Directorate of Marketing and Inspection Dr. Rajendra R. Karpate (M.Sc., M.Phill. B.Ed. Ph.D) Deputy Agricultural Marketing Adviser

Directorate of Marketing and Inspection

Dr. Rajendra R. Karpate(M.Sc., M.Phill. B.Ed. Ph.D)

Deputy Agricultural Marketing Adviser

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STATUS / IMPACT

OF

AGRICULTURAL MARKETING REFORMS

ON

SOUTHREN STATESDr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

Indian Agriculture has made rapid strides since independence

• From food shortages and import

to self-sufficiency and exports.

• From subsistence farming

to intensive and technology led cultivation.

• Today , India is the front ranking

producer of many crops in the world.

• Ushered in through the

green, white, blue and yellow revolutions

Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad


Inadequacy

of

Agricultural Marketing infrastructure

Faults………………..


Challenges of Agricultural Marketing

To provide Multiple and Competitive Marketing Channel

To create adequate and efficient Marketing Infrastructure

To empower farmers with Market Information

Attract Large scale investments for building Post-Harvest infrastructure



The first ever National Agriculture Policy was announced on 28th July, 2000 has indicated a nine-fold package of policy initiatives to achieve the objectives

• Development of Sustainable agriculture• Food and Nutritional security• Generation and Transfer of Technology• Improvement of input efficiency• Provision of incentives for agriculture• Promotion of Investments in agriculture

• Strengthening of institutional infrastructure• Better risk management• Introduction of Management Reforms


Interventions

• Reforms led assistance• Gramin Bhandarn Yojana• MRIN• Marketing Infrastructure• Facilitate private investment• Promote direct marketing/Contract

Farming


Reforms Initiatives Undertaken

Model APMC Act formulated by Ministry of Agriculture to Promote competitive agricultural markets in private and

cooperative sector, Encourage direct marketing and contract farming programs, Facilitate procurement Of agricultural commodities

directly from farmer’s fields, and Establish effective linkages between farm production and

retail chain.

National Conference on Marketing Reforms held at Delhi on 7.1.2004 and at Bangalore

on 19.11.2004.


Other Reform Initiatives

‘Integrated Food Law’ to bring convergence of several food related laws including PFA Act;

• Negotiable Warehousing Receipt System for agricultural commodities at rural godowns;

Liberalization of EC Act to Remove Controls on Movement, Storage and Marketing of Agricultural Commodities; and

• FC (Regulation) Act to Allow Futures Trading in Agricultural Commodities for price discovery/risk management.


Vital Areas of Reforms as per Model APMC Act 2003

• Establishment of private market yards / private markets managed by a person other than a Market Committee;

• Establishment of private yards and direct purchase of agricultural produce from agriculturist by a person other than a Market Committee (Direct purchasing from producer).

• Establishment of consumer / farmers market by a person other than Market Committee (Direct Sale by the producer to the consumers).

• Provision of Contract Farming.• Single registration / license for trade transaction in more than

one market.• To promote and encourage e-trading.• Single point levy of market fee.


STATUS OF MAJOR REFORMS IN ANDHRA PRADESHSl.No.

Area of Reforms Whether provision mentioned in (2) provided in the State/UT APMC Act (Yes/No). If yes, relevant section / Sub-section / Clause may also be mentioned

Whether Rules are notified for the area mentioned in (2) (Yes/No). If yes, relevant Rules (s) No. may also be mentioned

1 2 3 41 Title of the Act Andhra Pradesh (Agricultural Produce and Livestock ) Markets Act 1966

The Andhra Pradesh (Agricultural Produce and Livestock) Markets (Amendment) Act, 2005

2 Setting up of Special Markets and Special Commodity Market

A provision is made in the Act. Under Section 4(I-B) and 5A for establishing of Special Market --

3 PPP in Market Extension activities of Market Committee

No specific amendment is carried out. However, Government issued orders to setting up of Terminal Markets vide G.O.Ms.No.295, dt:21.09.2007 of Agril. & Co-op(AM-II) Dept., A.P.,

--

4 To promote and encourage e-trading, Market Committee may establish regulatory system, create infrastructure and undertake other activities and steps needed thereto

Necessary amendments are made to the section 2 & 7 of Andhra Pradesh (AP & LS) Markets Act, 1966 for issue of licence to establish the Spot exchange for providing electronic platform (E-trading) negotiate between buyers and sellers in delivery based spot trading only.

Rule 53-B of AP (AP & LS) Markets Rule, 1969

5 Secretary to be Chief Executive Officer of Market Committee. CEO shall be appointed by the Market Committee from the panel maintained by the Director / Board which may include professional from open Market

No specific amendment is carried out, because there is no board in place. Agricultural Market Committee employees, Govt. employees they cannot be dispensed with

--


6 Contract Farming Sponsor shall register himself with the Market Committee or with a prescribed officer in such a manner as may be prescribed

A provision is made under section section 11 A of AP (AP & LS) Markets Act, 1966

Rule 73-A (AP & LS) of Markets Rule, 1969

7 The contract farming sponsor shall get the contract farming agreement recorded with the prescribed officer

8 No, title, rights, ownership or possession shall be transferred or alienated or vest in the contract farming sponsor or his successor or his agent as a consequence arising out of contract farming agreement

A provision is made under section 11 A of AP (AP & LS) Markets Act, 1966

Rule 73-A (AP & LS) of Markets Rule, 1969

9 Dispute settlement mechanism -- Rule 73-A (8) of AP (AP & LS) of Markets Rule, 1969

10 Exemption of Market Fee on the sales to the contract farming sponsors taking place outside the market yard under the Contract Farming

Under section 11 A of AP (AP & LS) Markets Act, 1966

Rule 73-A (8) of AP (AP & LS) of Markets Rule, 1969

STATUS OF MAJOR REFORMS IN ANDHRA PRADESH


11 Specification of model agreement for Contract Farming

Model Agreement is prescribed in form 11-A

--

12 Single point levy of Market fee in the State

A provision is in existence before amendment of Andhra Pradesh Markets Act

Rule 74 (1) of AP (AP & LS) of Markets Rule, 1969

13 Single registration / license for trade / transaction in more than one market

A provision is in existence before amendment of Andhra Pradesh Markets Act

Rule 48 (6) of AP (AP & LS) of Markets Rule, 1969

14 Establishment of Private market yards / private markets managed by a person other than a market committee

Under Section 7(7) of AP (AP &LS) Markets Act, 1966

Rule 53-B of AP (AP & LS) of Markets Rule, 1969

15 Establishment of farmers / consumers market managed by a person other than a market committee (Direct sale by the producer)

Rythu Bazars – The Government of Andhra Pradesh exempted business transactions taking place in Rythu Bazars from the provisions of Section 7 and 12(10 of Markets Act vide G.O.Ms.No.37, dated 14.2.1999 of Agricultural & Co-operation (Mktg.I) Department, Andhra Pradesh, Hyderabad



16 Establishment of private yards and direct purchase of agricultural produce from agriculturist (Direct purchasing from producer)

Under Section 7(7) of AP (AP & LS) Markets Act, 1966

Rule 53-B of AP (AP & LS) of Markets Rule, 1969

17 Power to grant exemption from market Fee by the State Government

A provision is exist in Andhra Pradesh Markets Act under Section 35 before amendment

--

18 Setting up of separate Market Extension cell in the Board, estt. of State Agricultural Produce Marketing Standard Bureau

No such Amendment is carried out

19 Exemption of market fee on Fruits and Vegetables reform not concerned with Model Act, 2003

An amount of Rs.63.74 crores is being collected as Market Fee per year by the 44 important fruit and vegetable markets of A.P. These market committees incur expenditure towards the administrative cost and infrastructure around Rs. 28.44 crores per year and Rs. 27.78 crores per year respectively. Complete waiver of market fee on perishables would affect the resource mobilization of AMC and prevent them to create infrastructure required in the markets of fruits and vegetables.



20 No. of licenses issued for establishing Private Markets

03

21 No. of Contract Farming sponsors registered

01

22 No. of Licenses issued for Direct Marketing (Direct Purchase of Agricultural Produce from agriculturist)

171

23 No. of single Unified licenses issued for trading in more than one APMC

In Rule 48(6) of AP (AP & LS) Markets Rules, 1969 a trader whom license is granted by a AMC, can purchase and sell in any notified area and exempted from obtaining license from other AMC. Hence, a trader is having a single Unified License

24 No. of licenses issued for Trading and e-marketing

Under process

25 Any other development taken place in respect of Agricultural Marketing

Establishment of fully owned and introducing Comprehensive Electronic Bidding facilities in six AMCs.

STATUS OF DEVELOPMENT ACTIVITIESIN ANDHRA PRADESH


Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization

Sl. No.

Category of ProjectsType of Projects

1Primary Processing and Value Addition Facility

Primary Processing Plants, Parboiling Units, Cotton ginning and pressing units, Seed Primary Processing and Testing Centers, Drying Yards/Automatic Bulk Dryers

2Cleaning, Grading, Storage and Packaging Unit

Cleaning, Grading, Storage Units, Waxing and Packaging Units, Packaging Lines, Grain Colour Sorter, Pack Houses, Quality Testing / Grading Laboratories, Milk Packaging Unit, Milk Quality Testing Lab, Plastic Crates.

3Pre-cooling/Cold chain facility (Cold Storages, Reefregrated Vans, Milk Chilling Plants etc)

Pre-cooling Units, Ripening Chambers, Curing Chambers, Milk Collection & Chilling Centre, Bulk Chilling Unit, Pasteurization Plant, Cold Chain Projects with Reefer Vans Fish Chilling Plant, Fish Storage, Individual Quick Frozen (IQF) Plant, Cold Storage as a part of Integrated Marketing Infrastructure.

4Market User Common Facility (Auction platform, Weigh Bridge, Mechanical Handling Equipments)

Auction Platforms, Electronic Weighing Centers, Electronic Display Boards, Shop cum Godowns, Internal Roads, Automatic Produce Handling Plants.

5 Mobile Infrastructure Combined Harvester, Threshers, Groundnut Decorticator, Fishing Boat, Fish Trawler.

6Establishment of private markets/ Purchase Centres/ Collection Centres/ Market Yards

Market Yards, Purchase Centre/ Collection Centre and other related market infrastructures.

7 Other InfrastructuresAutomatic Milking Machines, Fishing Net, Honey Extraction Centre, Shellac Processing Unit.

Implemented w.e.f. 20/10/2004 in the country. Scheme is reform linked and is implemented in those States/UTs which amend their APMC Acts, wherever required, to allow 1. Direct Marketing 2. Contract Farming and permit setting up of Markets in private and cooperative sectors. So far, 28 States/ UTs have been permitted to take the benefits of the Scheme.


STATUS OF SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING

INFRASTRUCTURE, GRADING AND STANDARDIZATION

IN ANDHRA PRADESH

Year-wise Details(Rs. in lakhs)

PLAN YEARProject Sanctioned by NABARD

No. TFOEligible subsidy

Total subsidy released

Xth PLAN

2005-06 16 1531.585 188.181 185.1122006-07 218 4100.793 869.572 445.252

SUB TOTAL 234 5632.378 1057.753 630.364XIth PLAN 2007-08 314 6282.154 1022.276 880.905

2008-09 45 9165.112 1600.99 1279.1312009-10 26 13585.133 1357.152 985.7062010-11 118 33389.639 4038.771 2930.0412011-12 55 16528.82 1869.767 1330.219

SUB TOTAL 558 78950.858 9888.956 7406.002XIIth PLAN 2012-13 1 15.6 3.9 3.9

2013-14 22 5082.837 676.915 0 SUB TOTAL 23 5098.437 680.815 3.9 GRAND TOTAL 815 89681.673 11627.524 8040.266


STATUS OF RURAL GODOWN SCHEME

IN ANDHRA PRADESH

Category Capacity TFO Advance Final Subsidy Subsidy

Andhra PradeshSubsidy Rate15% 347404 5992.81 396.96 121.63 25% 2699843 44425.15 4628.82 4448.76 33.33% 450 9.91 1.23 1.17

GenderMale 1717244 27870.57 2820.17 2527.86 Female 824171 13299.10 1363.75 1306.39 None 506283 9258.19 843.08 737.31

CategorySC 450 9.91 1.23 1.17 Others 3047247 50417.96 5025.77 4570.40

Area CategoryOthers 3047697 50427.87 5027.00 4571.56

ClassificationCooperative 16790 337.64 34.97 29.27 Enterpreneur 1967001 31672.42 3138.48 3292.37 Farmer 612112 10626.95 1087.03 587.86 Private Corporate 44248 705.25 60.45 43.04

State/State Agency 172987 3442.17 330.00 269.45

Partnership 234559 3643.44 376.08 349.56 Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

Computer Connectivity• Total No. Computers provided = 398

• Agmarknet Nodes APMC/(Market) = 354

• Computers provided to field officers of Dept. of Marketing Govt. of A.P.(SAMB/DOM) = 42

• Computers provided to DMI offices = 2

STATUS OF MARKET RESEARCH AND INFORMATION NETWORK SCHEME

IN ANDHRA PRADESH


No. of Nodes Reporting DataMonth No. of Markets Reported Rank

April,2012 270 1st

May, 2012 264 1st

June, 2012 267 1st

July, 2012 265 1st

August, 2012 271 1st

September, 2012 278 1st

October, 2012 282 1st

November, 2012 274 1st

December, 2012 278 1st

January, 2013 270 1st

February, 2013 264 1st

March, 2013 267 1st


STATUS OF MAJOR REFORMS IN TAMILNADUSl.No.

Vital Areas of Reforms Status

1 No. of valid Licenses issued for establishment of Private Markets alongwith the list

The salient features of the model act 2003 such as Establishment of Private Markets, licenses for Direct Markets, Contract Farming, E-trading licenses, Consumer / Farmers Market are included in the new proposed Act 2011 (i.e. Tamil Nadu Agricultural Produce Marketing (Development & Regulation) Act 2011) and the same had been sent to Government. The work regarding the amendment of the Act is under processing.

2 No. of Licenses issued for Direct Marketing (Direct purchase of Agriculture Produce from farmers) alongwith list

3 No. of Unified licenses issued for purchase of agricultural produce in the State

4 Status of Contract Farmingi) No. of sponsoring individual / companies registered alongwith the list. Status of companies / firms like Indian/foreign collaborative

ii) Area covered crop wiseiii) No. of Farmers benefited

5 Status of single point levy of market fee

As per the provisions available in the existing Tamil Nadu Agricultural Produce Marketing (Regulation) Act 1987 and Rules 1991, the Market Committees in Tamil Nadu are already exercising the single point levy system

6 No. of E-trading licenses issued Nil7 No. of consumer / farmers market

i) Promoted by State Govt. / APMC 179ii) Promoted by private --




IN TAMILNADU

Number of projects sanctioned

Total eligible subsidy in Rs.

2012-13 Since inception 2012-13 Since inception

22 1093 3,03,55,435 38,86,17,131



IN TAMILNADUTamilnadu

Subsidy Rate15% 65764 993.19 42.56 54.15 25% 298885 5839.22 427.56 376.70 33.33% 17475 333.01 43.68


TamilnaduCategorySC 28536 548.19 64.60 Others 362892 6772.83 470.11 430.84


ClassificationAgri Graduate 3623 105.35 6.43 4.10 Cooperative 150 199.98 34.72 Enterpreneur 16232 464.91 24.52 7.92 Farmer 258922 4957.40 413.48 237.60 Private Corporate 3782 54.79 5.51 State/State Agency 1030 38.40 1.33 3.96 Others 87491 1196.59 81.48 112.26 Partnership 2512 44.40 2.26 2.28


PondicherrySubsidy Rate25% 449 16.50 1.12 0.88

GenderMale 449 16.50 1.12 0.88

CategoryOthers 449 16.50 1.12 0.88


ClassificationFarmer 449 16.50 1.12 0.88


IN TAMILNADU



IN TAMILNADUSl. No

Action Point Progress made in TAMIL NADU Progress made in PUDUCHERRY

Computers provided

Market Nodes

Computers provided

Market Nodes

212 189 5 4

1 Installation 187 3

2 Connectivity 133 3

3 Training 116 3

4 Data Reporting by Market Nodes

179 2

Data Reporting by Non-Market Nodes

16 0

5 Market Profile Available

173 2


Area of Marketing Reforms

Amendment made in the State APMCAct (Yes/No)

Date of the amendment notified in the APMC Act, if yes in Col.2

Respective Rules amended (Yes/No)

Date of notification of amended Rules, if yes in Col.4

Direct purchase of agricultural produce from agriculturist (Direct Marketing)

Yes 16.08.2007 Yes 20.03.2008

Private Market Yes 16.08.2007 Yes 20.03.2008Contract Farming Yes 16.08.2007 Yes 20.03.2008Single unified license for trading in more than one market

Not applicable

Not applicable

Yes 20.03.2008

Single point levy of Market fee

Yes 16.08.2007 Not applicable

Not applicable

E-trading Yes 16.08.2007 Yes 20.03.2008Farmer-consumer markets by a person other than Market Committee

Yes 16.08.2007 Yes 20.03.2008

STATUS OF MAJOR REFORMS IN KARNATAKA


STATUS OF MAJOR REFORMS IN KARNATAKA

Sl.No.

Vital areas of Reforms No.sDetailed List along with address and contact details

including Mobile/Phone number of promote/Company1 No. of valid licences

issued for establishment of Private Markets

02

2 No. of licences issued for Direct Marketing (Direct purchase of Agricultural Produce from Farmers)

07

3 No. of Unified licences issued for purchase of agricultural produce in the State

410

4 Status of Contract Farming No registration has been made in the APMCs of the State

5 Single Point levy of market fee Single Point Levy System is in force in the State of 6 No. of E-trading

licences issued03

7 No. of consumer/ farmer markets No registration received for grant of license8 Any new initiatives in the State Recommendations made by the High Power

Committee constituted by the Government of India is under consideration




IN KARNATAKA

Number of projects sanctioned

Total eligible subsidy in Rs.

2012-13 Since inception 2012-13 Since inception

42 103 1,27,00,000 2,08,00,000



IN KARNATAKAKarnataka

Subsidy Rate15% 182591 4220.10 167.19 37.52 25% 1339276 31778.54 2949.03 1909.48 33.33% 83614 1945.58 178.27 96.63

Gendermale 802162 18632.53 2021.77 1240.56 Female 201612 4160.53 388.74 242.19 None 593987 14802.93 868.07 553.28

CategorySC 30972 605.37 54.28 60.81 ST 14075 340.76 36.55 16.14 Others 1554267 36872.69 3191.38 1959.40

Area CategoryHilly 7863 159.50 6.05 13.65 Tribal 7081 185.93 8.06 1.03 Others 1586836 37257.20 3261.12 2019.84

ClassificationCooperative 20762 534.41 45.40 31.16 Enterpreneur 101343 2024.74 128.30 148.43 Farmer 1170064 28073.23 2602.87 1330.84 NGO 11874 262.69 3.49 Private Corporate 132219 2217.28 209.73 220.13

State/State Agency 137234 4079.95 257.03 258.77

Others 5682 165.62 7.38 3.39 Partnership 13768 347.71 22.90 31.40 Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad


IN KARNATAKASl. No Action Point Progress made in KARNATAKA

Computers provided Market Nodes

224 192

1 Installation 223

2 Connectivity 175

3 Training 172

4 Data Reporting by Market Nodes

123

Data Reporting by Non-Market Nodes

9

5 Market Profile Available 142


STATUS OF MAJOR REFORMS IN KERELA

KERALA AGRICULTURAL MARKETING SYSTEM

Kerala does not have APMC act. There are no statutory regulations prevail. There are no controls for agricultural market. Government and LSG institutions provide marketing Infrastructure. There is complete liberal market scenario prevail in Kerala markets.

DEPARTMENT OF AGRICULTURE MARKETS

There are six whole sale agricultural markets are functioning in Kerala viz. three urban whole sale markets (1.Trivandrum, Anayra, 2.Ernakulam, Maradu 3.Khozhikode, Vengeri) and three rural whole sale markets (1. Trivandrum, Nedumangadu 2. Ernakulam, Moovatupuzha 3.Wayanad, Sultan Bathery )

These six Agricultural Wholesale Markets of Kerala are Government owned markets constituted under Department of Agriculture. These markets were designed under Kerala Agricultural Market Project(KAMP),with financial assistance from the European Union(EU),the enterprise envisages to ensure efficient handling of Agricultural produce and to facilitate its proper marketing .At present ,these markets are functioning as per market rules framed by Govt. of Kerala.

There is no Contract farming within Kerala State.Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad



IN KERELA

Year 25% Category 33.33 % CategoryNo. of Projects

TFO Subsidy Released No. of Projects

TFO Subsidy Released

Advance

Final Advance

Final

2004-05 Nil Nil Nil Nil Nil Nil Nil Nil2005-06 7 343.362 43.08 7.124 Nil Nil Nil Nil2006-07 25 2970.308 246.136 121.7652007-08 37 2154.804 239.927 193.289 1 1.00 0.33332008-09 45 1726.571 77.502 377.8542009-10 15 280.732 35.19 64.9142010-11 7 677.00 74.193 63.9422011-12 16 904.300 62.084 131.4952012-13 22 702.508 6.156 63.310



IN KERELA

Kerala

Subsidy Rate15% 9077 164.18 7.77 7.22 25% 27055 1006.34 33.73 55.31 33.33% 950 24.41 1.17 4.82


CategoryST 350 11.50 1.17 0.77 Others 36732 1183.43 41.50 66.58

Area CategoryHilly 600 12.91 4.05 North East 350 11.50 1.17 0.77 Others 36132 1170.52 41.50 62.53

Kerala

ClassificationCooperative 5000 110.00 8.15 8.20 Enterpreneur 4699 108.40 3.62 9.53 Farmer 23979 899.53 25.90 45.16 NGO 350 11.50 1.17 0.77 Private Corporate 186 7.20 0.98

Others 570 19.80 1.43 2.71 Partnership 2298 38.50 2.41


Thank you

Documents

Directorate of Marketing and Inspection Dr. Rajendra R. Karpate (M.Sc., M.Phill. B.Ed. Ph.D) Deputy Agricultural Marketing Adviser