Deptt. letter dated 3.8.2010 followed by reminders dated30.07.10, 26.08.10, 16.09.10 and 22.09.10. No comments have been received from FCI so far. A proposal for trial milling to ascertain OTR in various States is under consideration on separate file.

As per the communication from FC A/Cs, MOCAF&PD has desired that decision on the lines of Punjab and Haryana may be taken immediately on the issues raised by Maharashtra Govt.

During KMS 2009-10, relaxation in Custom Milled raw rice has been allowed to Punjab and Haryana without value cut as under:

S. No. / Refraction (%) / Limit under Uniform Specification / Relaxation allowed
1 / Damaged/ Slightly damaged grains / 3 / 4 and
4.75 in three Divisions of Punjab
2 / Discoloured grains / 3 / 4 together with red grains
3 / Broken grains / 25 / 28

Similarly in Haryana relaxation in Damaged/ Slightly damaged grains upto 4% and broken grains up to 28% have been allowed during KMS 2009-10.

Since, Food Minister of Maharashtra has requested for relaxations in broken grains and Hon’ble MOCAF&PD has desired that decision may be taken on the line of Punjab and Haryana, we may consider relaxation in broken grains for the balance CMR of 2009-10 with the stipulation that the relaxed rice will be consumed in the State itself. ( Although we have not received comments from FCI). It is for consideration whether value cut is to be imposed on the relaxation in broken grains, or relaxation is to be allowed without value cut. It is to mention here that in case of Punjab and Haryana relaxations were allowed without value cut.

In this regard it is submitted that Govt. of Maharashtra has requested for relaxation in Uniform Specifications of Custom Milled Raw Rice in terms of percentage of Broken grains upto 35% and review of Out Turn Ratio for Konkan Region of Maharashtra State. The comments of FCI were sought on these issues are still awaited in spite of repeated reminders. We may further issue a reminder to FCI.

It is to mention that during KMS 2009-10 on the request of Government of Punjab and Haryana relaxation in percentage of broken in Custom Milled Raw Rice have been granted up to 28% (against the existing limit of 25% under uniform specification). However, no relaxation in respect of Out Turn Ratio have been given to either of State. In this regard it is submitted that requests received from other States on revision/review of OTR norms are under examination in another file. It is proposed to consider relaxation in broken percentage of CMR (Raw) up to 30% with value cut to Government of Maharashtra.

Submitted for consideration please.

(S.C. Bansal)

Assistant Director (S&R)

1st Oct. 2010

D.C.(S&R)

This is regarding letter from Ministry of Civil Supplies & Consumer Protection, Government of Maharashtra regarding removing bottlenecks in procurement and milling of paddy under MSP Scheme. Hon’ble Minister has raised various issues and requested for relaxation in broken percentage in rice, immediate approval of transportation rates, higher milling charges and some quota for par-boiled CMR for timely CMR deposition.

2. With regard to relaxation in broken percentage, it has been stated that procurement agencies and rice millers have been demanding relaxation in broken percentage upto 35%.

3. As per the quality specification of rice, the maximum limit of broken grains in raw rice is 25% and for par-boiled rice 16% which is uniformly applicable for procurement of Central Pool rice stocks throughout the country.

4. On receipt of the request for relaxation in broken percentage of rice, the reference was sent to FCI vide letter dated 30-7-2010 followed by reminders dated 12-8-2010 and 26-8-2010. Comments of FCI are still awaited.

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