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'Commissioner, Foo.s, Civil Sui)plics & Collst.mcr AffJirs, Punjab.

General Man::anor. Food Corporation o f India, Punjab Region. $ector 31, Chandigarh. M.111aging Dir.:ctor, Punjab Agro Foodorains Corporation. Sector -28, Chandlgarh. Managing Daroctor, Punjab State Warohou!':mg Corporat;on, Sector 17, Chandigar'l. Man<~ging Director, Ma~kfed . Sector 35, Chc;ndigarn. t,1:11l:J{I!no Oi:cctcr. Punsup, Secto r 34, Cnandigar!1.

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Cu:.toon Millonn Policy/Draft Agreement for Khari f 'llarkcting SeaGon 20 ~ 3-14

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Sup~ent Deptt. of Food Civil, . Supplies & Consumer Affairs Pb., Chandigarh.

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cunom Millinc Polley Z01H4

PUNJAB GOVERNMENT

DEPARTMENT OF FOOD. CIVIL SUPPLIES & CONSUMER AFFAIRS

( RICE PROCUREMENT BRANCH)

CUSTOM MILLING POLICY

KHARIF MARKETING SEASON 2013·14

INTRODUCTION:-

PunJab is a major contributing state of rice in the central pool. The handling

of food grain stocks is a major responsibility of the Punjab Government

The entire process right from receivmg food-grains at the purchase centre

to 1ts cleaning drying. storage. transportation with min1mum wastage is the

ma111 concern of tne Department. In order to maintain transparency. proper

co-ordmat1on between the procunng agenc1es and m1llers. there IS a need

to frame a proper policy which can prov1de proper management. financ1at

and admmistrahve mechanism to reach explicit goals.

SCHEME FOR CUSTOM MILLING OF KHARIF 2013-14 PADDY STOCKS:-

In order to ensure smooth operation of custom milling of Kharif 2013-

14 paddy 1)rocured by the procuring agencies. the following scheme

called "Scheme for custom milling of Kharif 2013-14 paddy" shall be

followed by all the procuring agencies i.e. Pungrain. Markfed.

Punsup. Punjab State Warehousing Corporat1on. PunJab Agro Fo~d

gra1ns Corporat1on the Food Corporation of lnd1a and the nee

millers.rhelf legal he1rs. For the purpose of custom milling of paddy.

the Stale will be taken as a single llnit.

2 PADDY TO BE CUSTOM MILLED ON CONTRACTUAL BASIS:·

Marketing Season commences from the 1st day of October each

~·ear or as per the dates notified by the Government. The puddy

amving 10 the mandis shall be procured by the Government

agencies as per the specifications laid down by the Government cf

India. Paddy so procured shall be got milled from the rice millers of

the State as per various clauses provided in the Punjab Rice

Procurement (Levy) Order 19.83. No nee miller shall undertake the

work of custom milling of any agency under any circumstances

unless or unt11 duly allotted for the purpose. In case any millt:r

refuses the custom m1llmg work allotted to him by the concerned

procunng agency. he shall invite penal action The following terms

ar.d con:111ions shall be adhered to for the custom mitlrng of padd~

Su~~·~~~-_ Deptt. of Food Civil, Supplies & Consumer Affairs Pb., Chandigarh.


cwom Mijlinc Pql!cy 101]:14

during Kharif Marketing Season 2013-14 by all concerned miller..

and violation. if any. shall be viewed seriously.

3 QEFIN!TIONS ;· In this pohcy unless. the context otherwl&e require.-

i) A "permanent milling centre" means a permanent centre where

there is a cluster of rice mills located. storage for food grains is

avaalable and where procurement staff of the agenCieS is

permanently posted and at which the procurement/milling operations

are monitored/controlled round the year

ii) A "temporary purchase centre" means the one which operates

only dunng the procurement penod and no permanent staff of the

procurement agency is posted there round the year.

iii) A "Mimdi" means a place at which the procurement staff of the

agencies is posted during ·the procurement season and at which the

procurement operations are carried out.

iv) A "Permanent Storage Centre- means a place at which storage for

foodgrains is avaalable and procurement staff of the agencies as

permanently posted round the year and at which the storage

operations are carried ouUmonitored round the year.

vi The word "centre" means a particular place where there ts

avaalabahty of space for the permanent storage of paddy/milling of

nee

~·iJ "Levy paddy" means. the paddy purchased by a nee miller with his

own resources.

vit) Cash security paddy. means. the paddy hfted by a rice miller after

mak1ng payment to Pungram at the rates and norms as prescribed

from .time to time by the Government

viii) Custom Milling paddy means the paddy purchased/procured by

the procuring agencies. including FCI and given to the ric~ m11ls for

milling.

ix) "Lessee" means a miller who has taken a rice mill on lease for a

minimum period of 12 months from the original owner by way of a

deed duly regtstered under Regtslratron Act. 1908 and duly

Incorporated tn the Revenue Records

x) " Miller" means the owner or other person in charge of a rice mill

and Includes a person or authority which has the ultimate control

over the affairs of such mill and when the said affairs are entrusted

to a Manager. Managing Director or Managing Agent. such

Manager. Managing Director or Managing Agent. It may be a

- rJJrf1z ~/

.s~~te.. ~k.\ Superintendent Deptt. of Food Civil, Supplies & Co~sumer Affairs Pb., Chandigarh.


Cuatpm Mil!lnc Ppllcy 2013-14

company. duly registered· under the Companies Act, partnership

firm. proprietorship firm. individual or any other legal enUty or lessee

as defined above.

xi) "Rice Mill" means the plant and machinery with which and the

premises including the precincts thereof In which or in any part of

which rice milling operation is carried on.

xll) "Mill Premises" means a defimte place having defin1te

bou~daries/limits on wh1ch a nee mill is established, paddy is stored

in the area meant for storage and rice milling operations are carried

on

xi1i) "Milling Season" means the time allowed by the Government to

complete the procurement of paddy/ its custom milling and delivery

of rice to the Government In a specific Kharif year.

xiv) "Family" means a group of people who share ties of blood.

marriage or adoption which includes the husband. the wife and their

dependent children and having one common ration card.·

xv) "Defaulter" means a mill/miller who is yet to clear the entire dues of

rice and/or seltle the accounts. of any procuring agency/ agencies of

the prev1ous year(s) and as detailed 1n Clause 11 (I) ..

4 REGISTRATION OF A RICE MILL :·

Each roce mill whiCh IS not reg•stered prev•ously with the FoOd &

Suppl1es Department or where there 1S a change in the constitution of the

firm. company or :o~ny other legal entity shall have to be registered

provisionaOy with the concerned Oistnct Food and Supplies Controller to

be eligible for custom milling cif the agencies paddy. For this. such rice

miller shall pay a fee of Rs.1 0.000/· per mill · apart from supplying other

relevant information as detailed in Anriexure-'111'. The

Provisional/Registration Fees will not be refundable. The registration of

rice mills shall be maintained on the website .of the department.

5. LINKAGE OF MANDIS AND RICE MILLS:·

The purchase centers/mandis shall be linked with the nearest milling

centre/storage centre keep1ng tn view the availability of milling capacity at

the milling/storage center(s) at which paddy is proposed to be stored/got

milled All the procuring agencies shall make necessary arrangements of

linking the proposed purchase centerslmandis w1th the storage

poults/milling centers i, such a way so as to incur bare minimum

expenditure on transportation. The agencies may also indicate at least one

alternate storage point, where paddy could be stored in case of any

~;: Su.~o..~,·

Superintendent Oeptt. of Food Civil, . Supplies & Consumer Affairs Pb., Chandt'Jalh.


Custom MIIIIM policy 2013-14

ex1gency. This should be got done by the agencies at the time of allotment

of rice mills.

Similarly. storage of paddy at a particular milling centre shall depend

upon the clear and specific milling capacity available at that centre.

5 STOCK ARTICLES :-,

For t~e storage of custom milling paddy of the agency/agencies

crates shall be arranged by the millert millers and they shall be pa1d user

charges for this @ Rs 15/- per tonne of the paddy stored by the concerned

agency Gunnies/Tarpaulins/Polythene covers/Nets etc. shall be supplied

to the millers by the concerned agency.

7. SHIFTING OF PADDY:·

a ) WITHIN THE DISTRICT:-

Surplus paddy if any. at a milling centre shall be shifted for its

storage to the nearest milling centre keeping in view the

availability of milling capacity at that centre. In case the

nearest milling centre does not have adequate or surplus

m11fing capacity. the surplus paddy shall be shifted to the next

nearest m1lilng centre and so on Plan for shifting paddy w1:hm

me district has to be got approved in advance from the

01rectortCommissroner. Food Civil Supplies & Consumer

• Affa1rs by the O.F S.C. of the concerned district.

b) . OUTSIDE THE DISTRICT:·

Surplus paddy. if any. available w1th any procuring agency in a

district would be shifted only as per the plan approved by the

Director/Commissioner. Food. Civil Supplie:s & Consu01er

Affairs. Punjab and against the submission of Cash Security

by the millers of the distnct. where the paddy is propozed to

be shifted. Provided that. keeping in view the specific problem

of the districts and the exigencies of the situation. the paddy of

any procurement agency can be shifted from one district to

another distnct or from one centre to another centre of the

same district ~rrespective of the fact whether the paddy in that

d1stnct/centre is surplus or not.

c) It should be ensured that paddy is shifted directly from the

purchase centre/mandi to the storage points/mill premises and

no cris-cross movement of paddy stocks takes place. In case

.any cris-cross movement of paddy stoc~s Is detected. the

concerned O.F.S.C./Districl Manager of the district and Deputy

s'"" \'Uf~ ~ n i .j

Supenntendent · Deptt. of FOOd Civil Supplies & Consu,;er Affairs Pb., Chandigam.


CUJtCim Mlmnc Policy 2013-14

Director/equivalent official of the concerned agency shall be

held personally responsible.

d) ' Paddy from capacity deficit milling centres can be shifted to

the interested millers of other milling centres/districts.

e ) SECOND SHIFTING OF STORED PADDY:·

1 In case of second shifting of paddy 1.e. paddy already sh1fted

and stored at any particular place/mill. the procuring agency

shall shift pa<Jdy to the rice mills already allotted to them after

getting approval from the Director/Commissioner, Food. Civil

Supplies & Consumer Affairs. Punjab who shall give such

approvals keeping in view the availability of space and other

factors needed for the smooth delivery of rice by the stipulated

period in the central pool.

2 The paddy shall be shifted to only those rice mills which have

completed 1 00% of its original milling and that too subject to

Physical Verification/Certification by the District Controller ot

the district concerned Specific reasons for

• allowing/disallow,ng the proposal have to be recorded

f ) ·CASH SECURITY SCHEME:·

While shifting paddy under the cash security head, the

following instruct1ons may be kept in view:-

1) Only the allotted rice mill would be allowed to lift paddy

under rhis Scheme. Since the transfer of paddy under

this Scheme is on the basis of PR to PR. all applications

for lifting of such paddy should have the

recommendation of the concerned DFSC who would

certify whether the concerned rice mill is a allotted rice

mill and would be in a position to mill the lifted paddy on

the basis of the rice rn1ll's past performance.

1i) Transportation cost o f paddy against RO within or

outside the district would be borne on a 51)·50 basis

between the rice miller and the concerned ager.cy

Whe,·e ~addy 1s going to be shifted from a mandi/centre

Within 1JO Kms. a cap of Rs.15/- per quintal on such

transportation shall ba there. Any amount beyond

Rs.30/- per quintal .:hall be borne by the concerned

miller himself. Beyond the distance of 100 Kms. the cap

shall be Rs.22.50 per Quintal and

..s~"' ~ i-. ~~ .\' Superrnterrdefif Deptt. of Food Civil, Supplies & Consumer Affairs Pb .• Chandigarh.

any amount above

Kh{i{ /


Custom Millin« Pollex 2013-14

Rs.45/· per quintal shall be borne by the concerned

miller himself.

oii) No addit•onal security amount shall be got depos1ted

from the millers for the paddy allotted to them under the

cash security head Only an agreement shall be signed

by the m1llers and the concerned agency tor th1s paddy

iv 1 A m111er shall be allowed to lift paddy aga1nst Cash

Secunt>· Scheme of the same agency to wh1ch he 1s

allotted for custom milling as far as possible.

v) Paddy to be ·allotted against cash security shall be

. allotted in multiples of 100 MTs. Value of paddy stocks

for the purpose of calculating the amount to be

deposited by the millers as cash security shall be taken

as Rs 1 001· per MT

• vi) For deposit of required cash security. the R1ce Millers

shall collect pre-pnnted Security Deposit Slip from the

District Manager Pungrain. Duly filled shp shall be got

checked and s1gned from the Distnct Manager.

Pungrain before deposu with any branch of the

designated .Bank. even 1f the paddy relates to any

procurrng agency

v1i) The miller shall lift the paddy against cash guarantee

within seven days from the issuance of release order for

the additional paddy. failing which the next eligible rice

miller shall be considered for allotment of additional

paddy

vii1) The security amount depos1ted by the rice millers for

allotment of paddy agamst cash guarantee shall be

refunded in total to them only after 31st March. 2014 or

on the completion of the custom milling. whichever is

later

ix) Loading and unload1ng charges of the paddy shifted

under the cash security head shall be borne by the

concerned agencies as paddy is being shifted on PR to

PR basis.

8 ii) STORAGE OF PADDY STOCKS.·

a Paddy shall be stored at the storage poinUrice mill by the

agency concerned a1 its own expe11ses. Subsequent

54~(\.~~ .. Superintendent ""01::.-- -Depll. of Food Civil Supplies & Consu~er Affairs Pb., Chandtgarh.


Cuugm Mjlffnc Pg!icy 20U·l1

operatlor.s like de-stacking/loading of paddy from storage

pomVtransportationlunloading at haudildrying/re-stacking etc ..

ltll the delivery of nee m FCI godowns shall be handled by the

rn1ller concerned at h1s own expenses

b. Paddy procured by the agenc1es shall be. by and large. stored

separately m the prem1ses of the allotted mills or a place

adjoin1ng to the rice m111 to be made available by the

concerned miller

c. The paddy stored in' the premises of rice mills shall be 1n the

custody of the rice millers and the responsibility for quantity

and quality shall be of the concerned rice millers. The m1ller

, shall ensure the storage of the paddy stocks of the agencies

:;eparately from that of his own purchased paddy stocks by

erecting a physical barrier such as a boundary wall or a proper

and durable fencing These stocks shall be open to Physical

Verification/Inspection by the concerned agencies and the

n•1ller shall facihtate •I

d Each m1ller shall prepare 1n lnplicate a pictonal chart/ sketch

depicting the positioning of the stacks. stack number. with the

number of bags m each stack. He shall reta1n a copy of the

above at his mill ptemises while the second COP.Y shall be

available with the inspector •n -charge of the concerned

agency and the third copy shall be kept in the distnct office of

the procuring agency.

e The paddy stored over and above the stipulated norm 1n a mill

shall be shifted at the nsk and cost of the concerned

Jnspector/AFSO/DFSO/DFSC or dquivalent ranks of the

concerned agenc1es

f. The paddy shall be stored only at storage po~nts duly

approved by the concerned procuring agency. These storage

points shall be adjoming/near the rice mills. No paddy shall be

srored at any unauthorized/unapproved and far off places.

under any Circumstances.

g. The concerned lnspec!or/Staff of the procuring agency shall

reconcile and submit cvmplete details/receipt of the paddy

stocks stored with the millers within 7 days of completion of

storage to the district office.

Su~~~~,· Deptt of Fo:;; LIVi/ '-------_

S~pplles & Consum'er Affairs Pb., Chand1g. 1rh.


CUJtpm Milllac Polley 2013-11

(ii) Shifting of Paddy from the Rice Mlll:-

ln casf' the .paddy stored 1n any rice mill IS not got mllled in time.

then tne agency shall get the paddy sh1fted to any other Rice mill at

the risk and cost of the original allottee.

& STORAGE OF PADDY IN OWN CUSTOOY:-

Bare min1mum paddy shall stored 10 own custody and that too under

exceptional circumstances only with the prior approval of the head of

the concerned procuring agency The paddy to be stored in own

custQdy shall be stored preferably within 8 kilo-meters of the rice

mills allotted to the procuring agencies. Such paddy stocks are to be

got milled from the mills allotted to the agencies at the earliest

possible so that agenc1es do not incur any undue financial

expenditure The responsibility for quality and quantity for the paddy

storeo m own custody shall be of the staff of concerned agency

10. PHYSICAL VERIFICATION OF PAOOY:-

The staff of agenc1es shall conduct physical verifications of the

paddy slocf..s on a fortnightly bas1s. Copies of PV reports shall have

to be submirted regularly by the concerned staff to the distnct offices.

The reports. besides indicating physical availability of stocks and

their quality. shall clearly .give the quantity delivered and available

w1th the n1iller

Initial storage of paddy with a rice mill shall be video graphed

Physical verifications should be video graphed once. every two

months Tha first physical verification should be carried out within 10 . days of completion of storage of paddy. Proper record of these

checkings shall be maintained. The following will be th~ fortnightly

norms for carrymg out the physical verif,cations:-

1. 1nspect01 or equivalent offictal of each procunng agency 100%

2. AFSO or eqwvalent officer of each procuring agency 50%

3. DFSO or equivalent officer of ~ach procuring agency 25%

4. DFSCIOM or equivalent officer of eacn procuring agency 10%

5. ODFIRM or eqtJivalent officer .of each procuring agency 4 rice mills

per month.

The physical verifications of rice mills where the storage 1s 1 0000

MT and above, shall be carried out jointly by the officialo mentioned

at Sr No. 1 and 2.

Su~Mt~~ki '-----~

Deptt. of Food Civil, Supplies & Consumer Affairs Pb., Chandigarh.


CUstom Milljnc Pol!sy 2011·14

11 ALLOTMENT OF RICE MILLS:·

A Allotment of nee mills shall be made by a dlstnct tevel committee

comPIIStng of district heads of all the- procuring agenc1es headed by

the Deputy Director (Field) of the concerned d1v1sion Oastnct

Managers of procuring agencaes shall be equally responsible in case

of a~y wrong allotment. If any agency finds any d1screpancy in

allotment capacity fixation or any violalton of the policy. they shall

bnng these facts to u~e notice of the Director/Commissioner. Food,

Civil Supplies & Consumer Affairs. Punjab for necessary action and

h1s decision In this regard shall be final

8 The rice mills which complete 100% milling of paddy stocks of Kharif

2012-13 by 31 07.2013/last date of milling allowed by the

Government of lnd1a are to be considered as eligible for allotment of

paddy tluring Khan I marketang season 2013-14. But af the mailers

who are vet to clear the entlfe mtlhng deposal the cost of the balance

nee@ 2012-13 CMR rates + interest 13% to be calculated from the

due date. they are to be c;ons1dered eligtble for the allotment for

KMS 2013-14, from the date they depos•t the due amount.

C All the allotments of nee l'!'lills shall be completed before 15 9.2013

After thas date. the allotm&nt cases shall be sent to

DtrectortCommissioner, Food. Civil S:.Jpplies & Consumer Affairs .

Punjab for approval. Allotment once made. shall n')t be char.ged.

Wherever any necessary change is required. it shall be done at the

level of Commissioner. Food. Civil Supplies & Consumer Affairs.

Pun;ab

D If a defaulter m1ll clears the governmenUagencies dues of !he

previous year(sl mcludtng KMS 2009-10. 2010-11 2011-12 and

2012-13 to tl1e full satisfactiOn of the Government. as mentioned til

clause 11 (C) above. it can be cons1dered as eligible for allotment

from the date all the dues are cleared.

E The rice mills are to be ~!lotted to all the State procuring agencies

mcluding FCI in proportion to the paddy to be procured by them. In

case one agency completes its milltng of paddy stored w1th a mill

and does not want to get any more paddy milled from it . then the

same mill can be formally allotted to any other agency at the level of

Director/Comm:.:;sioner. Food and Supplies . Punjab after assessing ·

the fc::ctual position. from the concerned agency.

Su~~~\' ,,

Deptt. of Food Civ'/ s r · · upp les & _Consumer Affairs Pb., Chand1garh.

·J I ' ' '

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F

- -Cyupm Mlll!rw Ppl!cy Z01H1

All the drstrict heads f . . . r 0 procunng agencres rncluding F C.l shall

P epare an authenti S careo hsr of defaulter and eligible rice m111s by 7'"

eptember 2013 givrn • 9 the nature of default and submit the same to

the concerned Di t . 5 net Controller. Food. Crvrl Supplies & Consumer

Aftairs The list h II . 6 a be consolidated by the concerned Drstrict Controller Food c· ·1 s · · rv1 upplles & Consumer Affairs by including the

defaulter mills of Pungrain and submitted to the concerned Deputy

Drrector (Field) cum- Chairman of the allotment committee.

immediately A copy of the Perlorma rn wh1ch this information is to

be furnished. is enclosed as Performa-1 & 11 (Annexure 1 & II). A copy

of the consolidated list w111 also be sent to Head Office by D.F S.Cs.

The following schedule wrll be adhered to by the District

Allotment Committee ·

Prt!paratron of lrst of elrgrble nee mills by 7" September

2013.

ii. Scrutiny of the hst by 12'" September, 2013;

iii AllotmenUissuance of list of allotted rice mills by 15"'

September. 2013'

iv Receipt of offers regarding lifting of paddy from surplus

drstricts from the millers by 20'" September. 201. 3.

v. Signing of agreement and deposit of security etc. by the

allotted millers by 20cn September: 2013.

The Charrman of the Allotment Committee -cum- Deputy Director

(Freid) shall pass a speakrng order rn respect of a defaulter nee mrll.

clearly stating the reasons tor not allottrng the mill at his level. These

ordE:rs shall be appealable 'Nithrn seven days thereafter These

speak.ng orders shall be passed rn respect of each list of allotment

issued oy the Distnct Level Allotment Committee. A detaileo list of

such cases where the Allotment Committee has not made the

allotment shall be submitted to the Head Office by 25-09-2013. If the

general/financial reputation of the rice miller is found to be not good,

the Allotment Committee should not allot th~ mill for custom milling

and pass a speaking order to that effect

G. Singte Mill/Single Agency - Each Rice Mill shall be allotted to a

single agency.

H No defaulter rice mill shall be considered for allotmentJ provisional

regis!ratron The default may be on the following col•nts:- .

s~·~t Deptt. of Food Civil Supplies & Consu~er Affairs Pb., Cl,a:Jdigarh.

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,J;'tl . I ./


--Cullom Milllnc Polley 201J.14

a If a nee m•ll h . as to deliver custom m1lled nee of any agency pertain•ng to the p · . revlous years •ncluding 2012·13.

b Any rice miller who has not completed 1 00% custom milling of

paddy allotted to him 1n KMS 2012-13 by any procuring

agency, would be declared as ineligible for allotment tor KMS 2013·14.

c If the owner/partner/director of a lessee/owner rice mill

becomes defaulter and is a owner/partner/director of a

new/lessee/owner rice m1fl, the m1ll and mill premises In

question shall be declared as defaulter and shall not be

considered tor allotment if transfer of rice mill either through

sell1ng out or through leas.ng out. 1s found to be sham

Bes1ces an y fam•ly member of a defaulter nee miller unless

liv.ng separately. shall also be treated as a defaulter. In such a

case. proof of separate residence/sep~rate family shall be

. required to the effect that his proJect is not being financed!

promoted by his defaulter family members/blood relations. The

Director/Comm.issioner. Food CIVIl Supplies & Co~sumer

Affairs. Punjab shall examine such cases and his deCision iri

this regard shall be final and binding on all concerned.

d. If the. agency reports any case of misappropriation of paddy by

a m1ller of the previous years.

e If a police1court casetarb1tration case is pending against the

m1ller on account of embezzlement relating to custom milling

or levy nee pertammg to any crop year. However if the m•ller

clears the default of the concerned agency along-with pe:nal

mterest at the rates for the relevant year(s). as decided by tne

govt irom time to tune he may be considered for allotm~nt

without prejudice . to the out-come of the FIR/Court

Case/Arbitration Case pendmg against him.

f. Premises of a defau:ter miller auctioned by a financial

institution/commercia/ bank shall not be considered for

allotment during KMS 2013-14. But in cases whore the buyer

has no relation with the prev1ous owner and the prem1ses 1s

purchased through public auction such case may be

considered for allotm~n1 However the decision of the

Commissioner. Food Civ11 Supplies & Consllmer Affairs.

Punjab to !l11s effect shall oe fmal. ' I

' .I

<::::. • "'~ ~ ~"'i----stJjJe'rirlt~nt · Deplt. of Food Civil, Supplies & Consumer Affairs Pb., Chandigarh.


I.

J.

C:vaom Mlllo,.c Polley ZOU·14

g. The rntllers Wtth whom FCI has banned its business dealings

on account of delivery of nee ·seyond Rejection Ltmit" (BRL)

and beyond PFA during the previous years.

h. II a nee miller unauthonzedly does milling of an agency other

than the one allotted to him. he shall be black listed and the

paddy stocks shall be lifted from his premises at hts nsk and cost.

i. Any rice miller against whom FIR has been lodged for creating

hindrance in the official functioning of the staff of the

Government

1 A rice n11ll runn•ng on a generator set or diesel eng•ne shall not

be considered for allotment

k , The nee m1lls wh1ct1 have not paid the bonus to the farmers 1n

KMS 2009·10 as announced by the Government of India for

the paddy purchased by them in their own account shall not

be considered for allotment. However, if the miller from whom

any bonus amount is due. deposits the same with the

respective District Manager. Pungrain he can be con!;idered

eligible for allotment.

I. Any miller declared defaulter on account of non-delivery/ non·

payment of levy rice/penalty for the previous years $hall be

treated defaulter unless he deposits the due amounVamount

deducted by FCI on account of non delivery of levy rice of the

prev1ous years.

m No defaulter nee mill shall be permitted to do custom milling

for and on behalf of an eligible miller i.e . an eligtble nee milt

shall not get h1s paddy milled from a defaulter rice mill. In ca$e

he does so. the eligible miller shall be blacklisted.

'rn case of a lessee firm being allotted to an agency. it shall be

the duty of the concerned agency to fully satisfy itself aoout

the bonafides of the lessee firm and it shall also take care of

stocks stored 1n such mills.

The authenticity of documents and •dentity of owners/

panners/Directors, including photographs. PAN number etc

shall oe verified by the concerned agency bcfcre storing

paddy m all rrulls

~tuk.. ~4~,· •: Supenntendent Deptt. of Food Civil Supplies & Consu~er Affairs Pb., Chandigarh.


K.

L

~lllin1 Polley 201N4

The efectric1ty co nnect1on shall be available m the rice mill on or before the date of the allotment without which no allotment shall be made.

Each allotted rice miller (whether owner or lessee) shall

submit a bank guarantee by way of two signed undated

payee's account cheques in favour of Managing Director ot

the concerned agency as per his milling capacity as detailed in

para ~4(e) of thr. policy

First cheque of 50% value of total paddy to be stored

shall be given by the m1ller before the storage of paddy and

!he second cheque of tl'le remaimng 50% value shall be g1ven

after t~,e completion of storage of paddy. These cheques can

be got encashed after g1vmg notice to the miller in case of

shortage of paddy/rice. if required.

M The rice miller shall enter the data of paddy storage at the

website of the department. After verification of the same by

the concerned District Controller. Food Civil Supplies &

Consumer Affairs. he would get the contract numbers

automatically He shall abide by the instructions given by the

department regarding the release of contract numbers from

t1me to time. The rice miller shall give his IP Address to the

Department

N Any rice mill found guilty of tampering with the offic1al data or

any other such mal-prac11ce 1n this regard shall be declared

defaulter

0 • Each lessee rice miller shall furnish guarantee or owners of

any two rice mills on a stamp paper of minimum of Rs.300/- as

per performa attached with the policy. (Annexure V)

12. ALLOTMENT TO LESSEE RICE MILLS:·

a. The allotment to lessee rice mill shall only be made if he is a

lessee for a minimum period of 12 months from the date of

allotment and the lease must be duly registered under

Reg1strat1on Act. 1908 and th 1s entry must be Incorporated in the

Revenue Record 1n the name of lessee.

b Each lessee shalf submit su(ety bono of the owner of two rice

millers en a stamp paper of minimum of Rs.300/- as per proforma

attached with tne policy

s ~ vu}C(. R.ttt, . Supermtendent L.__ Oeptt. of Food Civil Supplies & Consu~er Affairs Pb., Chandigarh.

1.~


Cystom Ml!!joc Polley Z01H1

c The owner&~nce m II 1 er& who furn1sh the guarantee on behalf of lessee must be d 1 •

u Y authonzed by a legally valid document 1.e in case 11 is a Compa ny then there must be by a resolution of the

company. in case of partnership firm. then. by all the partners and

In case of any other legal ent1ty then by valid legal document( a)

d. Tht? property of the owner who stood guarantee on behalf of the

le.ssee shall remain under charge of the concerned procuring

ag~ncy[ies] 1111 the liabilities of the lessee are fully discharged.

e. In case a lessee rice 111111 fa1ls to complete the m1lling

operations before the exp•ry of h1s lease penod. he shall be

reqUired to extend the lease penod of h1s mill till the completion of

m1llrng operations.

13 VOLUME OF WORK:·

The GovernmenUagency does not gua1antee any definite volume of

work relating to shell1ng of paddy at any time or throughout the

period of contract The mere ment1on of any type of work in this

policy shall not by itself confer a right on the miller to demand that

work relating to shelling of paddy at a particular centre/rr.andi should

necessanly or exclus1vely be entrusted to him.

As paddy is to be allotted to the mrller subject to its avarlability

with the procuring agencies. the shortfall. if any. from the paddy

allocatron to be made without Cash Security would not be arranged

from·other districts and th1s portron shall be deemed to have lapsed

and th'e miller shall have no claim agarnst it.

1<: ALLOTMENT OF PADDY:·

a. A min1mum of 150 M.Ts of paddy is required to be purchased by

the m:ller in his own account or he shall deposit an amount of

Rs.5.00 lac (Rupees Five Lac only) The Rice Millers shall collect

pre-printed Security Deposit Slip from the District ~anager.

Pungrain. Duly filled slip shall be got checked and signed from

the District Manager. Pungrain before deposit with any branch of

des1gnated Bank even if the paddy relates to any procurrng

agency.

However this clause 1s not applicable in the case of

Markfed. wh~re it stores paddy rn tneir own Modern Rice Mrlls

located at dtfferent places.

Hencefprth, a m:uer shall be permitted to convert any

quantity of paddy rnto r1ce provided he submits bank guarantee or

~n.d.:.~"'' Superintendent Deptt. of Food Civil, Supplies & Consumer Affairs Pb., Chandigarh.

rl~v.l Ai I

IJ


'l /

-·-----~ -- - --Cwttpm Ml!!Jnc Pphr ~

FOR of the matching II'AI and ue of paddy to the concerned agency

gets pncr permissiun for it. b. Paddy Procured b .

Y 1 le agenc1es shall be equitably distnbuted amongst all 'he ,. . . .

• • e 191ble nee m11Js at a pa11icular mam1 PermanenUstora 'II' . · ge m1 rng centre for the purpose of custom milling on the b . . asrs of therr milling capacity whiCh shall be

certi fi~d by the concerned Distnct .Controller. Food. Crv11 Supplies

& Consumer Affa1rs and as per provisions of thiS policy It 1s

furthe• adaed that to ensure eQuitable distributron of paddy and

soe~CJy m1llrng of the agenc•es paday. the rice m11Js located at the

temporary ourcnase centrestkatchr mandrs shall oe cons•dered at

par With the lll!IIS located at the marn/permanent storage1m1lhng

c:entre.

c. T.1e procuring agencies shall distribute paddy to the allotted m1lls

eqtlltably on a weekly basis (7 days) from the elate of

procurement and the mills which are allotted at a tater stage or

refuse to store paddy of the agencies at any stage shall have no

ctarm with the agencies to get paddy on equitable basis wctll other

11ce mills A quantrty of 500 M Ts for every one tonne capacuy 1n

the f1rst round shall be allotted and the second round of allotment

of paday st1a11 sta11 only when the first round has be-an c0mpleted

and the mill 11as completed the mandatory requireiToent of

purchase in its own account The· concerned agency shall ensure

mamtenance of proper record of storage of each round of paddy.

d In the case of lessee rice mills. the maximum paddy that can be

allotted wou!d be 80% of the ncrms for the owner millers with or

w•thout cash security. However if a lessee rice miller who has

completed the entire work of custom milling (100%} by 3ist of

March 2013 shall be allo:ted paddy as per his entitlement without

any cut as given in the norm tn KMS 2013-14.

e. Subjet;l to the availability of paddy with any agency at a

pe:me1nent m•lling centre following shall be the norms for

allcca:ion/storage of padd~' durrng the- KMS 2013-14. But in the

case of rice m1fls 1nstalled under the long term custom milling

pqlicy. the department shall allOt paddy to such mills as per the

norms as provided in the long term pot1cy of the Government:-

Su~~t~kt '< Deptt. of Food Civil Supplies & Consu~er Aff. . Pb., Chandigarh. airs


Cvstpm Mlllinc Pp!ky 201H 4 sr:-~c::----: , No. IIPIIC/ty Amount-;- - ,--, _ _

of the b k o Maximum 1 Mulmum I rice m/1/ I gua:S~tee I bPaddy to P•ddy to b•

1 • 111/otted ' •llotted 1

L / d to b~ Without 1 against cash . - - ----- , 'F.Iepols,Rted I cash

1 security I

1 1 1 " fl. n s.) security j 1

2

3

4

5

1 MT 30 lacs 3000 MT 4 800 MT I

2MT 50 /,?cs 5000MT Ft-600-~ 3MT- l()iacs - iifo(J MT

I

2 400-MT

4MT 90 lacs 9000.MT 3200MT

SMT 1 crore --"iOOOO MT -- 4000MT- -

··-6- - ·- 6MT __ _ 1 25crore 12000Mf 4800MT ~

7---· 7 Mr-~ _t.40crore - -uOOOiJT+-55ooMT_j --8- --; --- B MT- 1 60crore 16000 MT 6400 MT

~-g -~9MT 1.80crore 18000MT 7000 MT

10 7500MT above

t. 8a,sed on t'he -past pertormance. a rice miller Wholiascomplet.td

custom m1lling work of KMS 2012-13 by 31 11 March . 2013 shall be

given 25% onore oaddy for custorn milling per nee m111 over and

above h1s entl!lement as per the norms Similarly. the rice m111s

whiCh have completed custom milling work by 30-04-2013. 31-05·

2013 and 30-06-2013 would be g1·1en 20%. 15% 10% more

paddy respectively for custom m111ing per rice mill over and above

his entitlement as per the norms. This shall be an option. not

mandatory for the above said categories or mills.

g. The m1lls which got their capac1ty enhanced 1n KMS 2012-13

shall not be allowed the benefit of this enhanced capacity in KMS

2013-14 and paddy shall be allotted to them during KMS 2013-14

on the basis of their pre-revised m1!ling capacity. Th1s benefit

shall be al:owed in the subsequent milling season i.e. KMS 2014-

15 and 11 shall be subJect ro the m1ll's milling performance dunng

KMS 201 3- 14

h Th~ paddy purchased by the commiSSIOn agent shall not be

stored in his own nee mill. 1f he operat~s a rice mill also.

i. For the units from where paddy was shifted by the millers/ agency

in KMS 2012-13. the quant1ty of shifted paddy s~~~~ be deducted

from the maximum paddy to be alfottdd to that mill without cash

security

sl.\n.a-4 ~"'; Superintendent · ~-Deptt. of Food Civil Supplies & Consum'er Affairs Pb., Chandigarh.

_,. • J

I ' 1/

/


j · The twltpm M!!linr Po!!sy 201J.1f allotted ·

nee mills shall concerned ag enter into an agreement with th

ency by 20 09 2 e formalities in this 013 and complete all other

regard. failing wh· h to ~e Cancelled s· IC the allotment Shall be liable

· •gnatory to the a by the greement must be authorized owners/partners/D

doc ~rectors through a legally executed ument rn hrs favour H

st'll . . . · owever. the overall responsibility shall I I est With the own .

er nee miller In any case no paddy shall be storec with the m II II 1 er 11 he executes the agreement and s1gns the necessary docum 1 en s. A set of documents shall be sent to by

the concerned DIStrict Manager to his Head Office.

The power of attorney to run a rice mill can be given only to

the share-holder or. partner of a rice mill and not to any third

person who 1s in no way connected with the rice mill.

T~e agreement to be executed by the rice millers shall be made

in four copies (One original and three attested copies). The

District Manager shall retain the original copy of the agreement

and one copy each shall be retarned by Managing Director.

Deputy Drrector (Freld)/RM/equ1valent officer of the concerned

agency and the m1ller concerned

Signatory to the agreement shall be authorized by the

partners/directors in the partnership deed or otherwise all

partners shall sign the agreement. No GPA shall be entertained

for signing the agreement.

k Security amount of Rs. 1.50.000/- (Rupees One lac fifty

thousand) per tonne milling capacity by way of Demand Draft

shall have to be deposited by the rice mills. Demand Draft shall

be 1n the favour of Managing Director of the concerned agency. It

should reach Head Office of the respective agency by

30.09.2013. No paddy shall be stored in a rice mill which does . not d~posit the requisite security amount

For depositing the above mentioned security. the mills allotted

to Pungrain shall collect pre-pnnted Security Deposit Slip from

the 01stnct Manager. Pungrain. Duly tilled slip shall be got

checked and signed from the District Manager, Pungrain before

deposit with any branch of designated Bank.

For the purpose of milling of paddy, stocks shall be issued

against advance rice by the staff of procuring agencies in lots of

200 tonnes (two stacks) each through a release order and that

J)~i.Sc(.

~ ~·· t_ R._r_. \.1-Superint~f -.. \ Oeptt. of Food Civil, . Supplies & Consumer Affa1rs Pb., Chandigarh.

--


Cynqm Mll!!nr Pg!!cy 20U·lf Paddy iss d

ue /received witho treated as a . ut a proper release order shall be

senous lapse Th be issu""' 8 next lot of paddy for milling shall

"""' only after th del e resultant nee of previous lot has been

lvered to FCI . · and the acceptance note and we1ght check

memo have been r

reqUired The ag ece1ved and uploaded on the website as

ency shall keep a proper record of 1ssuance of release orders of paddy

rn. In case the miller lifts the paddy w1thout R.O or un-authonsedly

co~verts it mto rice. it shall tantamount to defalcation and the

department may take any action against the miller The m1ller

shall be liable to pay th~ interest @ 13% per annum for the value

ofp~ddy for the duration of defalcation

However. the millers who complete their milling within

the extended period of milling are exempted from this clause

n. Rice millers shall submit Sale Bills to the concerned agency

within 7 days of the delivery of nee

o Each rice 111111 shall maintain the Stock Registers which should be

dt..ly autnen!lcated/ vent,en by the concerned staff

( lnspectortAFSO 1

15 PAYMENT OF MILLING CHARGES:-

The rice millers shall be paid milling charges for custom milling of

paddy as fixed by the Government of India. However. all bye

products v1z. broken rice. rice kani (rice husk and rice bran etc.) shall

be the property of the rice miller The rice miller shall be bound to

follow any change in the policy made by the Government of India or

the State Government from time to time

16. OUT-1URN RATIO:-The out-turn rat1o fixed by the Government of

India as· applicable shall be as follows· -

n } 67% for raw rice.

bJ 68% for par-boiled rice

17 Services to be provided by the miller:-

a) Destacking of paddy

b) Loading of paddy from storage point. transportation and

unloading of paddy for milling at haudi/drying.

Dry1ng of paddy stocks C)

d)

e)

f)

Katai of paddy bags before de husking.

Re-stacking of paddy stocks.

De-husking of paddy stocks

s4., ;l fl4 . Superinf~~t ~ 1

Deptt. ·of Food Civil, Supplie5 & Consumer Affaire Pb .• Chandigarh.

IX


--9) h)

F'll' ~11om MUll I 1ng up fnc f'o!!cy ZP1H4

o bags of rice . Dara makln . Pnor to dara making.

i)

k)

I)

9 of nee ba double line m gs and filling/sewing of bags With

1 achme Stitchmg

ransporta uon of nee to FCI

Deliver depot Y of acceotance notes

rei weight-check memos and other evant documents r

C or cla,nung payment from the Food orporat,on of lndi

d a and uploading them on webs1te as , " ected by the Government from time to time Miller shall sn h . . . 1 c a raxm shptcanvas slip with each bag.

bearing name of the miii/Centre1D1stricU category of rice/ net

we,ghtt contract no.t crop year on the bags.

The miller shall be responsible for maintaining the quality and

Quantity of the paddy/rice stocks till the delivery of nee to FCI

under the superVIsion. control and assistance of the agency

off1c1a1s

18 DELIVERY OF RICE:-

A) FCI snail mtnnate the latest status about the vacant space to the concerned agency on the flfst of every month' and the

delivery of custom rmlled nee sh~ll be routed through the

concerneq agency. However. responsibility for the Quality of

nee shall be that of the concerned miller.

B) The miller shall utilize the milling capacity strictly on the bas1s

of paddy stocks stored by the Government agency and paddy

purchased by the miller in his account.

a) (Juring KMS 2013-14. the millers are exempted from delivery . . of levy rice on the1r pnvate purchase.

b ) Detrvery of custom milled rice shall start immediately i.e . from

the commencement of Kharif Marketmg Season 2013-14

cl T:rne s::hedule for the delivery of custom milled nee snail be

as under

Monlh

Upro 31 51 December. 2013 Upto 151

n February. 2014 Upto 31" March, 2014

Percentage of delivery

33% 66% 100%

However. m case there is no space available with FCI

for acceptance of custom milled rice. the above mentioned t1me

schedule shall be extendable upto 30.06.2014 during which no

interest shall be charged from the millers tor delayed delivery of

nee .,~n\;y_,

S~dent -Deptl of Food Civil, Supplie3 & Consumer Affairs Pb., Chandigarh.

I'•


- - .

No;n ~ b terest shall b y 30.06.2014 H e charged if delivery of CMR .

Char . owever interest rs made ged w.e.f 01 o4 , 0 1

®13%/RBr rates shall be p · ~ 4 on th . rovrded space f e rrce delivered after 30-06-2014

d or delivery of ) It rs how rrce was avarlable

ever clarified that the agencres pace of milhng shall be monrtored by

as Per the abo inviie action · ve schedule and shortfall. if any. shall

such as shifting f cost of th 0 paddy to other mills at the risk and

e concerned .-ice mrller. rf required. e ) If the miller fail

s to complete his milling even by extended dale allowed by the G .

overnment of lndra. he shall be required to pay the a,. · ·r

-qurs1ron cost of paddy (MSP + Taxes + cost of bag +

Transportation) and interest @13% to be charged from 01-12·

2013 trll the time he clears the dues He shall not be pard any

mrllrng charges for the undelivered stocks

f) In case a miller causes any Joss to the stored paddy stocks

because of mrsappropnation. theft etc. or if the rice

manufactured by hrm does not conform to the specifications.

or •f he farls !o delrver the nee ov the due date. he shall be

liabre to make good the enrrre Joss at value of rnrended custom

milled rice and interest at 1 3% from the date it becomes due

Jill the dale of actual realilation.

g) The rice miller $hall be required to manufacture rice as per

specifications laid down by the Govt of India and deliver the

same to FCI at its depots The tran~portation/incidental

charges. if any. shall be pard rn accordance with the

rnstructrons issued by the Govt of India from time to time.

h ) The liabrllty of quality cuts on rice. if any. shall be that of the

mtller

i) The rice miller shall deliver rrce to !he central pool in 50 kg

bags (8-twirt gunny bags). The cost of surplus gunny bags

retained by the millers used for packing of paddy would be

realized from the rni!lers at the rates fixed by the Govt. · of

India/State Govt or under the instruct•ons issued from time to

time.

j) In case a rice miller fa1fs to deliver the custom milled rice of

Kharif 2013-14 season to the agency as per tne stipulated . scpedule and the agency has to shift the paddy stocks. it shall

~~· '"' dHill .._ Deptt. of Food Civil, Supplies & Consumer Affairs Pb., Chandigarh.

: 11\-~// .. ; " ' . /


b ~IWRm Milling Poflcy 20U:H e done t

. a the risk and cost . QIVtng hun due n I' of the mafler concerned after

It) Th t o ICe for this purpose • a the material (tarpaulins .

the proc etc.) Which shall be supplied by urement agencies I h .

of padd 0 1 e Rice Mills for proper storage y must be returned I . o the agency concerned after the

completaon of proc . ess of paddy and 1n case the miller fails to

return the same th . · ~n the procunng agency is bound to claim

lis costs along h . . wn, compound Interest@ 21% per annum.

I) The delivery of rice shall be deemed to have been completed

by the miller after the stocks are loaded into wagons and

delivered into the Godowns of Food Corporation of India as

per directions or the authorized responsible official of the

agency aft.er necessary weighmenu inspection and approval of

the qu.anuty/qualily m accordance with the prescribed

procedure of the State Government at the cost of the m1ller. II

shall be the responsibility of the miller to supply ' Acceptance

note· weight check memo and all other relevant documents to

. the concerned agency withm 7 days of delivery of rice for

claimmg payment fr~m FCI. falling which the release order for

due quantity of paddy shall not be issued.

19. All the d1sputes and differences arising out of or In anv manner

touching or concernmg the agreement whatsoever shall be referred

to the sole arbitration of tl'le concerned Managing Director or any

person appointee by nim 1n th1s behalf. There shall be no objection

to any such appomtment by the miller that the person appointed is or

was an employee of the concerned agency or that he had to deal

with the matters to wh1cn tne contract •elates and that in the course

of his dut1es such an employee of the concerned agency had

expressed views on all or any of the matters in disputes or

difference. The award of such arbitration shall be final and binding

on the parties to th1s contract It is a term of this contract that in the

event of the arbitrator being transferred. or vacating his office or

being unable to act tor any reason. the Managing Director . concerf!ed at the time of such transfer. vacation of office. death or

mability shall appoint another person to act as arbitrator. Such a

person shall be en!JIIed to proceed with reference from the stage

where it was left by h1s predecessor.

Q ~I s-Deptt. of Food Civil Supplie~ & Consu~er Affairs Pb., Chandigarh.


} . .X,

I •.

t "{ .> .('\ .. : , l I

r

20.

21

·-·-----=~---

... -- .... _ ~· ,_

~.om Millin£ Polley 2013·14

In case t 0 any emb 1 . ezz ement/loss of paddy/rice etc. the State

agency shall be at lib . . . . . erty to launch cnmmal proceedings agamst the

concerned miller f . or recovery of Government dLJes. besides availing

other legal remedies against the miller in accordance with law. N . 0 nee miller shall pledge the paddy belonging to the State

procuring agencies with th~ banks for availing cash credit limit for his

business transactions. A consolidated list of rice mills along with

. allotted and stored paddy would be supplied to the lead banks. If any

miller indulges in this malpractice. he shall be immediately black

listed and the stocks of paddy/rice shall be lifted from his mill to other

mills at his r.isk and cost.

. '

22 The Government reserves the right to add/delete/amend any clause

of thrs policy at any time in view of any exigency.

Sup nntendent Deptt. of Food Civil,

Director/Commissioner. Food. Civil Supplies and Consumer Affairs. Punjab

Supplies & Consumer Affairs Pb., Chandigarh.


(To be executed ~ on stam

P Paper and auested by Notary Pubhc)

' Crop Year

Q.!non, Mill Inc Polley 20l l-14

Code No of M1ller ----ihis --------

Agreement · . of 15 made this (day) ----(month) of th T e wo Thousand Thirteen between the

·- -:- . _(complete add . . District Fo d ress) through •ts authorized officers 1.e.

0 and Suppl c . · the . G •es ontroller/D1stnct Manager (hereinafter called overnmenvag " .

ency l wh1ch express1on 1ncludes its successors and ass

1gnees of the one part and Mts through

irs Partners namely ------ (here1natter called the "miller" which

expression' .shall. mclude the1r successors/legal heirs and permitted assignees) t11e other part

Whereas the GovernmenVAgency is desirous of having paddy milled into

rice from the m•ller as per vanous clauses of the Punjab Rice Procurement

(Levy) Order. 1983 as amended from time to time and the miller agrees to

mill paddy on the terms and conditions hereinafter contained · •

Now. therefore. it is hereby agreed and declared by and between the

part•es that:-

The m1ller shall not undertake custom milling of paddy of any other

Government agency /FCI or of any other person or of any concern

unless and llntil 11e completely delivers nee processed out of paddy

duly allotled by the State Government

;, Th~ r.1iller shall ulll•ze ent"e m1lllng capacity strictly on the

bas1s of paddy stocks stored oy Govt. agency and purchased

l:Y the miller in hrs account

ii) The miller shaH not .get the elec.tricity connection of his mill

disconnected till completion of milling of contracted paddy.

2. The quantity of padd~ stored in the rice mill will be as per the final

receipt (attached) on completion of storage of paddy, which will be

JOintly signed by the rice miller. and the District Manager of the

concerned agency.

3 The miller shall keep the record of custom milling of paddy in the

. \

followmg Performa and shall submit fortnightly report to the District

Food & Supplies Controller/concerned agency which will be up

dated at me 11me of receipt of additional oaddy if any. for custom

,--,1 ' , '\ ,. I • ) /

su~naenr -Deptt. of Food Civil, . Supplies & Consumer Affatrs Pb., Chandigarh.


Olillrng ana Of ~torn Millin, Policy 201~ lhe delrve

Poet ry or each consi n . 9 ment of nee to the Central 4

1 ~

tiame of agen9:

4 Name of the storage centre Variety of paddy

Stocks of paddY

Baas Weight 10 ou~

7

5 Oty. Or Paddy issued out of Col.4 by Govt./Agency for

Milling Bags Weight in Qtls.

_ ,_8 __ _

6 Out-turn ratio for

conversion of paddy into nee.

Raw Par-bo1led

9 Millrng Rate ~ paddy rmlled Balance un-milled paddY

Raw Par-borled Bags Weight in Otis. Bags Weight in gus.

10 11

Srgnature of the miller Signature of Inspecting Authority Centre

With date In-charge-with date.

(NAME IN CAPITAL LETTERS) (NAME IN CAPITAL LETTERS)

5 The mrller shall undertake snellrng of paddy at the rates fixed by tne

Government of lnd1a from time to time and provide services as per

detarls given below: -

a) Destacking of paddy.

b) Loading of paddy . from storage point. transportation and

unloading of paddy for milling at haudildrying.

c) Drying of paddy stocks.

d1) Katai of paady bags before de huskrng.

e) Re-stacking of paddy stocks.

f) De-'lusking of paddy stocks.

g) Filling up of begs of rice prior to dara making.

h) Da:-a mak1ng of rice bags and filling/sewing of bags with

double lme machine S!ttchrng

•J Transoortat;ofl of t1ce to FCI depot.

suaaent =· Deptt. of FoOd Civil, Supplies & Consumer Affairs Pb., Chandigarh.

Scanned with Camscanner

j) Deliver · W!orn Milll&.f.Q!!ry ZOJ3.1.!

Y of accePia rele nee notes. weight

vant documents ~ . . ·chtck memos and other Co or cla·mmg

rporation of I . . payment from the Food ndla and u I .

directed by th G P oadmg them on website as e overnment ' . M·rr :rom lime to time

' er shall stitch a . . . bear' raxm slip/canvas slip with each bag.

1119 name of th · • . . e miii!CenlretDistr•cv category of rice/ net

WelghV contra t · c no./ crop year on the bags. The miller shall b .

. . e res;>ons1ble for maintaining the quality and quantity of the dd ·

pa y/nce stocks till tha delivery of rice to FCI undPr the sup · · • erv1s1on. control and assistance of the agency officials

k)

I)

6

• ' . ' t • ....... ,.,., .- . e..; 1..!___ • • • J • ~ •

7. The miller shail be responsible for the safe custody of paddy

stocks(both quanti!~ and quality) till the delivery of rice as per out·

turn rat10 f1xed by the Government of India.

8. The miller shall ensure that :-

The resultant rice after milling of paddy Is aerated for 72 nours

before its filling in bags.

The degree of polish given to nee shall be 5%.

8. The by-products viz broken rice. rice: kani. phuk (rice husk) etc.

obrained during the manufacture of rice shall be the property of the

miller .'lnd the Govcrnmen!IProcuri(lg Agency shall have no right or

respons:bility in th;s regard.

9. At the time of delivery, the stocks of nee shall be subject to the

inspection as per provisions of the Punjab Rice Procurement (Levy)

Order. 1983. Any quality allowance determined at the time of

inspection according to the specifications shall be recovered from

the miller's bills.

10. The entire quant1ty of rice of all varieties delivered by the miller to the

GovernmenUAgency shall conform to the specifications !aid dovm in

!he Punjab Rice Pro:urement (l~vyl Order. 1983. as omended from

11n1e to time or in any other 01de1. or notification issued by the Gov!

of India/State Government from time tc time. The stocl;s of rice no!

conforming to the specifications so laid down shall be liable to be

~<

S~ndent . . ··

Deptt. of Food Civil Supplies & Ccnsun{er Affairs Pb., Chandigarh.

xn~~


I I I I I

' 11 .

rejected ; ~Ill M;u, __ -- . herniller ~

specifrcarions laid shall be requ,red to m same to lh down by the G anufacture nee as per

e Food C overnmenr of I d' ihe mill orporatlon of lndr . n ra and deliver the

. er shall deliver,. . a. at rls depots by 31.03.2014 hun at rce on the total . ·

· regular interval quanttty of paddy stored with ensur s. not later tha 31

e milling of Padd n ·03-2014. The miller shall S"" Y and delive f ·

" 11edule. • ry 0 nee as per the following

MQn_Q}

Upto 31': D ecember 2013

Lplo 15'" FebrLary 2014

Upto J 1, l\1arcl'l. 2014

Percentage of Delivery

33%

66%

100%

Any penalty. tf any. rmposed by the Government of India on

the State agencies cue to delayed/non-delivery of rice. s~1all have to

be paid by the rice mtller

12 \8 ) A lessee nee mrll who fails to complete the milling operations

before the exprry of his lease penod. he shall extend the lease

period of his mrll till the completion of milhng operations.

b) ~owever. in case there is no space available with FCI for

acceptance of custom milled rice. the above mentioned lime

schedule shall be extendable upto 30.06 2014 during which no

rnterest shall be charged from the millers for delayed delivery

of nee

c) No rnterest shall be charged tf delivery of CMR is made by

30.06.2014 However. tn terest @13%/RBI rates shall be

charged we f 01 .04 2014 on the rice delivered after 30-06-

20 14. provided space for delivery of rice was available.

d) If the miller fails to complete his milling even by extended date

allowed by the Government of India. he shall be required to

pay the acquisrtion cost of paddy (MSP+ Taxes+ cost of bag+

Transportationi and interest @13% to be charged from 1-12-

201.3 till the trme he clears the dues

e1 In case 3 mrller causes <:~ny toss to the stored paddy stocks

f>ecause of mtsappropr ratron. theft etc. 01 it the rice

manufacrured by htm does not conform to the specifications.

or if he fails to deliver the rice by the due date, he shall b~

lrable to make good t!te enilre loss at value of intended custom

s~ Deptt. of Food Civil Supplies & Consurr:er Affairs Pb., Chandigarh.

Scanned with Camscanner

f)

Cwstom Milling Poljcy 2013-14

' milled nee and interest at 13% from the date rt becomes due 1111 the date of actual realization

In such an eventuality the State agency shall be at liberty to

launch criminal proceedings against the concerned miller for

recovery of Government dues. besides availing other legal

remedies against the miller in accordance with law.

13. No miller shall mill paddy of the agency other than the one allotted to

him In case: he does so. he shall be black listed and the paddy

stocks shall be hfted from h1s prem1ses at h1s nsk and cost

14 Miller s11all depos1t securrty amount of Rs 1.50.000/- (Rupees One

lac fifty l110usand1 per tonne m1lling capacity by way of Demand

Draft Demand Draft should be rn the favour of Managing Director of

the concerned agency No paddy snail be stored in a rice mill which

does not deposit the requts1te secunty amount. Th~ security

deposited shall not carry ·any interest at the time of refund or

adjustment

For depositing the above mentioned security. the mills

allotted to Pungrain shall collect pre-printed Security Deposit Slip

from the District Manager. Pungrain Duly filled slip shall be got

checked and signed from the District Manager. Pungraln before

deposrt wrt11 any branch of designated Bank

15 A minunum of 1 SO M Ts. of paddy rs required to be purchased by the

m:ller rn l:1s own account or he sho:.~ld deposit an amount. of Rs.5.00

iac The Rrce: Mrl1ers shall collect pre-printed Secunty Deposit Slip

from the District Manager. Pungrarn. Duly filled slip shall be got

checkt:d and signed from the District Manager. Pungrain t:>efore

deposit with any branch of designated Bank. even if the paddy

relates to any procuring agency.

16. In case the miller fails or neglects to observe or perform any of his

obligations under the contract. rt shall be lawful for the

Gc·Jernmenl/..l.gency to forfeit the secunty after granting due

opportLinity and gei tne work executed at the m iller's risk and cost. In

case of any recovery/dues. loss or damage to .any Government/

Agenq' propert:t any extra expend1tur~ incurred br damages

suffered by the Government/Agency it shall be made good from the

amount of security deposit fllrnished by the miller or in any other

manner:

s~ Deptt. of For.d Civil, Supplies & Consumer Affairs Pb., Chandigarh.


I

'

CvSJpm Mjllil¥ tp!jcy 201):)4

Provided that If the losses or damages exceed the amount of

security deposit. Government/Agency shall be within its right to

recover the same in accordance With Jaw.

Provided further that it the miller performs and completes the

contracts in all respects and presents a "No Due CertifiCate• from

any official nominated by the ·GovernmenVAgency for the purpose.

security deposited shall be refunded w1thout interest

17 The GovernmenVagency do not guarantee any definite volume of

work relating to shelling of paddy at any time or through out the

penod of contract Tne mere mention of any type of work in this

contract snail nor by 11sert confer a nght on the miller to demand that

work relat~ng to shell1ng of paddy at a part1cular centre/ mand• be

necessarily Or exClUSIVely ~ntrusted IO him.

18. Thai the material (tarpaulins) etc. which shall be supplied by the

procurement agencies to the Rlce Mills for proper storage of paddy

must be returned to the agency concerned after the completion of

process of paddy and 1n case the m•ller fails to return the same then

the procunng agency is bound to claim 1ts costs along w1th

COmpOunded Interest@ 21% pel annum

19 The issuance/ lifting of paddy and delivery of rice by miller shall be

1egula!ed as under ·

1) The miller shall obtam the contract numbers from the website

as per the dlfections of the Govt Miller will not fudge any

f1gure related with the custom milling or levy for taking undue

benefit. If found gwll){ w111 be punished in accordance with Jaw.

ii) The miller shall be required to lift paddy stocks from the

storage point or any other place as mentioned in the release

·orders withm 7 days of issue of release orders.

i1i) For the purpose of milling of paddy, stocks will be issued by

the staff of procuring agencies in lots of 200 tonnes (two

stacks) each through a release order and that paddy issued I

re: eived without a proper release order shall be treated as a

serious lapse The nexr lot of paddy for milling shall be •ssued

only after the resulta11t nee ot prev;ous lot has been delivered

to r-cr. and the Acceptance Note has been received The

agency shall keep a proper record of issuance of release

orders of padoy

~ Deptt. of Food Civil Supplies & Consum'er Affairs Pb., Chandigarh.


I I

Custom Millinc POlley 201N1

(a) To terminate the agreement with the miller for shelling of

paddy into rice at any time during its currency without

assigning any reason In that event. the miller shall render

complete accounts of paddy. rice and gunny bags to the

GovernmenVAgency 1n hiS custody and also return the stocks

as per direction of tne GovernmenVAgency.

(b) To withdraw from the contract. at any time. any m1lling work in

respect of whole or part of the stocks covered by the contract

not yet hf!ed by the nuller. 11 he considers it necessary to do so

at the risK and cost or nulle•

24 The mi!ler ~halt. so long as reqUired by the Government I Agency

during the period of this agreement. deploy whole of his mill for

custom milling of paddy under th1s agreement and shall not carry on

any work except milling of his own paddy. If the mtller wants to

undertake milhng of paddy on pnvate basis of any other agency

other than allotted he shall have to obta1n the prior permission of the

Director/Commissioner. Food. Civil Supplies and Consumer Affairs,

Punjab in writmg, otherwise serious action shall be taken.

25 The 111111er must subm1t "fortmghlly" bills •n the prescribed Performa

to t11e agency within seven days of the close of the fortnight to which

the b11J pertams and such b1ll shall oe supported oy the follow1ng

00Cllll1&11tS·-

A balance sheet in triplicate prepared by the millers to show

the balance of paddy and rice brought forward from the previous

fortnig.ht or the quantity of paddy received during the fortnight the

quantity of paddy milled and products obtained there from during the

fortnight and the balance of paddy and rice in stocks on the last day

of fortnight for which the bills are prepared. The payment of all such

bills will be made by the agency concerned after the completion of all

milhng operations.

26 The nee miller shall not pledge the paddy of the State agencies with

the commercial banks for ava1hng cash credit limit. If he indulges in

thiS ma1pract1ce. he w111 be 1mmed1ately black listed and tile stocks of

paddy/rice shall be lifted from l11s mtll to other mills Cll his risk and

co:;t

27. All the disputes and differences arising out of or in any manner

touching or concerning this agreement whatsoever shall be referred

to . the sole arbitration of the Managing Director or any

Ju

person M ~ .

Supe~ Deptt. of Food c· ., Su r tvt'

PP tes & Consumer Aft . Pb., Chandigarh. atrs

.


Custom Milling Policy 2013-14

appointed by him in this behalf. There will be no objection to any

such appointment that the person appointed is or was an employee

of Food and Supplies Department. Punjab/Agency or that he had to

deal with the matter to which the contract relates and that in the

course of his duties such an employee of the Food Civil Supplies &

Consumer Affairs Department. Punjab/Agency had expressed views

on all or any of the matter in dispute or difference. The award of

sucl1 arbitration shall be final and binding on the parties to this

contract. It IS a term of th1s contract that in t~e event of the arbitr~tor

being transferred or vacating his office or being unable to act for any

reason. the Managing Director at the time of such transfer, vacat1on

of off1ce daath or 1nability shall appoint another person to act as

arb1trator. Such a person shall be entitled to proceed with reference

from and tt•e stage where it was left by his predecessor

In witness tl'ler~of the parties hereto have signed this

agreement on the day and year first above written.·

Government I Agency For and on behalf of the Governor of

PunJab

S1gnature of M1ller . Signature of District Manager

V'lltness: 1 2.

(Name and full address in Capital Letters) (Name and full address in Capital Letters)

Millers M/s

1. 2. -~"":'""":":~-~-=--=--:-(Name and full address in Capital Letters) (Name and full ndorcss in Capital Lotte~)

Sup~ Deptt. of Food Civil Supplies & Consu~er Affairs Pb., Chandigarh.


Custom Milling Policy 2013·14

ANNEXURE 1

PROFORMA-I

(As required vide 6(e) of Kharif 2013-2014 policy)

ol Mill Miller has to cr lllltnaf case rs the names owner/

1

delivered rice of pendrng aga1nst · of Partners partner of

previous crops tile party I this rice mill '

rf yes. grve rs/was

detail. I partner/ I ; owner of any r

' , other

· defau:ter

i I mill.

-~---- ·-2 _____ _._·-·---·3------L.--4- ---~ ·-s - ---i -· .... ___ ... -- ---- ------- - - _ .... ____ _

SIGNATURE OF THE

CONCERNED

DISTRICT MANAGER

Superintendent Deptt. of Food Civil Supplies & Consu~er Affairs Pb., Chandigarh.


DefaLiter

R1ce Mill

- -----~·- - · .

Custom Milling Policv 201}-14

ANNEXURE II

PROFORMA -II

(As required vide 6 (e) of Kharif 2013-14 policy)

LIST OF DEFAULTER RICE MILLS YEAR WISE:

name of the gu3rantee

ownerParty ~kenkom

cwner party

'') ...

Su~denf kJ9ptt. of Food Civil

3

I

Supplies & Consumer Affairs Pb., Chandigarh.

1 Whether the-

' ~ owner/ partner I

I of this rice mill

1 is/ was

II partner/ owner

of any other I

: defaulter mill .

. . - - ·- .... ------~---__ ..... 4 5

Year · Oty ~ Amount

SIGNATURE OF THE CONCERNED DISTRICT MANAGER


2

3

4

5

6

7

B

9.

10

1 1

12

13.

14.

Name /Locatro;1 of the Mtll

Correspondence Address

Permanent address

REGO.NO.

PROFORMA - Ill

Custom Ml!!inc Po!!cv ~

Annexure Ill

Details of tile ;:Jartners and their addresses (Separately for each partner)

PAN No of all partners (Photo coptes to be supplied)

Capacity of tht! rice mill (along-with details of machinery) and whether the 01111 is rl!w or par-boiled rice mill

. Income Tax Returns for last five years (Individually of partners. owners/ lessee)

Connected load of the nc~ mill

Pollution Certificate No. and tis valtdity.

Derails of liabilities whether a partner/owner/lessee of a defaulter nee mill 1G1ve a ff1da v1t)

Proof ot electnciry ::onnection 1n the n<~rne of the mill (copy of the latest ;)1/1 be enclosed)

It :essee a No Due Certificate from the Owner be produced on a Stamp Paper Vlorth Rs.300/-(To be attested by Executive Magistrate)

Copy of Lease Deed/Agreement

If a new rice mill . .::opy of Registration documents /Bills of the machinery installed and a !tested copy of the approved map of the rice mill

15 If a new rice m1ll. a certificate from PSEB that the electncity connection is iunctJOnal

16 Whether-the m ill is in litigation with any agency, if yes. give details thereof

17 Whether th~ owner has stood guarantee for the lessee or not.

18 VVI1etllc-r dclditional guarantee tlas been taken or not.

19. Enritlemenl of padcy to be stored I allocated or delivered as per policy

LD Ouantity of paddy shifted. 1f any. from this mill in KMS 2012-13.

s&endeni Doptt. of Food Civil Supplies & Cor.su~er Affairs t b., Chandigarh.

9 [ I ) \

,.., I ; , ...... \


Annexure lV

fro~----- · · - -- - ---~ ;]T ~fro

}(.~ ~ 0"1? ~0 C«l'?' ' a<J"i?' J' fa~ ))f'lSC!T Rc?o----------------! . - - - - -------- . f>f31 - - --- --- ---3' ------'-----'371 tor------------

-~ ,:ffiJ) \?f f'i.ff%ar ge't ~ 3' ftr"3T fr I ·

}.{' t l-){}11' \ffi6 0""8' ~ ~~~ vT fa" }fat IR"i't B'l;:ftlJT<fit - >fA':--------

- -- - - -- - - - ·-CI"lfu:r fH-5 ~ mf ~ ~ ~ w if•QQ' mnM' ~ firir

<tt ~ tr"i=rRT ~ lJ'i'iOiiro • l.fO"RU' ~ ~ (J1't1 ~ foQTH I tiwa' ~

;:rr ~'r~nn »!~ i')Tg tnft fi.mrn #tHo 2 0 13- 14 0'1'<? RWa' ~ ~ rn ~ ~ »~-:3' t=rno ~~?Twit~ lf'O'it H-fr·- ··--- -------- --- - -

-- -~~ m fa-R' ?t ~ ~ rn <tt ~ ~. ~- ffC"a'

---· - - -- --------~ ~~~voW'~t'l~ft~t

- - ·-- - ---- -- ----- - OTe'tl1 ~ ~ m 1M? 201 3-14 ~ ~ -;jg

~~ ~rt ~ m ~ k~ ~ rn ~ ~ 5- 3'1 Hot~~

~~lfdl~mlTI

4 ~ ?)Tg ~ ~1m <J+ rn- }[_f))flff V'O w !{cit arm ~ ~ iP rtf

'n'>' f~;;-r l1'trr .!0 .. ~ - IJ ~ HQ1 .;rm gt;:ft lJ"tit }\);:-- -- - ·--·----- - - ---

s~ Deptt. of Fo_od Civil, Supplies & Consumer Affairs Pb., Chandigarh.

/


Cu11om Mllhnc Pollex ?013-14

Annexure V

SURETY BOND

lr11s s-orety llpnd rs beu1g executed by MIS . . . . . . . ... (name of the m11Jer

wrth l)rS detail Status rf rt IS partnership f1rm. company or indrvidual and in case by

partnership firm if the partner is competent to execute the surety bond on behalf

of the firm along with its documentary proof in favour of} . . . . . . . . . . . . . . . . . . {Name

or procurrng agency on behalf of} . . .. {Name of the miller lessee on this

a! . . . . . . . . . . . . ..

Whereas the lesse:e {Namely} has taken on lease the rrce mill

const1 ucted on a 13:-rd srtuated . {Give partrculars} v1c:!e lease deed no.

Da:ecJ trcrn . {Name of the owner} lor a

To

Wher~as tne lessae 1s oound to furnish surety as per scheme tor custom millrng

ot Kharrf 2013-2014 paddy duly framed by Punjab Govt. of the rice miller who

owns the nee' mrll.

Whereas the surety is an owner of ihe rrce mill duly constructed on a land

sitlmled in in revenue limits _______ .(as per

sc11edule given below)

'.'VIH:r.- i'l<; ti1P m·:ner of the rrce mrller has stood the guarantee on benalf of lessee

:..: :ne procuring ag.:::·,.:.y ::~n foi10WII!9 tanns ::lnd conditions ·

il ) That the owner binds himself thar 111 case the lessee defaults in returning

t11e custom mrllir,g rice to the procuring agt:ncy or any other amount found due

!owa1 ds !lim to tne procuring agency. rn that case he is bound to c!!scharge ail the

losses to be cfetermined by the procurrng agency w1thin 15 days Qf the receipt of

notice . b) That till t.h€- amount so determined is not paid either by the ie~~ee or by the

m·:ner that :he s3id a:nount will also inc!ude all !he losses like quality cuts. cost

g Superintendent Deptt. of Food Civil, Supplies & Consumer Affairs Pb., Chandigarh.

1 1 I

AHj' 'Y) '. . ' . .


Custom Milling Polic•; 2013·1~

ot gunnies. padc:y. rice. dead stock article etc. from the date of delivery of rice

a ~:er rn1tllng. tnen the agency w1ll have f1rst charge over the said rice mill and the

fiCf! rnllte rs undertakes not to sell/transfer or create any charge over the same till

c 1 T t ' · t t11e <:lgenc:y Will t1ave first charge o~er the said rice mill owned by the

ow·wr ~i· ·d 1t w11l be only discharged after clearing all the liabilities by the lesser

(!L,,. l ll'-'J<-HdS ti)e Clqency

111 \\'·tne;.;s ~vl1trE-o ; thiS guaranteE- IS being executed on ___ day of

2013 at ·- --- ---- -·---

'J1!1tness

; . (

I I

I I

Signature of Miller

Sf -Superintendent 'Oeptt. of Food Civil, Supplies & Consumer Affalra Pb., Chandigarh.


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