26
Rice Procurement in Orissa: Who wins who loses? (Procurement & warehousing management) Submitted by- Nikhil Akhouri (U309033) Xavier Institute of management, Bhubaneswar

U309033 PMW Report

Embed Size (px)

Citation preview

Page 1: U309033 PMW Report

Rice Procurement in Orissa: Who wins who loses?

(

Submitted by- Nikhil Akhouri (U309033) Xavier Institute of management, Bhubaneswar

Page 2: U309033 PMW Report

Rice Transplantation in the field…

Xavier Institute of Management, Bhubaneswar Page 2

Page 3: U309033 PMW Report

Contents

Rice Procurement in Orissa: Who wins who loses?

1. Introduction ……………………………………………………………………………………………………………… 2

2. Orissa & Rice…………………………………………………………………………………………………………….. 3

3. Status of Paddy/Rice in Orissa…………………………………………………………………………………… 4

4. Rice procurement in Orissa

A. Deciding target volumes of procurement………………………………………………………. 5

B. Agencies participating in procurement…………………………………………………………… 5

C. Procurement price of rice of Rice over the years……………………………………. 6

D. OSCSC (Orissa state civil supplies corporation Ltd.)………………………………… 7

E. FCI (Food corporation of India, Orissa)……………………………………………………. 8

F. NCMSL (National collateral management services Ltd.)…………………………. 12

G. TDCC (Tribal development cooperative corporation of Orissa Ltd.)………. 12

5. Evaluation of gain and loss of players involved in rice procurement…………………. 14

6. Conclusion……………………………………………………………………………………………………….. 15

7. Bibiliography…………………………………………………………………………………………………………………… 16

Xavier Institute of Management, Bhubaneswar Page 3

Page 4: U309033 PMW Report

Xavier Institute of Management, Bhubaneswar Page 4

Page 5: U309033 PMW Report

Rice Procurement in Orissa: Who wins who loses?

1. Introduction

Orissa is primarily an agrarian economy having nearly 30% contribution to the Net State

Domestic product (NSDP) with 73 percent of the work force engaged in this sector. Rice is the

staple food of Orissa. It is grown in almost all the parts of Orissa. Per hectare production of rice

today is 1.4 MTs as against 1.8 MTs for the country as a whole. Rice covers 77.7% of the total

gross crop area of Orissa. Along with production it is also equally important to maintain stock of

rice at state level. Government of Orissa maintains stock of rice by procuring it through various

agencies. Private players are also actively involved in this system are constantly supporting the

overall procurement system.

In this paper I would like to explain the present situation of paddy cultivation in Orissa and how

procurement of same d done at state level. I would also like to go in detail about the agencies

involved in procurement and price of procurement over the years. Since here we are talking

about procurement of Rice in the context of losers and winner I would write in brief about

different stakeholder involved in this process and their stakes in procurement of rice.

Broadly, organizations involved in this process are OSCSC, PACS, MARKFED, TDCC,

NAFED, FCI, NCMSL & Millers. So, it is very important to understand about these

organizations, their working pattern and procurement strategies in Orissa. Some of these

organizations are working on National level and few are only Orissa based. So, one can see the

difference between their strategies of rice procurement. Like, FCI gives high emphasis on quality

control of procured materials along with its purchasing & this is not the case with other

procurement agencies except NCMSL. At last an evaluation will be done of the loss and gain of

different players involved in this process.

Xavier Institute of Management, Bhubaneswar Page 5

Page 6: U309033 PMW Report

2. Orissa & Rice

Rice has been the principal food crop of Orissa much before the 14th century AD. When Wang-

Ta-Yuan, the Chinese writer of the 14th century visited the State it was being grown in

abundance. Other historical texts, like the Manasollasa of Somesvara and the Mahabharata of

Sarala Das, too point out that paddy cultivation was the mainstay of the people of this region

which was endowed with fertile land and had plenty of rivers running through it. Wild rice, it is

known, was tamed by the tribals inhabiting the Jeypore tract of Orissa which is considered to be

one of the secondary centers of origin of rice. The similarity between the name Orissa and the

Greek name for rice “Oryza” has led many to speculate that the name of the State derives its

name from the crop known as Oryza Sativa.

Thanks to the maritime skills of the Oriya’s, the locals traveled by indigenously built decorated

wooden ships called boita’s to far off Burma, Indonesia and Sri Lanka. It is during the course of

such business and plundering that popular variety of rice from those lands may have been

imported into the state to be later acclimatized and adapted as per local conditions. The important

varieties from the neighboring state of then undivided Bengal, home to rice eaters too may have

enriched the lands of the farmers of Orissa. Being in the possession of exquisite varieties was a

source of pride for the farmer as it elevated his position in the society. Farmers often exchanged

seeds just as coin collectors exchange rare coins. Besides these cultivated varieties, wild varieties

are found in the Jeypore tract, where the initial survey in the early decades of the 20th century

had recorded 150 varieties, and also the Bhitarkanika coastal area where a wild variety grows

abundantly in tidal mud flats based upon which many flood and salinity resistant varieties have

been developed.

It is thus no wonder that Orissa once had 50,000 recorded varieties of rice. The actual number

could have been more than 1,00,000 as record keeping was never the farmers forte. The Kings

too were fond of rice varieties as rice is an important part of the Mahaprasad that is offered to

Lord Jagannath every day. Even today there are huge stretches of land across Orissa that grow

rice for the daily offering to the deity.

Xavier Institute of Management, Bhubaneswar Page 6

Page 7: U309033 PMW Report

3. Status of Paddy/Rice in Orissa

Orissa Region is self sufficient in rice. All thirty districts of Orissa produce plenty amount of

Rice. The rice stocks from surplus Areas viz. FCI Districts Sambalpur & Titilagarh are moved by

rail to the depots for coastal districts and also Jeypore/Rayagada to meet the requirement under

various schemes. In addition rice are moved by road  through the  transport contractor from

Sambalpur/Ttitilagarh Districts to different depots of coastal districts.

Average consumption of rice in Orissa- (for the period of 30 days)

Rural- 12.80 k.g (Av. Value-99.45 Rs) Urban- 10.55 k.g (Av. Value- 95.41 Rs.)

Rice production in Orissa over the years. From 2000-01 to 2008-09 (in 000’MT)

Year Production

2000-01 4613.00

2001-02 7148.98

2002-03 3243.60

2003-04 6734.00

2004-05 6537.00

2005-06 6963.00

2006-07 6928.00

2007-08 7655.02

2008-09 7019.18

Xavier Institute of Management, Bhubaneswar Page 7

Page 8: U309033 PMW Report

4. Rice procurement in Orissa

A. Deciding target volumes of procurement

The FS & CW Department allocates the district-wise procurement target among government

agencies and under levy so as to achieve the overall procurement target based on the MSP,

expected monsoon, economic condition of the economy and facility available with the different

agencies The FS & CW Department fixes district wise target for raw and boiled rice for delivery

under CMR and levy to OSCSC and FCI, depending upon paddy production, rice milling

capacity and past performance; in consultation with State Rice Millers’ Association, Food

Corporation of India and Orissa State Civil Supplies Corporation, keeping in view the

requirement under PDS and the need for providing proportionately higher quantities of raw rice

to FCI for movement outside the state.

B. Agencies participating in procurement

Rice procurement in Orissa is done by different agencies. Here is the list of Agencies which are involved in procurement of rice in Orissa.

1. OSCSC Ltd. (Orissa State Civil Supplies Corporation Ltd.) 

2. PACS(Primary Agricultural Co-operative Societies)

3. MARKFED-( Orissa State Co-operative Marketing Federation)

4. TDCC-(Tribal Development Co-operative Corporation of Orissa Ltd.)   

5. NAFED- (National Agricultural Co-operative Marketing Federation of    India Ltd.) 

6. FCI- (Food Corporation of India )

7. NCMSL--(National Co-lateral Management Services Ltd.)

8. MILLER AGENT

Xavier Institute of Management, Bhubaneswar Page 8

Page 9: U309033 PMW Report

PROCUREMENT PRICE OF RICE

Year (OCT - SEP)Raw Rice Boiled Rice

Common Gr. A Common Gr. A2000-2001 869.00 917.00 870.60 917.902001-2002 903.10 951.10 899.50 946.802002-2003 938.30 986.30 924.70 972.002003-2004 965.70 1013.70 952.10 999.102004-2005 965.70 1013.70 952.10 999.402005-2006 965.70 1013.70 965.30 1011.602006-2007 1041.20 1088.30 1041.80 1088.202007-2008 1199.30 1245.00 1196.90 1241.902008-2009 1440.60 1486.30 1434.70 1479.70

CUSTOM MILLED PRICE OF RICE

2004-2005(FAQ) 1052.37 1102.11 1036.91 1085.482004-2005(URS) 1045.28 1093.14 1029.79 1076.502005-2006(FAQ) 1036.29 1084.47 1028.21 1075.242005-2006(URS) 1066.00 1115.56 1057.70 1106.072006-2007(FAQ) 1155.06 1204.83 1145.23 1193.832006-2007(URS) 1149.19 1198.80 1139.50 1187.932007-2008(FAQ) 1291.62 1339.99 1278.76 1325.982007-2008(URS) 1312.93 1360.87 1298.84 1346.632008-2009(FAQ) 1589.41 1638.21 1569.15 1616.802008-2009(URS)

DECENTRALISED PROCUREMENT (DCP) PRICE

2006-2007(FAQ) 1248.35 1300.38 1238.04 1288.862006-2007(URS) 1242.18 1294.04 1232.02 1282.652007-2008(FAQ) 1427.50 1478.35 1413.32 1462.992007-2008(URS) 1417.87 1468.24 1403.91 1453.102008-2009(FAQ) 1710.14 1761.41 1688.76 1738.802008-2009(URS) 1687.86 1738.17 1666.87 1715.98

CommoditiesCentral Issue

PriceConsumers' Price

(Rs. per kg.)With effect from /Year

Rice Common APL

905.00 10.05 1999-2000

905.00 10.05 2000-2001

830.00 9.25 21.07.2001

730.00 8.20 01.04.2002

730.00 8.23 03.05.2002830.00 9.30 01.07.2002

Rice Gr. A APL

1180.00 12.90 1999-20001180.00 12.90 2000-20011130.00 12.40 01.08.20001130.00 12.45 14.02.2001

Rice Common / Grade A BPL

350.00 2.00/4.00 1999-2000

590.00 5.00/6.50 2000-01 (up to 14.2.01)

565.00 6.30 14.02.2001 for 171 Non-ITDP Block

- 4.75 14.02.2001 for 143 ITDP Block

2.00 02.08.2008

ANTYODAYA Rice 2.00 02.08.2008

699.00 7.80 16.01.2000

C. Procurement price of rice of different category of Rice over the years

Xavier Institute of Management, Bhubaneswar Page 9

Page 10: U309033 PMW Report

D. Orissa State Civil Supplies Corporation Ltd. (OSCSC)

OSCSC ltd., was established on 3rd September, 1980 as a fully owned State Government

company under Companies Act, 1956. Initially it had an authorized share capital of Rs 5 Cr.

Currently, it stands at Rs. 15 Cr. The Corporation makes efforts to devise new approaches to

expand its horizon of activities with changing needs. The Corporation maintains a no profit no

loss status, in order to fulfill its commitment to serve the poor segments of the society. Orissa

State Civil Supplies Corporation, Ltd., a government company, engages in the procurement,

storage, and distribution of essential commodities to the consumers in Orissa. It offers various

schemes in the public distribution system for the distribution of sugar, wheat, and rice to the poor

families and senior citizens through a retail network of private retailers, self help groups,

cooperatives, gram panchayats, and maitrees. The company owns godowns for storage of

essential commodities, and operates mobile vans and model fair price shops for distributing

foodgrains. It also provides paddy procurement centers

Under decentralized procurement of rice the corporation for the first time undertook

decentralized procurement of paddy during the kharif marketing season 2003-04.

Comparative picture of Paddy procurement by OSCSC in 2003-04, 2004-05 & 2005-06

Xavier Institute of Management, BhubaneswarPage 10

Page 11: U309033 PMW Report

E. Food Corporation of India  

The Food Corporation of India was setup under the Food Corporations Act 1964, in order to fulfill following objectives of the Food policy :

Effective price support operations for safeguarding the interests of the farmers. Distribution of food grains throughout the country for Public Distribution System; and Maintaining satisfactory level of operational and buffer stocks of food grains to ensure

National Food Security.

Since its inception in 1965, having handled various situations of plenty and scarcity, FCI has successfully met the challenge of managing the complex task of providing food security for the nation. A strong food security system which has helped to sustain the high growth rate and maintain regular supply of wheat and rice right through the year. The efficiency with which FCI tackled one of the worst droughts of the century not only cemented its role as the premier organization in charge of food security in India, but also brought it accolades from international organizations.

PROCUREMENT

Xavier Institute of Management, BhubaneswarPage 11

YearKMS

Target of rice (in

MT)

Rice procured/received (in

MT)

Total invest. (in crore

s)

Subsidy

received from GOI (in

crores)

Sale proceeds received (in

crores)

Total recei

pt(5+6

)(in

crores

Loss/

profit incurred

1 2 3 4 5 6 7 8

2003-04

60,000

38,819

35.25

18.30

21.46

39.76

No loss20

04-05

1,00000

91,926

84.97

51.33

49.71

101.04

No loss20

05-06

2,50,000

26,819

89.70

11.18

11.31

22.49

 

Page 12: U309033 PMW Report

 In Orissa the average annual requirement of rice under various schemes is around 14.5 Lakh MT. The Procurement of Rice in Orissa Region by FCI and State Agencies during last 5 years are as follows:-  

(Fig. in MT)

KMS

Target Progressive Qty. Procured

Levy CMR TOTAL Levy CMR

TOTAL

(levy+CMR)

2002-2003 9,49,700 0 9,49,700 9,02,999 0 9,02,999

2003-2004 14,00,000

1,00,000 15,00,000

13,09,142 89,311 13,98,453

2004-2005 17,00,000

3,00,000 20,00,000

13,13,942 1,75,863 14,89,805

2005-2006 14,00,000

8,00,000 22,00,000

9,65,614 7,97,017 17,62,631

2006-2007 4,67,000 20,00,000

24,67,000

2,28,305 16,67,985 18,96,290

 

Procurement Operations

FCI, Orissa Region was purchasing only levy rice since 1982-83 to meet the requirement of food

grains under various schemes of Government of Orissa as per directives of Hon’ble High Court,

Orissa, Cuttack and on the advice of State Government to avoid any possibility of distress sale of

paddy, FCI started intervening in the market by purchasing paddy directely  from the farmers

since Kharif Marketing Season 2001-02. The present policy of the Central Government is for

Decentralized Procurement whereby the State should procure and utilize the rice in the Public

Distribution System.  The State has  participated in the procurement operation of direct purchase

of paddy through the Orissa State Civil Supplies Corporation and 4 (four) other state agencies.

But major target is put on FCI during the KMS 2006-07. The  State Government, has fixed a

target of  22 lakh MT of rice out of that 4.67 lakh MT is fixed for Levy rice to be procured by

FCI from Rice Millers and  6,49,180 MTs CMR through direct purchase of paddy by FCI and its

agency NCMSL. The balance CMR has been given to the  State Government Agencies for

procurement.

Xavier Institute of Management, BhubaneswarPage 12

Page 13: U309033 PMW Report

In the KMS 2006-07, the State Government through its agencies like Orissa State Civil Supplies

Corporation, MARKFED, NAFED, PACS and TDCC issue   are engaged in direct purchase of

paddy from farmers. Out of the above agencies, the State Civil Supplies  Corporation Ltd.is

actually involved in Decentralised Procurement as the resultant CMR of procured paddy by

OSCSC Ltd. is issued under PDS.  The rice of other agencies of the State Government like

NAFED, MARKFED,  PACS  and TDCC are delivered rice in the nearby FCI godowns as

Custom Milled Rice.The agencywise districts-wise   number of centres  opened for purchase of

paddy for 2006 – 07 KMS are as given below :

Name of the Agency

No. of centres opened

Revenue Districts covered

Quantity of paddy

purchased in MT

Custom Milling Rice delivered in

MTPACS 819 28 117266 66956NAFED 215 14 465608 278300MARKFED 157 16 290850 190098TDCC 9 8 20052 13027OSCSC LTD 500 30 810622 * 505151

As  stated above, FCI was involved in purchase of paddy in Orissa from KMS 2001-02 and it has

expanded its operations since then. In the district of Bolangir, there was a direction from Hon’ble

High Court of Orissa that FCI should open minimum 100 Paddy Purchase Centres.  Since  FCI is

having shortage of manpower, with the approval of Ministry of Consumer Affairs, Food &

Public Distribution, Govt. of India,  PACS  purchase and  paddy in Bolangir district on behalf of

FCI. PACS opened 84 centres on behalf of FCI in Bolangir district in addition to 35 centres

opened and directly run by FCI for purchase of paddy directly from farmers.  Details indicating

number of paddy purchase centres opened  and revenue districts covered  &  paddy purchased in

KMS 2006 – 07 by FCI are indicated below :-

FCI district No. of centres opened

Quantity purchased in MT

Custom Milling Rice

Balasore 05 928 612Berhampur 01 696 459Jeypore 09 24203 15974Sambalpur 32 61746 40752Titilagarh 134 98458 64982

Xavier Institute of Management, BhubaneswarPage 13

Page 14: U309033 PMW Report

Total 181 186031 122779  

Procurement of paddy by FCI through NCMSL :-

The Ministry of Food vide its letter No.167(23)/2005-PY.I dated 24.11.2005 approved NCMSL

to purchase paddy on behalf of FCI with the approval of Govt. of Orissa.  The Govt. of Orissa

approved NCMSL for purchase of paddy on behalf of FCI in Orissa  as per its Food and

Procurement Policy. The following table will show the quantity purchased  and number of

purchase centres operated by NCMSL during 2006 – 07 KMS.

 No. of Centres Quantity purchased (in MT) as on 18.05.2007

447 7,50,897 Now the emphasis is more on direct purchase of paddy from farmers as it helps the farmers in

getting minimum support price through account. 

The Food Corporation of India (FCI) procures cereals and foodgrains like wheat and paddy from

farmers at Minimum Support Price (MSP). FCI guarantees to buy all food grains from farmers at

the support price if it meets the quality specifications as laid by GoI under MSP. The FCI

procurement policies are intended as an insurance mechanism for farmers, providing price and

income stability.

There are seven FCI District Offices covering 30 Revenue districts of the state.   FCI Orissa  has

23(twenty three) own depots, 32(thirty two) hired depots from Orissa State Warehousing

Corporation, 8(eight) depots hired from Central Warehousing Corporation and Private Party.  All

the depots are  used for the purpose of scientific storage  and procurement of foodgrains, 30

Revenue Districts are covered by 7(seven) FCI Districts which are as under:

FCI Districts Revenue Districts

Cuttak Cuttak, Jaipur, Kendrapara, Jagatsinghpur, Dhekanal, Angul

Balasore Balasore, Bhadrak, Mayurbhanj, Keonjhar

Bhubaneswar Puri, Nayagarh, Khurda

Xavier Institute of Management, BhubaneswarPage 14

Page 15: U309033 PMW Report

Berhampur Ganjam, Gajapati, KAndhamal, Boudh

Jeypore Koraput, Rayagada, Malkangiri, Nowarangpur

Smabalpur Sambalpur, Bagarh, Jharsuguda, Deogarh, Sundargarh

Titilaarh Kalahandi, Nuapada, Bolangir, Sonepur

QUALITY CONTROL

 The FCI, Orissa Region has a high distinction of maintaining the quality standard of food grains

during procurement of levy rice, CMR and paddy, distribution of Rice/Wheat under TPDS and

other welfare schemes. In Orissa Region there has been no down gradation or damage to the

stock during preservation. Presently there is no stock of  ‘D’ category rice,  ‘C’ and ‘D’ category

wheat and  34.836 MTs slided down from ‘B’ Category to non-issuable at CWC, Junagarh. As

informed by Area Manager,FCI,Titilagarh responsibility were fixed on CWC & appropriate

value has been recovered from CWC.  DCC/RCC/ZCC has been completed and recommended

for dumping. 

F. National collateral management services Ltd.(NCMSL)

NCMSL is the first private procurement agency engaged by the Government of India (GOI) to

procure commodities under the Minimum Support Price (MSP) operations. It is the leading

private service provider to the Food Corporation of India (FCI) in the States of Orissa, Madhya

Pradesh, Bihar, Rajasthan and Uttar Pradesh. NCMSL has procured and handled close to two

million tons of paddy and wheat on behalf of FCI under MSP operations since 2005-06. Through

these services alone it has reached more than 0.5 million farmers.

NCMSL collaborates with FCI in the area of food grain procurement across different states as an

agency of FCI in align with the objective of creating linkages for growers & traders with the spot

and future market.  

NCMSL specializes in full-control procurement operations and better farmer servicing.It started

our journey in the later part of 2005 and reached the inflection point in a remarkably short period

of time. Now it is poised for a nationwide procurement with high quality standard operations in

place. 

Xavier Institute of Management, BhubaneswarPage 15

Page 16: U309033 PMW Report

G.TDCC

Prior to 1967 the Tribal people of Orissa were selling their collected Minor Forest Products &

Surplus Agricultural Products (MFP / SAP) to the private Traders/Money lenders and Sahukars

and were being exploited by unscrupulous traders. And due to in-accessibility of the area, there

were no Shops at the interior pockets of Tribal villages for which the tribals were covering a long

distance by foot to purchase their daily necessities and essential consumer goods.

Considering the above problems of the tribals, the Govt. of Orissa had formed a Welfare scheme

named Purchase Sale Fair Price Shop (PSFS ) Scheme under the control of T.R.W.

Department (now S.T. & S.C Development .Department). As the said scheme could not cover

the entire tribal Sub-plan areas and function under the administrative set-up in commercial line,

the Govt. of Orissa took a decision to form an Apex Cooperative Organization to take-up the

above activities for economic development of the tribals.

TDCC is actively engaged in procurement of rice in Orissa.

Paddy Procurement

Government in Food, Supplies and Consumer

Welfare Department has declared TDCC as the

Govt. Agencies for procurement of paddy in the

State especially in the Tribal Sub Plan (TSP) areas

of the State. The Corporation procures paddy

directly from the farmers in the following tribal

districts on payment of Minimum Support Price

(MSP) declared by G.O.I and supplies Custom

milled rice to FCI / OSCSC after conversion.

Kalahandi, Koraput, Malkangiri, Nabarangpur,

Nuapada,  Muniguda, Rayagada,  Mayurbhanja,  

Keonjhar, Gajapati ,  Balasore

 

Xavier Institute of Management, BhubaneswarPage 16

Page 17: U309033 PMW Report

Women Self Help Group are involved in

procurement operation on commission fixed by

Govt. of India.

sKMS Physical Target of CMR (MT) Achievement of CMR (MT)

 2006-07 15000 M.T. 13127 M.T.

2007-08 61500 M.T. 45212 M.T.

2008-09 77000 M.T. 58038 M.T.

5. Evaluation of gain and loss of different players involved in rice procurement

Government:- Government is the largest buyer of rice. It purchases rice through

different agencies like OSCSC, PACS, MARKFED, TDCC, NAFED, FCI, and NCMS.

Government decides MSP (Minimum support price) so it has price control. MSP is

decided on the basis of cost of production and change in trend of market. Government

buys rice on MSP and it is used in Targeted public distribution system. Government also

maintains a buffer stock of rice with it. This buffer is used in case of natural calamities

and other disasters. But government invests high cost in procurement of rice through its

deep rooted channels and also in maintaining infrastructure to support this system.

Millers :- Private millers procure paddy directly from farmers or farmer’s cooperatives.

Milling of rice is done and milled rice is then sold to different companies and even to few

government agencies. Since they are adding some value to the product there is a high

profit involved in this system. For millers major cost of procurement includes payment to

farmers, processing cost and registration fees.

Xavier Institute of Management, BhubaneswarPage 17

Page 18: U309033 PMW Report

Individual private players: - These are big business men who are in direct contact

with farmers or group of farmers. They buy paddy from farmers on farm or off farm and

sell it to milling industry or other processing plants. They are not regulated and thus they

sometimes create a major impediment in procurement system.

Farmer’s cooperative, Producer’s cooperative, SHG and other such

groups:- These are formal or non formal institution of farmers who produce paddy.

They form their group and do collective farming or collective marketing. They act as a

medium between industry and farmers. Their cost of production and marketing is reduced

as they do a large scale and thus they enjoy the benefit of large margin of profit.

Individual Farmers:- Farmers gets support price from government in the case when

price offered to them by market is not profitable. The Government has fixed the

Minimum Support Prices (MSPs) for Kharif Crops of 2010-11 seasons. The MSP of

Paddy (Common) has been fixed at Rs. 1000 per quintal and of Paddy (Grade A) at Rs.

1030 per quintal, which represents an increase of Rs. 50 per quintal over the last year’s

MSPs. Farmers are free to sell their produce to anyone they want. The major costs

incurred to them are cost of cultivation & transportation cost.

6. Conclusion

Farmers is producing paddy and consumer consumes it. In between there are many players like

Middle man, Millers, Processing industry, Farmer’s group & Government. After evaluating their

gain & loss we can say that everybody is their incentive. Farmers are getting fair price of their

produce in good market condition & MSP supports them in unfavorable condition. Government

is fulfilling his responsibility by giving incentives and subsidies to his procuring agencies FCI,

OSCSC, TDCC & NCMSL. These agencies are doing their part in supporting procurement

system and they are compensated for the same. Millers and other individuals procure paddy from

and sell them to industry after some processing and they charge for that. So, we see that

Xavier Institute of Management, BhubaneswarPage 18

Page 19: U309033 PMW Report

everyone who is involved is this procuring system is getting good rewards and its credit goes to

well structures Government’s procurement policy, each year revised MSP & infrastructure

established.

7. Bibliography

1. www. fciorissa.nic.in

2. www. ncmsl .com

3. www. tdcc orissa.org

4. www. oscsc .in

5. www.crri.nic.in

6. http://ouat.ac.in/Research/rice.htm

7. http://dacnet.nic.in/rice/HS-B-Table-13-Orissa.htm

8. www.living-farms.org/site/.../rice-in-orissa/119-rice-in-orissa

9. www.indiacom.com/yellow-pages/ rice -mills/ Orissa /

10. www. orissa pds.in/File/Food%20Policy.pdf

11. www.naip.icar.org.in/ES/ESC2MSSRF.pdf

Xavier Institute of Management, BhubaneswarPage 19

Page 20: U309033 PMW Report

12. www.thefreelibrary.com/India+%3A+ Rice + procurement +target+hiked-a0209203165

Xavier Institute of Management, BhubaneswarPage 20