Computerization of Paddy Procurement and Public Distribution System


Computerization of Paddy Procurement and Public Distribution System


Overall Best Project : Government of Chhattisgarh : Computerization of Paddy Procurement and Public Distribution System

Saturday, July 04, 2009

Extract : http://pcquest.ciol.com/content/implementation2009/2009/109070410.asp

Ram Prasad, a small paddy farmer who lives 22 Kms from Raipur, the captial of Chhatisgarh, is now a happy man. Earlier, he had to travel 22 kms to the nearest mandi to sell his paddy produce. Traveling so much distance meant that the whole day was gone, and a lot of money spent on transporting his crops. On top of that, the mandi decided the price for his goods, and even the payment was not made immediately. Now, things have changed dramatically after the Govt. of Chhatisgarh computerized its paddy procurement and distribution system. He now sells his paddy to the govt's Procurement Center, which is just 3-Km from his village. This not only saves him transportation time and cost, but he even gets his payment on the spot by cheque.
Vivek Dhand
Principal Secretary (Food)

QWhat has been the impact of this project?
All concerned officials can now track procurement of paddy. They can now know how much paddy is being sold by a particular farmer. On the other hand, farmers get their cheques as soon as they sell paddy which earlier used to take several days. Now data is counter checked to ensure every process is followed in proper manner.

QWhat was the biggest challenge while implementing this project ?
Computerizing and connecting 1577 procurement centers that includes centers situated in deep interiors was the biggest challenge. People are now surprised to find computers in rustic and dusty procurement centers which earlier was hard to imagine. Centers where Internet connectivity is not possible are connected via 'Runners' which is quite innovative and at the same time difficult to implement.

QWhat kinds of benefits do you see resulting from this project ?
Farmers are now aware of their rights, therefore no one can cheat them. On top of that, the total cost of software used in implementing this project is quite meager as compared to its huge impact. This e Governance application has been able to ensure that crores of rupees does not get diverted to other sources.

This is only one side of the story. The other side is that the Govt. of Chhatisgarh buys paddy from 7.5 Lakh farmers like Ram Prasad, converts it into rice through millers, and then sells the same in Govt owned Fair Price Shops to BPL (below poverty line) families across the state. Since Ram Prasad himself belongs to a BPL family, he gets benefited here as well. He can now buy rice at Rs 2 per Kg from the Fair Price Shops, along with 37 Lakh other BPL families. All these changes to his life were made possible by effective usage of technology.
Company Scenario
Before Deployment

* Both paddy procurement and public distribution processes were manual, leading to blackmarketing and there was no mechanism to track the same.

After Deployment

* The entire system to track procurement and distribution has been centralized, with built in alerts, checks and balances to ensure that all processes are being followed.

Implementation Partner
A.K.Somasekhar, NIC

This project was conceptualized and initiated two years ago by Dr. Alok Shukla, then Secretery (Food) and Gaurav Dwivedi, then MD of MARKFED & CGSCSC. Under this project, the Govt. of Chhatisgarh has computerized the entire process of paddy procurement and public distribution. This includes paddy procurement from farmers, its storage, milling and finally the distribution of rice and other commodities to 37 Lakh ration card holders through Fair Price Shops. To accomplish this task, the govt. computerized 1577 paddy procurement centers, 52 storage centers, all district offices concerned, 99 Civil Supplies corporation distribution centers and 35 FCI rice receiving centers. This covers six different organizations involved in food grain management, namely This Dept of Food, Marketing Federation (MARKFED), CG State Civil Supplies Corporation (CGSCSC), Food Corporation of India (FCI), Central Cooperative Bank and Primary Agricultural Cooperative Societies(PACS).

Besides bringing transparency into the entire system, the govt. has also taken several other steps to monitor and ensure that the system actually works.

Paddy Procurement and Milling
The paddy purchase centres are mainly located at village panchayat level. The computers that have been deployed in these centers have been loaded with a form based stand alone application (called PACS), which facilitates the purchase of paddy, and issuing it to millers, storage centres and FCI. When farmers submit their paddy here, they're issued a printed receipt, cheque payment, and delivery memo all on the spot. Each of the 1577 centers have a data entry operator, who is local to the society, and has been trained to operate the PACS module. All data from the PACS application in each center is uploaded to a central application hosted at NIC, Raipur. Some of the centers have VSAT connectivity for instant uploading of this data. The centers that don't have connectivity, have been equipped with motorcycle riders. There are about 300 such riders who carry the data in encrypted USB drives to the nearest Internet point, which is usually one of the Janpad Panchayats. These offices are equipped with V-Sat based connectivity. Similarly any new version of software and delivery order details are downloaded from the server by these motorcycle riders, and carried back to the procurement centres.

All operations carried out by the district level offices such as collector's office, DMO of MARKFED and DM of CGSCSC as well as headquarters are computerized through web based applications. Two computers each were installed at all the 52 storage centres of MARKFED, with a form based module to receive and issue paddy.

70 Custom Milled Rice (CMR) receiving centres of CGSCSC and 35 CMR receiving centres of FCI are using a web module to generate sample slips, analysis report and acknowledgment report.



We wanted to use technology to reduce the diversion and reduce the time taken for different processes. Towards this end, we worked an online model wherein all operations involved in food grain supply chain are done on computers. We received hundred percent commitment and support from users in this project.
Manoj Kumar Mishra, State Informatics Officer, NIC, Chhattisgarh


Unified Ration Card Database and issue of PDS commodities to FPS
A unified ration card database has now been prepared and ration cards are printed from it. Only those ration cards having a unique number and a barcode are now valid in Chhattisgarh. Due to this, 2.25 Lakh fake ration cards have been eliminated. Plus, shop-wise quota allocation of govt. subsidized goods has now been automated. Per card allocations are fed into the computer at state level. Shop-wise allocations are calculated by the software. All Fair Price Shops are required to give declaration of their stocks and sales in the previous month before issue of fresh PDS commodities. These figures are entered in the web application at CGSCSC warehouses. Based on allocation, stock and sales figures of FPS, the actual amount of PDS commodities to be issued to FPS is calculated by the software, and a delivery order is issued on the web application. After the issue of delivery order, a truck challan is issued indicating the truck number, driver's name, quantity dispatched, etc. The truck challan is also generated using the web application.

I have doubts whether technology can really reduce corruption or not. But I am sure transparency checks corruption. Hence
technology can be used to reduce corruption in the delivery mechanism. This project is an
example of how technology can be used to reduce corruption in the government.
A.K.Somasekhar, Principal Systems Analyst, NIC, Chhattisgarh



Website for Citizen Participation
This web site allows citizens to monitor the public distribution system. Citizens can register their e-mail ids or mobile numbers on this web-site to participate. Whenever PDS commodities are despatched to a FPS from the warehouse, an e-mail or SMS is sent to all the registered e-mail Ids and mobile numbers. This message carries truck number, quantity of PDS commodities being sent, the date and time of despatch. Citizens participating in this monitoring can then check whether the truck arrived at the FPS with full quantity. If it doesn't, or there's variation in the quantity of goods, they can lodge a complaint at a call centre setup by the govt as well.



Call centre and Complaint Monitoring System
A call centre with a toll free number 1-800-233-3663 has also been made operational by the Govt of Chhatisgarh. The complaints received by this call centre are immediately entered in the system and a complaint number is given to the complainer. Plus, complaints can also be registered via the Internet. All the combined complaints are sent to the concerned district officer. This officer has to submit a report on the action taken on these complaints. The status of complaints is also informed to the complainer on demand. The complaint redressal system is monitored at directorate and secretariat level for their speedy disposal.

This has brought a lot of transparency in the system. Moreover, due to this, the Central Cooperative Bank of Chhatisgarh was able to recover Rs 400 Cr from farmers on the loans they took for growing paddy.

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