Anand Agriculture Produce Market Committee Samrakha (1)

7/30/2019 Anand Agriculture Produce Market Committee Samrakha (1)

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Prepared by:Mayank GaurRahul AgrawalRajeev AggarwalTahira SheikhRitu Kashyap

Anand Agriculture

Produce MarketCommitteeSamrakha


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Established on 15th September, 1948 under APMC Act. A regulated market with effect from its inception.

Caters to around 1,50,000 population and serves as many as 48 v

Number of commodities notified till date under the regulation ar

Daily dispatch of 1211.8 MT to outside market. However during

it goes up to 1500 MT per day.

Introduction


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Gujarat Agriculture Produce Market Act 1963 To ensure reasonable gain to the farmers by creating environmen

markets for fair play of supply and demand forces

To regulate market practices and attain transparency in transacti

Aimed at providing proper method of sale, correct weighing, pro

payment, and various marketing related services

The APMC Act


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Measures for prevention of purchases and sales below the minimprices as fixed by the government

Ensuring payment for agricultural produce sold by farmers on th

Collect, maintain, disseminate and supply information in respectproduction, sale, storage, processing, prices and movement of noagricultural produce

Provide for settling of disputes arising out of any kind of transacconnected with the marketing of agricultural produce

Functions of APMC


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Farmer TraderWholeSeller

R

APMC Supply ChainCash Basis

Credit Basis (7-8 days)

Credit Basis (3-4


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APMC A civil Society/Beneficiary o

It would act as the REPORTING TOOL which wouldin gauging the desired outcome- Proper market and

It is a policy tool that can guide evidence-based planaction to address issues identified as important by thtraders and wholesaler

If the stakeholders are informed, it would help in bustrengthening democracy


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Facilitating a supply chain with a large number of intermediariesreducing the profitability of agriculture

Reducing scope for competition due to the licensing regime adop

APMC laws are inadvertently promoting use of intermediaries permitting trade outside the market yards

Policy Lacunae


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Samrakha APMC Governanc

Board Structure

TheGoverning

Board

8 Farmer Reps

4 Whole sellerCommunity

2 TelibiyatMandaliMembers

1 Registrarand 1 Sub

Registrar(Auditor)


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Total 16 members in the Governing Board 8 Farmer members elected by the Sewa Sahakari Mandali

o 30 villages, 11 Members, 2 Panels

4 members from the Whole seller Community

Telibiyat Mandali offers loans to the farmers.

State Government representatives- Registrar and Sub Registrar walso permanent members of the board.


Board Members


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Elections held every five years. Only the elected members are cha Meetings are held once in two months.

Employeeso 1 Head Inspector, 3 Clerks, 1 Peon.


Board Workings and Employ


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Helpline for farmers Monitoring and controlling by the Head Inspector but regular m

and control mechanisms found to be missing

Passive control approach

Database of grievances not maintained

The clerk said that farmers dont face or report much of an issue.


Grievance Redressal


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Farmer can call the APMC Helpline to know about the current pr Escalation point

Confidentiality of the whistle blower


Information Disclosure

S kh

C G


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License is mandatory for a trader License fee

Approximate time to obtain a license

Decision taken in the Board meeting

Deposit of Rs.225000 per shop

Profit making by transfer of ownership

License not required for the farmer

At present there are no vacant shops


Licensing


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The shopkeepers in the APMC market who are agents negotiwith the retailers and large wholesalers who purchase from the m

Open auction takes place in the presence of the farmer, trawholesaler/retailer. The auction and the transaction are completnegotiated price is acceptable to the farmer.

Trader gets his commission @5% from the retailer/wholesaler.

Samrakha APMC Operatio


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The agent also charges a 1% commission from the wholesaler anddeposited as market fees.

More bargaining power lies with trader and an informal cartel haamong them

The factors that play an important role in determining the price obrought in the mandi- demand, supply and quality of the produ

The APMC market allows the farmer to sell his produce in bulk atime.



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No formal mechanism of sorting or grading. If farmer is not satisfied with the price offered, he has the option

elsewhere or he is also provided space in the APMC market free sell on his own



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Though there is provision for cold storage, APMC has not constrthey are not to willing to take responsibility to run the cold stora

There is no system of display of prices as it is felt that this mexcessive supply of commodities which they cant handle

The unloading charge(Hammali) has to be borne by the farmer evthe act it is stated that it has to borne by the trader

There is wastage of vegetables due to improper infrastructure. 3onions were wasted in 15 days due to fans not working properly

Computerized records are not maintained for transactions and p

Due to lack of standardized weighing machines, weighing error

Samrakha APMC - Issues


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APMC act in some ways restrict the choices for the farmer The licensing fees and other costs borne by the traders are partially pas

farmers Trader/commission agent plays a vital role and it is difficult to elimina

the supply chain APMC staff is responsive to farmers grievances and the farmer can dir

approach the APMC office for their issues Chances of corruption with contract farming being allowed under the n

contracts have to be registered with the Committee Absence of horizontal networks and dependency for farmers still preva

Reflections


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Role of the StateMaharashtra government has launched-GOVERNANCE AND ACCOUN

ACTION PLAN (GAAP)-Regular reporting to higher authority-Monitoring by Civil society / Beneficiary Organization-Complaint handling mechanismsFeedback from bidding firms-provide valuable insights into the behavior

implementing agencies during the procurement process. For this reasofrom rejected bidders, as also from reputed firms that chose not to bid fconstruction, or other contracts in the project would be invited.

The State should focus on getting the infrastructure and institutions in plaprovide competitive environment to enable farmers to exercise choice


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Thank You!

Documents

Anand Agriculture Produce Market Committee Samrakha (1)