Agricultural marketing in india apmc

Agricultural marketing in india apmc

1. Legal framework on agricultural marketing in india-APMC Act

2. Agri -Markets in India 6261 Wholesale Markets in India (majority are regulated markets) 20870 Rural Primary Markets (about 15% are regulated markets) Total – 27131 2459 Principal Regulated Markets 5006 Regulated Market Sub-yards Total – 7465 (Only 286 regulated markets in 1950 )

3. Contribution of Regulated Markets Basic objective has been- to ensure reasonable gain to the farmers by creating environment in markets for fair play of supply and demand forces, to regulate market practices and attain transparency in transactions Aimed at providing proper method of sale, correct weighment , prompt payment and various marketing related services Democratic set up to control and manage markets Advent of regulated markets has helped in mitigating the market handicaps of producers/ sellers at the wholesale assembling level Achieved only limited success and Rural Periodic Markets in general, and the tribal markets in particular, remained out of its developmental ambit.

4. Initiative of Market Reforms Amendments in APMC Acts suggested by Expert Committee on Market Reforms constituted by the Ministry of Agriculture (Report in 2001) Expert Committee recommendations discussed in the National Conference of State Agriculture Marketing Ministers on 2002 Standing Committee of State Agricultural Marketing Ministers constituted under the Chairmanship of Union MOS (A) met & resolved to implement reforms on 2003 Committee headed by Additional Secretary (AM), GOI including State Representatives set up to draft a Model Law for Agri -Marketing

5. Model APMR Act finalized on 2003 by the Committee and circulated to States by Central Government Model Rules based on the Model Act circulated to States by the Ministry in November, 2007 NDC has resolved for completion of amendments in APMC Acts and notification of Rules there under by March, 2008.

6. Amendments Proposed in Model APMC Act Allow establishment of Private or Cooperative markets/ Farmer-consumer markets/ Direct marketing Safeguard the interest of the farmers through provisions for Contract Farming Single point levy & payment of market fee/ Single point registration of functionaries Prohibition of Commission Agents for agriculturists and no deduction to be made towards commission

7. PPP in management & extension activities/ Promotion of e-trading/ Electronic Spot Exchanges Encouraging professional management in APMCs Promotion of Grading & Standardization.

8. Proposed Legal Framework of Contract Farming Contract Farming Sponsor to register himself with a prescribed officer The Contract Farming Sponsor to get the contract farming agreement recorded with a prescribed officer 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 the contract farming agreement

9. Fast Dispute Settlement Mechanism at local level Specification of Model Agreement for Contract Farming to ensure inclusion of terms & conditions safeguarding interest of both farmers & buyers.

10. The specific areas identified for reforms in the State Agricultural Produce Marketing Regulations Acts (APMC) are ( a) Promotion of integrated markets in Private /Co-Operative sector

11. The integrated market infrastructure services will in addition to the physical infrastructure include: - Assembling Cleaning Sorting Grading packaging and quality certification Storage and finance Transport Retailing and Wholesaling E- trading Warehousing and pledge financing Value addition and Market information exchange service.

12. b) Direct Marketing c) Contract Farming d) Direct Contract between Producers & Processing Factories e) Direct Purchase from farmers without any license f) Notification of Commodities g ) Single Point Levy of Market Fee h) Tax

13. Programmatic Initiatives based on Reforms Reform-linked central assistance to encourage public/ private investment for development of marketing infrastructure, common facilities for aggregation & value addition of produce and grading/ packaging/ quality certification facilities Scheme to set up modern terminal markets under NHM for perishable agricultural produce with suitable backward & forward linkages Development of post-harvest/ cold chain infrastructure, CA storage facilities, refrigerated transportation by road/ rail, perishable cargo centres at air & sea ports under NHM

14. Action Plan for development of Food Processing Industries including setting up of Mega Food Parks World Bank assisted MACP and ADB Study for Agri-business Development Project.

15. Other Special Concerns In some States, registration of contract farming sponsors or processors vested with the Secretary of the APMC – should be out of APMC’s purview (better at State level) In some States, contract farming dispute settlement authority is State Level/ Divisional Officer – should have been kept at below District level for easy access to farmers In some States, Private Markets have been restricted within a specified distance from the existing regulated markets under the Rules .

16. References http:// agricoop.nic.in/policyincentives/progress.pdf http :// www.freshproduceindia.com/resources/documents/1333121395Sukhpal_Singh.pdf http:// agmarknet.nic.in/amrscheme/amr1.htm

17. Thank you….