Page 5 - MGMG JAN to JUNE-2018 FINAL

Supply chain management under TPDS runs in two stages Stage-I and Stage-II. Stage-I deals with
procurement and making the stock available, whereas stage-II deals with moving of stock from
Godowns to Fair price shops. Procurement of food grains from farmers is done at MSP. The MSP is the
price at which crop is bought directly from farmers; typically the MSP is higher than the market price.
This is intended to provide price support to farmers and incentivise production. In Andhra Pradesh,
procurement is done in decentralised way, Decentralised procurement is a central scheme to encourage
local procurement of food grains and minimise expenditure incurred when transporting grains from
surplus to deficit states over long distances. Other than Paddy, commodities required by the state like
fortified salt dal oil is purchased from suppliers

Stage-I Movement

Supply chain management start with distribution of Govt. of India allocation to districts by the
commissioner food and civil supplies. The supply orders to suppliers are generated by head of office as
per the tenders. District Manager gives supply orders to Food Corporation of India (FCI) or buffer
godowns and suppliers as per the allocation by the commissioner. Mandal Level Stock (MLS) points
receive these commodities from FCI, Suppliers against the District manager orders, online stock
registers are maintained and district managers can cross check stock availability at any godown in the
district to check the inventory.

Stage-II Movement

Based on number of ration card and ration card type, allotment orders are generated for stage 2
movement. Similarly, allotments are generated for anganwadi centers, schools for mid-day meal and
welfare hostels. The system is tightly integrated with Ration Card Management System (RCMS) for
auto allotment generation and fair price shop automation to gather closing balances which will be
automatically deducted from the allocation.

Stage-II movement starts from mandal level stock point where shop wise release orders are generated
against the requirement of the fair price shop dealers for movement of stock to last mile. Release orders
are generated for Ration card beneficiaries’ anganwadi centers schools and welfare hostels. The most
distinguishing feature of this supply chain management is that it allows portability at fair price level and
hence stock maintaining at fair price shop becomes more difficult. To cater to this need portability
allotment is done and system is also prepared for emergency allotments during floods, famine and
festival allotments. The released orders are weighed using e- weighment system and loaded in GPS
enabled trucks. All release orders, challan and vehicles can be tracked online which makes the system
accountable and transparent.

Fully automated Process flow

Sl. Process flow Detailed description
No.
1 Allotment Allocation details are made available in SCM after
2