ICSINDIA is the company inter-alia engaged in providing value added services to cotton farmers by way of ginning, baling, and selling. They are also engaged in transferring the stock to ware house and sell as per better market conditions for better price realization and easy cash flow on their crop as per domestic and international live market rates of cotton lint bales, cotton seed and cotton yarn. 

Whereas, the Ginner is the company with TMC standard Ginning Mills.

 

1. DEFINITION AND INTERPRETATION:

 

Kappas: Farmer produce or seed cotton

 

Trading day: The day on which the actual trade transaction occurs between seller and buyer. The trading date including time is specified in our TTN number.

 

Ginner: Ginner is a person or group of persons having TMC standard Ginning mill by own/lease/hiring basis and is able to produce good quality lint bales as per international standards by procuring good quality raw material with quality conscious in each and every stage of Ginning process and deliver the goods as per agreed time.

 

Ginners’ Franchise: A person/ Franchise appointed by ICSINDIA.com on monthly salary basis exclusively to serve and help Ginners in day-to-day activities and coordinate with admin & Ginner. He shall follow and implement Admin instructions timely with ginners. 

 

Ginner Testing Franchise : A person having mobile cotton lab with group of a maximum of 5 members appointed by the admin exclusively to offer their 24x7 services mainly to test raw material before ginning and lint bales particularly bale wise quality report during and after ginning. He shall also inspect and retest in case of any complaint raised by the customer as per instructions of admin.

 

LYP: Lint Yield Percentage is the test done by the Ginners on their own or in front of farmer or by Ginner Testing franchise in mobile lab. It is very crucial process and a deciding factor of the farmer crop rate.

 

HVI test: High Volume Test of cotton fiber is done only in labs either by Farmer/Ginning Testing Franchises of admin with NABL (IEC/ISO17025:2017) standards. HVI test helps in acquiring the values of Length, strength, Micronaire, Rd, CG, +b values which play a major role in getting premium or deduction in crop rates of farmers or lint bales of ginners.

 

Farmer: Actual producer of cotton or who is registered in our website as Farmer with all the required details.

 

Farmers’ Franchise: Farmers’ Franchise is appointed by Admin of ICSINDIA with security deposit to care of day-to-day activities in villages particularly collecting kappas from all farmers and adding the crop in the admin website. He helps farmers in registration, adding crop, payment follow up, quality complaints and any other services required by the farmer and admin. He will be paid salary and incentive by the admin for his services.

 

Farmers Testing Franchise: Farmers Testing Franchise consists of a group of 5 members and one driver who were appointed by ICSINDIA admin. It shall contain one mobile cotton lab roaming around the area of villages allotted to them with radius of 100 kms. They will do testing of kappas (as per charge decided by the admin) and upload reports in website. and also guide farmers about live estimated crop rates work so that farmer will have better idea how to sell and when to sell.

2. THE GINNER CONCEPT:

a. The Ginner has 3 options for and selling of Farmer concept.

         i) Farmer MSP option sale in Terminal 1

         ii) Farmer Normal Market Option sale in Terminal 2

         iii) Farmer Stock option sale.

 

b. Ginner can directly buy the farmer crop online.

 

c. Ginner can sell his own process bales in 2 options

      i)  Ginner MSP Option Sale in Terminal 3 https://youtu.be/PMLyTKQc21Y

      ii)  Ginner Normal market option Sale in Terminal 4 https://youtu.be/hGSWg7m4sQs

 

d. Ginner can buy bales from Farmers, other Ginners, Lint Bale Traders in Terminal 2, 4 and 6 respectively .https://youtu.be/tZ91AR0kebc

 

e. Ginner can buy seed from farmers, other Ginners or traders through admin.https://youtu.be/tZ91AR0kebc

 

f. Ginner can sell his Trading lint bales through:

   i) MSP option sale in Terminal 5

   ii) Normal Market option sale in Terminal 6.

 

g. Ginner can sell his trading seeds to seed buyers, traders and other Ginners too.

 

h. Ginner can sell his waste or waste bales in Terminal 9.

 

3. SCOPE AND CONDUCT OF WORK OF FARMER AND GINNER CONCEPTS.

The Ginner shall receive the crop from the farmers through ICSINDIA. After receiving crop from farmers, Ginner shall take LYP% [Lint Yield Percentage] and quality parameters in Ginners Cluster Testing Franchise or on their own. The Ginner may conduct LYP test in front of farmer also. The details of the same shall be entered in website of ICSINDIA.COM and it shall be approved by farmers. Only then, the official receipt of crop with provisional pay out amount and dates shall be generated and it shall be counter signed by authorized signatory of Ginner as proof of receipt with quantity handover by farmer.

 

ICSINDIA shall allocate farmers, Farmers’ Franchise, Ginner Franchise and Ginner Testing Franchises to the Ginners in 2 to 3 days advance. The same shall be updated in Ginner’s homepage and also intimated to the Ginners through e-mail or SMS to their registered mail id or phone number respectively. After allotting, crop of 475 to 525 (+ 2%) quintals shall be sent to the Ginners to produce 170 quintals of lint or 100 bales of cotton whichever is famous and suitable for transportation through trucks.

 

As per actual test results of LYP & HVI test and the data available online, the Ginner shall enter the values in crop adding and the system will calculate EFCRR [Estimate Farmer Crop rate Report]. If length, strength and Rd values are more than the standard values, the crop rate shall get premium value and if Moisture, Trash, CG and +b, values are more than standard values, and then crop rate shall be deducted automatically by the system. After that by clicking the calculate crop rate button, the system shall show all the options available. The Ginner shall guide the Farmer to select any of the options available with the consent of farmer, Ginner shall add such crop. After that, the farmer/ Farmers’ Franchise shall approve the LYP% from their home page and the system will generate crop receipt. The crop receipt shall be sent to the farmer and Ginner by SMS, mail and shall also be update in their respective pages.

 

During the process of ginning, Ginner shall enter ICSINDIA.COM name, pressmark, lot number, bale number, actual weight, tare weight, net weight on bale either manually or through thermal jet printers. Ginner shall also collect one sample of each & every bale for HVI test report and take every 20 bales sample "geo tagging photo and video" as proof of sample collection and upload the same on the homepage for farmers. The samples handed over to Ginners testing franchise and the test report shall be uploaded in system and the system shall generate QR code for each and every bale. Such QR codes shall be pasted on the bales 4 sides so that buyer can view the actual quality report with Mobile QR scanner app.

 

After completing ginning, Ginner-in-charge shall update the same in the website and the same shall be informed to the farmer through SMS. The farmers shall enter production output details of cotton seed and cotton lint in actual details section of allotted crops. They shall ensure that this quantity details matches with approved LYP%. The same has to be approved by Ginner-in-charge person. Based on such data, the average quality report of 100 bales shall be entered in HVI details and same has to be approved by Ginner-in-charge person. Once it is approved, both cotton seed and lint bales shall be listed for sales in admin page and Trade Terminal pages respectively. 

 

ICSINDIA Admin shall complete the sales of farmer crop seed. The system then generates TTN of seed sales and the same shall be updated in cotton seed sales link of Ginner homepage. Lint bales will be sold out in trade terminals and system will generate TTN and update the same in Lint bale sales & Dispatch link of Ginner homepage.

 

            As per sale, Ginner will enter gate pass details and generate invoice. The same shall be approved by ICSINDIA Admin and the shall dispatch the goods of cotton seed, cotton lint bales as per allocated seed buyers, and cotton lint buyers after raising invoices. The said invoices shall be uploaded in system as proof of dispatch by the Ginner and only then the Ginner will get TTL release from admin and shall be allowed to add or buy fresh crop.

 

In addition to the above, Ginner can buy kappas for his own process directly from the farmer crop sales. Furthermore, the Ginner can buy lint bales from Trade Terminals 2, 4 & 6 and sell Trade lint bales in Trade Terminals 5 & 6.

Ginner can also buy seed from farmer crops and other ginners and sell them to seed buyer.

Ginner can also sell his Ginners waste and B&C type quality lint bales in Trade Terminal 9.

 

4. ICSINDIA AGREES TO:

 

1. Ensure smooth working of ginning by continuous supply of kappas from farmers/ farmers’ franchise to the nearest Ginner/ Ginning Mill and vice versa.

 

1. The same shall be informed to the Ginner/ Ginners’ Franchise by SMS and the same shall be updated in the homepage of farmer in their website.

 

1. Update cotton lint bales [28.5mm] rate in Rs/candy and cotton seed rate in Rs/quintal daily before 11.00AM.

 

1. Ensure that the standard values of Moisture, trash, length, strength, Mic, Rd, CG, +b will be available on their website.

 

1. Ensure that the Ginners shall take LYP% and the same to be intimated to the farmers by SMS alert and updating the same on their website.

 

1. Update the ruling ocean freight rates based on destination ports.

 

1. Update the service charges of admin and franchise service charges.

 

1. Update the currency value.

 

1. Ensure and fix quality claims, penalties and compensations as and when required.

 

1. Ensure smooth payments system for all stakeholders.   

 

 

5. THE GINNER AGREES TO:

1. Register in the website of ICSINDIA, i.e., www.indiancottonsolutions.com or www.icsindia.com

 

1. Provide Bank Guarantee, worth 80% of Bank Guaranty equivalent to crop as per the contractual terms of ICSINDIA.

 

1. Admin fixed ginning charges and complete ginning process within one week from the date of crop receipt.

 

1. Take LYP% of the crop immediately after receiving it.

 

1. Take HVI test when ever required.

 

1. Take full responsibility of quality of Lint in farmer crops too.

 

1. Take full responsibility of quantity as per approved LYP%.

 

1. Pay initial registration charges which are non-refundable and open bank guarantee or letter of credit or put margin money which is refundable as per conditions and requirement of admin

 

1. Pay admin service charges on fortnight basis.

 

1. Obey the compensation as per admin decisions in case of any default or delay in delivery or quality claims.

 

1.  Obey the compensation as per admin decisions if any default, delay in delivery, or quality claims from their suppliers.

 

1. Obey the compensation as per admin decisions if any quality claims from their customers and if any default or delay in payments.

 

6. PAYMENT TERMS:

 

 Payment Terms of each and every trade is fixed in the website of ICSINDIA.

 

1] In case of Farmer concept, ginning activity payment will be settled to Ginners on 15^th day of the subsequent month by the admin based on clearance report from the customer.

 

2] In case of MSP sales, first installment payment starts on 15th day from the trading day and the last installment is on 180th day depending on the option [MSP1 to MSP6] selected by the particular seller.

 

3] In case of Normal Market option sales, full and final payment shall be settled on 3^rd to 7^th day from the trading day.

 

4] In case of any Spot rate sales in our system, full and final payment shall be settled on 3^rd day from the trading day or 2^nd day after dispatch day whichever the later.

                                                                

7. PENALTIES:

If the Ginner does not complete ginning process within one week from the receipt of the crop, he shall be liable to be penalized and the penalty shall be specified in the website.

 

In case of any omission of an act as mentioned above or commission of any wrongful act by any person, he shall be punished as per the provisions of Information Technology Act, 2000.

 

In case of any other omission of act as mentioned in this agreement, the penalty shall be specified on the website of ICSINDIA.