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04/12/231
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CONTENTS
2
Case over view
Salient Features of Procurement System
SWOT analysis
Collection of data
CASE FACTS…
3
Tilam Sangh :- Rajasthan OGF (Jaipur)1980Four DivisionsEight oilseeds processing plantsCDS:-conducted extension activities (1984)By 2003:- set up 926 cooperative societies and
1.54 lakh grower membersProduction was less than the demandSmall production capacityPUSH was needed
4
Govt. started promoting cooperativesEarlier farmers used to take to tradersNCDC provided the fund and Tilam Sangh
organised the procurement systemIt took 5 year seed multiplication programAt village level – OSCSRegular meetings and targets were fixedAccountability for quality and weightMISAdequate infrastructure
5
Procurement from members onlyPoor quality was rejectedPayment was market drivenDeferred payment (10days)80% capacity utilisation (Jhunjhunu)No adequate storage facilityProduction and storage had marketing
implicationsFarmers were happy but some concerns were
there
Salient features
6
OBJECTIVESTo give appropriate price for oilseeds to the
grower members.
Purchase produce at OSCS head quarters and make timely payments.
Tilam Sangh Procurement System
7
Primary Co-op societies :- 926
No. of members:- 1.54 lakhs
Eight processing plantsTilam Sangh
OSCS
FARMERS
(members)
Processing plants
Components of Procurement system
8
Quality
Quantity
Time
Cost
Procurement system
Quantity
Year Oilseed procured Value (Rs. in cr.)
1998 16952 6.80
1999 26024 11.45
2000 35660 20.29
2001 62713 56.24
2002 82002 63.28
9
• 380% increase from 1998 to 2002
• Under CDS, area under cultivation and production was increased
10
Significant gap between amount available and amount procured by Sangh
At project level meeting the estimation of expected production and procurement target was fixed
Past data were take into considerationMonthly targets were also fixed
Quality
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OSCS was responsible for ensuring the quality and weight
Quality control counter at the processing unit- 250 gram samples collected from the farmer.
Grading is done on the basis of presence of foreign matters shriveled or spotted grains moisture content.
In case the of non compliance of the prescribed standards the materials was not purchased.
Standard reduction of Rs 7 and Rs 15 was done for grade I and grade II respectively below the FAQ.
For any discrepancy, amount was deducted from the society’s commission
AGMARK (Jhunjhunu plant)
Cost
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Determining the Price:- average price of highest bid of 8 to 10 auctions of more than 5 quintals of oilseeds per lot of that day in the mandi. (FAQ price)
Rates were valid for 1 day of procurement operations.
In case of wide fluctuations on a particular day rates were discussed with headquarters before announcing.
MIS played important role
Time
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Seasonality Kharif – Groundnut and Soybean Rabi – Mustard Storage facility is a problem
Perishability
SWOT analysis…
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STRENGTHS
• Happy farmers
• Adherence to quality
• Accountability
• Ensured supply
• Support from world bank
WEAKNESS
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Less capacity utilizationInadequate storage facilityDeferred paymentLimited procurement
OPPORTUNITIES
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Gap between total production and actual procurement
Total no. of farmers – total no. of members = total no. of non-members
No. of villages leftInter- cropping of mustard and soybean
THREATS
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Other private playersTradersUncertainity in sustainabilityEnvironment
Collection of data
04/12/23Group 218
Total area under cultivation Cropping pattern and marketing behavior of farmers Productivity Qty. purchased by competitors and margin difference Qty. available Nature of existing business undertaken by traders Perception about Sangh Procurement system Insect Pest Incidence Storage Capacity and storage Loss Realistic Capacity for each plant to whom produce is supplied Transit Loss Seasonality and perishability of the crops Demand of the crops
04/12/2319
Type of Data Nature of Data Utility in Procurement Strategy
Possible Sources
Total cultivable area available
Quantitative Potential area for procurement
Block Office
Cropping Pattern Qualitative What crops are available for procurement
Block Office /Agriculture office/ Sarpanch/Panchayat
Productivity Quantitative Potential area Block office or survey
THANK YOU!!!