Gkc Oneworld Computerisation of Paddy Procurement

7/27/2019 Gkc Oneworld Computerisation of Paddy Procurement

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Governance Knowledge CPromoted by Department of Administrative Ref

Ministry of Personnel, Public Grievances and Pe

Government of India

Table of ContentsExecutive Summary ................

Background ..............................

Addressing food securi

Minimum Support Pric

Public Distribution Syst

Paddy procurement at

Need for computerisati

Objective ...................................

Working Design ......................

Paddy procurement an

Transfer of paddy to st

Issuance to millers .........

Receipt of custom mille

Unified ration card dat

Transportation of com

Inspection of FPS ...........

Citizen participation .....

Grievance redressal ......

Technology used ...........

Methodology ............................

Key Stakeholders .....................

Lessons Learned ......................

Speedy payment to far

Uniform procedures an

Transparency and acco

Involvement of citizens

Looking Ahead ..............

References ................................

Appendix A Interview Que

cy and Accounta

entrerms and Public Grievances

nsions

Researched and documented by

OneWorld Foundation India

Computerizat

public distrib

..............................................................................

..............................................................................

y ...........................................................................

(MSP) ................................................................

em (PDS) .............................................................

inimum Support Price ....................................

n of paddy procurement .................................

..............................................................................

..............................................................................

payment to farmers.........................................

rage centres ........................................................

..............................................................................

rice ....................................................................

base and allotment of PDS commodities to

odities to the FPS ..............................................

..............................................................................

..............................................................................

..............................................................................

..............................................................................

..............................................................................

..............................................................................

..............................................................................

ers .......................................................................

inventory control ............................................

ntability .............................................................

..............................................................................

..............................................................................

..............................................................................

tionnaire ............................................................

ilityCase StudyE-Governance

ion of paddy procurement and

ution system in Chhattisgarh ,

February 2011

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PS .............................. 6

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Government of India

Executive Summary

The Government of ChhatDistribution System (PDS),

adopted a unique ICT bas

mechanism. As a part of thes

National Informatics Centre

procurement of produce, to

transfer to Fair Priced Shops (

This document captures this

the strengths of the newlrevolutionised the delivery

Poverty Line (BPL) families,

The Public Distribution Syste

India. This document aims to

states across the country deli

Background

Addressing food securi

Food security has been a maj

India has been self-sufficient

surplus food grains; however

into meeting the countrys

implementing targeted inter

level. The Minimum Support

examples of this effort.

Minimum Support Pric

Minimum support prices are

with other government ag

remunerative prices for thei

support prices are perceived

prices are announced at the c

level over time.

cy and Accounta


nsions



Computerizat

public distrib

isgarh has initiated a set of reforms thich had been undermined by corruption.

ed module to create a transparent and

reforms, the Government of Chhattisgarh i

has computerised its whole food grain

storage and transportation, to state war

FPS).

rocess, detailing its need and how it was ca

computerised procedure and the manf food grains (particularly paddy) at subs

ltimately moving towards greater food secu

m faces issues of leakages and diversion of

contribute to the replication of a successful

er this essential government scheme efficie

ty

r development objective in India since the

in food grains since the 1970s and today, bo

, due to inappropriate agricultural policies,

ood requirements. In recent years, the g

ention programmes for achieving food sec

Price (MSP) scheme and the Public Distribu

e (MSP)

determined by the Food Corporation of Ind

ncies to ensure that medium and low

produce namely rice, wheat and coarse

by the farmers as a guarantee price from t

mmencement of the season to prevent mov




February 2011

2

improve its PublicThe government has

accountable delivery

n association with the

supply chain - from

housing and further

rried out. It highlights

er in which it hasidised rates to Below

rity.

unds in every state of

eform process to help

tly.

eginning of planning.

asts a huge reserve of

this has not translated

vernment has begun

rity at the household

tion System (PDS) are

ia (FCI) in association

income farmers get

rains. The minimum

e Government. These

ement below the fixed


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Government of India

The FCI and state governm

produce at MSPs. Such prihence, can provide an impetu

The stock procured at MSP

System scheme.

Public Distribution Sys

The Public Distribution Sys

poverty eradication, specific

the scheme1 every Below P

kerosene at subsidised rates.

set up across the country for t

PDS operates under the joi

government, through FCI,

transportation and bulk allo

allocation within the state, i

cards and supervision of the

governments are accountable

Paddy procurement at

The main crop in Chhattisgar

Government of India at MSP

Cooperative Societies (PACS)

by millers and then hande

(CGSCSC) for distribution

kilogrammes of rice at Rs. 3 p

Prior to 2007, operations at e

the issuance of the paddy to

and from there to the FPSs, w

1For more information on the evolu

http://planningcommission.nic.in/re

cy and Accounta


nsions



Computerizat

public distrib

nt agencies run purchase centres across t

e support mechanisms help in sustainings for investing in modern agricultural techn

assists in meeting the commitments of t

tem (PDS)

tem (PDS) forms an important compone

lly by serving the undernourished. Under

verty Line (BPL) family can purchase ri

This is facilitated through Fair Priced Shop

his purpose.

t control of the Central and State Gove

has assumed the responsibilities of p

cation of food grains. The operational res

entification of families below the poverty l

functioning of PDS, rests with the state g

to the FCI.

inimum Support Price

h is paddy. The state government procures

. This procurement takes place through 133

spread across the state. The paddy procure

d over to the Chhattisgarh State Civil

nder PDS. Under PDS, the Chhattisgarh

er month to all BPL families through 1058 F

ach level from the purchase of paddy at pr

the millers, its transportation to the wareh

as recorded manually.

ion of the PDS in its current state refer to

ports/sereport/ser/stdy_pds.pdf




February 2011

3

e country to procure

farmer incomes andlogies.

e Public Distribution

t of the strategy for

the current version of

e, sugar, wheat and

(FPS) that have been

nments. The Central

rocurement, storage,

onsibilities including

ne, issuance of ration

overnments; the state

addy on behalf of the

Primary Agricultural

is converted into rice

upplies Corporation

government gives 35

ir Priced Shops.

ocurement centres, to

ouses of the CGSCSC


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Government of India

Need for computerisati

Corruption in PDS is widesp

a large number of FPSs mascope for leakages. Diversion

commodities between gove

supervision of fair priced s

spurred a number of middle

clarity as to which families s

This sometimes leads to inap

deserving families.

In order to address these issu

technology solution.

Objectives

By computerising paddy pro

Enhance transparency Improve the delivery Involve citizens in the

Working DesignTo date, the project has digit

Bank and Primary Agricultu

Federation (MARKFED), all

Supplies Corporation distrib

maintained at the National I

concerned applications and

Paddy procurement an

Under the newly computeris

registered online and once p

receipts. Cheques for payme

procurement centres to the m

time. Workshops were held

data entry operators in basic

cy and Accounta


nsions



Computerizat

public distrib

on of paddy procurement

ead because the amount of subsidy involve

es it difficult to monitor the working of tof funds occurs at all levels - during procu

nment warehouses, transport to FPSs an

hops and the lack of a strong accountabi

men who siphon off funds meant for the

ould be included in the BPL list and whic

propriate inclusion of families for food subs

es, the State of Chhattisgarh rolled out its e

urement under PDS, the Government of Ch

in operations to mitigate leakages and dive

echanism so PDS commodities reach the ta

monitoring process to enhance accountabili

ised 1532 paddy procurement centres of th

al Cooperative Societies (PACS), 50 storage

concerned district offices, the Departme

ution centres and 35 FCI rice receiving ce

formatics Centre (NIC), Chhattisgarh State

anaging the entire database.

d payment to farmers

ed version of PDS, paddy procurement is e

addy is procured from them, they are give

t to farmers and delivery orders for movem

iller and storage centres of MARKFED and

very 15 days during the initial stages of th

omputing.




February 2011

4

d and the presence of

e scheme and leavesrement, movement of

d within FPSs. Poor

lity mechanism have

oor. There is also no

should be excluded.

idies and exclusion of

d-to-end information

attisgarh aims to:

sion of funds

rget population

y

Central Cooperative

centres of Marketing

t of Food, 100 Civil

tres. Five servers are

Centre for hosting all

lectronic. Farmers are

computer generated

ent of paddy from the

CI, are printed in real

e project to train 1532


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Government of India

Transfer of paddy to st

Once the paddy is procure

MARKFED. The operations a

of paddy are entered onto th

other storage centres. The det

Issuance to millers

The Department of Food has

registration of mills to

issuance of paddy to du

Millers are required to regist

entering details of the

submitting a receipt to t

Collectors office. The Dis

Controller, with the appro

Collector, conducts physical

of the mill, and registers

ANUMATI (permission)

mentioned in the applicatio

to be correct. The details of

verification and ANUMATI

online.

Figure 1: Farmers with computerised

book 2007-2008, NIC & Chhattisgarh

Corp.

cy and Accounta


nsions



Computerizat

public distrib

To overcome the littl

the village pancha

innovation was dtransmission at proc

hundred and fifty m

hired to carry data

procurement centre

headquarters, where

onto the central

download, from the

level, any new so

information and

procurement centres.

rage centres

d from farmers, it is transferred to the

t these centres have been computerised. Th

web. From here, MARKFED issues the pad

ails of this issuance are also made available

introduced

avoid the

my mills.

r online by

mill and

e District

trict Food

al of the

erification

nd grants

if details

are found

he physical

are entered

heques Source: Food

tate Civil Supplies

Figure 2: Temporary paddy storage

2007-2008, NIC & Chhattisgarh State




February 2011

5

to no connectivity at

at level, a unique

eveloped for datarement centres. Two

torcyclists have been

everyday from the

computers to block

they upload the data

server. They also

server at the block

tware or additional

carry it to the

0 storage centres of

details of the receipt

dy to millers, FCI and

nline.

entre Source: Food book

Civil Supplies Corp.


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Government of India

The District Marketing Offic

online and then execute agrelift paddy from purchase ce

transferred to purchase centr

web service.

Receipt of custom mill

The distribution centres of

State Civil Supplies Cooperat

and the Food Cooperation

receive milled rice. The ack

of the receipt of milled rice

for the millers to get paddy

and storage centres. This ack

is put online and can be ac

District Marketing Officer

who then clears the issuanc

millers. From these distributi

milled rice is allotted to FPSs.

Unified ration card dat

In April 2007, the State deci

order was issued, cancelling

software, hence creating a ce

unique identifiers a numeri

the family, his caste, addre

maintenance of the database i

With the computerisation of

Per card allocations are fe

allocations are calculated by

required to declare their stoc

These figures are entered int

cy and Accounta


nsions



Computerizat

public distrib

ers of MARKFED access the verification a

ments with the registered millers and genentres and storage centres for milling. The

es through the motorcyclists and to the stor

d rice

Chhattisgarh

ion (CGSCSC)

of India (FCI)

owledgement

cts as security

rom purchase

owledgement

cessed by the

f MARKFED

e of paddy to

on centres, the

base and allotment of PDS comm

ed to make a unified computerised databa

all existing ration cards, and new ones wer

ntralised database of uniform ration cards.

code and a barcode. All details including t

s, entitlements, ration shop etc. are prin

s now a web-based module.

ration cards, shop-wise allocations have al

into the computer at the State level.

the software in the following manner. All

ks and sales in the month prior to issuance

o the web application at the CGSCSC war

Figure 3: Recording the receipt

(CMR) at the CGSCSC/ Source:

National Informatics Centre

Civil Supplies Corporation




February 2011

6

d permission details

ate delivery orders toe delivery orders are

age centres through a

dities to FPS

se of ration cards. An

made using updated

These cards have two

e name of the head of

ed on the card. The

o become automated.

rom this, shop-wise

Fair Price Shops are

of PDS commodities.

houses. Based on the

f custom milled rice

Food book 2007-2008,

Chattisgarh State


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Government of India

stock and sale figures, the

calculated by the software, a

way, the stock position is ava

used for transportation of PD

trucks is tracked from the

the PDS commodities in yel

monitoring.

Figure 4: Sample Ration Card, Sou

2008, National Informatics Centre

Civil Supplies Corporation

Figure 5: Yellow truck for carrying

Source: Power point presentatio

cy and Accounta


nsions



Computerizat

public distrib

ctual amount of PDS commodities to be

d a delivery order is issued through the w

ilable on the web at any given point in time.

Transportation of

the FPS

After the release of t

receipt is issued to eac

details including the tr

name, and quantity d

receipt is generateapplication.

GPS technology is u

movement of PDS

warehouses of CGSCS

S commodities are equipped with GPS devi

moment they leave the warehouse to the

intended

complete.

shown on

icon in r

monitored

room. If

incorrect

area) or s

the way,

the concer

In addit

Governme

has issue

low trucks; the bright colour allows for e

ce: Food book 2007-

Chhattisgarh State

DS commodities in Chhattisgarh,

n made by NIC




February 2011

7

issued to the FPS is

eb application. In this

commodities to

he delivery order, a

FPS indicating truck

uck number, drivers

ispatched. The truck

using the web

sed to monitor the

commodities from

to FPSs. All trucks

ces. The movement of

time they reach the

PS - when the trip is

The movement is

a map as a moving

al time and can be

from the control

a truck follows an

oute (i.e. geo-fenced

tops for too long on

MS alerts are sent to

ned authorities.

ion to this, the

nt of Chhattisgarh

orders to transport

sy identification and


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Government of India

Inspection of FPS

The software

periodically selects one-third of the FPSs for

inspection. This selection

is random, following

which a physical

verification is conducted

at the district and state

levels. A subsection is

further inspected by

state level officers.

Verification reports are

uploaded onto the web,

which allows for the

automatic identification

of discrepancies if any

exist between varying levels

Citizen participation

ids and/or mobile numbers

Fi

Figure 7: Citizen interface website/

Food book 2007-2008, NIC & Chhat

Civil Supplies Corp.

cy and Accounta


nsions



Computerizat

public distrib

f reports.

A citizen interface website

citizen awareness and partici

functioning of PDS. The

information related to the sch

ration card holders, FPSs, an

and sales of PDS commodi

paddy procurement is also

website, which includes farm

the amount of paddy procur

and money paid to him.

The citizen interface is a pla

participate in the monitoring

register as active monitors by s

online. As PDS commodities are dispatc

ure 6: Inter linkages of different departments

Source:

tisgarh State




February 2011

8

as been created for

ation in the smooth

portal contains all

me including a list of

details of transport

ties. Information on

ade available on the

r-wise data detailing

ed from each farmer

tform for citizens to

of PDS. Citizens can

ubmitting their e-mail

ed to a FPS from a


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Government of India

warehouse, an e-mail messa

registered for the correspond

PDS commodities being sentnot arrive at the FPS in fu

complaint on the website.

Grievance redressal

Grievances registered on the

all complaints within a give

their inquiry, which is also p

In addition, a call centre has

The toll free number is 1-800

Once a citizen registers a comreference and tracking.

Complaints have been classif

compliant. The complainant

complaint at the time of regis

about the result of his co

complainant does not give

centre and giving the num

published on the citizen web

Technology used

All operations are carried o

help of NIC. Two hundred

Broadband/USB based conn

2 Source: Power Point presentation

cy and Accounta


nsions



Computerizat

public distrib

e and an SMS is sent to all the e-mail Ids

ing FPS. Each message contains the truck n

by the truck, and the date and time of dispall within a reasonable time period, citize

website are tracked through a web applicati

time limit, and citizens are informed by

blished online.

also been introduced for registering and di

233-3663. At present, the service is availabl

plaint, he/she is immediately given a compl

ed, and time limits have been fixed for inqu

is given the approximate time required t

tration. If the complainant gives his contact

plaint via e-mail, SMS, voice call or a

is contact details he can still get informati

ber of his complaint. Results of call cen

ite.

t through a web based application develo

-Sat based NICNET2 networks have been l

ctivity is used as backup. Five servers ar

ade by NIC




February 2011

9

and mobile numbers

mber, the quantity of

ch. If commodities dons can register their

on. Action is taken on

-mail of the result of

posing of complaints.

e from 8AM to 10PM.

int number for future

iry about each type of

inquire into his/her

etails, he is informed

etter by post. If the

on by calling the call

re inquiries are also

ed in-house with the

ased out at all levels.

e maintained at NIC


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Government of India

Chhattisgarh State Centre fo

mirrors of the productive ser

started within a few minutes.

Methodology

Working with the objective

OneWorld Governance Kno

identify initiatives that cont

computerisation of paddy pr

with its focus on creating

schemes of the Governmenbenchmark.

Having established the init

secondary research using we

next step was to identify th

deeper insight into the operat

Key Stakeholders

NATIONAL INFORMAimplementation

PRIMARY AGRICULTUBank: responsible for ope

farmers MARKETING FEDERAT

procurement, payment to

permission for milling

DEPARTMENT OF FOOmills and granting permis

CHHATTISGARH STATCORPORATION OF IND

FCI on behalf of the Cen

receive the custom mille

FPS and then transport th

FAIR PRICED SHOPS (F

cy and Accounta


nsions



Computerizat

public distrib

r hosting the application and database. T

ers; as such, in case of any server failure, th

of identifying best practices in India for f

ledge Centre (GKC) research team conduct

ribute towards the betterment of public

ocurement under the Public Distribution S

ransparency and accountability in one o

t of India in its pursuit of national foo

iative as a best practice, the GKC team

sources to gather a detailed understandin

e key stakeholders and schedule intervie

ions and impact of the initiative.

TICS CENTRE (NIC): ICT partner i

AL COOPERATIVE SOCIETIES (PACS) an

ating procurement centres across the state

ION (MARKFED): responsible for overall

farmers, and storage of commodities and gr

: responsible for conducting physical verifi

sion for milling.

E CIVIL SUPPLIES CORPORATION (C

IA (FCI): The CGSCSC on behalf of the Stat

tral Government run distribution centres a

rice. CGSCSC and FCI determine the amo

e allocated commodities.

S): sell commodities to consumers at govern




February 2011

10

o of the servers host

e mirror server can be

rther replication, the

extensive research to

service delivery. The

stem in Chhattisgarh,

the most important

security, meets the

conducted thorough

of how it works. The

s with them to gain

development and

Central Cooperative

nd issuing cheques to

monitoring of paddy

anting of inter-district

ations, registration of

SCSC) AND FOOD

Government and the

cross the state, which

unt to be allocated to

ment subsidised rates


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Government of India

Lessons Learned

The reform process describe

efficient and effective.

Speedy payment to far

With the automatic generati

been addressed. Prior to 200

their produce; today, the che

Uniform procedures a

All processes involved in P

has allowed for closer monit

of millers, capture of truck d

decision makers in utilising t

in the maintenance of sufficie

Transparency and acco

Operations are recorded at efingertips of concerned

convenient for them to mon

every level can be identifi

accountable.

Involvement of citizens

With the citizen interface w

facility, citizens are activelythat PDS in Chhattisgarh

transparent manner. Thus f

been lodged, 4524 inquiries

citizens can also monitor t

transportation.

cy and Accounta


nsions



Computerizat

public distrib

d in this case study has helped to make

ers

n of receipts and cheques, the delay in pa

, farmers had to wait up to six days to re

ue is issued on-the-spot, where and when t

d inventory control

S have been computerised and standardis

ring of operations and verifications at each

tails etc. It provides an account of stocks at

he inventory of commodities with greater

nt stocks required.

untability

ery step, so data is at theauthorities, making it

itor the scheme. Gaps at

d and the faulty made

ebsite and the call centre

participating in ensuringorks efficiently and in a

ar, 4777 complaints have

completed and 161 FPS licenses have been

he movement of PDS commodities via

Figure 8: A gunny

PDS/ Source: FooChhattisgarh Stat




February 2011

11

PDS in Chhattisgarh

ments to farmers has

eive the payment for

e commodity is sold.

d. Web management

level like registration

all levels, helping the

fficiency, particularly

cancelled. Registered

SMS as sent during

bag of rice sold under the

book 2007-2008, NIC &Civil Supplies Corp


13/14

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Government of India

Looking Ahead

Overcoming challenges faced

data transmission to and froPDS in Chhattisgarh has co

and introduction of smart rati

PDS has often been scrutini

various state governments h

coupons, food stamps, and b

successful. The ICT solution

that indicate strengthening o

Madhya Pradesh are keen to

Research was carried out by the

Docume

For further information

References

http://www.cek.ef.uni-lj.s http://planningcommissio http://fcamin.nic.in/dfpd/

1&check=0

Power point presentation Food book 2007-2008, N

Corporation

Interview with NIC

cy and Accounta


nsions



Computerizat

public distrib

in terms of establishing connectivity, uploa

m remote villages and building a uniforme a long way. Future plans include the co

on cards.

ed for its high association with corrupt p

ve tried to address the issue in several wa

iometrically coded ration cards, none of th

being used in Chhattisgarh is showing ver

f the delivery mechanism. States like Oris

ndertake similar reforms.

neWorld Foundation India (OWFI), Governance Knowled

ntation was created by Research Associate, Sapna Kedia

, please contact Naimur Rahman, Director, OWFI at owsa

/magister/singh11-B-06.pdf

n.nic.in/reports/sereport/ser/stdy_pds.pdfventDetails.asp?EventId=26&Section=PDS

prepared by NIC

ational Informatics Centre & Chhattisgarh




February 2011

12

ding reports in Hindi,

ration card database,puterisation of FPSs

ractices and although

s like bar-coded food

m have been entirely

y encouraging results

a, Uttar Pradesh and

ge Centre (GKC) team.

oneworld.net

ParentID=0&Parent=

State Civil Supplies


14/14

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Government of India

Appendix A Inter

1. Who are the key stakeh(PDS)? Can you explain t

2. What was the need forChattisgarh? What was th

3. Who was responsible for4. Under the project ICT too

Procurement of pr Payment to farme Storage at wareho Transfer of produ Creating a Unified Calculation of req Transportation of

Please explain the process of

5. Was the staff at each level6. There is a system in plac

distribution process. How7. Citizens can also lodge c

ensure that these complai

8. What were the major chalovercome?

9. What are the achievemenoverall functioning of the

10.Are there any enhanceme11.Which other states have s12.Can you provide us with

Number of pr Number of FP Number of rat

cy and Accounta


nsions


Computerizat

public distrib

iew Questionnaire

lders in the implementation of the Publi

e process flow between each one of them?

the computerization of the processes inv

e situation prior to it?

he technical support and know-how necess

ls have been adopted at all levels i.e.

oduce from farmers

s

sese to millers

Ration Card holder Database

ired produce to be issued to each Fair Price

roduce to the Fair Priced Shops

omputerization at each of these levels.

trained for operating the new system?

e to ensure citizens participation in checkin

is this done?omplaints through a call centre. What me

ts are addressed?

lenges faced in the implementation of the p

ts of the project? What improvements hav

PDS? Has any impact study been conducted

nts planned for the future?

own interest in replicating the project?

he following data:

curement centres

shops

on card holders




February 2011

13

Distribution System

olved in the PDS in

ry for the project?

Shops (FPS)

g any leakages in the

sures are in place to

oject? How were they

been reflected in the

?

Documents

Gkc Oneworld Computerisation of Paddy Procurement