5.0 results and discussion - shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/7859/10/10... ·...
TRANSCRIPT
55
5.0 RESULTS AND DISCUSSION
Commensurate with the objectives of the study, the results of the analysis of
data obtained during the course of present investigation have been presented in this
section. Since the study has five major objectives, the present chapter has been
divided into five major sections viz.
Examining the Relevance of HSAMB in the Changed Scenerio
Trends of Income and Expenditure of HSAMB
Weaknesses in the Present System in Haryana and suggest necessary
modifications
Analysis of various problems of HSAMB
Suggestions and Recommendations
5.1 RELEVANCE OF HSAMB
To critically examine the relevance of HSAMB in the present scenario, it is
very important and essential to dell deep in to the aims and objectives of the HSAMB
and analyse how far the organization has been able to achieve them and if it has
already achieved these, then whether there is any need to continue with this
organisation or have to change, modify or set the fresh aims and objectives. The
major aims and objectives fixed up by the HSAMB were as under:
Creation of wide marketing infrastructure comprising of various Marketing
Committees, Market Yards, Purchase Centre and Link Roads etc.
Profit maximisation for farmers by ensuring best possible prices for their
produce at the various market yards, sub yards and purchase centers.
Collection of market fees, sales tax and other levies from the purchasers on
various transactions taking place in the mandis.
Regulations and administration of various MCs all across the state as per the
Punjab Market Produce Act, 1961
Creation of Additional Facilities along with expansion and maintenance works
on behalf of various MCs.
56
Facilitating the procurement activities of oranisations such as FCI,
Warehousing corporation, HAFED etc. in various markets/ mandis in the
state.
4.1.1 Creation of Marketing Infrastructure
Marketing infrastructure is required to ensure free flow of farm produce and
its efficient marketing. Since the technologies on the production front has changed the
supply scenario, adequate marketing infrastructure is required to handle the huge
quantity of farm produce and make the same available to all the consumers both
inside and outside the country. Marketing infrastructural facilities include the
facilities like i) Main trading facilities ii) Ancillary trading facilities, iii) Farmer’s
facilities, iv) Administrative facilities, v) Water supply and sewerage facilities and
other common facilities.
In India there is a vast and huge net work of regulated agriculture markets
which have been developed in almost all the states. Regulated markets have come up
not only at district headquarters, but even in small towns for the convenience of
farmers, where there is enough production. In Haryana most of thee regulated markets
are connected with production points by link roads. The regulated markets in Haryana
have been developed and maintained under the control of Haryana State Agriculture
Marketing Board.
The Haryana State Agriculture Marketing Board has been continuously
endeavoring to improve upon the marketing system in the state. New markets are
being developed to replace the old existing markets located in the congested areas and
better facilities are being provided in the existing markets, so that the sale and
purchase of agriculture produce may take place smoothly. In all reality, the Punjab
Agriculture Produce Act, 1961, laid the foundation for a state wide agricultural
marketing infrastructure with the roles, responsibilities and scopes of various entities
predefined and well regulated. HSAMB implements these administrative and
infrastructural arrangements through the various market committees (MCs).
At present, there are in all 106 market committees in the state, with 106
principal market yards (mandis), 182 sub yards and 178 purchase centers, 33 Fruit
57
and vegetable mandis, 25 Fodder mandis and 106 Grain Markets. Haryana State
Agriculture Board ensures that the following facilities need to be provided at all the
regulated markets in the state.
Agri. Business Information Center
Boundary Wall
Check Posts and Gates
Common Auction Platforms
Covered Platforms
Individual Platforms
Kissan Rest House
Shops and Booths
Drinking Water facilities
Sulabh Shauchalyas
Light Arrangements
Parking Place
Canteen
Provision of water Supply and Sewerage System
Weigh Bridge
Internal and Service Roads
Approach and Link roads
Food Storage Godowns
Fire Fighting Station
Provision of Site for POST office and Banks
All the above works are being carried out on contractual basis from the
approved/enlisted contractors of the Board after giving wide publicity in leading
newspapers. The prospectus for enlistment is available in Circle offices, which are
located at Panchkula, Karnal, Hisar, Gurgaon and Rohtak at a cost of Rs.100/- each.
The persons who are interested to undertake the work up to Rs.5.00 lakhs can contact
the Executive Engineers, who are posted at District Headquarter and have the power to
grant enlistment up to Rs.5.00 lakhs. Superintending Engineer is competent and has the
58
power to award the contract up to Rs.10 lakhs while the Chief Engineer, who is posted
at Panchkula, the headquarters is competent for the works over Rs.10 lakhs.
Similarly, for doing various types of business in mandis such as Commission
Agents, Miller, Processer, Weighmen etc. persons, who fulfill the conditions for these
business can get the requisite forms from the Market Committees concerned.
4.1.1.1 Agri. Business Center
Haryana State Agricultural Board endeavors to convert the mandis into
modern Agri. Business Hubs. It seeks to create additional opportunities of marketing
for the farmers to provide post harvest technology services and marketing advice. First
such centre at Sirsa was inaugurated by Shri Bhupinder Singh Hooda, Hon’ble Chief
Minister Haryana on 10th
Oct. 2005. Another centre was inaugurated at Hisar by Smt.
Asha Sharma, IAS, Financial commissioner and Secretary to Govt. of Haryana on 24th
Dec. 2005. These centers seek to provide integrated services of all the departments
connected with agriculture and attempt to cater all needs of farmers from inputs,
production, post harvest technology and marketing point of view. The centers are being
set up in all district headquarter mandis to provide information on market , agronomical
practices and organize seminars, workshops and buyer seller meets etc. These centers
also house the Agriculture Development Officers and provide regular training to
farmers and help in improving the quality of agricultural products. In the first phase, the
agri business and information centers have been opened where already building
infrastructure is available under the Technology Mission on Cotton Project. ABICs are
being set up in collaboration with agriculture and horticulture departments.
Representatives of the various departments are provided space in these centres, so that
they can render extension services to the farmers and operate as “Agri. Clinics”.
5.1.1.2. Development of Additional Facilities
The HSAMB has constructed 238 covered sheds up to 31st March, 2006 in
various grain and vegetable markets. The work regarding development of another 28
covered sheds in progress in 2006 too have been completed.
59
The HSAMB is providing additional facilities like individual platforms,
common platforms, covered sheds, kiosks, kisan rest houses, drinking water/ water
cooler, tower lights, sulabh sauchalyas, water supply and sewerage,etc. in the various
mandis. The Board is also developing new purchase centers and extension of existing
purchase centers with a view to give facility for sale of agriculture produce within a
radius of 5 kms. From 1.4.1988 to 31.03.2006, an expenditure of Rs. 374.3 crores has
been incurred on this account. During the financial year 2006-07, additional
expenditure of 27.8 crores has been incurred for development and additional facilities
in the mandis.
Development and up gradation of various market yards and setting up of cold
storage facilities at 15 stations with facilities of pre-cool chambers and grading lines for
Fruits & Vegetables Markets. Besides construction of buildings of Plant Health Clinic
at 15 stations in the State viz., Ambala, Bhiwani, Faridabad, Fatehabad, Gurgaon,
Hisar, Jhajjar, Karnal, Nuh, Panchkula, Panipat , Rohtak, Sirsa, Sonepat and Yamuna
Nagar are also in progress with an estimated cost of Rs. 84.00 crores.
5.1.1.3 Development of New Mandis
The work of development of new grain/vegetable markets at Mullana, Charkhi
Dadri, Dabua Mandi-Faridabad, Jhajjar, Alewa, Ramthali, Babarpur (Phase- II), Nigdhu
(Phase-III), Raipur Rani, fish market at Faridabad, vegetable markets at Jakhal,
Bahadurgarh, Barwala-Panchkula, Nissing, Kosli and new grain & cotton market at
Uklana, extension of Sub-yard at Gorakhpur and additional mandi at Pehowa have been
taken up and are in the process of completion. Prestigious projects of ‘Modern Kisan
Mandi’ at Panchkula, modernization and up-gradation of grain/vegetable markets of
Rohtak and Karnal and Chara Mandi (Fodder Market) at Sonipat are also being
constructed. New cotton markets at Adampur, Barwala, Bhattu Kalan, Ratia, Jind,
Tohana and Jullana are also in progress with the financial assistance of Cotton
Corporation of India. A prestigious project of setting up of Terminal Market at Ganaur
at a cost of about Rs. 1500.00 crores is also in process. HSAMB proposes to set up a
world class Terminal Market of fruits and vegetables at Ganaur 30 Kms. of Delhi
boundary. This market will not only cater to the needs of Delhi, but to whole of
Northern India. It is also proposed to set up Flower Market catering to the whole of
60
North India near Delhi at Gurgaon. It will also have export facility centre. A proposal
of setting up of a chain of Agro Malls is also on way and first such Agro Mall is going
to be set up at Panchkula at an approximate cost of Rs. 30.00 crores, which will be the
biggest Agro Mall in the country.
Under its important schemes, the Board is in the process of setting up a
Terminal Market at Ganaur, Flower Market at Gurgaon. Development of new
grain/vegetable markets have been sanctioned at an estimated cost of Rs. 740.00 crore.
Cost of 1st
Phase of construction of vegetable markets and cold storages has been
estimated to be about Rs. 72. crore. An expenditure of Rs. 35.78 crore has so far been
incurred. Out of 15 proposed development of hospital and medical facilities in the
financial year 2009-10 (upto 31.12.09), mandi works to the tune of Rs. 43485.00 lakh
have so far been sanctioned which are in progress. New mandis at Jullana, Mullana,
Nissing, Raipur Rani, Alewa, Seewan, Jakhal have also been proposed. Timber market
at Manakpur & vegetable market at Panipat are scheduled to be completed by the end
of this financial year. The Board is in the process of setting up Terminal market at
Ganaur, Apple Market at Panchkula and Agro Shopping Malls at Panchkula, Karnal,
Panipat, Rohtak & Gurgaon. Apple Market in Panchkula has been completed with an
expenditure of Rs. 300. lakh. The work of Agro Shopping Mall at Panchkula is in
advanced stage of completion and the works at Karnal, Panipat & Rohtak are in
progress.
5.1.1.4 Plant Health Clinic
Plant Health Clinic work at Panchkula, Karnal, Rohtak and Sirsa have been
completed and an expenditure of Rs. 1.47 crore so far has been incurred. Besides,
construction of buildings of Plant Health Clinic at 11 more stations in the State viz.,
Ambala, Bhiwani, Faridabad, Fatehabad, Gurgaon, Hisar, Jhajjar, Nuh, Panipat,
Sonepat and Yamuna Nagar is in progress with an estimated cost of Rs. 84.00 crore.
5.1.1.5 Storages Capacity in Haryana Mandis
Haryana state agricultural marketing board in Haryana is making all out efforts
to provide additional storage space. The agriculture commodities are procured by
various agencies and are strored at various places like the state owned stores, state
owned ware houses and the cold stores. State owned stores are managed by the various
61
agencies like Food Corporation of India, which again manages the godowns by owning
them or owned by the Agriculture Refinance Development Corporation, Food and
Supplies Department, CONFED, HAFED, State Ware Housing Corporation, Central
Ware Housing corporation, A.R.D.C.(with HWC), Food and Supplies Bins, Haryana
Agro Industries and Others ( Marketing Board). The details of the Capacity in thousand
tonnes by all these agencies has been presented below in Table 5.1
TABLE 5.1 Capacity of State Owned Storages in Haryana ( ‘000 tonnes)
Name of the Agency 1995-
96
2000-
01
2005-06 2006-07 2007-08 2008-
09
Food Corp. of India
(a) Owned 7.30 7.43 10.85 10.85 10.85 10.85
(b) A.R.D.C. 3.55 2.67 - - - -
Food & Supplies
Deptt.
1.51 1.51 2.56 2.56 2.56 2.56
CONFED - - - - - -
HAFED 4.36 4.25 15.17 15.21 15.39 15.88
State Ware Housing
Corp.
5.86 7.06 11.24 10.97 11.04 11.04
Central Ware Housing
Corp.
1.41 1.71 3.66 3.66 3.66 3.66
A.R.D.C.(withHWC) 66 49 - - - -
Food & Supplies Bins - 20 - - - -
Haryana Agro
Industries
- - 1,45 1,45 1,45 1,45
Others( Marketing
Board
3,87 3,99 4,17 4,25 4,26 4,26
Total 28,52 29,31 49,10 48,95 49,21 49.70
It could be observed from the table that the storage capacity showed an
increasing trend, since 66-67, the day Haryana was formed. It showed an increase of
about 74 percent in 2008-09 over 1995-96. Though in 1995-96 maximum storage
capacity was available in owned food corporation of India godowns followed by state
ware housing corporation and the HAFED, but in 2008-09, the situation underwent a
change. In 2008-09, in between the agencies storing the grains, the maximum storage
capacity was found to be with HAFED followed by State Ware Housing Corporation
and the Food Corporation of India in owned godowns. In between different years, slight
62
variations were observed. Though CONFED has been mentioned as one of the
agencies, but it did not have any storage capacity. In the Food and Supplies bins too,
nothing was stored during the course of study, except for the year 2000-01. HSAMB
started storing the grains from 1990-91 onwards and the storage capacity increased
from 3,78,000 tonnes in 1990-91 to 4,26,000 tonnes in 2008-09 showing an increase of
about 13 percent.
The above table and discussion is related to the overall capacity of godowns in
the state. It would be more realistic to study the district wise capacity of state owned
godowns and ware houses in Haryana. As such the district wise break up of the capacity
of the state owned godowns/ware houses has been presented in table 5.2
It could be observed from the table that the total capacity of godowns continued
to increase over years, which could be due to the increase in productivity, production
and the procurement by various agencies. It could be further observed from the table
that the capacity of godowns across various districts showed a varying trend. In Kaithal,
Karnal, Bhiwani, Fatehabad, Jhajjar and Sirsa, the trend was a rising trend, while in
other districts, the capacity of godowns increased in certain years, but after a few years
either it decreased marginally or it was more or less constant. This could be attributed
to the type of crops produced and the procurement in the respective districts. It could be
further observed that the maximum storage capacity was found to be in Karnal district,
followed by Sirsa, Kaithal and Kurukshetra in order. The minimum storage capacity
was found to be in Panchkula district, followed by, Jhajjar and Mahenragarh districts,
which could be due to the reasons cited above. Fatehabad, Hisar and Jind too were
placed at a comfortable position much above the average level.
5.1. 1.6 Number of cold Storages and their capacity
Some of the agriculture products, which have low shelf life and cannot be stored
under tropical conditions are to be kept in cold stores to make these available to the
consumers all the year round.. The prominent among these are the various vegetables,
fruits and the potatoes etc. These products are stored in the cold stores and are taken
out slowly and slowly depending upon their demand in the market. The data beyond
63
1999-2000 could not be collected, because of its non availability due to the repeal of
cold storage order,1979 w.e.f. 18-5-1999. The details of the number of cold stores
Table 5.2 District wise Capacity of State Owned Ware Houses in Haryana (‘000Tonnes)
District 2000-01 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Ambala 115 205 205 98 103 102 102
Panchkula 30 30 05 05 5 5
Yamuna Nagar 117 212 212 149 163 163 163
Kurukshetra 352 520 520 589 588 588 588
Kaithal 356 478 478 589 557 565 595
Karnal 346 514 520 626 624 630 649
Panipat 182 207 207 201 201 202 202
Sonipat 100 100 100 159 159 155 155
Rohtak 67 75 77 111 111 110 110
Jhajjar - 9 9 13 13 15 15
Faridabad 137 189 189 243 230 235 235
Gurgaon 68 70 70 104 104 102 102
Rewari 23 53 53 57 57 58 58
Mahendagarh 41 40 40 46 46 47 47
Bhiwani 43 46 46 57 57 62 62
Jind 255 315 315 386 381 379 379
Hisar 133 219 219 403 407 404 404
Fatehabad - 389 389 471 481 491 491
Sirsa 282 453 453 603 608 608 608
Bins F.S.D. 20 20 20 - - - -
TOTAL 2931 4144 4152 4910 48965 4921 4970
Source: Food and Supply Department, Godowns, Haryana
along with their capacity from 1990-91 to 1998-99 has been presented in table 5.3 and
discussed below:
64
It could be observed from the table that the percentage growth was quite high in
the initial years i.e. from 1985-86 to 1990-91 (10.2%), and further increased in 1995-96
by about 13 percent. Growth rate showed a decreasing trend in 1996-97 (6%), but again
increased in 1997-98 by about 12.5 percent. However in 1998-99, the percentage
growth was nominal.
TABLE 5.3 Number of Cold Storages, Capacity and Percentage Growth in Haryana
Year Number of Cold storages Capacity ( in 000 Tonnes) Percentage growth
1990-91 154 195 10.16 (over 1985-86)
1995-96 169 220 12.82
1996-97 176 233 5.91
1997-98 195 262 12.45
1998-99 198 267 0.38
Note: The information for the year 1999-2000 onward is not available due to the repeal
of cold storage order 1979 w.e.f. 18-5-1999
In between the districts, the capacity of the cold stores was analysed for the year
1998-1999. The data pertaining to all the districts has been presented in table 5.4 below:
It could be observed from the table that the development of cold store facility
for the public and the farmers was not evenly distributed among the various districts of
the state. So much so, that in some of the districts like Jhajjar, Rewari, Mahenragarh
and Bhiwani, the available cold store facility was either not available at all or was very
nrgligible since it was not required because of the type of crops grown and the cropping
pattern. The districts like Kurukshetra, Sonipat, Karnal, Yamuna Nagar and Ambala
were having pretty good number of cold stores, which varied from 22 in Ambala to 51
in Kurukshetra. Accordingly, the storage capacity too varied from 30,000 tonnes in
Ambala to 80000 tonnes in Kurukshetra. In percentage terms too, it could be revealed
that Kurukshetra district alone had 30 percent of the total capacity of the state followed
by Sonipat district (18%), and Ambala, Karnal and Yamuna Nagar about 11 percent
each. In the remaining districts, the number of cold stores varied from 3 to 10 and the
storage capacity varied from less than 0.8 percent in Panchkula to 3.8 percent in
65
Fatehabad. The even distribution could be due to the cropping pattern in the area and
the need to store the crops in these cold stores.
TABLE 5.4 District Wise Number of Cold Storages and capacity in 1998-99
Name of the
District
Number of Cold
Stores
Capacity of the
cold Stores ( in 000
Tonnes)
Percentage
Capacity
Ambala 22 30 11.24
Panchkula 3 2 0.75
Yamuna Nagar 23 29 10.86
Kurukshetra 51 80 29.96
Kaithal 6 7 2.62
Karnal 27 29 10.86
Panipat 5 6 2.25
Sonipat 29 48 17.98
Rohtak 3 3 1.12
Jhajjar - - 0.00
Faridabad 3 3 1.12
Gurgaon 3 1 0.37
Rewari - - 0.00
Mahendragarh - - 0.00
Bhiwani - - 0.00
Jind 7 8 3.00
Hisar 6 9 3.37
Fatehabad 6 10 3.75
Sirsa 4 2 0.75
Total 198 267 100
Note: The information for the year 1999-2000 onward is not available due to the Repeal
of cold storage order 1979 w.e.f. 18-5-1999
66
5.1.1.7 Development of Buildings and Road Infrastructure
As already discussed earlier, the marketing infrastructural includes the main
trading facilities in the regulated markets like the covered auction halls, retail shops,
common drying yards, auction halls and godowns and above all the open auction
platforms. These facilities are to be developed in the state of Haryana by HSAMB.
Since the production points in most of the markets is located at a distance of 5-6 kms.
for efficient transportation of the produce to the mandi, it is very essential to have a
good net work of main and link roads. The board has therefore made a huge investment
on these facilities. The details of the expenditure incurred on the deposit works
comprising of the construction of mandis, construction of link roads, the repair of link
roads and other development works of other departments from 2000-01 to 2009-10, has
been presented in Table 5.5 below:
It could be observed from the table that initially, the Haryana State Agri Market
Board through its engineering department was executing only its own deposit works
(Market committees). Only from the year 2006-07, to utilize the spare capacity of the
staff and infrastructure it started undertaking the work of other departments like
construction of Model Village, 3rd State Finance Commission Works, LADT Scheme,
Sports Stadiums, Mahatma Gandhi Basti Yojna Works etc. Deposit works have further
been categorized as construction of mandis-new mandis, additional facilities and repair
of mandis etc., construction of new link roads and repair of link roads. All the above
works were carried out on contractual basis from the approved/enlisted contractors of
the board after giving wide publicity in leading news papers. For the purpose, the
Executive Engineer has the authority to give the contract up to Rs. 5 lakhs. The
Superintending engineer was competent upto Rs. 10 Lakhs, while the Chief Engineer
had the authority to give contract beyond 10 lakhs. Regarding the expenditure on
different heads, the overall picture for the last 10 years revealed that of the total
expenditure on deposit works of HSAMB, about 44 percent was made on the
construction of link roads, while around 24 percent was made on the repair of link
roads. In other words, the expenditure on road infrastructure was more than 68 percent.
67
68
The remaining about 32 percent was on the construction of new mandis, repairs in the
existing mandis and creation of additional facilities. The HSAMB undertook the work
of other departments on contract basis from 2006-07 onwards. The total amount spent
on the development work related to other departments was considered, which of course
is not related to the markeing aspects was observed to of aroud Rs. 50114 lakhs
Considering the total receipt for development works of HSAMB for development and
development works of other departments the total expenditure was of the order of Rs.
193074 lakhs. The total expenditure on the development works was of the order of Rs.
50114 lakha while the receipts were around Rs. 193074 lakhs. This leads to conclude
that the HSAMB has got a good job by taking and executing the work of other
organosations, since the money earned from other organizations is being used for the
development of facilities in the regulated markets.
The percentage expenditure on construction of mandis showed an increasing
trend from 2000-01 to 2007-08, except for the year 2004-05, from 17 percent in 2000-
01 to 45 percent in 2007-08, but after that it showed a decline and was 32 percent in
2009-10. The amount spent under this head was mainly on providing the additional
facilities in the mandis followed by repairs etc. The percentage expenditure made on
construction of link roads showed a decreasing trend and decreased from 76 percent in
2000-01 to 29 percent in 2006-07, but after that, it showed an increasing trend. This
could be due to the fact that the work started on the roads specified was completed with
the passage of time. Only in 2007 onwards, more new projects were undertaken. The
percentage expenditure on the repair of link roads showed an increasing trend till 2006-
07. It decreased in 2007-08, but again started increasing. There is no doubt that in
absolute figures the expenditure in general showed an increase.
Analysing the available data, it could be said that from 25.07.1999 to 2.3.2005,
36 mandi works with an expenditure of Rs. 1071.82 lakhs were completed. The mandi
works included development of new mandis, development of new purchase centers,
extension of existing purchase centers, providing additional facilities in existing mandis
with the assistance of Technology Mission of Cotton, Government of India. After
69
3.3.2005, 9 mandi works at an estimated cost of Rs. 142.86 lakhs have been undertaken
and have either been completed or in the process of completion.
Regarding the construction of link roads, from 1969-1999 HSAMB has
constructed 83 rural link roads having a length of 290 kms with an expenditure of Rs.
1157.05 lakhs. Again between 25.07.1999 to 2.3.2005, 11 link roads having a length of
327.58 kms. making an expenditure of 2574.32 lakhs have been completed. Since
March 2005, as many as 52 roads of 107.35 kms. length in district Ambala, 87 roads of
268.80 kms in district Bhiwani, 8 roads of 17.15 kms in district Faridabad, 46 roads of
160.15 kms of length in district Fatehabad, 5 roads of 9.34 kms in district Gurgaon, 34
roads of 130.95 kms in district Hisar, 127 roads of 42.13 km in district Jhajjar, 48 roads
of 171.40 kms in district Jind, 65 roads of 217.38 kms in district Kaithal, 49 roads of
125.35 kms on Karnal district and 54 roads of 116.82 kms in Kurukshetra district 20
roads of 42.92 kms in district Mewat, 11 roads of 17.07 kms in district Mahendragarh,
28 roads of 62.63 kms in district Panipat, 6 roads of 6.74 kms in district Panchkula, 32
roads of 74.54 kms in district Rewari, 79 roads of 277.74 kms in district Rohtak, 70
roads of 199.37 kms in district Sirsa, 37 roads of 99.82 kms. in district Sonipat and 66
roads of 117.92 kms in Yamuna Nagar have been completed. In simple words, the
roads in almost all the districts have been completed though of varying lengths, which
could be due to production/catchment area around the mandis. In short, HSAMB has
constructed 2668.48 kms of link roads in Haryana after March 2005.
It could also be concluded that with the construction of these roads, 1687
villages comprising of 80 in Ambala, 132 of Bhiwani, 19 of Faridabad, 92 of
Fetehabad, 9 of Gurgaon, 55 of Hisar, 187 of Jhajjar,86 of Jind, 111 of Kaithal, 83 of
Karnal, 89 of Kurukshetra, 46 of Mewat, 18 of Mahendragarh, 28 of Palwal, 43 of
Panipat, 11 of Panchkula, 52 of Rewari, 278 of Rohtak, 91 of Sirsa, 64 of Sonipat and
113 of Gurgaon were connected with the nearest mandis.
A study of the repair of rural roads revealed that from 25.07.1999 to 2.03.2005,
17 number PWD link roads having a length of 65.29 kms were transferred to HSAMB
for one time maintenance purpose. All these roads were got repaired at an expenditure
of Rs. 341.65 lakhs. 65 more roads having a total length of 179.54 kms too were got
70
repaired at an estimated cost of 546.56 lakhs. After march 2005, special repair of 17
roads at an estimated cost of Rs. 219 lakhs were also carried out.
As on 31.3.2010, construction of 382 number link roads, 381 number special
repair of roads 140 mandi works, 62 Public health works are in the process of
completion for which spill over expenditure is 559.02 crores.
Thus it could be generalized that HSAMB is doing a Yeomen service for the
development of Mandi and road infrastructure for the convenience of farmers to
transport their produce in all weathers, to the mearest mandis to get higher price and
better returns.
5.1.1.8 Development of Infrastructure across Various Circles
For smooth functioning of HSAMB and executing various development works
in the state, the HSAMB has a full-fledged Construction Wing headed by an Engineer-
in-Chief development works. There are 5 Circles headed by the Superintending
Engineers and two placed at the the head office. There are 22 Divisions, situated at each
district headquarter (except Mohindergarh). All the districts have been attached to
various circles. In addition to these five circles, there is an additional Division known as
Electrical division, which looks after the electricity needs of the board at the state level.
It would, therefore, be very appropriate to study the mode of expenditure in different
blocks during the period of study. The districts included in each circle have been given
below:
S.No. Circle Districts Covered
1. Panchkula Panchkula, Ambala, Kurukshetra and Yamuna Nagar
2. Karnal Karnal, Kaithal, Panipat and Jind
3. Gurgaon Gurgaon , Faridabad and Rewari
4. Rohtak Rohtak, Jhajjar, Sonipat
5. Hisar Hisar, Fatehabad, Sirsa and Bhiwani
6. Electrical Divisions Hisar and Sirsa
71
The percentage of the total expenditure across various circles have been worked
out for various heads and presented in tables 5.6 to 5.13.
Table 5.6 Percentage to Total Expenditure across Various Circles
Circle 2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula 14.09 17.14 15.32 18.76 19.95 16.28 14.86 13.02 15.43
Karnal 21.74 23.86 24.24 25.14 22.77 29.45 28.82 26.17 25.01
Gurgaon 10.72 7.91 7.33 9.73 8.17 10,02 11.50 7.71 8.92
Rohtak 14.93 14.82 10.79 9.53 12.69 12.79 16.32 20.69 15.39
Hisar 36.53 34.21 40.45 33.71 34.15 28.67 28.50 30.18 33.24
Electrical
circle
Hisar and
Panckkula
2.00 2.06 1.87 3.13 2.27 2.78 0.00 2.23 2.01
It could be observed from the above table that in all, the percentage to total
expenditure on all the roads was observed to be the highest in Hisar circle followed by
Karnal circle inall the years under study except for 2005-06 and 2006-07, when it was
slightly lower than Karnal and was at the 2nd
plac during all the years and combined for
all the eight years as a whole for which the data was available. It was observed to be the
lowest in Gurgaon followed by Rohtak and panchkula circles, which were very close to
each other. The percentage expenditure by electrical circle Panchkula/Hisar was around
2 percent in almost all the years except 2006-07, when the expenditure was very low or
almost zero. Across the years, no definite trend was discernable in any of the circles.
However in general, in absolute terms, it showed an increasing trend.
5.1.1.9 Percentage Expenditure on Development Works
The development works comprising of the construction of new mandis and
repairs of old mandis etc. have been carried out by the HSAMB construction wing in all
the circles/ mandis in all the districts of Haryana. The percentage expenditure made
72
across various circles in Haryana for the years 1999-2000 to 2007-08 have been
presented in table 5.7
Table 5.7 Percentage to Total Expenditure across Various Circles on
Development Works
Circle 1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula - 25.42 19.96 17.66 22.29 25.31 19.75 24.86 16.68 19.73
Karnal 21.25 12.56 28.05 24.58 15.36 27.79 37.96 38.43 43.68 28.57
Rohtak 35.22 4.94 6.37 0.94 2.16 2.23 3.98 0 15.63 6.59
Hisar 43.53 50.65 24.92 34.02 30.95 15.73 19.55 34.52 17.49 28.88
Gurgaon 0 6.43 8.28 10.02 10.46 9.49 18.76 2.19 5.38 7.89
Electrical-
Circle
0 0 12.42 12.78 18.78 19.45 0 0 1.14 8.34
It could be observed from the table that on an average, the maximum amount
was allocated to the development of Hisar circle closely followed by Karnal circle.
Percentage of amount spent in Rohtak circle was observed to be the minimum (6.6%),
closely followed by Gurgaon Circle (7.9%). No specific trend was observed in between
years in almost all the circles. However, it varied from 16.68 percent in 2007-08 to
25.42 percent in 2000-2001, the average being 19.73 percent in Panchkula. In Karnal it
varied from 12.56 percent in 2000-01 to 43.68 percent in 2007-08, the average being
28.57 percent. In Rohtak, the variation was comparatively more and varied from almost
nil in 2006-07 to 35.22 percent in 1999-2000, the average for the period being 6.59
percent. Gurgaon too had a similar position and the percentage of total expenditure in
the circle varied from 0 percent in 1999-2000, 2000-01, 2005-06 and 2006-07 to 10.46
in 2003-04. Hisar was placed on a better plateu, where the percentage expenditure was
highest and varied from 15.73 percent during 2004-05 to 50.65 percent in 2000-01, the
average for the circle being almost 29 percent. It could be generalized that Hisar and
Karnal circle competed for the resources in different years. In short, the expenditure,
wherever was required was made during one year or the other depending upon urgency
and the requirement. However the total expenditure on development works varied from
73
476.32 lakhs in 2000-01 to 1246.86 lakhs in 2008-09 registering a growth of about 162
percent.
5.1.1.10 Percentage Expenditure on Additional Facilities in Existing Mandis
Providing the additional facilities in the existing mandis is a continuous process.
Wear and tear due to the use of various facilities like the covered sheds, open platforms,
boundary walls, light arrangements, parking place, drinking water facilities, water
supply, sewerage, urinals and toilets, Kisan rest house and canteen etc. is taking place
in various market yards, sub yards and collection centres. Even with the increase in
business and the clientage additional facilities are required. Again with the technology
change, modernization is on the cards. On all this, the expenditure is incurred. The
percentage of amount spent of the total amount on providing these facilities from the
year 1999-2000 to the year 2007-08 and for all the years combined together across
various circles has been presented in table 5.8 below:
Table 5.8 Percentage to Total Expenditure across Various Circles on
Additional Facilities in Existing Markets
Circle 1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula 41.72 20,69 44.20 27.65 64.94 69.41 45.28 12.97 15.31 23.08
Karnal 19.78 25.28 40.84 66.48 13.63 15.36 8.78 45.62 44.48 36.15
Rohtak 2.68 1.18 2.65 1.38 5.39 11.51 10.86 8.76 6.44 8.92
Hisar 26.32 26.48 3.12 4.49 15.96 3.62 25.26 15.02 19.06 20.23
Gurgaon - 1.99 8.06 0 0.08 0.10 9.82 17.63 13.12 5.12
Ekectrical-
Circle
9.50 24.38 1.13 0 0 0 0 0 1.59 6.50
It could be observed from the table that Karnal circle was at the top in the use of
funds (36%) under this head followed by Panchkula (23%) and Hisar (20%). This could
be due to the fact that to facilitate the farmers and to avoid congestion and daily traffic
jams, the new mandi was constructed at G.T.Road, Karnal. All the existing Arhtiyas
74
and commission agents were allotted the shops in the new mandi. Being new, all the
facilities were to be provided there hence the increased expenditure. Again in
Panchkula and Hisar also the additional facilities were to be provided. In the remaining
circles, the expenditure was of the order of only 5 to 9 percent. No definite trend could
be observed in the use of funds in various circles, but it could be said that the
proportionate use of funds in Panchkula in percentage terms, showed an increasing
trend from 1999-2000 to 2004-05 except for the year 2000-01 and 2002-03. Therefter,
it showed a decling trend, but in 2007-08, it slightly increased. In Karnal, these were
observed to be the highest in 2001-02 accounting for about 66 percent and 9 percent in
2005-06 of the total expenditure.However in most of the years Karnal could elicit about
45 percent of the total expenditure. In Hisar, however, these were found to be the
highest in 1999-2002 closely followed in 1999-2000 and 2005-06. In Rohtak and
Gurgaon, the proportionate expenditure in many yearswere in a single digit figure.
Total expenditure made on this head varied from Rs. 1492 lakhs in 1999-2000 to Rs.
3050 lakhs in 2007-08 registering an increase of over 104 percent.
5.1.1.11 Percentage Expenditure on Repair of Mandis:
As already stated above, the wear and tear in the mandis is taking place due to
the continuous use and its repair is necessary from time to time. The propotional
amount so allotted and spent in percentage terms on the repair works in the existing
mandis has been ascertained and presented in table 5.9
It could be observed from the table that on the repairs of mandis across various
circles on an average, the proportionate expenditure was observed to be the highest
(34%) in Panchkula circle followed by Hisar (25 %) and Karnal circle (14%). It was
observed to be the lowest in Gurgaon circle. In Rohtak circle and the electrical circle
(panchkula and Hisar), it was of the order of 10 and 12 percent respectively. In between
the years, in this case too, no definite trend could be descernable. However during the
year 2006-07 and 2007-08, in Panchkula circle alone, it was observed to be around 93
percent and 86 percent of the total expenditure of the state, which meant that in all other
75
Table 5.9 Percentage to Total Expenditure across Various Circles on Repair
of Mandis
Circle 1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula 18.89 14.45 18.28 8.22 4.43 11.04 0 92.65 86.27 34.37
Karnal 25.86 8.41 30.32 40.32 14,93 0 0 1.73 0 14.05
Rohtak 15.96 6.83 25.78 38.45 7.36 2.39 77.50 4.06 0.14 10.28
Hisar 25.37 52.38 25.02 3.82 0.45 8.99 22.50 1.56 0 24.90
Gurgaon 0 1.34 0.60 9.19 72.83 77.58 0 0 1.25 4.65
Electrical-
Circle
13.92 16.59 0 0 0 0 0 0 12.34 11.75
circles, the expenditure was very little. In Karnal circle, it was highest in 2002-03
(40%), followed by 26 percent in 1999-2000. During the year 2005-06, 78 percent of
the total expenditure was incurred in Rohtak and the remaining 22 percent in Hisar
circle. However, in Hisar circle 52 percent of the total expenditure was incurred during
2000-01. Gurgaon was very fortunate during 2003-04 and 2004-05, when it bagged 73
and 78 percent of the total budget of the HSAMB leaving vey little for other circles.
Thus it could be generalized that the percentage expenditure depended upon the need of
the circle and the total budget and allocated among the circles in a phased manner. In
general, the funds on repairs of mandis increased in the initial years up to 2005-06,
showed a decreasing trend, but again increased in 2006-07 and 2007-08.
5.1.1.12 Percentage Expenditure on Board works
The expenditure incurred on Board works during the period 1999-2000 to 2007-
08 and the overall average for all the circles has been presented in Table 5.10
It could be observed from the table that on the Board works across various
circles on an average, the proportionate expenditure was observed to be the highest, 34
percent in Hisar circle followed by Karnal circle (26 %) and Panchkula (18%). It was
observed to be the lowest in electrical circle. In Rohtak circle and the Gurgaon circle, it
76
Table 5.10 Percentage to Total Expenditure across Various Circles On Board
Works
Circle 1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula 37.62 33.68 16.55 15.96 18.48 22.03 16.56 20.24 22.39 18.43
Karnal 50.79 52.50 24.20 24.03 24.12 23.52 30.02 16.92 38.99 26.03
Rohtak 7.69 1.31 14.95 11.09 9.34 13.35 12.62 37.04 5.35 13.13
Hisar 1.15 3.20 34.52 39.62 35.33 29.93 28.63 16.43 26.08 34.13
Gurgaon 0 4.06 7.76 7.36 9.68 9.23 9.52 9.37 7.19 6.13
Ekectrical-
Circle
2.75 5.25 2.02 1.94 3.05 1.94 2.65 0 0 2.15
was of the order of 13 and 6 percent respectively. In between the years, in this
case too no definite trend could be descernable. However in Panchkula circle, it varied
from 38 percent and 34 percent in 1999-2000 to 17 percent in 2001-02 and 2005-06. In
Karnal circle, it was observed to be the highest in 2000-2001 (53%), followed by 51
percent in 1999-2000. It however, varied from 17 percent in 2006-07 to 53 percent in
2000-01, the average being 26 percent. In Hisar, the percentage expenditure varied
from 1 percent in 1999-2000 to about 40 percnet in 2002-03, the average for all the
years being 34 percent. In the remaining two circles, in Gurgaon, the percentage
expenditure varied from nil to 10 percent, while in electrical circle, the variation was
from 0 percent to 5 percent only.
5.1.1.13 Percentage Expenditure on Rural Roads
Roads are considered to be one of the most important infrastructures not only
for the development of rural economy, but also production and marketing of food grains
and other materials. Pucca and metalled roads help to a great extent in cheap
transportation of agriculture inputs and taking the produce to the mandis. Many
agriculture products like vegetables and milk have short shelf life and cannot be stored
for a long time. As such, these are to be transported to the market soon after these are
produced. In the absence of pucca and metalled roads, this is not possible, particularly
77
in the rainy season, when most of the roads are blocked. HSAMB is therefore, required
to pay serious attention on developing the link roads and repairing them periodically. A
part of the amount collected from the mandis as market fee needs to be allocated
towards this head. The proportion of the total amount allocated on the development of
rural roads among various circles across different years has been presented in table 5.11
Table 5.11 Percentage to Total Expenditure Accross Various Circles on Rural
Roads
Circle 1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula 12.54
12.05 17.13 0 0 0 0 13.88 37.27 15.31
Karnal 26.89 24.03 23.86 0 0 0 0 29.29 37.80 25.24
Rohtak 16.52 11.27 14.81 0 0 0 0 6.14 14.07 13.02
Hisar 44.05 46.49 34.22 0 0 0 0 34.12 8.11 37.08
Gurgaon 0 6.16 7.90 0 0 0 0 16.57 2.75 8.21
Electrical-
Circle
0 0 2.08 0 0 0 0 0 0 1.11
It could be observed from the table above that though very important aspect, but
not much allocation of money has been made especially from 2002-03 to 2005-06,
rather this aspect has been completely neglected. As observed from the table above,
some work has been carried out from 1999-2000 to 2001-02 and again from 2006-07 to
2007-08. In the period 1999-2000 to 2001-02, priority was given to the development of
roads in Hisar circle (34 % to 46%), followed by Karnal circle 24 percent to 27 percent.
Rohtak circle and Panchkula circle were the next in order. Little amount was allocated
for the Gurgaon circle and electrical circle. In the 2006-07 and 2007-08 period, some
difference towards the amount allocation was observed. During this period Karnal
circle got the priority over Hisar circle followed by Panchkula and Rohtak circles.
However, the amount spent in electrical circle was practically nil. The foregoing
discussion leads to conclude that the proportion of expenditure incurred on the road
development was not sufficient and required more attention in the days to come.
However, the total amount allocated from 1999-2000 to 2001-02 varied from Rs 1629
lakhs to Rs. 18137 lakh showing an increase of 1014 percent. In 2006-07, the total
78
expenditure made was found to be Rs. 4214 lakhs, which decreased to only Rs. 52 lakhs
in 2007-08.
5.1.1.14 Percentage Expenditure on Urban Roads
It is not only rural roads, which are to be developed for efficient marketing, but
the urban roads too play a dominant road. To reach the mandis, the transporting
vehicles have to cross through the city, which pose a great problem because of heavy
vehicular traffic during the entire year, which is more trouble some during the peak
season, when large number of slow moving tractor-trollies and bullock carts add to the
traffic hazard. Though it is the prime responsibility of Municipal Committee or the
Improvement Trust for repairing and managing the urban roads, but since their funds
are very limited and the urban roads are also being used by the rural vehicles, so the
onus also lies on the District Board / HSAMB and the other bodies to look after this
aspect of infrastructure development. The proportionate expenditure across various
circles made during 1999-2000 to 2007-08 has been presented in table 5.12
Table 5.12 Percentage to Total Expenditure Across Various Circles On Urban
Roads
Circle 1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
ALL
Panchkula 14.44 18.27 8.21 4.44 0 0 0 0 0 13.32
Karnal 8.42 30.31 40.32 14.93 0 0 0 0 0 14.82
Rohtak 1.34 0.61 38.45 72.84 0 0 0 0 0 7.79
Hisar 6.83 25.79 3.81 7.34 0 0 0 0 0 12.33
Gurgaon 52.38 25.02 9.21 0.45 0 0 0 0 0 40.02
Electrical-
Circle
16.60 0 0 0 0 0 0 0 0 11.52
It could be observed from the table that the HSAMB was spending on the urban
roads in early stages of development, but stopped spending on urban roads maintenance
from the year 2003-04 onwards rather in the electrical circle very little amount has been
spent from 2000-01 onwards. The overall picture of all the circles combined together
revealed that Gurgaon circle got the number one priority and 40 percent of the total
amount spent was used in this circle alone. The proportionate expenditure in Panchkula
circle, Karnal circle, Hisar circle and electrical circle has shown small variations from
79
12 percent in electrical circle to 15 percent in Karnal circle. Of the total amount, the
share of Rohtak circle was around 8 percent. This leads to conclude that HSAMB has
played little role in the development of market infrastructure particularly after the year
2003-04.
5.1.2 PROFIT MAXIMISATION FOR FARMERS
For the economic development of farming community, the nation is faced with
the problem of increasing the productivity on the one hand and giving the best price for
their produce on the other hand. For efficient marketing and providing the maximum
profit to the farmers at the various market yards, sub yards and purchase centers, a
multi pronged attack has been made. In addition to the creation of organized marketing
and providing them the various infrastructural facilities, many more development
schemes have been initiated. Some of the schemes started for the benefit of the farmers
have been given below:
5.1.2.1 Krishak Uphar Yojna
The HSAMB has launched a ‘Krishi Uphar Yojna’ from 2nd
Oct. 2000 on the
eve of Gandhi Jayanti in all the mandis of the state. Under this scheme, the secretary
market committee issues gift coupons to the seller farmers on production of ‘J’ form.
One gift coupon is given to the farmers for selling the agriculture produce worth
Rs. 5000. Number of gift coupons would increase with the amount of sale of produce in
the denomination of Rs. 5000/- each. This scheme has also helped to check evasion of
market fee on the one hand and eliminate the kacha arhtiya and village traders on the
other hand. Under this scheme, district wise lucky draws are being held on half yearly
basis. The money value of the prizes, which are being distributed in the shape of
agricultural implements on every six month basis in each district has been decided as
below:
1St
Prize ------- 2 Rs. 40000/- per prize
2nd
prize_______8 Rs. 25000/- per prize
80
3rd
. prize 12 Rs. 10000/- per prize
List of Agricultural implements/equipments
Sr.No. Name of Agricultural equipments/implements
1. Disc. Harrow 6x6 (bearing type)
2. Disc. Harrow 7x7 (bearing type)
3. Disc. Harrow 6x6 (bearing type)
4. Disc. Harrow 6x6 (Bush type)
5. Disc. Harrow 8x8 (Bush type)
6. Disc. Harrow 8x8 (Bush type)
7. 9 tyne Cultivators
8. 11 tyne Cultivators
9. Land leveller 6’
10. Land Lewveller 7'
11. Land Leveller 8'
12. Ridger- Two Row
13. Ridger- three Row
14. Bund Former (Furrow Type)
15. Bund Former (Disc. Type)
16. Disc. Plough
17. Harmba Threshers
18. Multi Crop threshers Capacity 5 Qtls
19. Multi Crop Threshers Capacity 6 Qtls
20. Multi Crop Threshers Capacity 8 Qtls
21. Multi Crop Threshers Capacity 10 Qtls
22. Multi Crop Threshers Capacity 12 Qtls
23. Harrow
24. Paddy Tilling Machine
81
25. Tractor Trolly
26. Fertilizer
27. Pesticides
Note: Regarding paper formalities, contact concerned E.O.-cum-Secretary Market
Committee.
5.1.2.2 Special assistance to Victims of Agricultural operations
The scheme providing special assistance to the victims of accidents during
agricultural operations/pursuits by the market committee came into existence from 24th
Feb., 1989. Under this scheme, financial assistance is being granted by market
committees to the victims of accidents due to agricultural operations in the state.
Compensation for the loss of limbs is given @ Rs. 5000/ to Rs. 40000 and in case of
death a compensation of Rs. 50000 is paid. As per the available data, the total amount
of financial assistance disbursed so far has been of the order of Rs. 2.6473 crore to 1199
persons from 1-02-2008 to 30-09-2009. The said scheme is operative in the age group
of 10 years to 65 years and the scope of this scheme is as under:
Death or disablement to any farmer or labourer arising out of working on
agriculture machine, implements, tools, equipments, appliances and all other
allied activities as specified earlier in the name of scheme in the state of
Haryana.
Death or disablement to any farmer arising out of digging of well or tubewell,
cane crusher, kohloos, chaff cutters, threshers, digging operations, poisonous
gas while digging and operating the tubewell during agriculture
operations/pursuits etc.
Death or disablement to any farmer or farm labourer arising out of accident with
animals or animal cart, trucks and any other vehicle during carrying of the
agricultural products, agricultural operations/pursuits in the state of Haryana.
Death or disablement to any farmer or farm labourer while using insecticides,
pesticides, weedicides, electric shocks during agricultural operations/pursuits in
the state of Haryana.
82
Death or disablement to any labourer employed or engaged in market yard
arising out of use of agricultural machinery, implements for handling
agricultural produce, other accidents with animals,carts, trucks, electric shock,
fire hazards and vehicles coming and going out of the market yards.
The scheme is applicable in the state of Haryana. The basic formality is to
complete the application to be submitted within 60 days from the date of
occurrence of the accident on a plain paper to the concerned E.O.cum secretary,
Market committee with the following documents
Medical certificate from at least a M.B.B.S. doctor
Three passport size photographs
An affidavit duly attested by the Tehsildar explaining the details of the
accident.
5.1.2.3 CONTRACT FARMING
The process of Contract Farming in Indian Rural Economy is a new concept.
The process of contract farming involves cultivating and harvesting for and on behalf of
big business establishments or Government agencies and forwarding the produce at a
pre-determined price. In return, the contracted farmers are offered high price against
their farm produce. The role of contract farming in Indian rural economy is becoming
more and more important, since organized farming practice has become the need of the
hour in the world of rapid industrialization. The rapid industrialization process in India
has created shortage of farmland, which in turn has necessitated organized farming
practice in India.
The process of contract farming involves scientific and optimum use of land
and farm resources for maximum output of agriculture produce. Small time farmers
practicing primitive agricultural methods for cultivation and harvesting of crops
dominate the Indian agriculture sector. But, with the liberalization of Indian economy,
there has been a sudden spurt in contract farming. Moreover, today more and more
established business houses are taking interest in the business of contract farming. This
83
has happened as a result of rapid growth of retail industry. The growth of retail industry
in India has propelled the growth of farm retail in India, which caters fresh vegetables
and fruits from the farms to the Indian masses. The role of Contract Farming in Indian
rural economy involves government and private participation along with the rural
workers.
Even though contract farming is proving to be a great success in Punjab,
corporates seem to be shying away from its neighbouring state of Haryana. At present,
there is only one corporate house in Haryana, which has so far partnered with HSAMB
for contract farming of malting barley in Haryana. SAB Miller, India, the Indian arm of
SAB Miller Pic, one of the world’s largest breweries with popular brands like Foster’s,
Castle Lager, Haywards, Royal challenge, etc. has roped in 400 farmers across 2500
acres in the state for contract farming of barley. The initiative is spread out in the arid
regions of the state that involves Gurgaon, Jhajjar and Sirsa regions. The main reason
why companies don’t evince much interest in contract farming here is that the farmers
have an assured income from wheat, for which the government is paying good price.
But for vegetables and fruits, corporates seem to be waiting for direct marketing
scheme to come into play so that they are not legally bound to the farmer. There is no
denying the fact that Reliance Retail and Subhiksha, ITC and Mother dairy are
procuring fruits and vegetables from farmers located in Sonepat, Kaithal, Karnal and
Rohtak, but are not ready to enter into contract farming. They too are waiting for the
Direct Marketing Scheme. The draft scheme for direct marketing is ready and gone to
the government for approval. Once the scheme is approved, the companies are expected
to enhance their presence in the state. To promote the contract farming in the state,
Haryana Government through its organ, the HSAMB has issued the notification which
is as under:
5.1.2.3.1 Haryana Government Agriculture Department Notification
To promote the contract farming amending rules, Haryana Goverenment has
issued the notification on 9th
August 2007 vide No.1140-AS-I-2007/14293. In exercise
of the powers conferred by sub section (1) read with sub section (2) of section 43 of the
84
Punjab Agricultural Produce Markets Act, 1961 (Punjab Act 23 of 1961), the Governor
of Haryana hereby makes the following rules further to amend the Punjab Agricultural
Produce Markets (General) Rules, 1962 in their application to the State of Haryana,
namely:-
1. (i) These rules may be called the Punjab Agricultural Produce Markets (General)
Haryana Amendment Rules, 2007.
(ii) They shall come into force with immediate effects.
2. In the Punjab Agricultural Produce Markets (General) Rules, 1962, (hereinafter
called the said rules), after rule 16, the following rule shall be inserted, namely,-
“ 16A. Registration of contract farming section 8 A.-
(i) Any contract farming sponsor intending to register himself under section 8A of the
Act shall apply in Form A-I to the Secretary of the concerned Market Committee. In
case the contract farming sponsor wants registration for more than one Market
Committee, he may apply to the Secretary of the Board.
(ii) Every such application shall be accompanied with a registration fee of Rs. 5000/-.
The amount shall be refundable only if the registration is denied for any reason. The
period of registration shall be three years.
(iii) The period of registration may be got renewed by applying to the Secretary of the
concerned market Committee or the Secretary of the Board as the case may be in Form
A-II accompanied with a renewal fee of Rs. 2,000/-. The amount shall be refundable
only if the renewal of registration is denied for any reason.
(iv) Application for registration/renewal shall also be accompanied with:-
(a) a detailed project report of the business intended;
(b) a statement showing the financial status of the applicant with the support of
Income tax returns for the previous two assessment years or permanenet assets with
valuation assessed by a Chartered Accountant;
(c) Balance sheet of last two years;
(d) Proof of registration under the Companies Act, 1956 (1 of 1956), the Indian
Partnership Act, 1932 (9 of 1932), the Haryana Cooperative Societies Act, 1984 (22 of
1984) or a Government agency, as the case may be.
85
(v) The Secretary of Market Committee or the Secretary of the Board as the case may
be shall evaluate the application for registration or renewal submitted by the applicant
and after evaluation shall issue the registration certificate to the applicant in Form B-I
or renew the registration as the case may be. In case contract farming sponsor violates
the provisions of Act, Rule & Bye Laws or conditions of contract agreement, the
Secretary of the Market Committee or the Secretary of the Board as the case may be,
shall have the power to cancle his registration.
(vi) The contract farming agreement between the contract farming sponsor and contract
farming producer shall be in Form C-I and it shall be got registered with the District
Marketing Enforcement Officer concerned in the presence of both the parties. The
agreed rate/contract rate shall not be less than Minimum Support Price (MSP)of the
proceeding years. The buyer shall deposit an amount up to 15% of the total price of the
agricultural produce as per agreed rate or Minimum Support Price (if the rate is not
agreed upon) or bank guarantee for the sum with the committee in which the land is
situated as security. Where there is no Minimum Support Price and no agreed rate, the
amount of security shall be calculated at the rate of 15% of the prevailing market rate at
the time of agreement. The security shall be released within a period of thirty days
after the date of satisfactory performance of the agreement.
(vii) In case both the parties want to change any of the terms and conditions of the
contract farming agreement, the same shall be affected by the District Marketing
Enforcement Officer concerned in the presence of both the parties form time to time as
per requirement.
(viii) The secretary of the concerned Market Committee or the Secretary of the Board,
as the case may be, shall maintain record of the contract farming sponsors in Form D-I..
(ix) The District Marketing Enforcement Officer concerned shall maintain a record of
the contract farming agreements in Form E-I.
(x) The District Marketing Enforcement Officer concerned either himself or on the
request of either party shall empower the officials of the Board/Committee or any other
Government agency being expert to enter the premises/fields of the parties to contract
farming agreement to inspect, supervise and monitor the farming practices adopted and
86
the quality of the produce from time-to-time. A record, as may be necessary in this
regard in the form of Kisan Diary or otherwise may also be maintained.
(xi) A Contract farming sponsor shall submit annual accounts in Form F-I before 30th
June every year, to the concerned Market Committee in respect of all transactions
undertaken by him during the previous financial year.
(xii) If the contract farming sponsor has purchased the produce with an intention to
export or processing, then he shall inform to the concerned Market Committee, the
same in Form G-I. The contract farming sponsor shall submit a declaration that he is
exporting or processing the produce within a period of 90 days from the date of
purchse.
(xiii) If any dispute arises between the parties in respect of any provisions of contract
farming agreement, either of the party may submit an application to the Zonal
Administrator concerned to resolve the dispute. Every such application shall bear the
court fee stamp of ten rupees. The zonal Administrator shall resolve the dispute in a
summary manner within a period of thirty days after giving the parties a reasonable
opportunity of being heard.
(xiv) Any party aggrieved with the decision of the Zonal Administrator may prefer an
appeal to the chief Administrator within a period of thirty days from the date of such
decision. Such appeal shall bear the court fee stamp of fifty rupees. The appellate
authority shall dispose of the appeal after giving the parties a reasonable apportunity of
being heard and the decision of the appellate authority shall be final.
(xv) In the said rules, in rule 31, in sub rule (1), after the first proviso, the following
proviso shall be inserted, namely:-
“Provided further that every contract farming sponsor, who enters into the contract
farming agreement shall maintain a register in Form Q and furnish information in Form
R to the committee within a period of fifteen days of the purchase
(xvi) For the registration of application, renewal of the application, registration
certificate form of agreement etc. There are separate forms.
87
5.1.2.4 Setting up of Agri-Business Informaiton Centres
In the first phase these centers are being set up at all the district headquarter
mandis to provide information on market, agronomical practices, organization of
seminars, workshops and buyer seller meets etc. These centres will be equipped with
computers, television, touch screens, which would be linked to AGMRK, Net and other
information sources. The centres would also have films and literature on crops and
markets. These centers will also house the Agricultural Development officers and
organize regular training to farmers and help in improving the quality of agricultural
products. Two such centers at Sirsa and Hisar have already become operational and
many more are in the offing.
5.1.2.5 Setting up of Farmers Markets
In order to provide opportunity to the farmers for selling their produce directly
to the consumers and realize better prices for the farmers, two farmers markets at
Panchkula and Gurgaon are being set up. These markets would also be a nodal point for
dissemination of information and providing technical inputs and know how to the
farmers in collaboration with the experts in agriculture/horticulture. It will also help the
farmers to add value to their produce by introducing quality controls and certification
measures.
5.1.2.6 Setting up of New Modern Fruit and Vegetable Markets
New Fruit and Vegetable markets will be set up at all the district headquarters in
a phased manner, which will provide separate retail and wholesale sections. Such
markets will have modern facilities for the convenience of users and better systems for
information and quality up gradation of products of farmers. These markets will have
storage and cooling facility.
5.1.2.7 Setting up of A Modern Terminal Market at RAI
A major initiative has been taken to set up an Ultra Modern Terminal Market for
Fruits and Vegetable Markets at Rai with the help of Government of India at the
estimated cost of Rs. 65crores, which will have capacity of more than 1000 MT per
day. This market will cater to registered bulk buyers and exporters and will have
electronic grading-sorting lines, cooling chambers and electronic bidding systems. The
model also envisages setting up of collection centers in selected villages in a catchment
88
area of 50 kms. in the first phase. These collection centers will provide all facilities of
grading and sorting, information, banks and insurance to the farmers.
5.1.2.8 Creation of Commercial, Research & Training and Quality Control
Divisions at the Headquarters
These divisions will provide training on marketing, post harvest management of
crops, organize buyer-seller meets and promote contact between bulk buyers and
farmers.
5.1.2.9 Farmers Development Scheme-Input Scheme
For the welfare of Farmers the various Input Schemes have been taken up
which are discussed below:
i)Subsidy for purchase of high/improved/Hybrid seeds and purchase of implement:
In order to introduce better seed and produce hybrid seeds, it is proposed to
help farmers by way of giving subsidy on certified seeds through Haryana Seeds
Development Corporation. A provision of funds to the tune of Rs. 112.50 lakhs for the
purchase of Specific Gravity Seperators and other machinery/equipment has been
made. The scheme would aim at encouraging organic agricultural produce in
consultation with agriculture department and H.D.S.C. Therefore, HSAMB has
provided a budget of Rs. 1.00 crore for providing assistance to the Haryana Seed
Corporation.
ii) Subsidy on Purchase of Gypsum Reclamation of Alkaline land
Gypsum is the important component of improving productivity of soil. Govt. of
India has declined to give subsidy, hence the use of Gypsum has reduced. Alkaline
land can be made fertile only if the Gypsum is used by the farmers. This expenditure is
now to be borne by the Haryana Government. Therefore HSAMB has provided a
budget of Rs. 1.00 crore, for grant to Haryana Land Reclamation Corporation as
subsidy for purchase of Gypsum.
89
iii) Providing working capital to Haryana Seeds Development Corporation
Availability of quality seeds at affordable price is of utmost importance for
improving agriculture production. A proposal has been received from H.S.D.C for
financial support in shape of loan was considered to help HSDC in its endeavor to
provide farmers better quality seeds. HSAMB has provided working capital of Rs 5.00
Crore to HSDC on an interest @ 6% p.a. for the purpose as requested by the
Managing Director, HSDC.The amount was to be returned by HSDC to HSAMB after
sale of seeds and not later than 15th Dec of the same year.
5.1.2.10 Farmers Market Assistance Scheme
It is common knowledge that diversification of crops is a difficult process
unless the farmers are provided assured marketing. Although introduction of
Contract Farming is one of the measures, yet it will be beneficial if direct assistance
is provided to farmers for marketing. This assistance will be given to cluster of
farmers and will be introduced on pilot basis in selected districts and for selected
crops. The following specific measures are proposed to be taken:-
(i) Assistance in transportation
Preferably air cooled/refrigerated vans to enable farmers to transport
vegetables and fruits/flowers to the markets are proposed to be provided.
(ii) Assistance in packaging material
Assistance in packaging the produce in plastic bags/ crates etc so that the loss
in quality or quantity occurring due to repeated handling is reduced.
(iii)Publicity
The farmer's cooperatives, associations, Kisan clubs or self help groups, who
are keen to market their product, assistance can be given for publicity in shape of
printing of literatures, advertisement etc.
Therefore, a budget provision of Rs. 7.00 crores has been made \under sub
head "Farmers Input Scheme" and Rs. 2.00 Crore under sub head "Farmers Market
Assistance Scheme" under a newly created head "New Schemes" in Revenue
Payments.
90
5.1.2.11 Other Development Schemes
The HSAMB has decided to provide value added facilities like sorting, grading-
lines and packaging etc. to the farmers by setting up community hubs in the state so that
the export possibilities of their produce could be enhanced. Community hubs for
potatoes have been set up at Shahabad, for tomato at Karnal, for onion at Jhajjar, for
mushroom at Sonepat and Kinnow at Sirsa. Under the scheme, assistance for
grading/sorting, packaging and transportation has been provided
to the farmers, besides imparting them the training in post harvest management
practices and better marketing techniques. Financial assistance too has been provided
for the purpose.
The HSAMB has also decided to set up Agro malls/Retail vegetable markets
with all modern facilities. One such agro mall has been set up in sector 20 of Panchkula
at a cost of 49.80 crores. In addition to this agro mall at Karnal with an estimated cost
of 22.27 crores is being set up. Sanction has also been accorded to set up such agro mall
at Gurgaon at an estimated cost of Rs. 44.85 crores. Another such mall is likely to come
up at Rohtak.
5.1.3 Collection of Market Fees, Sales Tax and other Levies
The income of the HSAMB/Market Committees is derived from the collection
of market fee on the sale and purchase of agricultural produce which is levied @ 2
percent advalorem basis except 21 items on which the rate of market fee is 1 percent
advalorem basis. The market committees contribute 30 percent of the total collection of
market fee to the board. The other sources of income of the Board/ Market committees
are from the sale of plots in the new mandis and licence fee etc. For the purpose, the
produce is divided into various categories as below:
CATEGORY “A”
91
In addition to Wheat and Paddy, the other commodities include, Bajra, Mash,
Moong, Moth, Massar, Sarson, Toria, Taramira, Til, Methi, Sunehri, Oats, Gowar,
Maize, Gram (Kabli and Black), Barley, Jowar, Dry Peas, Arhar, Gur, Shakkar,
Khandsari, Ground-nut and Sun flower ( Suraj Mukhi) Seed etc.
CATEGORY “B”
The Commodities included in category “B” are Cotton, Wool, Ground Nut
(Unshelled) and Chillies (Dry).
Category “C”
Category “C” includes the non Perishable vegetables like Potatoes,
Shakarkandi, Onion, Arvi, Garlic and Ginger.
CATEGORY “D”
Category “D” comprise of all perishable Vegetables and Fruits.
CATEGORY “E”
CATEGORY “E” covers the Green and Dry Fodder and Babbar Grass.
Since the study has been conducted on the Grain Market only, as such, the
charges fixed for only Category “A” and “B” are being discussed here:
MARKET LICENCE FEE
As per the rules framed under the Act, all the market functionaries working in
the mandis are required to take a license. They are also charged security fee. Under
section 10 of the Act, there are three categories of license. Licence fee and the security
charged from the lincenses is as under:
92
TABLE 5.13 Lincense fee and Security for various Catergories of Functionaries
(In Rs.)
. Category of License License Fee per Security
Annum Quarter
________________________________________________________________
Factory including ginning factory, 100.00 25.00 500.00
Flour mill, Oil Expeller, Dal mill,
cold storage or processing of Agri.
Produce.
Commission Agent, Kacha arhtiya, 60.00 15.00 300.00
wholesale dealer for sale, purchase or
storage of agri. Produce.
_____________________________________________________________________
5.1.3.1 Market Fee
As per the Act, the market fee comprises of two components- the Incidental
Charges and the Market Charges. The incidental charges include the unloading charges
and the cleaning charges at the time the farmer brings the produce to the mandi.
However, if the farmer has brought the produce after cleaning it, nothing is charged.
These charges are to be paid by the seller only if the services are rendered by the mandi
licencees. The market charges are the charges charged for various operations from the
buyer of the produce. The market charges include the charges for i) filling and placing
the unit on the platform/balance, ii) weighing iii) unloading from the balance, iv)
stitching the bags, which are done manually as well as by machines for which the
charges are different v) loading vi) Auction charges, vii) commission, and viii)
brokerage. Recently by special notification two more charges i) Marka (including cost
of colour) and temporary stacking have been added. All these rates were fixed, which
undergo a change occassionaly for which a special notification is issued. Here for this
study the rates for different operations have been considered, which have amnended by
the HSAMB vide Amendment in Bye-law 28 (1) of the Bye-law of market committees
93
in the state vide notification No. ME-I/A-III/2010-30408-565 on 30-03-2010. The
various charges proposed earlier are given below in Table 5.14
Table 5.14 MARKET FEE AND CHARGES-INCIDENTAL CHARGES
CATEGORY-A ( COMMODITY-I,WHEAT)
Incidental charges Rates in rupees per unit
(Payable by seller) for 50 kgs
.S.No. PARTICULARS
1. Unloading 0.90
2. Cleaning & Dressing-Manually 0.85
By Machine 1.55
(For rendering actual services. Nothing will be charged, if produce is already cleaned)
Market Charges ( Payable by buyer)
These operations will be performed by Commission Agents/ Kacha Arhtias
1. Filling and Placing the Unit 0.86
On the Platform/balance
2. Weighing 0.82
3. Unloading from the balance 0.67
4. Stitching Manually 0.45
By Machine 0.60
5. Loading 1.00 per bag
6. Auction Charges 0.08 per hundred rupees
7. Commission 2.50 per hundred rupees
8. Brokerage 0.16 per hundred rupees
9. Marka ( including cost of colour) 0.10 per bag
94
10. Temporary stacking 0.10 per bag
CATEGORY-A ( COMMODITY-II, PADDY)
Incidental charges (Payable by seller) Rates in rupees per unit
for 50Kgs 35 kgs
1. Unloading 1.20 0.90
2. Cleaning & Dressing( Manually) 1.05 0.83
3. Cleaning & Dressing( Machine) 2.00 1.53
(For rendering actual services. Nothing will be charged if produce is already cleaned)
Market Charges ( Payable By Buyer)
1. Filling and Placing the Unit 1.24 0.86
0n the Platform/balance
2. Weighing 0.95 0.82
3. Unloading from the balance 0.70 0.66
4. Stitching Manually 0.45
By Machine 0.60
5. Loading 1.00 per bag
6. Auction Charges 0.08 per hundred rupees
7. Commission 2.50 per hundred rupees
8. Brokerage 0.16 per hundred rupees
9. Marka ( including cost of colour) 0.10 per bag
10. Temporary stacking 0.10 per bag
CATEGORY-A COMMODITY NO. 3. Bajra, 4. Mash, 5.Moong, 6. Moth 7. Massar,
8. Sarson, 9. Toria, 10. Taramira, 11. Til, 12. Methi, 13. Sunehri, 14. Oats, 15. Gowar,
95
16. Maize, 17. Gram ( Kabli and Black), 18. Barley, 19. Jowar, 20. Dry Peas, 21. Arhar,
22.Gur, 23. Shakkar, 24. Khandsari, 25. Ground nut, 26. Sun flower seed (Suraj
Mukhee Beej)
Incidental charges (Payable by seller) Rates in rupees Unit
50 Kgs..
1 Unloading 0.84
2. Cleaning and sanitation Manually 0.86
3 Cleaning and sanitation Machine 1.50
(For rendering actual services. Nothing will be charged if produce is already cleaned)
MARKET CHARGES ( Payable by Buyer)
1. Filling & placing on the Platform 0.90
2. Weighing 0.83
3. Unloading from balance 0.64
4. Stitching Manually 0.45
Stitching by Machine 0.60
5. Auction Charges 0.08 per hundred rupees
6. Commission Rs. 2.50 per hundred rupees
7. Brokerage Rs. 0.16 per hundred rupees
9. Marka ( including cost of colour) 0.10 per bag
10. Temporary stacking 0.10 per bag
CATEGORY “B”
COMMODITIES I Cotton (40 kg), Wool (40 kg), Ground Nut (unshelled) {30
Kg}and Chillies Dry (17 Kgs)
INCIDENTAL CHARGES Rates in rupees per unit
96
( PAYABLE BY SELLER) (For cotton and wool)
1. Unloading 0.60
2. Dressing (Except Ground Nut) 0.60
3. Cleaning & Dressing(Ground Nut 0.70 -
Only)
MARKET CHARGES ( PAYABLE BY BUYER)
1. Filling & placing on Balance 1.02
2. Weighing 0.90
3. Unloading from the balance 0.66
4. Stitching Manually 0.45
By Machine 0.60
5. Auction Charges 0.08 per hundred rupees
6. Commission 2.00 per hundred rupees
2.50 per unit of Cotton only
7. Brokerage 0.16 per hundred rupees.
____________________________________________________________________
The rates are being revised from time to time by amending the Bye-law 28 (1)
of the Bye-law of Market Committees in the state. The latest amendment has been
made vide Memo. No. MM-I-A-III/2010/30408-565 pm 30-3-2010
5.1.3.2 Income from Market Fee
Based on the above, the income of HSAMB from Market Fee for the period
2000-01 to 2009-10 and the growth rates have been presented below:
It could be observed from the table that HSAMB had a significant amount of
contribution from the market fee collected by the various market committees of
97
Haryana. During the years 2000-01 to 2009-10, the income of HSAMB from the market
fee has increased from 124.15 crores to 371.01 crores showing an increase of 199
percent or the simple growth rate per year is around 20 percent. The trend showed an
increasing trend except for the year 2006-07, when it showed a slight decrease, but
increased in the subsequent year. The growth analysis revealed that the growth rate in
2001-02 over 2000-01 was quiet high (15.60%). It showed a decreasing trend for two
years, but showed a spurt in 2005-06. The very next year, the growth rate was negative,
TABLE 5.15 Income from Market Fee and Charges by HSAMB during various
Years
Year Income in crores Growth rate (%)
2000-01 124.15 -
2001-02 143.54 15.60
2002-03 148.06 3.15
2003-04 149.55 1.01
2004-05 154.25 3.10
2005-06 171.82 11.39
2006-07 166.61 -3.03
2007-08 228.30 38.03
2008-09 300.33 31.55
2009-10 371.01 23.53
CGR (%) 11.27
but in 2007-08, it rose to 38 percent, a significant jump. The growth rate showed a
negative trend there after. This could be due to the change in the productivity and
production during different years due to which the procurement was low and hence the
low collection of market fee.
98
5.1.4 Regulation and Administration of Various MCs
Regulation and administration of various MCs across the state of Haryana are
governed by the various Acts, Rules and Bye laws of The Punjab Agricultural Produce
Market Act, 1961. The Act comprises of 47 sections. Again some of the sections have
various sub sections. The HSAMB headquarter and all the Market Committees-
Principal yards, Sub yards and the Collection Centers are governed by these Rules and
Regulations formulated under The Punjab Agricultural Produce Markets Act, 1961. The
said Act extends to the state of Punjab, Haryana, Chandigarh & Himachal Pradesh
under section 5 of the Punjab Reorganisation Act, 1966. The various sections of the Act
are summarized below:
SECTION DESCRIPTION
1. Short Title, extent and commencement
2. Definition/ Construction of certain references in the Act
3. State Agricultural Marketing Board, Constitution, Powers and Duties
4. Execution of Contracts by Board
5. Notification of intention of exercising control over purchase, sale, storage and
processing of agricultural produce in specified area.
6. Declaration of notified market committee
6(a) Notification of intention to alter limits of or to amalgamate or to split up
market areas.
6(b) Procedure subsequent to notification under section 6-A
6(c) Power of state to issue consequential orders with respect to constitution, etc.
on committees alteration of limits, amalgamation or splitting up.
6(d) Effect of alteration of limits
6(e) Effect of amalgamation
99
6(f) Effect of splitting up
6(g) Apportionment of assets and liabilities of Committees splitting up
6(h) Suits by or against new committee
6(i) Saving as to existing employees of committee or committees amalgamated or
split up.
7 Declaration of market Yards
8. Control of sale and purchase of agricultural produce
9 Authority to whom applications for grant of licences are to be made
10 Applications for licences fees to be paid and cancellation/suspension of licences.
11. Establishment of market committees
12 Constitution of Committees
13. Duties and Power of committees
14. Terms of office of members
15. Removal of members
16 Nomination and removal of Chairman and Vice Chairman
17. Filling of vacancies
18. Incorporation of committees
19. Appointment of sub/joint committees and delegation of powers
20 Constitution of marketing service / Appointment of class IV employees
21. Persons who are to be deemed public servants within the meaning of Section 21-
IPC of the Indian Penal Code
22 Execution of contracts
23. Levy of Fees 23(A) Passing on burden of fees
24. Octroi not payable on certain agricultural produce
100
25 Marketing Development Fund
26. Purposes for which marketing funds may be expended
27. Market Committee funds
28. Purposes for which marketing committee funds may be expended
29. Liability of member or employee of committees or the Board
30. No Trade Allowance permissible except as prescribed
31. Bar of suit in absence of notice
32. Power to borrow
33. Power to call information, inspect, enforce attendance and to suspend actions etc.
of committees/ Power to order production of accounts / Power to stop vehicles./
Duties of Police officers
34. Acquisition of land for the Board and Committees
35. Supersession of committees
36. Emergency powers
37. Penalties
38. Power of state government to amend schedule
39. Trial of offences
40 Appeal
41. Recovery of sums due to state government from committees
42. Revision
43. Power to make rules
44. Bye-laws
45. Power to write off irrecoverable fees etc.
46. Power to compound offences/ Vesting of properties of mandi township etc.
101
47. Repeal and savings.
This is the arrangement of all the sections.it would however be difficult to study
and present sall the documents pertaining to the board, but at the same time it is very
important to study the Constitution, Powers and duties of the HSAMB
5.1.4.1 Constitution, Powers and Duties of HSAMB
The constitution of HSAMB, highlighting the poers and duties of the board in
respect to the Marketing committees, its employees and mode of getting the work done
from the contractors and dealing with the committees is given below:
(1) The State Government may, for exercising the powers conferred on and
performing the functions and duties assigned to the Board by or under this Act,
establish and constitute a State Agricultural Marketing Board, consisting of [a
Chairman (and a Chief Administrator, who shall be an officer of the rank of the Head of
the Department,) to be nominated by the State Government of [eleven other members of
whom four shall be officials and seven non-officials) to be nominated by the State
Government in the following manner:-
(a) Official members shall include the Director and three officials, one representing
the Agriculture Department, the second representing the Co-operative Department and
the third representing the Animal Husbandry Department;]
(b) Of the non-official members:-
(i) One shall be a producer member of a committees;
(ii) One shall be member of the other registered organizations of the farmers;
(iv) One shall be from among such persons licensed under section 10 as are
members of the committee;
(v) One representing Co-operative societies.
(vi) One shall be amongst the persons licensed under section-10; and
(vii) One representing Panchayat Samities
102
(2) The Director shall be ex-officio Secretary of the Board
(3) The Board shall be a body corporate as well as a local authority by the name of
the State Agricultural Marketing Board having perpetual succession and a common
seal, and shall by the said name and sue and be sued, and hold property both movable
or immovable property which may have, become vested in or been acquired by it, and
to contract and to do all other things necessary for the purpose of this Act.
(4) The non-official members of the Board shall hold office during the pleasure of
the State Government; provided that their term of office shall not exceed three years.
(5) No person shall be eligible to become a member of the Board who:-
(a) Does not ordinarily reside within the [State of Haryana];
(b) Is below twenty-five years of age;
(c) [ * * * * * * * *]
(d) Is of unsound mind; or
(e) Has been declared as insolvent or sentenced by a criminal court, whether within
or outside the [State of Haryana]; for an offence involving moral turpitude;
[Provided that the disqualification incurred under:-
(i) [ * * * * * * * *]
(ii) Clause (e), on the ground of a sentence by a criminal court, shall not apply after
the expiry of four years from the date on which the sentence has expired.]
(6) Amember of the board may resign from the membership by tendering his
resignation to the state government through the chairman of the board and the seat of
such members shall become vacant on the date of acceptance of his resignation.
[Provided that the Chairman (and the Chief Administrator) of the Board may
resign by tendering his resignation to the State Government].
103
7-A Whenever any member of the Board dies, resigns, ceases to reside within the
State of Haryana or otherwise becomes incapable of acting as a member of the Board
(or any vacancy occurs otherwise) the State Government may appoint another member
in his place in the manner as provided in sub-section (1) to whichever category the
vacating member belongs :
Provided that the term of office of the member so appointed shall expire on the same
date as the term of office of the vacating member would have expired had the latter held
office for the full period allowed under sub-section (4).].
(8) The State Government shall exercise superintendence and control over the
Board and its officers and may call for such information as it may deem necessary and
in the event of its being satisfied that the Board is not functioning properly or is abusing
its powers or is guilty of corruption or mismanagement, it may suspend the Board and,
till such time as a new Board is constituted, make such arrangements for the exercise of
the functions of the Board as it may think fit; Provided that the Board shall be
constituted within six months from the date of its suspension.
(9) The Board shall exercise superintendence and control over the committees.
(10) The State Government, the Deputy Commissioner, Sub Divisional Officer
(Civil) (the Chairman, the Chief Administrator) or Secretary of the Board or any other
officer of the Board authorized in this behalf by the Board may call for any information
or return relating to agricultural produce from a committee or a godown keeper or other
functionaries and shall have the power to inspect the records and accounts of a
committee and stock and accounts of any godown-keeper or other functionaries for that
purpose.]
(11) [ * * * * * * * *]
(12) [ * * * * * * * *]
(13) Subject to rules made under this Act, an estimate of the annual income and
expenditure of the Board for the ensuing year shall be prepared and passed by the
Board and submitted every year for sanction of the State Government not later than the
104
prescribed date. The State Government shall sanction and return the budget within two
months from the date of the receipt thereof. If it is not received within two months it
shall be presumed to have been sanctioned.
(14) Subject to rules made under this Act, the Board may, with the approval of the
State Government, frame bye-laws for
(a) Regulating the transaction of business at its meetings;
(b) The assignment of duties and powers of the Board to its Chairman, Secretary or
persons employed by it; and
(c) Such other matters as may be prescribed.
(15) [Four] members shall constitute a quorum at a meeting of the Board:
Provided that if a meeting is adjourned for want of quorum, no quorum shall be
necessary at the next meeting called for transacting the same business.
(16) All questions before a meeting of the Board shall be determined by a majority of
votes the members present and voting and, in case of equality of votes, the Chairman
may exercise a casting vote.
(17) (i) The State Government may delegate to the Board or its Chairman or
Secretary any of the powers conferred on it by or under this Act; and
(ii) The Board may, under intimation to Government, delegate any of its powers
to its [Chairman, Chief Administrator] Secretary, or any of its officers.
(18) The Headquarter of the Board shall be located at a place to be determined by the
State Government.
(19) No act or proceeding of the Board shall be invalid by reason only of the
existence of any vacancy among its members or any defect in the constitution thereof.
105
Establishment of Market Committee.
The State Government shall by notification establish a market committee for
every notified market area and shall specify its headquarters.
Constitution of Committees.
(1) A committee shall consist of eleven or nineteen members as the State
Government may in each case determine out of whom one shall be an official appointed
by the State Government:
Provided that where in a notified market area, there is in existence a Co-
operative Society, the committee shall consist of twelve or twenty members as the case
may be:
(2) The remaining members shall be nominated by the State Government by
notification as follows :-
(a) if the committee is to consist of eleven members, there shall be nominated-
(i) seven members from amongst the producers of the notified market area:
(ii) two members from amongst the person licensed under section 10; and
(iii) one member from amongst the persons licensed under section-13 :
Provided that the members nominated under this clause shall include at least one
person belonging to Schedule Castes or Scheduled Tribes and one person belonging to
the Backward Classes, who are otherwise qualified to be nominated as members of the
Committee ;
(ii) two members from amongst the persons licensed under section 10; and
(iii) one member from amongst the persons licensed under section 13:
Provided that the members nominated under this clause shall include one
member belonging to Scheduled Castes or Backward Classes and one woman member,
106
who are members of Gram Panchayats or Panchayat Samitis of the concerned notified
market area and who are otherwise qualified to be nominated as members of the
Committee ;
(b) If the committee is to consist of twelve members, there shall be nominated, in
addition to the members specified in clause (a), one member representing the Co-
operative Societies:
(c) If the committee is to consist of eleven members, these shall be nominated-
(i) Twelve members from amongst producers of the notified market area:
(ii) Four members from amongst the persons licensed under section 10; and
(iii) Two members from amongst the person licensed under section 13;
Provided that the members nominated under this clause shall include two
members belonging to Scheduled Castes or Backward Classes and one woman member,
who are members of Gram Panchyats or Panchayat Samitis of the concerned notified
market area and who are otherwise qualified to be nominated as members of the
committee;
(d) If the committee is to consist of twenty members, these shall be nominated, in
addition to the members specified in sub-clause (c), one member representing the Co-
operative Societies.
Provided that where in the case of sub-clause (iii) of clause (a) or sub-clause
(iii) of clause (c), there are no persons licensed under section 13, or the member of such
persons is less than those required to be nominated, the deficiency shall be made up by
nominating members from amongst the persons licensed under section 10.
(3) No act, done or proceeding taken, under this Act, by the Committee, shall be
invalid merely on the ground-
(a) Of any vacancy or defect in the constitution of the Committee; or
107
(b) Of any defect or irregularity in such act or proceeding not affecting the merits of
the case.
(c) Of any defect or irregularity in such act or proceeding not affecting the merits of
the case.
(4) Subject to the rules made under this Act, the disqualifications specified in sub-
section (5) of section 3, shall also apply for purposes of becoming a member of a
committee.
(5) The State Government shall constitute Committees in accordance with the
provisions of this section:
Provided that the State Government may, until such Committees are constituted
and their Chairman and Vice-Chairman are [nominated] in accordance with the
provisions of this Act, appoint such person or persons, as may be considered suitable in
this behalf, to exercise the powers and perform the functions of such committees.
Explanation – For the purposes of the proviso to sub-section (5), any person or
persons appointed by the State Government before the commencement of the Punjab
Agricultural Produce Markets (Haryana Amendment) Act, 1980, to carryout the
functions of a Committee shall be deemed to be person or persons appointed by the
State Government to exercise the powers and perform the functions of those
committees for which they were appointed.]
Duties and Powers of Committee
(1) It shall be the duty of a Committee
(a) to enforce the provisions of this Act and the rules and bye laws made there
under in the notified market area and, when so required by the [***] Board, to establish
a market therein providing such facilities for person visiting in connection with the
108
purchase, sale, storage, weighment and processing of agricultural produce concerned as
the [***] Board may from time to time direct.
(b) To control and regulate the admission to the market, to determine the
conditions for the use of the market and to prosecute or confiscate the agricultural
produce belonging to person trading without a valid license;
(c) To bring, prosecute or defend or aid in bringing, prosecuting or defending
any suit, action proceeding, application or arbitration, on behalf of the Committee or
otherwise when directed by the Board
[ * * * * * * * *].
(2) Every person licensed under section 10 or section 13 and every person
exempted under [section 8] from taking out license, shall on demand by the Committee
or any person authorized by it in this behalf furnish such information and return, as may
be necessary for proper enforcement of Act or the rules and bye-laws made there under.
(3) Subject to such rules as the State Government may make in this behalf, it shall
be duty of a Committee to issue licenses to brokers, weighmen, measures, surveyors,
godown keeper and other functionaries for carrying on their occupation in the notified
market area in respect of agricultural produce and to renew, suspend or cancel such
licenses.
(4) No broker, weighman, measurer, surveyor, godown-keeper or other functionary
shall, unless duly authorized by licence, carry on his occupation in a notified market
area in respect of agricultural produce:
Provided that nothing in sub-sections (3) and (4) shall apply to a person carrying
on the business of warehouse man who is licensed under the Punjab Warehouse Act,
1957 (Punjab Act No. 2 of 1958).
Term of office of members
Term of office of members – (1) Subject to the provisions of section 17, a
nominated member of a Committee shall hold office [during the pleasure of the State
109
Government; provided that term of office shall not exceed three years from the date of
his appointment]
(2) An outgoing member may, if otherwise qualified, be re-nominated for another
term of three years.]
(15) [ * * * * * * * *]
(16) (1) Every Committee shall have a Chairman and Vice-Chairman. The Chairman
shall be [nominated by the State Government] from amongst the members, who are
producers and Vice Chairman shall be [nominated by the State Government] from
amongst the members who are licensees under section 10 and 13.
[ Proviso * * * * * * * *]
(2) The Committee may be a majority of two-thirds of the total members, at a meeting
specially convened for the purpose, pass a resolution for the removal of Chairman or
Vice-Chairman and any resolution so passed shall be subject to the confirmation by the
Board. The office of the Chairman or Vice-Chairman, as the case may be, shall be
vacated from the date of such confirmation.]
(16-A) [ * * * * * * * *]
(17) (1) Whenever any member dies, resigns ceases to reside permanently in the
notified market area or becomes incapable to acting as a member of a Committee or any
vacancy occurs through transfer [ * * * *] or otherwise, the State
Government may appoint a member to fill in such vacancy in accordance with the
provisions of section 12 :
Provided that the term of office of the member so appointed shall expire on the same
date as the term of office of the vacating member would have expired had the latter held
office for the full period allowed under section 14. [ * * * * *
* * *]
110
(2) Should the State Government decide the raise the number of members of an existing
Committee [from eleven to nineteen] the additional vacancies shall be filled in
accordance with the provisions of sub-section (1) and the term of office of the
additional members appointed shall existing members of the Committee.
(3) If any vacancy occurs in the office of the Chairman or Vice-Chariman of the
Committee as a result of death, resignation [ ] or otherwise, the vacancy shall be filled
in the manner provided in sub-section (1) of section 16.
(4) The Chairman or Vice Chairman so [nominated by the State Government] shall hold
office only so long as the person in whose pace he is [nominated by the State
Government] would have held office if the vacancy had not occurred.]
Incorporation of Committeees
(18) Every Committee shall be body corporate as well as a local authority by such
name as the State Government may specify in the notification establishing it, shall have
perpetual succession and a common seal may sue and be used in its corporate name,
and shall subject to the provisions of section 32 be competent to acquire and hold
property, both movable and immovable, to lease, sell or otherwise transfer any movable
or immovable property which may have become vested in or been acquired by it, and to
contract and to do all other things necessary for the purposes for which it is established:
Provided that no Committee shall permanently transfer any immovable property
except in pursuance of a resolution passed at a meeting specially convened for the
purpose by a majority of not less than three fourth of the member of the committee and
prior approval of [the Chief Administrator].
Appointment of sub-committee and joint committees and delegation of powers
A Committee may appoint, one or more of its members or other to be a sub-
committee or to be a joint committee or to be an ad-hoc committee for the
administration of the sub-market yard, for the conduct of any work or for reporting on
111
any matter and may delegate to such committee or any one or more of its members such
of its powers or duties as it thinks fit:
Provided that when any such committee is to consist of, or the powers of the
Committee are delegated to one member the resolution shall operate only after it is duly
approved by the [* * * * *] Boad.
Constitution of Marketing Service
(1) These shall be a Marketing Service (hereinafter referred to as the Service).
It shall consist of the existing officials of the Board and the Committee and such other
officials as may hereafter be appointed by the Board on such terms and conditions as it
may deem fit, except class IV employees of the Committees. The members of the
Service shall be deemed to have been appointed by the Board.
Provided that the officials of the Committees employed after the 31st day of
March, 1973 shall not be the members of the Service.
(2) The members of the Service shall be governed by the same terms and conditions
on which they are serving under the Board or the Committees till their term and
conditions are prescribed.
(3) The integration of the officials in the Service shall be made in the manner
prescribed.
(4) The Board shall have the power:
(a) To determine the strength of the Service and cadres thereof;
(b) Tto determine the strength of the categories of the officials required by each
Committee.
(5) The Board shall have the power to suspend, remove, dismiss or otherwise
punish the officials in the Service:
Provided that the Committee shall have the power regarding the members of the
Service engaged in managing affairs of the Committee to impose minor punishment
like censure and stoppage of increment.
112
(6) The Board shall have the power to transfer any member of the Service anywhere
within the Stae of Haryana.
(7) The power conferred under this section on the Board and Committee shall be
exercised subject to such rules as may be made in this behalf by the State Government.
Appointment of Class-IV employees
Subject to the rules made under this Ac, every Committee shall appoint such
class IV employees as may be necessary for the management of the market and pay
them such salary and allowances as may be fixed by the Board and shall have the power
to control and punish them.
Person who are to be deemed Public Servants within the meaning of section-21 of
Indian Penal Code.
Every member and officer or servant of the Board or a Committee shall be
deemed to be a public servant within the meaning of section-21 of the Indian Penal
Code.
Execution of Contracts
(1) Every contract entered in to by a Committee shall be in writing and shall be
signed on behalf of the Committee by the Chariman or, if for any reason he is unable to
act, by the Vice Chairman, and two other members of the Committee and shall be
sealed with the common seal of the Committee.
(2) No contract other than a contract executed as provided in sub-section (1) shall
be binding on a Committee.
Levy of fees.
A committee shall subject to such rules as many be made by the State
Government in this behalf, levy on ad-valorem basis fees on the agricultural produce
[****] [bought or sold or brought for processing by dealers] in the notified area at a rate
not exceeding [three rupees] for every one hundred rupees :
113
[Provided that, except in the case of agricultural produce brought for
processing]-
(a) no fee shall be leviable in respect of any transaction in which delivery of the
agricultural produce bought or sold is not actually made; and
(b) a fee shall be leviable only on the parties to a transaction in which delivery is
actually made.
Passing on burden of fee
(1) Notwithstanding anything contained in section 23, a dealer of license may
pass on the burden of fee paid by him under that section and the rules made there under
to the next purchaser or add the same towards the cost of agricultural produce or the
goods processed or manufactured out of it.
(2) Whenever a dispute arises as to the passing on the burden of fee or its
addition towards the cost of agricultural produce or the goods processed or
manufactured out of it, it shall always be presumed, unless proved otherwise, that the
burden of the fee has been passed on to the next purchaser or has been added towards
the cost of the agricultural produce or the goods processed or manufactured out of it.”
Marketing Development Fund
(1) All receipts of the Board shall be credited to a fund to be called the
Marketing Development Fund.
(2) All expenditure incurred by the Board shall be defrayed from such fund
which shall be jointly operated upon by the Chief Administrator] or the Secretary and
any officer of the Board authorized by the Board in this behalf.
Purposes for which the Marketing Development Fundmay be expended
The Marketing Development Fund shall be utilized for the following purposes :-
114
(i) Better marketing of agricultural produce;
(ii) Marketing of agricultural produce on cooperative lines;
(iii) Collection and dissemination of market rates and news;
(iv) Grading and standardization of agricultural produce;
(v) General improvements in the markets or their respective notified market areas;
(vi) Maintenance of the office of the Board and construction and repair of its office
buildings, rest-house and staff quarters;
(vii) Giving aid to financially weak Committees in the shape of loans and grants;
(viii) Payment of salary, leave allowance, gratuity, compassionate allowance,
compensation for injuries or death resulting from accidents while on duty, medical aid,
pension or provident fund to the persons employed by the Board and leave and pension
contribution to Government servants on deputation;
(ix) Travelling and other allowances to the employees of the Board, its members and
members of Advisory committees;
(x) Propaganda, demonstration and publicity in favour of agricultural
improvements;
(xi) Production and betterment of agriculture produce;
(xii) Meeting any legal expenses incurred by the Board;
(xiv) Construction of godowns;
(xv) Loans and advances to the employees;
(xvi) Expenses incurred in auditing the accounts of the Board; and
(xvii) With the previous sanction of the State Government, any other purposes which
is calculated to promote the general interests of the Board and the Committees [or the
national or public interest] :
115
Provided that if the Board decides to give aid of more than five thousand rupees
to a financially weak Committee under clause (vii), the prior approval of the State
Government to such payment shall be obtained.
Market Committee Fund
(1) All moneys received by a Committee shall be paid into a fund to be called
the Market Committee Fund and all expenditure incurred by the Committee under or
for the purposes of this Act shall be defrayed out of such fund, and any surplus
remaining after such expenditure has been met shall be invested in such manner as may
be prescribed
(2) (a) Every Committee shall, out of its funds pay to the Board as contribution
such percentage of its income derived from license fee, market fee and fines levied by
the Courts as is specified below to defray expenses of the office establishment of the
Board and such other expenses incurred by it in the interest of the Committees
generally and also pay to the state Government the cost of any special or additional
staff employed by the State Government in consultation with the Committee for giving
effect to the provisions of this Act in the notified market are—
(i) If the annual income of a Committee does not exceed Rs. 10,000 [20 per
centum]
(ii) If the annual income of a committee exceeds Rs. 10,000
On the first of Rs. 10,000/- [20 per centum]
On the next Rs. 5,000/- [25 per centum and]
On the remaining income [30 per centum]
(b) The State Government shall determine the cost of such special or
additional staff and shall, where the staff is employed for the purposes of more
Committees than one, apportion such cost among the Committees concerned in such
116
manner as it thinks fit. The decision of the State Government determining the amount
payable by any committee shall be final.
Purposes for which the Market Committee Funds may be expended.
Subject to the provisions of section 27, the market Committee Funds shall be
utilised for the following purposes:-
(i) Acquisition of sites for the market;
(ii ) Maintenance and improvement of the market;
(iii) Construction and repair of buildings which are necessary for the purposes
of the market and for the health, convenience and safety of the persons using it;
(iv) Provision and maintenance of standard weights and measures;
(v) Pay, leave allowances, gratuities, compassionate allowances and
contributions towards leave allowances, compensation for injuries and death resulting
from accidents while on duty, medical aid, pension or provident fund of the persons
employed by the committee;
(vi) Payment of interest on loans that may be raised for purposes of the market
and the provisions of a sinking fund in respect of such loans;
(vii) Collection and dissemination of information regarding all matters relating
to crop statistics and marketing in respect of the agricultural produce concerned;
(viii) Providing comforts and facilities, such as shelter, shade, parking
accommodation and water for the persons, draught cattle, vehicles and pack animals
coming or being brought to the market or on construction or repair of approach roads
[Link Roads] culverts, bridges and other such purposes;
117
(ix) Expenses incurred in the maintenance of the offices and in auditing the
accounts of the Committees:
(x)\ Propaganda in favour of agricultural improvements and thrift ;
(xi) Production and betterment of agricultural produce ;
(xii) Imparting education in marketing or agriculture ;
(xiv) Payments of travelling and other allowances to the members and
employees of the Committee, as prescribed;
(xv) Expenses of and incidental to elections; and
(xvi) With the previous sanction of the Board, any other purpose which is
calculated to promote the general interest of the committee or the notified market area,
[or with the previous sanction of the State Government, any purpose calculated to
promote the national or public interest.]
In addition to this, notifications have been issued from time to time.
Some of the prominent notifications are as under:
Notification no. 1074-Agri. S(2)-2000/4444- dated 10-3-2000.
Notification No. 367-Agri. S(2)-2002/4961 dated 5-03-2002
Notification N0. 161-S(3)-2004/13212 dated 26-07-2004
Notification No. 2709-Agri (3) 2004/19372 dated 11-11-2004
5.1.5 Facilitating Procurement Activities
To facilitate the farmers in selling their produce, more particularly wheat and
paddy in the market at remunerative prices, the Government fixes the Minimum
Support Price on the one hand and on the other hand has involved various government
agencies to procure the produce at the fixed rate and should not allow the price to fall
down. The various government agencies purchasing and storing the wheat in Haryana
mandis are the State Government through the Department of Food and Civil supplies
(HF&S), Food Corporation of India (FCI), Haryana Agriculture Federation (HAFED),
118
Haryana Ware Housing Corporation (HWC), Haryana Agro Industries and CONFED.
In paddy too, all these agencies are actively engaged in the procurement process, but in
addition to this, the private rice millers are also procuring directly from the producers as
well as mandis. To study the role of each of these organisations in the procurement of
wheat and paddy, the data has been collected and processed. The percentage of wheat
procured from different mandis by the various agencies during (2008-09) has been
presented in table 5.16
TABLE 5.16 Percentage Procurement of Wheat by various Agencies across
Districts of Haryana (2008-09)
District State
Govt.
FCI HAFED H.W.C. AGRO CONFED TOTAL
Ambala 20.41 6.38 62.23 0 0 11.10 100
Panchkula 0 0 20.32 32.05 0 39.63 100
Yamuna
Nagar
11.55 4.36 55.05 2.12 3.71 23.27 100
Kurukshetra 28.14 18.24 32.00 2.14 11.74 7.74 100
Kaithal 31.73 18.22 28.76 4.11 8.39 9.79 100
Karnal 26.92 20.14 37.26 1.55 11.02 3.11 100
Panipat 12.44 13.25 30.19 22.73 0 21.39 100
Sonipat 20.59 13.94 54.10 3.56 0.49 7.29 100
Rohtak 26.78 15.84 40.23 17.15 0 0 100
Jhajjar 43.95 25.14 28.79 2.12 0 0 100
Faridabad 32.06 27.59 18.04 5.68 0 16.63 100
Palwal 32.73 28.82 16.82 14.93 0 6.65 100
Mewat 0 23.37 35.62 21.77 0 19.24 100
Gurgaon 20.48 55.09 0 24.43 0 0 100
Rewari 42.42 0 39.23 18.15 0 0 0
Mahendragarh 43.81 0 56.19 0 0 0 100
Bhiwani 27.99 10.98 61.03 0 0 0 100
Jind 25.74 4.85 33.55 20.32 7.23 8.37 100
Hisar 13.03 7.73 29.40 6.94 27.07 15.84 100
Fatehabad 13.69 9.73 28.68 12.75 28.77 6.98 100
Sirsa 14.19 8.03 43.34 13.98 9.75 10.71 100
ALL 21.85 13.47 35.74 9.78 10.05 9.11 100
Total
Procurment
(in 00 tonnes
15099 9312 24703 6763 6945 6296 69118
119
It could be observed from the table that the total procurement of wheat from Haryana
mandis by the various agencies during 2008-09 was 69118 hundred metric tonnes,
which is only next to Punjab. The percentage contribution was observed to be the
maximum of HAFED procuring around 36 percent of the total arrival in Haryana
mandis followed by the Haryana Food and Civil Supplies Corporation (22%). The share
of Food Corporation of India- administered by the Government of India was only
around 13.5 percent. Three other agencies, the H.W.C., Haryana Agro Industries and
CONFED were in the close race sharing between 9-10 percent each. The study across
various districts of Haryana revealed that the role and share of various agencies varied.
In Ambala, the share of HAFED in the total procurement in the district was more than
62 percent followed by followed by the Food and Civil Supplies Corporation and the
CONFED. HWC and Haryana Agro did not procure the wheat from the District. The
percentage procurement by the HAFED was found to be the highest from Yamuna
Nagar (55%), Kurukshetra (32%), Karnal (37%), Panipat (30%), Sonepat (54%) Rohtak
(40%), Mewat (36%), Mahendragarh (56%), Bhiwani (61%), Jind (34%), Hisar (29%),
Fatehabad (29%) and Sirsa districts (43%). State Government through Food and Civil
Supplies Corporation did the maximum procurement of wheat from Jhajjar (44%),
Rewari districts (42%), Palwal (33%), Kaithal (32%) and Faridabad (32%). The
percentage procurement from Panchkula was the highest (32%) by H.W.C. followed by
Gurgaon (24%). Haryana Agro Industries procured the maximum wheat (29%) from
Faridabad district. It could also be observed from the table that state Govt. did not enter
the districts of Panchkula and Mewat to procure the wheat. Similarly F.C.I. did not
procure any wheat from the mandis of Panchkula, Rewari and Mahendragarh districts.
HAFED was missing from the market of Gurgaon district while H.W.C. did not show
its presence in the districts of Ambala, Mahendragarh and Bhiwani. Haryana Agro
Industries and CONFED procured the wheat only from only nine and fifteen districts
respectively.
Paddy is another important crop being produced in Haryana. To procure the
paddy, 181 centres across the state were functional. All the government agencies like
State Government, F.C.I., HAFED, H.W.C., Haryana Agro Industries and the CONFED
120
were engaged in the procurement of Paddy from the state. In the case of paddy, the rice
millers were also operative in the procurement process. To ensure that the farmers in
any way may not resort to distress sale and feel any difficulty, the various agencies
were engaged in the process of procuring paddy. Bringing of clean and dry paddy is a
necessary prerequisite and the Government fixed Minimum Support Price for “A”
grade paddy to Rs. 1030/-. In addition to this, the state government decided to give a
bonus of Rs. 70 taking thr price to Rs. 1100 per Qtl. As such the percentage
procurement of Paddy from various districts of Haryana has been presented in Table
5.17
It could be observed from the table that like wheat procurement in the case of
paddy too, most of the agencies were operative, though their purchase area varied. In
certain districts production of paddy was less, as such in those districts, the number of
agencies engaged in the procurement were limited to one or two. Of the total paddy
arrival in the respective districts, the State government procured the maximum paddy
from the districts of Kurukshetra (44%) followed by Sirsa districts and Ambala districts
(32% each). The procurement by F.C.I. was very nominal from the districts of
Kurukshetra, Kaithal, Karnal, Fatehabad and Sirsa districts, while no procurement was
made by FCI from 14 districts of Haryana. However, the procurement from Rohtak and
Faridabad by F.C.I. was 100 percent and 97 percent respectivley. HAFED made the
maximum procurement from thr various districts like Ambala (44%), Karnal (49%),
Jind (55%) and Fatehabad (57%). CONFED showed its presence by procuring 58
percent from Panchkula and 26 percent from Yamuna Nagar. The procurement made by
Haryana Agro Industries was fairly good from Sirsa, Yamuna Nagar, Jhajjar and
Fatehabad districts, while in Panchkula, Kurukshetra, it was medium, but low in
Ambala and Karnal districts. In short it could be generalized that the entry of various
agencies in the market depended to a large extent to the production of the commodity
and arrival in the market in the area. In general the total procurement of paddy from the
state was 22180 metric tones. The share of the purchase was the highest by HAFED
accounting for about 35 percent followed by state Govt. through HSDC (25%). It was
observed to be the minimum by FCI accounting for about 0.5 percent followed by
HWC (3%)
121
TABLE 5.17 Percentage Procurement of Paddy by various Agencies Across
Districts of Haryana (2008-09) District State
Govt.
F.C.I HAFED Rice
Miller
H.W.
C
AGRO CONFED TOTAL
Ambala 31.71 0 44.02 7.59 2.27 2.05 12.36 100
Panchkula 0 0 38.04 3.77 0 0 58.79 100
Yamuna
Nagar
15.85 0 23.97 14.02 2.44 17.46 26.26 100
Kurukshetra 44.48 0.56 22.48 7.07 0 8.26 17.51 100
Kaithal 5.88 0.21 5.67 74.18 1.09 7.98 4.99 100
Karnal 25.41 1.67 49.49 19.86 0.57 2.94 0.06 100
Panipat 0 0 23.79 64.47 0 0 13.74 100
Sonipat 0 0 100 0 0 0 0 100
Rohtak 0 100 0 0 0 0 0 100
Jhajjar 0 0 0 0 0 0 0 100
Faridabad 2.55 97.45 0 0 0 0 0 100
Palwal 0 0 0 0 0 0 0 100
Mewat 0 0 0 100 0 0 0 100
Gurgaon 0 0 0 100 0 0 0 100
Rewari 0 0 0 0 0 0 0 100
Mahendragarh 0 0 0 0 0 0 0 100
Bhiwani 0 0 0 0 0 0 0 100
Jind 23.48 0 54.99 4.36 2.38 14.79 0 100 0 0 0 0
Hisar 0 0 31.09 13.28 55.63 0 0 100
Fatehabad 11.63 0.09 56.74 1.54 11.06 13.60 5.34 100
Sirsa 32.49 0.62 26.21 13.59 3.06 24.03 0 100
ALL 24.66 0.48 34.62 17.85 3.04 8.46 10.89 100
Total
Procurment
(in 00 tonnes)
5471 101 7681 3959 673 1878 2417 22180
5.1.5.1 Total Procurement of Wheat and Paddy across Districts in Haryana
The sale price in genral depends upon mainly the demand and supply position.
Since wheat and paddy are the main products for which the Government of India fixes
the Minimum Sales Price (MSP), as such in normal circumstances, the Government
does not allow the sale price to fall below the price fixed by the Government. As per the
economics principal of denand and supply, in case of higher production/supply and
lower demand, the price is bound to fall, but these agencies enter the market and
procure at the MSP, thus stabilising the price. The procurement of wheat and paddy
122
from various districts procured during the year 2008-09 has been presented in Table
5.18.
TABLE 5.18 Procurement of wheat and Paddy across districts during 2008-09
( In Tonnes)
District Wheat Total % to total Paddy % to total
Ambala 162098 3.09 318581 7.44
Panchkula 19484 0.37 48534 1.73
Yamuna Nagar 130662 2.49 217520 5.08
Kurukshetra 462142 8.83 722207 16.88
Kaithal 546412 10.45 539248 12.60
Karnal 601353 11.50 681277 15.92
Panipat 210061 4.02 231248 5.40
Sonipat 193587 3.70 193356 4.52
Rohtak 107979 2.06 23076 0.54
Jhajjar 28984 0.55 164114 3.83
Faridabad 276008 5.28 8923 0.25
Mewat 70027 1.34 4380 0.10
Gurgaon 40103 0.79 - -
Rewari 37957 0.72 - -
Mahendragarh 16335 0.31 - -
Bhiwani 80999 1.55 - -
Jind 531736 10.16 381000 8.90
Hisar 344161 6.58 57045 1.33
Fatehabad 589847 11.28 487901 11.40
Sirsa 780772 14.93 200326 4.68
Total 5230707 100 4278732 100
It could be observed from the table that in general, the wheat and paddy is
procured from all the districts of the state though in varying quantities, which again
depends upon the total production in the area. In the procurement of wheat Sirsa district
tops the list from where about 15 percent of the total procurement wheat by the state is
made, followed by Karnal (11.5%), Fatehabad (11.3%), Kaithal (10.5%) and Jind
(10.2%). Thus only five districts mentioned above contributed over 58 percent of the
total procurement of the state. The districts having the minimum procurement of less
than 1 percent of the total procurement were Mahendragarh (0.3%), Panchkula (0.4 %),
Jhajjar (0.6%), Rewari (0.7 %) and Gurgaon (0.8%). Thus it could be generalized that
the production/ procurement of wheat was un evenly distributed across various districts
of the state, which again depended upon several factors like the type of soil, irrigation
123
potential and the size of land holding etc, which again have the impact on cropping
production, production of wheat and its arrival in the market.
In case of paddy too almost similar observations were made. The maximum
paddy was procured from Kurukshetra district (17%), followed by Karnal (16%),
Kaithal (13%) and Fatehabad (11 %). In other words, the share of these four districts in
the total procurement of the state was around 57 percent. There was no procurement of
paddy from four districts viz. Gurgaon, Rewari, mahendragarh and Bhiwani, since these
formed the part of arid region having low irrigation potential resulting in little
production of paddy. In other five districts, the procurement was very low. The share of
paddy procurement was only 0.1 percent from Mewat district, 0.25 percent from
Faridabad, 0.54 percent from Rohtak, 1.13 percent from Panchkula and 1.33 percent
from Hisar. The remaining 40 percent procurement was from the remining 11 districts.
In addition to the leviable paddy, Haryana is a good market for Basmati paddy. The
Basmati paddy is being purchased mainly by the millers and Government agencies,
which are procuring it from the mandis, shelling, grading, processing and packing it and
are selling in the national as well as International markets. The total Basmati paddy
procured from the state of Haryana in the year 2008-09 was around 39 lakh metric
Tonnes. The share of millers alone accounted for about 53 percent of the total
procurement. Major share of procurement of paddy in the state was from Karnal and
Kurukshetra district.
5.1.5.2 Agency Wise Procurement of Wheat during 1998-99 to 2009-10
As already discussed above, various agencies are engaged in the procurement of
wheat for the last so many years. The total and percentage procurement during 1998-99
to 2009-2010 acoss various agencies and their growth rates over a period of time have
been presented in Table 5.19.
It could be observed from the table that HAFED was the major agency engaged in the
procurement of wheat from Haryana mandis during the period of study, followed by
Food and Civil Supplies Corporation and the F.C.I. in order. The remaining three
organizations viz. HWC, HAIC were in close race procuring between 9 to 14 percent of
124
total procurement. The procurement made by CONFED was a little less than 8 percent.
It was further observed that no definite trend could be descernable in the procurement
TABLE 5.19 Agency wise Purchase of wheat during various years (In lakh MT)
Year F&S FCI HAFED HWC HAIC Confed Total Growth
Rates%
1998-
99
7.08
(22.41)
4.73
(14.98)
11.67
(36.96)
8.10
(9.82)
2.40
(7.60)
2.60
(8.23)
31.58
(100) -
1999-
00
8.43
(21.78)
6.26
(16.18)
14.11
(26.46)
3.97
(10.26)
2.98
(7.70)
2.96
(7.62)
38.70
(100)
22.54
2000-
01
10.18
(22.58)
4.13
(9.16)
19.27
(42.76)
3.89
(8.63)
3.91
(8.68)
3.69
(8.19)
45.07
(100)
16.46
2001-
02
14.93
(23.29)
8.34
(13.01)
27.28
(42.55)
6.73
(10.50)
6.83
(10.65)
0 64.11
(100)
42.25
2002-
03
11.03
(18.74)
10.00
(16.99)
21.10
(35.84)
5.48
(9.31)
5.78
(9.81)
5.48
(9.31)
58.87
(100)
-8.17
2003-
04
9.90
(19.33)
8.18
(15.97)
18.04
(35.22)
5.66
(11.05)
4.87
(9.51)
4.57
(8.92)
51.22
(100)
-12.99
2004-
05
10.44
(20.41)
8.80
(17.20)
17.30
(33.83)
5.98
(11.69)
4.17
(8.15)
4.46
(8.72)
51.15
(100)
-0.14
2005-
06
9.58
(21.15)
6.17
(13.63)
16.75
(36.98)
4.36
(9.63)
4.30
(9.49)
4.13
(9.12)
45.29
(100)
-11.46
2006-
07
4.96
(22.24)
2.69
(12.06)
8.41
(43.72)
2.17
(9.73)
2.38
(10.67)
1.69
(7.58)
22.30
(100)
-50.76
2007-
08
8.16
(24.36)
3.50
(10.45)
12.90
(38.50)
2.94
(8.78)
3.34
(9.97)
2.66
(7.74)
33.50
(100)
50.22
2008-
09
10.87
(20.37)
7.85
(14.71)
19.32
(36.20)
4.88
(9.14)
4.64
(8.69)
4.81
(9.01)
53.37
(100)
59.31
2009-
10
15.13
(21.85)
9.31
(13.45)
24.74
(35.73)
6.78
(9.79)
6.96
(10.05)
6.32
(9.13)
69.24
(100)
29.74
ALL 120.69
(21.23)
79.96
(14.07)
210.89
(37.10)
60.94 (10.72)
52.56
(9.25)
43.36
(7.63)
568.40
(100)
Note: Figures in parentheses indicate percentage to total
of paddy by FSC across various years. The proceurement trend by the FSC in absolute
terms revealed that the procurement showed an increasing trend from 1998-99 to 2001-
02, showed a decreasing trend upto 2006-07 (except 2004-05) and again showed an
increasing trend. No definite trend in the percentage contribution of FSC to the total
procurement could be descernable, however it varied between 19 to 24 percent.
125
In case of Hafed too, the trend was almost the same, when total procurement as
well as percentage contribution to the total procurement was considered. However, the
percentage contribution to the total procurement varied from 34 percent in 2004-05 to
43 percent in 2000-01. The procurement by FCI also gave the similar observations.
However, the percentage contribution varied from 9 percent during 2000-01 to 15
percent in 1998-99.
The trend was almost the same for HWC, HAIC and CONFED with slight
variations here and there. The variation in the share of procurement by HWC varied
from 8.6 percent in 2000-01 to 11.7 percent in 2004-05. In case of HAIC, it varied from
7.6 percent in 1998-99 to 10.7 percent in 2001-02 by HAIC and zero in 2001-02 to
9.31 percent in 2002-03 in case of CONFED.. In short, it could be observed that the
variation could be attributed to the total production and arrival of produce in the mandi.
The trends of total procurement of wheat revealed the increasing trend from 1998-99 to
2001-02. Thereafter the procurement revealed a decreasing trend upto 2006-07, but
after it srated increasing and continued to increase upto 20009-10.
In general it could be said that in Haryana during all these years combined
together, Hafed was observed to be at the top procuring 37 percent of the total wheat
from the mandis followed by Food and supplies (21 %). FCI was at the third place
procuring 14 percent of the total procurement. The share of HWC, HAIC and CONFED
was found to be 11, 9 and 8 percent respectively.
The study regarding the growth rates of total production during the study period
revealed that the total procurement increased at a growth rate of 23 percent in 1999-
2000, which showed a decrease in 2000-01, increased in the subsequent year. The trend
was negative during the next five years and varied from -51 percent in 2006-07 to -0.14
percent in 2004-05. It increased at an increasing rate for two years, but showed a
decrease during the last year (2009-10).
5.1.5.3 Agency wise procurement of Paddy Across periods
The procurement of paddy according to agency over different years revealed
that leviable paddy was being procured by all those agencies, which were procuring
wheat, but basmati paddy was being procured by the millers directly from the mandis.
126
Even many of the millers by-passed the mandis and procured the basmati paddy
directly from the small and marginal farmers or the kaccha Arhtiyas operating on small
scale in the villages. Because of this practice, the farmers could save the transportation
costs for not taking the paddy to the mandis and the millers were saving the marketing
cost component, which they had to pay, thus incurring a loss to the mandi board and the
HSAMB. However in the present study, only the produce from the mandi has been
taken into account. The details of paddy, both leviable and basmati, paddy procured by
various agencies from 1997-98 to 2008-09 have been presented in Table 5.19 below:
TABLE 5.19(A) Agency wise Purchase of Paddy during various years
(In lakh MT)
Year F&S Hafed FCI HAIC HWC Confed Miller Total Growth
Rates%
1998-
99
0.15
(0.87)
0.34
(1.97)
0.49
(2.83)
0.03
(0.17)
0.09
(0.52)
0.02
(0.12)
16.17
(93.52)
17.29
(100)
-27.08
1999-
00
0.68
(3.31)
1.32
(6.42)
0.82
(3.99)
0.15
(0.73)
0.27
(1.31)
0.19
(0.92)
17.12
(83.31
20.55
(100)
18.85
200-
010
2.61
(9.93)
5.99
(22.78)
1.58
(6.01)
1.33
(5.06)
1.11
(4.22)
1.01
( 3.84)
12.66
(48.16)
26.29
(100)
27.93
2001-
02
3.58
(15.33)
5.69
(24.37)
1.94
(8.31)
1.40
(6.00)
1.70
(&.28)
1.43
(6.12)
7.61
(32.59)
23.35
(100)
-11.18
2002-
03
4.14
(19.34)
5.54
(25.88)
1.15
(5.37)
1.83
(8.55)
1.48
(6.91)
1.26
(5.89)
6.01
(28.07)
21.41
(100)
-8.31
2003-
04
2.38
(10.08)
4.33
(18.35)
0.41
(1.74)
0.77
(3.26)
1.26
(5.34)
1.0 6
(4.49)
13.39
(56.74)
23.60
(100)
10.23
2004-
05
3.74
(13.28)
6.72
(23.86)
1.00
(3.55)
1.02
(3.62)
1.72
(6.11)
0.97
(3.44)
13.00
(46.15)
28.17
(100)
19.36
2005-
06
6.54
(19.59)
10.12
(30.31)
0.94
(2.82)
2.20
(6.59)
2.02
(6.05)
1.74
(5.21)
9.83
(29.44)
33.39
(100)
18.53
2006-
07
6.07
(21.06)
9.04
(31.37)
0.11
(0.38)
2.44
(8.47)
1.04
(3.61)
1.77
(3.14)
8.35
(28.97)
28.82
(100)
-13.69
2007-
08
5.65
(21.53)
7.20
(7.44)
0.10
(0.38)
2.24
(0.54)
0.60
(2.29)
2.06
(7.85)
8.39
(31.97)
26.24
(100)
-8.95
2008-
09
5.47
(24.16)
7.63
(34.40)
0.10
(0.45)
1.86
(8.48)
0.67
(8.02)
2.42
(10.91)
3.96
(17.85)
22.18
(100)
-15.47
ALL 42.28
(24.33)
65.23
(22.11)
9.48
(3.21)
15.35
(5.21)
12.07
(4.09)
12.00
(4.07)
138.59
(46.98)
295.00
(100)
Note: Figures in parentheses indicate percentage to total
It could be observed from the table that no definite trend could be descernable in
the case of paddy too. The share of leviable paddy and basmati paddy was found to be
53 and 47 percent respectively.The leviable paddy was being procured by all the
127
agencies mentioned in case of wheat, but the basmati paddy was being procured by the
millers. In between the years, the trend analysis revealed that in case of F&S, HAFED,
CONFED and HAIC, it showed an increasing trend from 1997-98 to 2002-03,
decreased for two years and then increased. However in case of FCI, the decreasing
trend from 2004-05 to 2008-09 was observed. In case of Basmati procurement by the
millers, there were many ups and downs. The study of growth rates of paddy revealed
that it was negative in 1998, increased for two years, then again it was negative for two
years, The growth rate was positive from 2003-04 to 2005-06, but again was negative
upto 2008-09.
5.1.7 PERFORMANCE OF MANDI BOARD ACTIVITIES
The detailed analysis of the work done by the HSAMB has been given above.
To further analyse how far these facilities have reached the farmers. A survey of nine
mandis was conducted. In the survey all category of farmers, Arhtiyas/commission
agents and the official of the marketing board were interviewed on the specially
structured open ended schedules. The results thus obtained have been discussed in the
ensuing section.
5.1.7.1 Farmers Views
135 farmers selected for the study comprised of the various strata of land
holdings viz. marginal farmers, small farmers, medium farmers and large farmers. On
an average, the size of operational holding for all the mandis selected combined
together was 4.45 acres (1.75 hectares), which varied widely across the mandis. It was
observed to be highest in Ballabhgarh mandi area (8.07 acres) followed by Tohana
(7.03 acres.) and the lowest in Narnaul (2.00 acres) followed by Panipat (2.60 acres).
The results further revealed that on an average the ownership holding was 8.56 acres,
land rented in was 1.83 acres, while the land rented out was 5.94 acres. As compared to
this, the average size of operational holding in Haryana during the year 2000-01 was
5.80 acres. The data further revealed that the average size of holding as per the
available data for Sirsa/ Tohana was 8.45 acres and was the minimum for Panipat and
Mahendragarh area.. The results thus available from the study are almost in agreement
with the data of 2000-01 agricultural census.
128
The study further revealed that the average size of family in the area of the
selected mandis was 5.86, which is very close to the state average of 5.91 (As per 2000-
01 Census). It was further observed that there were 854 females per thousand males,
which again is very close to the state average of 863. Variations however were
observed in between the various mandi locations of Harayna. It was observed to be the
maximum in the catchment area of Taraori mandi followed by Ballabhgarh mandi. The
population per household was observed to be lowest in the adjoining villages of Panipat
and Fatehabad.
The education status of the household surveyed revealed that only asbout 23
percent of the total heads of household surveyed were illiterate. Another about 6
percent had their education up to primary level. The study revealed that farming is no
more an occupation of illiterate persons. 37 percent of the total households surveyed
were matriculate. Another 17 percent were either graduates/post graduates or technical
qualified persons. The remaining 17 percent were having studied up to middle level.
This could be taken as the major reason for the adoption of high yielding varieties of
seeds and latest technology, thus resulting in the increase in production and
productivity of various crops.
5.1.7.2. Storage of Produce
Production is one end of the economic problem, the other end being marketing
and distribution. Larger production does not necessarily mean larger marketed surplus.
Marketed surplus mainly depends upon the socio-economic status of the household,
level of production, family need for self consumption, consumption of animals and the
requirement of seed etc. and last of all the financial position to store or hold the product
for profit and the available market infrastructure. An attempt has been made here to
analyse and see how much produce is going to the market for sale after the harvest.
Consumption pattern too depends upon the habit of eating, size of family and the
economic condition of the producer. The production, consumption and sale/marketed
surplus among the selcted farmers in the vicinity of various mandis has bee presented in
table 5.20 below:
It could be observed from the table that on an average, production of wheat per
household in the vicinity of various selected mandis was found to be about 139 qtls.,
129
which varied from 72 qtls. in Narnaul area to 234 qtls. in Karnal area. This could be
mainly attributed to the size of land holding, the area under wheat and the productivity
in the area. It could be further observed fronm the table that 80 percent of the wheat
produced was sold in the mandi. The remaining 20 percent was retained at home for the
consumption of the family for self consumption, feeding to the animals as concentrate
ingredients and seed for the next sowing. This percentage, however, varied across
different mandis. In the wheat kept at home, the percentage consumed and stored was
TABLE 5.20 Production, Consumption and Sale of Wheat and Paddy (2009-10)
In Qtls.
S.No. Nearest
Mandi
Wheat Paddy
Total
producti
on
Consum
ed Stored Sold
Total
productio
n
Consu
med Stored Sold
1 Tohana 147.67 20.67 6.67 120.33 139.87 4.87 4.27 130.67
2 Panipat 159.33 16.67 6.67 136.00 177.27 4.73 4.54 168
3 Ballabgarh 111.73 17.67 7.73 86.33 122.38 4.8 4.38 113.2
4 Karnal 233.65 30.59 17.78 185.28 296.92 4.81 17.17 274.94
5 Taraori 177.27 18.36 10.27 148.64 198.18 5.27 5.09 187.82
6 Bhiwani 125.77 18.33 6.64 100.8 - - - -
7 Rohtak 104.70 15.00 6.36 83.33 47.47 4.4 3 40.07
8 Narnaul 72.33 17.33 5.00 50.00 31.67 3.67 - 28
9 Fatehbad 120.59 18.00 5.45 97.14 56.34 4.87 - 51.47
Total
1253.04
(100)
172.62
(13.78)
72.57
(5.79)
1007.86
(80.43)
1070.04
(100)
37.42
(3.50)
38.44
(3.59)
994.1
(92.91)
Average 139.23 19.19 8.06 111.98 118.89 4.16 4.27 110.46
Note Figures in parentheses indicate percentages to total production
found to be 14 and 6 percent respectively. In the case of paddy, average production was
found to be 119 qtls., which varied from 32 qts. in Narnaul to 297 qtls. in Karnal, which
could again be due to the higher irrigation potential and higher area under paddy during
the year. In Bhiwani area, none of the farmers interviewed was growing paddy. Unlike
wheat, the consumption of paddy per family was very low (3.5%) and another 3 percent
was stored as seed etc. for sowing the next crop. About 93 percent of the paddy
produced was thus sold in the mandi.
130
Bajra/Jowar and cotton were the other important crops sown in the state.
Bajra/jowar are the prominent crops in the villages around Tohana, Ballabhgarh,
Bhiwani, Narnaul and Fatehabad. Cotton though is grown in the vicinity of various
mandies but incidentally farmrmers contacted during the survey of Bhiwani mandi did
not mention the production and sale of these crops by them. The details of the
Bajra/Jowar produced and the percentage of the produce consumed, stored or sold has
been presented in table 5.21 below:
TABLE 5.21 Production, Consumption and Sale of Bajra/Jowar and cotton
(2009-10) In Qtls.
S.No. Nearest
Mandi
Bajra/Jawar Any Other
Total
produc
tion
Cons
umed
Stor
ed Sold
Name
Of the
Crop
Total
produ
ction
Cons
umed
Stor
ed Sold
1 Tohana 265.75 3.75 2 21 - - - - -
- Panipat - - - -- - - - - -
3
Ballabgar
h 16.67 3.33 - 13.33 - - - - -
4 Karnal - - - - - - - - -
5 Taraori - - - - - - - - -
6
Bhiwani 61.73 4.93 3 53.8 Cotton 10 10
7 Rohtak 33.46 5.77 - 27.69 - - - - -
8 Narnaul 28.10 4.87 - 23.2 - - - - -
9 Fatehbad 45.45 6.36 5 34.09 - - - -
Total 221.15 29.02 10.0 173.12 10 10
Avera
ge 33.90 4.84 3.33 28.85 10 10
% 100 13.66 4.71 81.63 100 0 0 100
It could be observed from the table that the average production of Bajra/Jowar
by the selected farmers in the six mandis was found to be around 34 qtls, which varied
from 17 qtls. in Ballabhgarh to 62 qtls. in Bhiwani mandi areas. However, the total
production of cotton per household surveyed was found to be around 10 qtls. 18 percent
of Bajra/Jowar produced was either consumed in the family or stored for seed or animal
131
feeding etc. About 82 percent of the total produce produced was sold in the mandis. As
far as the cotton was concerned, the entire produce was sold in the mandi. It could be
worth mentioning that the cotton produced is not ginned by most of the farmers and the
feeding of cotton seed/ cotton seed cake was either not being fed to the animals as a
concentrate ingredient or was being purchased from the market. As per the latest
practices the cotton seed oil is being refined and is being used for human consumption.
Regarding the mode of transportation of produce, the major transport system for
the transportation of produce from the village to the mandi used by the medium and
large farmers was through their own tractors and trollies (78 %). Some of the small and
marginal farmers were either hiring the tractor trolley from the big land lords, while the
others were transporting it though cart pulled by horse/ponnies. Bullock carts were
found to be very little /nil in the transportation of produce.
The produce brought to the mandi for sale again is not brought after cleaning,
but is directly brought from the field in the form it is available. The reason behind told
by the farmers is that it is cleaned in the mandi again even though they clean it at their
place. It is why, they avoid making the payment twice - one in the village and second
time in the mandi. The collected data shows that 98 percent of the farmers brought the
produce without cleaning it, while only 2 percent took the trouble of cleaning it.
Similarly the farmers donot pack the produce in bags, because it is opened again in the
mandi for the inspection of buyers. The farmers load their trolleys in the loose farm
without packing it in bags. The practice of bringing the produce to the mandi in the
loose form is being followed by almost 100 percent of the farmers.
The payment to the farmers is not a problem. They get the payment most of the
time they get the payment, whenever they require. For all the produce purchased by the
Government, the payment is made within a specified period of time.
The study further revealed that on an average the time taken by the farmers to
reach the mandi from their village was found to be about 45 minutes, whch varied from
35 minutes in case of Ballabhgarh to 57 minutes in Karnal mandi. This time does not
include the time taken for loading and unloading the tractor/trolley or cart. However
after reaching the mandi, it took around four days for the turn of auction. It could be
observed from the available data that on an average after the arrival of the produce in
132
the mandi, the turn of auction comes after about 98 hours, which varied across different
mandis from 80 hours in Taraori mandi to about 146 hours in Narnaul, which is quiet a
long period, because during this period, the farmer is always faced an unvisible threat
of natural calamities like hail storm, rainfall and dust storm and even theft etc. If it so
happens, the farmer is faced not only the various problems, but incurrs huge loss also
and just in a stroke, his hard work put during the season and the money invested on the
various inputs goes in the drain.
On the market information front, the farmers were of the view that there is not
always one source, but many a time, one comes to know about the market prices from
more than one source. 97 percent of the farmers reported that they were aware of the
prevalent/current market prices from the fellow farmers, when they meet each other in
the village or the mandi. Only 3 percent of the farmers were unfortunate and were
unaware of the current market prices of the agriculture produce. Regarding the source
of information of prices, 70 percent of the farmers reported as the fellow farmers as the
major source of market information. Only 10 percent of the farmers mentioned
commission agents/ arhtiya as the source of information, 7 percent reported having got
the knowledge of prices from other market functionaries. The farmers having got the
information from the electronic as also news paper and magazines were found to be
about 65 percent.
5.1.7.3 Incidental and Market Charges
As discussed earlier, according to the notification, two type of charges viz. the
incidental and market charges are charged. The rates have already been fixed for the
various operations/crops, which are updated usually every year and some times twice a
year. For this study, the rates fixed by the board on March 30,2010 circulated vide
notification no. ME-I-A-III/2010-30407 have been taken into account. The incidental
charges comprising of the unloading and cleaning charges of the produce brought in the
mandi by the producer are to be paid by him. In case of wheat crop, wheat after the
sale is finalised, is filled in 50 kg. bag in almost all the mandis of Haryana. The
incidental charges fixed by the HSAMB are Rs. 1.75 per unit. The survey of the farmers
revealed no discrepancy in terms of charging the incidental charges from the producers.
100 percent of the farmers reported having paid Rs. 1.75 per bag. The market charges
133
comprised of the filling and placing the produce on the platform, weighing the produce,
unloading it, auction Charges, commission and the brokerage. Market charges included,
the stiching charges also, which is being done both i) manually and ii) by machine.
Charges fixed are different for either of the operations. Market charges are paid by the
purchaser and not the seller. It could be further observed that the charges of filling the
bags, weighing, unloading from balance and stitching charges are being charged on per
unit basis i.e. 50 kg bag of wheat, but auction charges, commission and brokerage is
charged per hundred rupees. From the collected data, it could be observed that market
charges which are charged on per unit basis (50 Kgs) were observed to be Rs. 2.81.
However the auction charges, commission and brokerage charged from the
buyer/purchaser were found to be Rs. 2.74 pet 100 rupees. In simple words, incidental
charges and market charges per qtl. of wheat, costing about Rs. 1500 per qtl., were
found to be of the order of Rs. 50.22. Not much variation was observed across the
various mandis. The farmers were fully aware of the charges fixed by the board, which
were displayed in the mandi at all the enterances and other prominent places in the
mandi.The farmers were fully satisfied that they were neither being cheated nor
exploited on this account.
The study further revealed that paddy is being marketed in eight out of nine
mandis, in which the study has been conducted. The incidental charges comprising of
unloading and cleaning were found to be Rs.2.25 for a bag of 50 kg. of paddy. The
marketing charges of filling and placing on the platform, weighing, unloading from
balance and stitching were found to be Rs. 3.34 for a 50 kg bag. The commission and
the brokerage charges were found to be Rs. 2.74 per Rs. 100. In other words, total
charges comprising of the incidental and market charges of a qtl. of paddy costing Rs.
1100 per qtl. ammounted to Rs. 38.58. Little variation was observed in the response of
the respondents from different mandis in the state.
The farmers, however, reported that the rules were exploited by the procurement
agencies to the extent that they didn’t follow the procurement schedule. Immediately
after the harvest, the marginal and small farmers bring their produce to the mandi since
they need the money badly, but the procurement agencies follow the dilly dallying
policies with the result that the farmers many a times have to sell their produce below
134
the MSP fixed by the Government. This year too similar problem was noticed in
Karnal, Kurukshetra, Gharaunda, Assandh, Pohewa and many other mandis of Haryana.
Though, the procurement was to start on 1st Oct, it could not be started even upto 3rd
October, with the result that the farmers had to resort to road blockage at several places
in the state. The survey of Karnal market revealed similar position. The problem some
times aggravates due to the arhtiyas and the rice millers who procure the paddy from
the mandis. This time too on enquiry the arhtiyas revealed that they were ready to work,
but there were no buyers in the mandi as the rice millers were on strike. District Food
and Supplies Controller, Karnal reported that paddy was to be purchased jointly with
rice sheller owners, who were on strike and not lifting the paddy. The DFSC did not
have the proper infrastructure to lift the entire paddy stock alone. He further reported
that the paddy with more than 17 percent moisture content was not purchased, whereas
the moisture at the moment was around 22 percent. At the same time, Haryana Pradesh
Rice Millers and Dealers Association blamed the wrong and faulty procurement
policies of the centre and the state government pushing the rice millers into crisis. The
millers wanted the government to raise the percentage of grain damaged due to the rains
to 4.5 percent and discoloured grain to 4 percent, besides decreasing yield of rice to 64
percent.
Selected farmers reported that the incidental charges for Bajra/Jowar crop being
procured in 6 out of the 9 mandis selected for the study were found to be Rs. 1.70 per
unit of 50 kgs. At the same time the market charges for 50 kg of bajra were found to be
Rs. 2.82, which were found to be the same as fixed by the HSAMB and hence no
discrepancy in the charges were observed Other market Charges charged as auction
charges, commission and brokerage etc. was found to be the same (Rs. 2.74) as for the
wheat and paddy crop. It could be added that the Government fixed the Minimam
Support Price of Bajra, Jowar and Maize at Rs. 880 per qtl. The procurement of Bajra
during the season has taken place from 48 mandis/purchase centres across the state. To
ensure that the farmers did not resort to distress sales, six procurement agencies,
namely Food and Supplies Department, HAFED, FCI, Haryana Ware Housing
Corporation, Haryana Agro Industries Corporation and CoNFER were in the field to
procure theses and ensure that the prices did not fall below the MSP.
135
5.1.7.4 Satisfaction of Farmers for Various Amenties
The question of availability of various amenties provided by the HSAMB to the
farmers in the mandis was discussed with the farmers and they were specifically asked
the questions about this. 100 percent of the farmers were of the view that the loading
and unloading of the produce brought into the mandi is being done in a proper manner.
None of the farmer reported any malpractice or bungling in these operations. However
some of the farmers reported that many a times, it takes time for them to wait for a
suitable place under the shed, where they could stock their crop. Loading and unloading
too some times takes a long time and the farmers had to wait for their turn.Regarding
the filling and weighing of the produce 100 percent of the farmers had the positive
thinking and were satisfied with the process. Regarding the cleaning of the produce too,
100 percent of the farmers did not have any problem and were almost satisfied with the
staff engaged in these operations. Stitching too was being done in a proper manner and
none of the farmers faced any problem. The auction of the produce, though the waiting
time was lengthy, but was being done properly. Most of the times, the auctioneers were
in no hurry and were giving the proper time for each lot and almost around 90 percent
of the farmers from all the mandis reported that before the fall of hammer they were
consulted. Regarding the facilities available, aronr 89 percent of the total farmers
consulted reported that their produce was normally kept under the covered sheds.Some
times in the peak season, when there is more rush in the mandi and the time gap of the
auction is large, it was kept in open platforms. 99 percent of the farmers were of the
opinion that the covered area in the mandis and the pucca/raised platforms were
sufficint. They were of the opinion that in the peak season and on certain occasions, the
shortage of place is witnessed, but was within manageable limits.
On being asked about their views regarding the connectivity of their villages
with the mandi, almost all the farmers reported that their villages were connected with
pucca roads. The kaccha roads were no where to be seen in the vicinity of their mandis.
Within the villages, in 50 percent of the cases, the roads were the concrete roads, while
in 30 percent case, the brick lined roads exist. However the remaining 20 percent
mentioned a combination of all the three type of roads. However in the periphery of the
136
village, the roads were mettaled roads. In general roads were reasonably good, but at
many places, patches of broken road did exist, especially at the entry and exit point of
villages. The farmers also reported that in the absence of proper drainage system,
wherever the water comes on the road, the road is damaged and this is more common
on the portion of roads near and in the village. The situation becomes worst during the
rainy season, when many a times, the vehicles have to cross the knee deep
waters.Though the HSAMB/ Panchayat carries out the repair work at intervals, but the
breakage and pot holes of varied dimensions at several places were witnessed. The
situation was worse on the roads, where traffic was very heavy and the trucks/heavy
vehicles plied in large numbers. The traffic barriers on the highways too have created
the problem in some villages, when the heavy duty vehicles to save the tax divert the
traffic and pass through these villages, which cannot bear the heavy load.
Regarding the stay facilities in the mandi (Rest House), 61 percent of the
farmers reported that the facilities were available, while the remaining 39 percent were
apprehensive about that. About the facility of toilet and bath rooms in the mandi, 87
percent of the respondents were of the view that the facilities did exist and they were
using these facilities in the mandis, while 13 percent gave the negative opinion, which
could be due to their ignorance or they were critical of the mandi administration
without proper reason. Moreover as per the practice followed by them in the villages,
they prefer to go into open for their daily needs.
90 percent of the farmers reported that the condition of the roads in the mandis
as also the approach road to their villages was satisfactory in all the mandis studied.
Though some problems did exist in the mandis, but these were within tolerable limits.
89 percent of the farmers reported that the roads were being repaired periodically, but
the rain and the water accumulated on the side of the village roads created regular
problem. They laid a stress on proper drainage of water from the houses located along
side the road. However in the mandis, the problem is much less. Some times, the
sewerage is not cleaned resulting in accumulation of water in the mandi area. 77
percent of the farmers reported the existence of pot holes on the village roads, but at the
same time reported the repair of these pot holes occassionaly.
137
Though the covered sheds were sufficient, but during the rain, the produce gets
wet resulting in the increase in moisture content and refusal by the procurement
agencies to lift the produce having more than specified percentage of moisture. It has
been claimed that under such circulstances, tarpaulins were available and were being
provided to the farmers. Around 80 percent of the farmers reported having availed such
facility, but 20 percent were of the different view. May be that they could not avail this
facility or they were not aware of it or they never required it or may not have asked
from the proper person.
For the animals used in pulling the carts for bringing the produce to the market,
only 12 percent of the farmers were of the opinion that the facilty existed in the mandis,
while the remaining 88 percent reported not having availed this facility in the mandis.
Similar position was witnessed regarding the parking of their tractor and trollies in the
mandis.
Regarding the availability of stores for the various inputs required for the
production process, 87 percent of the farmers reported that these were located in the
mandi area or its vicinity and didn’t face any problem in getting the fertilizers, seeds,
pumping sets, tubewell motors, submersible pumps and various other tools and
equipments or the other inputs required for the various operations on their farms.
However around 13 percent of the farmers were negative and said that many things
were not available and if available, the rates were higher than the market rates and they
were exploited on this account..
About the sewerage lines, 79 percent of the farmer’s opinion was satisfactory,
but the views of the remaining 21 percent were not positive and complained of
blockage of sewer line particularly in the rainy season resulting in the flooding of
mandi area. They were of the view that the cleaning of the sewerage could be done
periodically and more particularly before the offset of rainy season. The situation
becomes bad only in the rainy season.
100 percent farmers wee of the view that watch and ward staff were generally
there in the harvesting season, when the farmers need them more, but in the off/slack
season, the situation was not good and many a times watch and ward staff was not be
seen any where.
138
Regarding the medical facilities for the farmers or their livestock, the farmers
were very apprehensive.The medical facilities both for the farmers and their animals
were not provided by the mandi board. This aspect was completely missing probably
due to the reason that the farmers come and go and did not have the time to stay in the
mandis. According to the farmers, this was one such area, where little attention has
been paid. Health being the basic fundamental requirement both for the human beings
as well as animals, the facility is a must in the present circumstances. This has become
more important as most of the mandis have shifted to more lucrative open areas.
Previously near the mandis many nursing homes and medical clinics and the chemist
shop had developed. May be that these could develop in the near future and this
problem could automatically be solved.
As a requirement, there should be good lighting arrangement in the mandi to
avoid thefts at night and proper care of the grains stock. Almost 93 percent of the
farmers were satisfied with the light poles and flood light provisions made in the mandi,
but many of the farmers complained about the failure of light and power cuts for hours
together resulting in the problems faced during unloading the produce at odd hours after
sun set. Many a times they has to depend upon their own source, the tractor light for the
purpose.
In short, it could be generalized that the HSAMB has attempted to provide the
basic facilities to the farmers, but there are always constraints.
5.1.7.5 Credit Facility
Farming is an unorganized profession and biological in nature. Its success and
failure to a large extent depends on climatic factors. The farmers go on investing on
farm inputs for about six months and not sure as to whether they would be able to
harvest a good crop or not. When the crop is ready, they harvest it and sell it to get the
money. Since the land holding of the farmers is very small and almost 65 percent of
them are marginal and small farmers, they don’t have enough money to invest in the
production of crops. As such they need the credit for the production of next crop. Three
types of loans viz. short term, medium term and long term loans are generally required
by the farmers. Short term loan is required by the farmer for a period of less than 15
139
months for the purchase of various inputs used in the production process. Medium term
loan is required for a period exceeding 15 months to five years. The purpose of such
loan is for the purchase of agricultural implements, animals or for land improvement.
The long term loan is required by the farmers for expensive agricultural implements etc.
These loans are usually available from both the institutional and non institutional
sources. Crop loan is generally taken from the village level Cooperative Societies for a
crop period. Considering its importance, the selected farmers were subjected to certain
questions. Only, 27 percent of the total farmers reported that there was no problem in
getting the loan. However the remaining 73 percent of the respondents exhibited
difficulty in getting the loan. On an average, most of the respondents were under debt
and they had taken a loan for one purpose or the other. The average loan to be repaid by
an average farmer was around Rs. 49000. Though, both the institutional and non
institutional sources of credit were available to the farmers from the institutional and
non institutional sources, but the farmers reported the preference for non institutional
credit, even though this was available at an interest rate varying fron 2 to 2.5 percent
depending upon various consideration like the purpose of loan, time period of loan and
the security or the commitment etc. mainly due to simple procedures and secrecy. The
prominent purpose reported by the farmers were the repair of house, leasing in and
reclaiming the land, agriculture purposes-purchase of tractor, implements, fertilizer and
seed etc., construction of farm house, marriage in the family and other personal
purposes. The study further revealed that the percentage of households taking loan for
the personal purpose in the family were found to be the highest (30%) followed by
marriages and social ceremonies in the family (22%) and repair of house etc. (20%).
The percentage of loan taken for agriculture purpose, construction of farm house and to
pay for the lease of land accounted for about 10, 10 and 8 percent respectively.
5.7.1.6 Views of Arhtiyas/Commision Agents
Agricultural marketing in India is very complex. Though, long chain of
intermediaries has been curtailed, but still in the trade there are mediators most
commonly known as Kacha and Pucca Arhtiyas operating in the villages and mandis
respectively. To elicit the views of the commission agents/ arhtias, 90 arhtias, 10 from
each mandi were selected randomly from all the 9 mandis included in the study. All the
140
selected arhtiyas were interviewed and the information collected by the investigator
herself on the especially structured open ended schedules, which formed the subject
matter of discussion of this section. General particulars of the selected arhtias from all
the mandis has been presented in table 5.22 below:
It could be observed from the table that no definite trend could be descernable in the
case of paddy too. The share of leviable paddy and basmati paddy was found to be 53
and 47 percent respectively.The leviable paddy was being procured by all the agencies
mentioned in case of wheat, but the basmati paddy was being procured by the millers.
In between the years, the trend analysis revealed that in case of F&S, HAFED,
CONFED and HAIC, it showed an increasing trend from 1997-98 to 2002-03,
decreased for two years and then increased. However in case of FCI, the decreasing
trend from 2004-05 to 2008-09 was observed. In case of Basmati procurement by the
millers, there were many ups and downs. The study of growth rates of paddy revealed
that it was negative in 1998, increased for two years, then again it was negative for two
years, The growth rate was positive from 2003-04 to 2005-06, but again was negative
upto 2008-09.
Table 5.22 General Particulars of the selected Arhtiyas in the selected mandis
S.No. Market Committee
Type of Establishment
Individual Partnership Pvt. Ltd.
Any
Other
1 Karnal 7 3
2 Taraori 4 6
3 Panipat 6 4
4 Tohana 6 4
5 Bhiwani 8 2
6 Fatehabad 4 2 2 2
7 Rohtak 4 6
8 Ballabgarh 8 2
9 Narnaul 4 6
Total 51 35 2 2
% age 56.7 38.90 2.20 2.20
141
It could be observed from the table that 57 percent of the total shops of arhtiyas
were individual/sole proprieptor ship concerns. Another 39 percent of the business
shops were the partnership firms (having 2-4 partners each). 2 percent of the total firms
each were either Pvt. Ltd or cooperative societies or any other type. In our study, these
were the cooperatve societies. It could also be concluded from the study that 96 percent
of the total shops were either owned by the commission agents themlelves or were
inherited from the family. In over ninety percent of the cases, this business was the
family business inherited from their fore fathers. Only 10 percent of the total
commission agents entered new in to the business. These persons were either the
employees with the arhtiyas or had some relations with the arhtiyas from whom the
training was taken to start the business or were from the farmer families having wide
contacts and dealing with allied trades. Only 4 percent of the shops of these arhtiyas
were on rent. These rented commission agents have entered into the business a few
years back either from the farmer’s family or having allied business. Operating the
business from the owned shop was essential since the nature of work demanded
sufficiently good amount of capital, immovable assets and above all the good will. If
the arhtiyas are not having their own shop, the farmers will not trust him, since the
farmers have to sell lot of produce through them and have to get payments at the time
of need.
5.1.7.7 Views of the Farmers about Packing
Regarding the packing of the produce, the arhtiyas reported that in the past,
three types of packings viz. 50 kg, 95 kg. and 100 kgs was prevalent, but at the moment
for all A and B category products i.e. wheat, paddy, Jowar, bajra and maize etc., mainly
50 kg. bags are filled and stitched for storing the produce. Only under special
circumstances, 35 kg packing is done. But for C category of products packing varies.
Cotton and Wool is packed in 40 kg. bags, Ground nut is packed in 30 kg packing while
dry chillies are packed in 17 kg bags. Almost all the arhtiyas reported that the
procurement is mainly being done by six government agencies viz. HAFED, Food and
Supplies Corp., FCI, Haryana Agro Industries, CONFED and Haryana ware Housing
Corp. and all of them prefer the grains to be filled in 50 kgs bag because of the
142
convenience in stocking, loading, unloading and transportation from one place to the
other.
5.1.7.8 Views about Payments
Arhtiyas reported that they are not adhering to time schedule like weekly,
fortnightly, monthly payment to the farmers, but give the payments to them as and
when they require it. The arhtiyas also reported that most of the farmers get advance
payments from them for the purchase of various farm inputs like fertilizer, seeds,
insecticides and pesticides and even the costly equipments. Many times, even they get
consumption loan for personal purposes as well as for marriage and social ceremonies
at home. The loans are generally repaid only on the next crop. The arhtiyas oblige the
farmers even out of the way and advance the amount without any security. The only
guarantee and that too verbal is that the farmer will sell the produce through him. The
advances, if any are mostly deducted at that time and even sometimes these are adjusted
in the next to next crop. Some times, the arhtiyas don’t charge the interest, if the period
is very short, one or two months, but if the amount is large, the interest too is charged.
Since the farmer and arhtiyas develop personal relations with mutual trust, many a
times the arhtiyas use their money for some time in their business and make the
payment in parts. The arhtiyas reported that almost 100 percent of the farmers take
advance of varying amounts for different purposes. To avoid being exploited by the
farming community, who some times takes advance without any reason and don’t draw
the money from their own bank account, an interest varying from 12 to 16 percent per
annum, depending upon the amount and period of loan is charged.
The arhtias also reported that they too enter into trading, purchase the produce-
wheat, paddy, barley, gram, jowar, bajra etc. at the harvest time, stock/hoard it for some
time and when the price of the produce rises, sell it in the market and that way they earn
some money, but at the same time they pointed out that they are the law abiding
citizens and do the trading work within rules. They maintain the stock as per the licence
terms and conditions and never exceed the limits specified by the government. Only
around one percent of the arhtiyas reported that they don’t procure the food grains and
stock them, since they are short of money and don’t want to under go the risk.
143
Regarding the organizations dealing with, the arhtias reported that they are at
the same time dealing with the sellers and purchasers/ buyers. The sellers in the mandi
are various categories of farmers viz. the marginal, small, medium and large farmers,
the kacha arhtiyas and the village bania.The arhtiyas deal with both the government and
private agencies, who purchase the stock either for sale or convert it into value added
products after processing them. The government agencies include the state government
controlled Food and supplies controller, Haryana Agro industries, HAFED and Haryana
ware housing corporation and the centre owned Food Corporation of India and
CONFED. It could be addfed that these six are the prominent agencies engaged in the
procurement process. The private agencies engaged in the procurement process are the
Dal millers, Rice shellers/millers, Floor mills, Oil extractors, Cotton ginners and other
agro industries like bakeries, food processors and animal feed industries etc. The arhtias
stand as a link between the sellers and the purchasers.
5.1.7.9 Market Charges
To ascertain both the incidental and market charges being charged from the
producers/farmers and the purchasers, data collected from the producers, who bring the
produce to the market has already been reported earlier in the previous section. To
verify it, the views of the commission agents were also ascertained. The data so
collected has been analysed, interpreted and produced as under:
The arhtiyas too reported that the incidental charges, comprising of the
unloading and cleaning charges are to be charged from the producer. The charges so
collected amount to Rs. 1.75 per unit of produce. Unit of weight of wheat, paddy, gram,
jowar and bajra is 50 kgs. For wheat, the market charges to be paid by the purchaser
comprise of filling the bag and placing it on the platform, weighing the produce,
unloading from balance, stitching either by manual or machine too were charged on the
unit places. The total charges for wheat were observed to be Rs. 1.94. In addition to
these charges, the auction charges, commission and brokerage amount Rs. 2.74,
calculated on the basis of amount per hundred rupees of the sale value. No discerancy
was found from the arhtiyas across the different mandis. This showed that the system of
fixing the charges and charging them from the producer/seller and purchaser were very
transparent and there were no underhand charges.
144
In case of paddy, the incidental charges were Rs. 2.25 per unit of 50 kg. The
market charges per unit of paddy amounted to Rs. 3.34. However, the market charges
per Rs. 100 to be charged from the purchaser remained the same as in case of wheat. In
case of bajra, the incidental charges were lower both from paddy as well as wheat and
amounted to Rs. Rs. 1.70. Similarly the market charges for bajra/jowar/maize were
ascertained to be Rs. 2.82, which were lesser than paddy, but slightly higher than
wheat. The market charges, however were the same.
5.1.7.10 Views about the Facilities
The arhtiyas too were asked questions regarding the availability of various
amenities and facilities for their use and to increase the efficiency in their work. 100
percent of the arhtiyas contacted from all the nine selected mandis reported that there
were sufficient covered sheds for the produce, farmers brought to the mandi for sale.
Regarding the storage facilities of agricultural produce, 97 percent reported that the
space was adequate, while 3 percent reported that the space was inadequate.
The arhtiyas reported that all the mandis have poor facilities for health cover
both for human beings and the animals coming to the mandis. In case of need or
emergency, even the first aid is not available. Previously mandis were located in the
city and the hospitals were close by, but now most of the mandis have been shifted to
more lucrative and open locations away from the crowd of cities, with the result that
both civil hospitals and veterinary hospitals have become unapproachable, in
emergency. Even the private hospitals and nursing homes are located at distant places.
96 percent of arhtiyas reported that the watch and ward personnel were there in
the mandis and they performed their duties satisfactorily during the peak/crop season.
Only 4 percent of the total arhtiyas were critical about the watch and ward staff
availability at the gates of the mandis.
Though the light arrangement in the mandis was satisfactory according to
almost all the arhtiyas, but problem some times is there due to power cuts and
breakdowns.
Arhtiyas were of the view that tarpaulins were available in the rainy season, but
at the same time no space for the parking of trollies or bullock carts was there. Most of
145
the farmers were parking these on the road side or odd places resulting in traffic jams,
and difficulty to the farmers bringing the produce.
92 percent of the arhtiyas mentioned that raised platform for auction of the
agricultural produce were there. Only 44 percent mentioned the availability of stay
facilities in the mandis while 56 percent reported that these facilities were not adequate.
Only some commission agents arranged for the stay of their clients in their own shops.
Toilets and bathrooms have been constructed, roads have been prepared, sewer
lines are there, but there were several constraints. Farm input shops were there. 44
percent of the farmers were of the view that banking facilities were there in the mandi
area, but 56 percent of the arhtiyas reported that the facilities were in adequate. In short
HSAMB has been doing a lot for the farmers and the arhtiyas alike.
5.1.7.11 Role of Mandis
Arhtiyas facilitate the sale of agricultural produce through the various
functionaries and market committee helps in implementing the rules and regulations
framed by the HSAMB. As already discussed earlier that the procurement is done
through the various Government agencies and the dealers, which comprised of the
various categories, charaterised as Cateory –A (Floor Mills, Rice Shellers, Cotton
Ginners etc.), Category -B, (commission agents, wholesalers, stockists etc.) In the
category (C) the prominent dealers were mainly the retailers. Category (D) included the
various market functionaries like weightmen, Brokers, Auctioneers and palledar etc.
Number of dealers registered with the selected market committees have been presented
below in table 5.23
It could be observed from the table that in the selected mandis, on an average
there were 34 registered ‘A’ class dealers in a mandi. These dealers belonged to the
various agri industries like Dal mills, Floor mills, oil extractors, Rice shellers, Cotton
grinners etc. All the other type of dealers were clubbed together under any others).
The maximum dealers belonged to the category of rice shellers (53.7%), followed by
floor mills (15.2%) and cotton ginners (14.9%), 11 percent of the total dealers were
purchasing the oil seeds like mustard, groundnut, toria and taramira etc. and were
extracting the oil, where oil cakes were produced as a bye-product and were fed to the
animals. 3 percent of the dealers were purchasing cereals and preparing Dal out of it.
146
Table 5.23 Number of Dealers Registered with Different Market Committees
S.No.
Name Of
The
committee
Category A (No. Of Dealers)
Dal
millers
Floor
Millers Extractor
Rice
Sheller
Cotton
Grinners
Any
Other
Specify Total
1 Karnal 10 52 - 1 63
2 Taraori - - - 70 - - 70
3 Panipat - 15 6 6 23 50
4 Tohana - 2 6 27 2 37
5 Bhiwani 6 6 13 13 5 43
6 Fatehabad 1 8 7 16
7 Rohtak 2 2
8 Ballabgarh 2 11 5 1 19
9 Narnaul 1 2 5 1 9
Total 9 47 35 166 46 6 309
Avera
ge 1.00 5.22 3.89 18.44 5.11 0.67 34.33
The number of dealers depended upon the raw material produced in the
area.Taraori. though a small place was blessed with a huge market of for the sale and
purchase of basmati paddy. As such, number of dealers were observed to be the
maximum (70), followed by Karnal (52) and Tohna (27). In all other mandis the
number of rice dealers were 17 except Narnaul and Bhiwani mandis, where very little
paddy was produced. Cotton ginners and ‘Dal’ millers were found to be the maximum
in Bhiwani since due to the agro-climatic conditions, lot of area was under gram and oil
seeds (cotton and Mustard). Floor mills were found to be the maximum in Panipat (15)
followed by Ballabhgarh (11% ) and karnal (10%) in order..
‘B’ category of dealers, which included the (i) commission agents (ii) whole
salers (iii) stockists and other misc. category of dealers have been summarized and
presented in the table 5.24 below.
147
It could be observed from the table that as per the available data with the market
committee the toal number of ‘B’ category of market functionaries viz. commission
agents, whole salers and stockists etc. were found to be around three thousand. It could
be further observed that 86 percent of the total ‘B’ category dealers, the percentage of
Table 5.24 No. Of Dealers Registered With Different Market Committees
S.No.
Name Of The
committee
Category B
Commision
Agent
Whole
Salers
Stockists and
others
Any other
Specify
1 Karnal 322 145 27 25
2 Taraori 369 33
3 Panipat 284 112
4 Tohana 370 2
5 Bhiwani 134 5
6 Fatehbad 413 46
7 Rohtak 245
8 Ballabgarh 90 40
9 Narnaul 320
Total 2547 381 27 2955
Average 283.0 42.33 3.0 328.33
commission agents were observed to be the maximum (86%), followed by whole salers
(13%). Only around 1 percent of the toal ‘B’ category was either stockists or any other
type of dealers. Across the various mandis, the commission agents were observed to be
the maximum (413) in Fatehabad mandi followed by 370 in Tohana 369 in Taraori and.
These were found to be the minimum in Ballabhgarh mandi followed by Bhiwani. On
an average number of Commission agents in the selected mandis were 283. It could be
further observed from the table that the total number of whole salers in the selected
mandis were 381, the average per mandi being 42. Number of whole salers however
varied from 5 in Bhiwani mandi to 145 in Karnal mandi. The stockists and other
dealers however were found to be 27. Thus in all, the total number of ‘B’ category
dealers in the selected mandis were ascertained to be around 2955, the average per
mandi being 328.
148
In addition to the ‘A’ and ‘B’ category of dealers in each mandi, there were ‘C’
and ‘D’ grade market functionaries. As already discussed, ‘C’ category of market
functionaries were mainly the retailers, while in ‘D’ category, the weighmen, brokers,
auctioneers and palledars etc. were included. The data revealed that though the
registered number of ‘C’ and ‘D’ category of functionaries were much less, but the
actual number were quiet large. Generally these categories of functionaries were
migratory by nature and as such they didnot pay the license fee, which again is very
minor. The data revealed that in these selected mandis, the toal number of such
functionaries were 1252, the average per mandi being 132. Out of the total
functionaries, the percentage of ‘C’ category and ‘D’ functionaries were observed to be
14 and 86 percent respectively. The number of these functionaries too varied from
mandi to mandi depending up on the various factors like the total arrivals in the mandi,
number of whole sale shops/arhtiyas and the ‘A’ category dealers.
Table 5.25 Number Of ‘C’ and ‘D’ category of market functionaries With
Different Market Committees
5.1.8. Coverage of Area by a Maket Committee
S.N.
Name Of The
committee
Category C Category D
Retailers Weighmen Brokers auctione
ers Palledar
s Other
Specify
1 Karnal 12 28 30 12 70 159
2 Taraori 2 25 26 15 65 133
3 Panipat 20 20 15 12 200 267
4 Tohana 8 90 10 10 76 194
5 Bhiwani 34 6 8 8 20 76
6 Fatehbad 34 15 22 12 80 163
7 Rohtak 21 5 10 20 15 71
8 Ballabgarh 15 2 9 8 100 134
9 Narnaul 25 5 7 10 15 62
Total 171 196 137 107 641 1252
Average 19.0 21.78 15.22 11.89 71.22 139.11
149
As already discussed, at the time of the inception of HSAMB, there were only
58 market committees in the state with 58 principal yards and 60 sub yards. Even these
market committees were located in narrow, congested areas and lacked the basic
amenities and facilities for proper handling of the arrival. The farmers had to travel
long distances and in some cases 50-60 kms. to bring their produce to the market
through Kacha roads. Since about 40 years have passed, it is very important to see and
analyse, how far, we are able to cut the distances. For the purpose, the data collected
from the nine selected Committees was analysed and presented in table 5.26 below:
It could be observed from the table that the total villages connected with these 9
selected committees were 500, which varied from 22 in Karnal to around 105 villages
in Rohtak, the average for all the mandis being 55. It was operating within a radius of
12 kms. i.e. the villages connected to the committee in each direction covered a
distance of around 12 kms. Variations however were observed in between the
committees depending on the total production, productivity and the density of villages
per sq. km. For example Taraori market committee coveed a distance of 9 kms. in the
north side, 7 kms in the south side, 8 kms. in the east side and only 3 kms on west side.
Within such an area there were around 29 villages. At the same time. Bhiwani mandi
covered 50 villages and its limits in the north, south, east and west side were around 30,
8, 15 and 20 kms respectively. It is very interesting to observe that all the 100 percent
villages were connected with metalled roads.
Table 5.26 Coverage of area by a Market Committee
S.
No
Name of
the Market
Committee
Total
No. of
villages
attached
with the
market
Total area covered No. of Villages Connected by
North
side
South
side
East
side
West
side
Metalle
d road
Concrete
road
Brick
lined
road
Kacha
Road
1 Tohana 35 6 20 4 12 35 0 0 0
2 Karnal 22 13 8 6 12 22 0 0 0
3 Ballabgarh 60 12 11 13 13 60 0 0 0
4 Narnaul 85 15 10 20 12 85 0 0 0
5 Bhiwani 50 30 8 15 20 50 0 0 0
6 Rohtak 105 25 20 10 20 105 0 0 0
7 Taraori 29 9 7 8 3 29 0 0 0
8 Fatehbad 59 8 15 22 7 59 0 0 0
150
9 Panipat 55 10 8 12 8 55 0 0 0
Total 500 128 107 110 107 500 0 0 0
Average
55.56 14.22 11.89 12.2
2 11.89 89.78 0 0 0
The Kacha roads are no where seen in the area. As per the available data (2008-09),
out of 6764 villages of Haryana, 6757 villages (99.9%) are connected with
metalled/pucca roads and all the 6764 villages (100%) are connected with electric
power. The metalled (surfaced) road per 100 sq. km area has been ascertained to be 55
kms, which varied from 41 kms in sirsa to 79 kms in panipat. The total length of the
metalled roads in Haryana has been ascertained to be 24317 kms. It could also be added
that in the state, the number of regulated markets per one lakh hectares of net area sown
varied from 1 in Jhajjar to 13 in Panchkula followed by 6 in Yamunanagar and 5 each
in Ambala, Kurukshetra, Karnal, Panipat and Faridabad.
5.1.8.1 Investment on Infrastructural Facilities
During the year of Survey investment on Infrastructural facilities have been
made in Karnal and Balabhgarh mandi, the major share allocated to Karnal. In Karnal
mandi, the expenditure has been incurred on the development of new roads, repair of
roads, construction of new shed, repair of sheds and repairs of raised platforms, In
Ballabhgarh mandi however a paltry amount of Rs. 0.35 lakhs have been spent on
repair of roads, new sheds and the repair of raised platforms.
Table 5.27 Investment on Infrastructual Facility
S.N
o.
Market
committee
Investment on Infrasturctural Facilities during the year (in Lacs)
Develo
pment
of new
roads
Repair
of
roads
New
sheds
in the
market
Repair
of Sheds
Raised
Platform
New
Repairs
of
raised
platfor
ms
Other
investm
ent
(Specify
)
1 Tohana
2 Karnal 250 320 2000 35 0 2605
3 Ballabgarh 0.2 0.1 0.05 0.35
4 Narnaul
5 Bhiwani
6 Rohtak
7 Taraori
8 Fatehbad
151
9 Panipat
Total
250 320.2 2000.1 35 0 0.05 2605.35
Average
27.77 35.57 222.23 3.89 0 0.005 289.46
5.1.8.2 Staff Position in Various Market Committees
To supervise properly and enforce the various rules and regulation each market
committee is equipped with staff appointed by the board except class –IV staff, which
is appointed by the market committee. As per the records available, there were over all
388 employees in the selected 9 committees, the average being 43. The staff position
of the committees varied from 21 in Ballabhgarh to 63 in Rohtak depending upon the
load of work, market arrivals and other associated jobs. The staff in the committees
comprised of the administrative, clerical and supporting staff. The total strength of staff
in the selected committees was found to be around 387, the average per committee
being around 43, which varied across different committees depending upon the load of
work. The proportion of Administrative/technical and the clerical/supporting staff was
observed to be around 45 and 55 percent respectively.
The foregoing discussion in this section leads to conclude that the HSAMB is
doing a unique task for the development of agricultural markeing in the state. It has
ventured in all the six objectives fixed at the time of its start. It has created a wide
marketing infrastructure comprising of various Marketing Committees, Market Yards,
and Purchase centres. In the market committees, the various amenities and facilities
have been created for the benefit of the farmers. HSAMB has further attempted and
worked for thr profit maximization of farmers by ensuring the best prices for their
produce which they bring to the mandis for sale in the market. The market committees
at their end are collecting the market fee and the license and after keeping its sending
sending the money to the Board headquarter. The board is not only utilizing this
amount for the benefit of the farmers, but is creating more and more resources for the
benefit of the farmers. The Board is also helping to enforce the rules and regulation
152
framed by it though a team of persons under the District Enforcement Officer. The
Board has created a full wing of construction Division headed by a C
hief Engineer at the headquarters. The creation of additional facilities like
expansion and maintenance works, repair and maintenance of inner roads, toilets, new
roads and the maintenance of roads etc. is being executed by them through contractors
on minimum bid system. It has started various schemes like Krishak Uphar
yojna,Special assistance to victims during agriculture operations and contract farming
etc. It has also set up agri-Business Information centres, farmers markets, Modern
Terminal markets, Commercial, Research and Training and Quality Control Division
and arranged the inputs for farmers. All this is being done to help the farmers increase
their income.
It could be added that there is no end to the development. With the improvement
in technology and the development of agriculture, new and new innovation and
development techniques are coming up and the board has to see that they should also
employ the most modern techniques. It could therefore rightly be said that the HSAMB
is relevant, but its activities should change to adopt the new techniques and methods
and the new priorities should take the place of tradional systems and approach. No
doubt, the Board has taken the lead and has set up malls and super malls etc., which
could prove to be more helpful in the development marketing system in general and the
economy of farmers residiing in rural areas.
5.2 TRENDS OF INCOME AND EXPENDITURE OF HSAMB
The viability of an enterprise depends upon the income and expenditure and the
net returns of an enterprise. If the income of the organization is higher than the
expenditure, it is said to be a viable organization. In the case of service organizations
like HSAMB, which was set up in 1969 to develop an efficient marketing infrastructure
by setting up modern markets and evolving a feasible and efficient modern markets and
evolving a feasible and efficient marketing system in the state. The board was
entrusted the job of providing modern amenities and facilities in the existing markets
and construction of additional markets like principal yards, sub yards and purchase
centres. For all this finances were required.
153
The income of HSAMB/Market Committee is being derived from the collection
of market fee on the sale and purchase of agricultural produce, which is levied at the
rate of 2 percent advalorem basis except 21 items on which the rate of market fee is 1
percent advalorem basis. The market committees contribute 30 percent of the total
collection of market fee and the license fee collected from the various market
functionaries to the HSAMB. The other sources of income of the board/market
committees is from the sale of plots in the new mandis, rent of godowns, ware houses
and the interest on loans and investments etc. In addition, the board is accepting grants,
donations and even getting loans from the World Bank and other National and
International organizations. The income received is spent in developing the
infrastructure in mandis, its offices, meeting the salary of staff and making investment
in the development of mandis, creating facilities and amenities for the farmers and other
functionaries.
5.2.1 RECEIPTS AND PAYMENTS .
The receipt of income and payments/expenditure in brief during the study
period 1997-98 to 2007-08 has been presented in table 5.28.
It could be observed from the table that the income of the HSAMB varied across
different years. No specific trend however could be observed, however receipts during
the year 1997-98 wwere found to be around Rs. 10290 lakhs, which decreased to Rs.
10136 lakh showing a decrease of (-) 1.50 percent. It showed an increase in the
subsequent years from 1998-1999 to 2000-2001 showing an overall increase of 203
percemt or a growth rate of over 50 percent per year. It decreased in 2002-03 and
continued to decrease upto 2005-06, but again showed an increasing trend in the last
two years. Though the decrease from 2002-03 to 2005-06 was about 16 percent, but the
increase from 2005-06 to 2007-08 was very substantial and was observed to be 144
percent. This could be due to the varied production during different years. Since the
overall production decreased the arrival of the produce was less in mandies resulting in
the decrease in market fee in different mandis and consequent transfer to the board.
Regarding the expenditure part, the expenditure during the year 1997-98 to Rs.
31250 lakhs showed an increase of over 253 percent. However, it showed a decreasing
trend from 2002-03 to 2005-06 and the decrease too was quite high and found to be
154
about 115 percnt. Thereafter it again started increasing and increase in 2007-08 over
2005-06 was ascertained to be 199 percent. The overall compound growth rate was
found to be 3.56 percent per annum.
It could be further observed from the table that the proportion of payment to the
total receipt varied and was not dependent upon the total receipt. The results of the
analysis revealed that in 1997-98, the proportion of expenditure to the total receipt was
only 66 percent. It however decreased marginally in the subsequent year to 65 percent.
155
But in 1999-2000, it was over 108 percent. In 2000-01 it slightly increased and showed
a decrease in the subsequent years which varied from 102 percent in 2001-02 to about
93 percent in 2003-04. It increased in 2004-05 (104%) but decreased in 2005-06 and
2006-07 to 72 percent, but increased in 2007-08 to 88 percent. The variation in
percentage expenditure could be due to the demand from different mandis. The higher
expenditure than the receipts resulted in the lower closing balance at the end of
financial year.
5.2.2 Income of HSAMB According to Sources
The HSAMB has classified and presented the income in their audit report and
annual accounts for different years under three heads viz. the Revenue Head, Capital
Head and loans and advances. Under the revenue head, the major sources of income
were (i) contribution received from marketing committees under section 27 of the Act
and the Licence fee collected under Section 10 of the Act. (ii) rent received from Food
and supplies Godowns, staff quarters, rest house and shops and booths etc. (iii) interest
recovered/received from market committees for the loan and money advanced to them,
employees and bank deposits etc. and (iv) other miscellaneous receipts. In the initial
years viz. 1997-98 and 1998-99 another head in the name of suspense account was
created, which after words was merged. The Capital Head too was categoriesed under
various sub heads heads like (i) transfer of World Bank Project Mandis to market
committees-recovery of cost (ii) Subsidy/Grant in aid from Central Government and
other institutions (iii) other miscellaneous income i.e. charging of RR etc. (iv) market
committee deposit works (v) other expenditure including contractors. security and
earnest money. (vi) Interest on deposit works (vii)Miscellaneous Capital Income which
includes sale of tender forms and enlistment fee of contractors etc. and the (viii)
156
suspense account comprising of collection charges of HRDF fee and others and
suspense A/C (including GPF, Bal with Divn. etc. The Loans and advances head
Covers the loan recovered from (a) market Committees (b) employees, (c) Government
and (d) other institutions. The sum total of all these three heads is taken as the total
receipts. The total receipts from all these three heads is from 1997-98 to 2007-08 has
been presented in table 5.29
157
It could be observed from the table that in general the major income to the HSAMB
was from the capital head except for the year (1998-99) during which the income from
the revenue head was higher. The income from the loans and advances head was
observed to be the lowest. The details of the data revealed that the share of income
from revenue head varied widely from 16 precent in 2001-02 to about 43 precent in
1998-99. The trend analysis showed that even though no specific trend could be
descernable, but the results revealed that the percentage share increased from 39
percent in 1997-98 to 43 percent in 1998-99. In 1999-2000, there was a tremendous
decrease and the share decreased to around 18 percent. It was more or less constant in
2000-2001, but decreased in 2001-02. Thereafter, it showed an increasing trend, which
continued upto 2005-06, during which the share increased to 32 percent. It again
showed a decrease in the subsequent year viz. 2006-07 (24%).
Within the revenue head, the share of contribution from the market committees
in respect of market fee collected under section 27 of the act and licence fee collected
under section 10 of act was observed to be the maximum, which showed a wide
variation and ranged from 73 percent in 2006-07 to 96 percent in 2000-01. The trend
analysis revealed that the percentage contribution of the market fee decreased from 77
percent in 1997-98 to 74 percent in 1998-99. It showed a strategic change and
increased to 95 percent in 1999-2000 and 96 percnet in 2000-01. It showed a decline in
2001-02 (86%), but again showed an increase in 2002-03 (90%). Thereafter it showed
a continuous decline and decreased to 73 percent in 2006-07.
The percentage share of Misc. income, rent and suspense account was observed
to be highest in the initial year of the study period 1997-98, which showed a continuous
downward trend till 2007-08 except for the year 2000-01, when the decrease was
158
slightly higher than the preceeding period. The percentage share of interest on
investment was the lowest during the year 2000-01 (2.6%) and was the maximum
during the year 2006-07 (26.4%). The trend analysis revealed that the percentage share
increased upto 1998-99, but showed a decline in 1999-2000 and 2000-01 showed a
spurt in 2001-02 and was 12.6 percent. It again showed a decline in 2002-03 (8.3%),
but thereafter showed a continuous increasing trend.
The percentage share of capital head account revealed that the percentage share
decreased in 1998-99 to 36 percent from 55 percent in 1997-98. The share however
showed an increasing trend and continued to increase upto 2000-01 (80%). From 2002-
03 on words, it showed a declining trend and decreased to 55 percent level in 2005-06,
but again increased in 2006-07. Percnetage distribution of share within this head
revealed no definite trends. The share of various constituents under the head showed
changes in different years. The share of capital income though was found to be lower
in the initial years, but was observed to be 84 percent in 1999-2000. It showed a
decline and was found to be 43 percnet in 2001-02, but thereafter it should a continuous
increase in general and was found to be 98 percent in 2006-07. The share of suspense
account was found to be 36 percent in 1997-98, which increased to 82 percent in 1998-
99. It was found to be meager 6 percnet in 1999-2000 showed an increasing trend upto
2002-03 (36%), but a declining trend after words. Similar observations were observed
in case of recoveries and miscellaneous income with slight variations here and there.
The trends of loans and advances revealed that the percentage share in the total
receipts was 6 percent in 1997-98, which increased to 20 percent in 1998-99. It showed
a declining trend from 6.6 percent in 1999-2000 showed a continuous decrease upto
2003-04 (2.6%). However after that it showed an increase and increased to 7 percent in
2004-05 and 13 percent in 2005-06, but decreased to 12 percent in 2006-07.
5.2.3 Expenditure of HSAMB
The income so received from the various sources is spent on meeting the
expenditure at the head office. Apart from this, the expenditure is incurred on the
various development works initiated in various mandis and developing the
infrastructure at the Board headquarter for the benefit of employees. Like the receipts,
the payments too are made under the three broad heads viz. (1) Revenue head, (2)
159
Capital Head and (3) Loans and advances. The revenue head has further been sub
classified into Salary, Travelling Allowance, contingencies Recurring and
Miscellaneous Expendirue. It also indudes the payment made to GPF. (a) Salaries
comprising of the general establishment and works establishment. The general
management includes broadly the (i) honorarium to the chairman (ii) pay of
officers/establishment including allowances (iii) contribution to pension fund (iv)
contribution to provident fund (v) Ex-gratia grants (vi) Leave salary and pension
contribution. (v) Medical aid and (vi) staff welfare etc. Travelling Allowance
component includes the expenditure incurred on travelling of employees of general
establishment as also the works establishment for performing outstation jobs.
Contingencies recurring is an expenditure for meeting day to day expenditure on
various counts like (i) audit fee, (ii) pay to contingent paid staff (iii) Purchase of
newspapers, books and journals (iv) Rent, rates and taxes (v) Hot and cold water
charges (vi) Postage and stamps (vii) Telephone, electricity and water charges (viii)
Paper printing and binding including publication (viii) Unforeseen and miscellaneous
expenditure (ix) Stationary (x) Propaganda, publicity and demonstration (xi)
Maintenance and repair of vehicles (xii) Advertisement charges (xiii) Refreshment and
entertainment (xiv) Liveries to class-III employees (xv) Repair of machinery other than
vehicles (xi) Litigation charges (xii) Repair of furniture and fixtures and Repair of
office equipment etc. Miscellaneous Expenditure all the other expenditure not covered
under other heads for which the payments have been made. Under this head, the items
of expenditure are not fixed and varied from time to time, some of the broad heads
included under this head are training of official/officers, study tours and saminars,
incentive for detection of evasion of market fee, insurance against fire of cotton
produce brought in mandis, assistance to other institutions/Boards etc., Chief
Minister/Prime Minister Relief fund to meet national calamities. Market intelligence by
board, prizes to best growers, sport nursey/equipments, Krishak uphar yojya, repair of
godowns, inner roads and boundary wall, repair of boards property other than godowns,
purchase of consumable items, farmer market assistance, farmer inputax scheme,
subsidy grant in aid, other development works like roads, platforms etc, contribution to
Kisan Mela and other government & non government organizations aid to market
160
committees and interest paid for various purposes and other things/goods/services not
covered above. In addition to all above the payments made in respect of income tax
deducted at source by banks and advance tax (refund) etc. are included under this head.
The total payments made by HSAMB on various counts during the year 1997-98 to
2007-08 have been summarized and presented in table 5.30. below:
161
It could be observed from the table that the share of payments made by HSAMB varied
across different years. However, in general, the share of payments made under the
capital head was the maximum followed by revenue head. The data revealed that
payments made under the revenue head varied from 12.4 percnet in 2001-02 to 34.4
percent in 1998-99. Though no specific trend in terms of payments made from revenue
head could be available, but the data revealed that the share of revenue head to the total
payments made from revenue head could be revealed that the share of revenue head to
the total payments made increase in 1998-99 by 34.4 percent from 25.1 percent in
1997-98 showing an increase by about 37 percent. Therafter, it showed a decreasing
trend and decreased to only 12.4 percent in 2001-02 a decrease by about 64 percent.
From 2002-03, it showed an increasing trend and increased to 32.7 percent in 2005-06
showing an increase by about 164 percent. It showed an decreasing trend again and
decreased to 16 percent in 2007-08
Within the recurring head, study of the share of different components of
payments revealed that the share of salaries of the general establishments and works
establishments was observed to be the maximum and ranged between about 71 percent
in 2003-04 to about 91 in 1999-2000. The percentage share in respect of travelling
allowance combined together for both the general establishment and works
establishment was observed to be the minimum hovering around 1 percent. It however
ranged between 0.9 percent in 2007-08 to around 1.6 percent in 2000-01. No definite
trend in respect of salaries could be ascertained. However, the data revealed that these
increased from 86 percent in 1997-98 to 91 per percent in 1999-2000 showing an
increase of around 5.9 percent during the period. It showed a decreasing trend and
decreased to 70.9 percent in 2003-04. It increased during 2005-06, but again showed a
decreasing trend. The study of trend analysis again did not reveal any specific trend,
but followed a zig-zag path. The trend analysis of contingencies recurring expenditure
162
revealed that the percentage expenditure to the total expenditure showed a decreasing
trend from 1997-98 to 2005-06 and decreased from 9.3 percnet in 1997-98 to 3.7
percent in 2004-05 registering a decrease of about 49 percent during the period. It
however showed an increase in 2005-06 and 2006-07, but showed a decrease in 2007-
08. The share of miscellaneous expenditure was observed to be low and was observed
to be around 3 percent in 1997-98 and 1998-99. It touched the lowest ebb (0.03%) in
1999-2000 and again started rising and was found to be the maximum during 2003-04
ans 2004-05 touching the level of 23.9 and 24 percnet respectively. It decreased to 6.9
percent in 2005-06, but again started rising and touched the level of 11.2 percent.
Analysis of trends of Capital expenditure revealed that major share of payments
was made from the suspense account, where the payments were made on going works
of development in the mandis, creation of additional facilities in the mandis repair
works in existing mandis, construction of rural link roads, repairs and maintenance of
rural roads constructed by market committees, repair of urban municipal roads and
reserve stock etc. The trend of analysis on this head revealed that 70 percnet of the
total expenditure was made on this account in 1997-98, which increased to 93 percnet
in 1998-99. It showed a decreaeing trend and decreased to less than 1 percnet, during
which period 89 percent of the amount was deposited with PWD for repair of rural
roads. The percentage share of suspense account started increasing and increased to 93
percent in 2004-05. It decreased slightly in 2005-06, but again increased and then
decreased.
This was followed by the amount deposited with PWD for repair of rural road.
In this case too, no definite trend could be ascertained. However the data revealed that
it had a definite relation with the suspense account. The expenditure on this head
moved the other way. If the expenditure on the suspense account were high, these were
low on deposit with PWD. If the expenditure on both these heads is combined together,
then about 90 percnet to 95 percent of the total expenditure is made under this head
except for the year 2002-03, when 33 percent of the total expenditure was made on the
investments and other miscellaneous expenditure.
The trend analysis of the miscellaneous expenditure revealed that the
expenditure in most of the periods was very little. Only the main years in which the
163
payments were made on this account was 2002-03 (33%) followed by 1999-2000 (15%)
and 2001-02 (10%). In short, it could be generalized that 90-95 percent of the funds
during different years were spent on creating amenities either by the works
establishmeltn of the board or through the other state government organ the PWD. The
amount spent on the recurring and non-recurring was very little except for the year
1998-99 when it observed to be around 6 percent.
5.2.4 Schedule of Fixed Assets
For establishing any organization, investment is made on fixed capital assets for
the benefit of employees and to do the day to day work. Like other organizations, the
investment by HSAMB was also required on various assets like land, furniture and
fixtures, office equipments, vehicles, food storage godowns, plant and machinery, staff
quarters in field, construction of staff quarters, buildings other than godowns and staff
quarters, office building of board at Panchkula, mathematical and lab instruments,
purchase of comuters and software, books, air conditioners, coolers and other capital
goods etc. Some of these permanenet articles were purchased at the start of business,
whereas others were purchased whenever these were required. Some of the fixed
articles/equipments/furniture and fixture articles etc. are replaced, the moment these
become obsolete. All these goods have a certain life. As such the depreciation rate is
decided depending upon the life of the assets. The inventory of the goods is revised at
the end of every financial year after taking into account the depreciation on the
particular goods. It could be added here that except for the land every fixed asset has a
productive life varying from 1 year to 10 years and even more. Depending upon the
productive life, the depreciation is charged by following the straight line method of
charging the depreciation i.e. if the life is 1 year at the end of the year the value is
deprecialed by 100 percent or in case the life is 10 years, the depreciation will be
charged at the rate of 10 percent per annum. The depreciated values of the goods under
each head have been presented in table 5.31.
It could be observed from the table that the value of permanent assets have
increased in the earlier years upto 2000-01 since more and more investment has been
made on that account, but after that from 2000-01 to 2005-06, the value of assets have
decreased since the value of depreciation charged on the permanent assets was higher
164
than the value of new assets purchased or added to the inventory. However the value of
assets has shown an increasing trend in 2006-07 and 2007-08. In other words, the
growth rate of assets was 23 percent in 1998-99, which decreased to 5 percent in 1999-
2000 and 12 percent in 2000-01. However the growth rate showed a decreasing trend
165
and decreased from (-) 0.3 percent in 2001-02 to (-) 4.8 in 2004-05 and -3 percent in
2004-05. It increased by 8.6 percent in 2006-07 and 25 percent in 2007-08.
Regarding the share of investment on various assets, the investments on staff
quarters was observed to be the highest during all the years of the study period and
varied from 26 percent in 2007-08 to 39 percnet in 2004-05. Though the percentage
share of investment on staff quarters in the field decreased during 1998-99, but showed
an increasing trend upto 2005-06, showed a decreasing trend in the subsequent years.
On staff quarters the investment varied from 9 percent in 2007-08 to 18 percent in
1997-98. No. specific trand of investment in staff quarters could be ascertained.
However, the percentage declined in 1998-99, but increased in 1999-2000. It again
showed a decreasing trend upto 2007-08 except for the year 2004-05, when it slightly
increased. In other words, of the total expenditure, investment on quarters alone (staff
and field) varied from 34 percent in 2007-08 to over 51 percent from 2002-03 to 2005-
06 percent in 2004-05. Land was another important source of investment on which the
investment varied from 9 percent in 1997-98 to 23 percent in 1998-1999. However in
most of the years, it ranged between 20 to 22 percent. The trend analysis revealed an
increase in the first year (1997-98), but showed a declining trend upto 2001-02. It
showed an increasing trend and continued to increase upto 2005-06, but soon after it
decreased. Investment on vehicles was another important component of cost on which
investment was made sufficiently since these days we can supervise the mandis, and
construction works etc. The efficiency of the work will go down. The percentage share
of investment was observed to be 7.7 percent in 1997-98, which increased to 8 percent
in 1998-99, again decreased to 7.7 percent in 1999-2000, but increased to 13 percent in
2000-01. Thereafter it showed a decreasing trend upto 2004-05, since no new vehicles
were purchased, but again picked up and increased to 13 percent in 2006-07. However
it showed a decrease in 2007-08, showing that vehicles were purchased and replaced
periodically and even more vehicles were added to the fleet. The expenditure on other
components of assets like food storage and godowns, plant and machinery, office
166
equipments, furniture and fixtures, Board buildings, mathematical and lab equipments
in general showed a decreasing and varying trends with exceptions in certain years.
However in other buildings, the trend was a mixed trend, but more on the increasing
side.
5.3 WEAKNESSES IN THE PRESENT MARKETING SYSTEM
On the basis of discussion in the last chapter, it could be generalized that
HSAMB is doing a lot for the development of market, its infrastructure, but still the
agricultural marketing is suffering with various weaknesses and problems. The
weaknesses in general in the marketing system in Haryana are as under:
5.3.1 Illiteracy and Under-developed People
Haryana state is basically a rural based economy with over 71 percent of its
population residing in villages, majority of the population depending on agriculture or
its allied enterprises. Like most other parts of the country, the man-land ratio in
Haryana too is very high, the average size of land holding being 2.32 hectares (2000-
2001), which has further decreased. It could be further added that out of the total land
holdings, 65 percnet of the holdings are marginal and small holdings cultivatling only
21 percent of the total area. The average size of land holding of these marginal and
small farmers has been observed to be 0.74 hectares (1.85 acres). Majority of these
small and marginal farmers are resource scarce and fall in the BPL category. Not only
this, these categories of persons are illiterate. In Haryana in general, the illiteracy rate
is 47 percent, which varied with the sex. The illiteracy rate among the females was
found to be 59 percent, while among the females it was 37 percent, which varied among
different districts of Haryana, because of the various reasons like the community
residing in the area, the availability of infrastructure like school and colleges etc. The
illiteracy rate across the districts among males varied from 27 percent in Rewari district
to about 55 percent in Mewat district. However, among females it varied from 48
percent in Ambala district to about 84 percent in Mewat. Combining together, the
illiteracy was the highest in Mewat district (69 percent) and was the minimum 38
percent in Rewari district. Because of the varying illiteracy rates in various districts,
167
the adoption level of technology for production and marketing of agriculture produce
varied. In general, with almost half of the population being illiterate, the adoption of
modern marketing practices is difficult and stands as a hinderance in the efficient
marketing system.
5.3.2 Low Retaining/Bargaining Power
As per the studies conducted in the field and the statement made in the
parliament, most of our farmers are under debt. As per the EPW Research Foundation,
2008, among the total indebted rural households in the country, 80 percent belong to the
category of Marginal and small farmers. Chahal T.S. too in his study has revealed that
the average debt per household in Punjab was Rs. 41576, while for India as a whole, it
was observed to be Rs. 12585. Haryana is no exception to this scenario and the
conditions are more or less similar to Punjab. Because of the high level of debt, these
marginal and small farmers have the low bargaining/retaining power. It is because of
this reason, that the farmers to repay the debt bring the produce immediately to the
market after harvesting and many a times, the procurement agencies are not ready for
the procurement. Even at certain occasions, the delay in announcing the MSP adds to
the problems of these farmers. The sale of the produce, as such, many at times was at a
price lower than the MSP, resulting in a loss to the farmers. Many a times either the
procurement agencies are not lifting the produce or the arhtyas are on strike or the rice
shellers/rice mill owners their having their own problems.
5.3.3 Grading and Standardisation
Grading and Standardisation is a very important factor influencing the sale of
agriculture produce. Still our agricultural marketing is suffering with the problem of
grading. The produce after the harvest is brought to the mandi immediately after it has
been harvested. It is neither cleaned properly nor graded. If the grains are graded
properly and the small, medium and big grains are separated, the big grains will be the
best quality and will be sold at a higher price, while the small grains too will be sold at
MSP. Since all the farmers cannot have this facility at their place so this facility can be
made available at a centralized place i.e. at the mandi level, which is lacking.
5.3.4 Cleaning of Produce
168
Cleaning of produce is an essential ingredient of post harvest management and
market activity. Clean produce always attract the buyers and thus help in getting
market price. Though the country is in advanced stage of mechanical cleaning, farmers
are not serious in this respect till date. Even the manual cleaning is not done properly,
though the farmers are charged on this account. Farmers on the other hand, do not have
the facility at farm level, so they do not bring the produce after cleaning, it is not
accepted and the farmers are being charged.
5.3.5 Market Linked Transportation
Proper market linked transportation system can attract large number of
producers to bring their produce to the market. The survey of the farmers coming to the
mandi revealed that the major source of transportation to the mandi was the tractor-
trolley owned by the farmers. Only a few farmers bring the produce to the mandi by
carts pulled by ponies/horses or the buffalo males bullocks. Since the tractor owners
are limited and are big farmers, they transport their own produce on priority. Since no
other system of transport from the farms is available to the mandi level, so many small
farmers transport the produce from the field to their house first and at convenience to
the mandi spending double the amount. More over since some of the mandis has been
shifted to the new places away from the city congestion in the open area and are still
not well connected with the transport system and thus create problem for them. The
hiring of tempos and trucks is not only difficult, but expensive and problematic. As
such the market link transportation system needs to be improved.
5.3.6 Assembling and Selling Facilities
Covered auction platforms protect the produce brought by the producers to the
mandi from the natural calamities and facilitate assembling and selling of produce. The
market functionaries can take part in auctioning freely without any fear from sun or
rainor muddy environment. It has been observed that some of the mandis are still
lacking the facilities of proper covered sheds. At certain places/mandis, either the on
the one hand and many a times, the produce is rejected on account of higher moisture
content more particularly in case of paddy.
EPW Res. Foundation, “The loan waiver Scheme” Economic & Petifical weekly vol XLIII(ii),
2008
169
5.3.7 Lack of Storage Facilities
Storage of produce is the most important facility in agricualure development
infrastructure. The availability of such infrastructure in the production area and the
market yard will be of immense help to the farming community for scientific storage
and avoiding wastage, quality deterioration and rottening of produce. This facility in a
long way can help the farmers to retain the produce till the favourable price is available
in the market. This facility can help the farmer for meeting his cash requirements by
taking the loan against the stock he has kept in store/ware house by showing its receipt.
5.3.8 Low Price of the Produce
In general, most of the farmers are of the view that they are not getting the
remunerative price of their produce. The price of the produce should be linked with the
cost of production, which again depends upon the cost of various inputs used in the
production process. The market trends revealed that the cost of various inputs have
increased at a much faster rate as compared to the sale price of agricultural produce,
which is controlled by Government. The increase in MSP declared by the Governemnt
is always very nominal, with the result that the profits of the farmers are decreasing
making their living difficult. Many a times, the MSP is not declared at the proper time
in advance to enable the farmers to decide the cropping pattern in time.
5.3.9 Time Gap of Auction
During the immediate Post Harvesting, the farmers bring their produce to the
mandis since the retaining power of the farmers is low. Because of the glut of this
produce in the mandi, the farmers don’t get the place under the shed at the time it is
brought to the mandi and the produce remains lying in the trolley till the space is
available. After the grain is stocked and piled, many a times, they don’t get the turn for
auction and have to wait for a few days. (3-4 days). The farmers therefore are left with
no option except to stay in the mandi bearing the cold, hot and rainy weather and the
mosquitoes of the mandi area.
5.3.10 Unavailability of Boarding and Lodging
170
The farmers yet face another difficulty, when they bring the produce to the
mandi and have to wait for 3-4 days for the auction to take place and the produce is
weighed. In most of the mandis, the boarding and lodging facility is not available and
if available, athe farmers are unable to get it. More-over the farmers too prefer to stay
either in the open near their produce or in the shop of commission agent/arhtiya to keep
an eye on the produce and safe guard it for all type of weather conditions and against
theft of the produce. The situation is again worst, when due to the non availability of
canteen facilitiy, they are unable to get the proper and hygienic food. They have to be
contented by taking the food from nearby dhabas and tea shops selling unstandard
sweets and namkeens with the result that many a times they suffer from various
diseases and abdomen infections.
5.3.11 Unavailabiltiy of Hospital Facilities.
One of the major problem faced by the farmers visiting the mandis is the non-
availability of medical aid for human beings as well as the animals used for
transportation of agricultural produce in the mandi. As already discussed above, the
farmers have to stay in the mandis, in the open or in the shop of Arhtiyas/commission
agents and have to survive on the unlygienic and sub standard food provided by the
local dhaba’s, there is every possilbity of their falling sick. In that event, medical aid is
a must, which is not available. Previously when the mandis were located in the city
area, the hospitals and the private nursing homes were located near by and many
doctors had started their own clinics. Now, because the mandis have shifted to the open
areas away from the congested and busy area, these facilities have become scarce. In
case of emergency, medical aid is out of reach. Even for the animals, the situation is
not much different
5.3.12 Non-availability of Sufficient Parking Place
Another problem faiced by the farmers is the non-availbility of plenty of space
for parking their tractors, trollies and the bullock carts. Even the sheds for the bullocks
bringing the produce to the market are not available and the animals have to bear the
waggeries of nature. In most of the mandi areas, the traffic jams are the order of the
day, particularly in the harvesting season on account of insufficient platforms,
171
unloading the produce on the platforms, delay in payments and waiting period for the
auction to take place etc.
5.3.13 Delay in the Payment
Delay in the payment of the produce by the Arhtiyas/Procurement agencies is
another problem faced by the farmers. They have to visit the mandis again and again to
get their own money, wasting their time and resources. The payments are often delayed
citing one excuse or the other. Even the payments to be made by the Government
agencies are delayed making the farmers visit again and again. Many a times, the delay
in payments cause embarasseement to the farmer, for not making the repayment of their
loan to the banks/cooperative credit societies/banks, friends or relatives and even the
money lenders.
5.3.14 Sale in Villages
Many a times, the farm produce is not brought to the mandi and is sold in the
village itself to Kacha Arhtiyas or village banias. Moreover during the paddy season,
the sheller owners purchase their stock directly from the farmers in the villages. In
such a case both the sheller owner and the farmers are gainers. Farmers will save the
money to be incurred on transportation, while the mill owner the commission. The
major looser in this case could be the requlated market and the arhtiyas, who will loose
their commissions. At the same time since the sheller owner is paying cash on the spot,
will exploit the farmers by using fraudulant practices.
5.3.15 High Chargers in the Mandis
Almost all the farmers have expressed that the charges being charged in the
mandis are very high. On an average, Rs. 3.50 per qtl of wheat and Rs. 4.50 per qtl. of
paddy are charged as the charges for unloading and cleaning of produce for the auction.
In addition to this, the auction, commission and the brokerage amount to Rs. 2.74 per
Rs. 100. In other words if the sale price of wheat is Rs. 1500 per qtl., the total charges
per qtl of wheat will come to Rs. 43.60. Similarly for paddy assuming the sle price of
Rs. 1000 per qtl., these charges will amount to Rs. 45.60. In addition to this, the
charges to the charged from the purchaser have been ascertained to be Rs. 5.60 and 6.68
172
for a qtl. of wheat and paddy respectively. Thus the total marketing charges to be paid
by the producer and the purchaser for a qtl. of wheat and paddy amount ot Rs. 49.20
and Rs. 52.28 respectively. These high charges reduce the share of producers in the
consumer rupee.
5.3.16 Marketing Information
The system of market information has continued to be far from satisfactory.
While the traders and processors/mill/sheller owmers use their own informal sources,
farmers depend on both, formal or informal sources. There is no denying the fact that
both market news and market intelligence are equally important, farmer’s are more
interested in market news, which is collected and compiled by APMC’s and SAMB’s,
state department of agricultural marketing, field staff of directorate economics, statistics
and management and department of food. This collected information is disseminated
through display boards in market yards, announcement during open auction, news
paper, radio broadcasts, and some TV Channels. The results of the study conducted in
Haryana mandis revealed that though there are various sources as mentioned above, but
the major source is the information received from the fellow farmers through personal
contacts and traders accounting for about 77 percent of the total sources. The price
information from the market yards and display boards is available to only a few, who
are literate and go on visiting the mandis occassionaly and are either big landlords or
progress farmers. Only about 22 percent of the progressive and large farmers are able
to get the news from the printed and electronic media. However the market news is
able to provide only a broad overview to the farmers due to several defects in the
system. The prices of the different commodities are not backed by the grades or quality
of the product and the information is available with considerable lag. This information
is not linked to local grade standards. Many a times, the price range is made available,
which is of little use to the farmers. There is also a serious misconception about the
buying and selling price, whole sale and retail price, which are distinctly different.
5.3.17 Lack of Credit Facilities
Lack of credit facilities at remunerative rates is another problem faced by the
farmers. Farmers being poor having low holdings need credit for day to day purchase
of various farm inputs. This credit is available from various sources like the non
173
institutional and institutional agencies for various terms like the short loan, medium
term loan and long term loan. The small and marginal farmers being illiterate or having
low level of education are unable to get the loan from the institutional sources like
commercial banks, cooperative banks and other Government sources because of
cumbersome and complicated procedures, to opt for such loan means to them, taking
round of the banks wasting time, money, energy and other sources. Thus they are left
with no option except to take resource to the non institutional sources like money
lenders, landlords, big business men and the arhtiyas. Being under debt, the moment
the crop is harvested, they rush to the mandi for sale or even to the kacha Arhtiyas or
village banias for the sale of produce since they have low retaining power and as such
low bargaining power. Many a times, they sell their produce below the MSP under the
pressure of money lenders/arhtiyas, making losses and even at the time the procurement
agencies have not started procuring the produce.
5.4 SUGGESTIONS FOR MODIFICATION/IMPROVEMENT OF
MARKETING SYSTEM
The countryy as a whole and the state Governments are doing a lot through the
State Agricultural Marketing Boards to improve the agricultural marketing system.
Haryana is no exception to this phenomena, rather it is on the fore front in bringing the
revolution in the field of agricultural marketing in the state. But still the agricultural
marketing suffers from certain problems and the loop holes, which have been discussed
above. There is therefore a strong need to plug these and improve upon the system for
which certain improvements/modifications have been suggested/recommended.
One of the root cause observed is the illiteracy of the marginal and small
farmers and their families, who are unable to reap the fruit of modern
technology and awareness. Though they are getting the knowledge of
production of crops from the various agricultural extension agencies and the
NGO’s, but still their knowledge in marketing of agriculture produce is very
poor. So they need the double pronged attack to solve this problem. (a) At the
first place they should be provided with formal education, for which though the
Government is making all round efforts, but still adult education under the
domain of Panchayats be imparted to farmers so that they are able to read the
174
news papers and other research bulletins provided by extension agencies.
Panchayat could at the same time be provided with some funds from the market
fees collected by the market committee. (b) No doubt farmers are able to
identify the various marketing problems, they are often poorly equipped to
identify the potential solutions. Efficient and successful marketing requires
learning new skills, new techniques and ways for getting information.
Extension officers working with agriculture department are mainly agriculture
graduates/post graduates having the knowledge of mainly the production
oriented techniques and are lacking the post harvesting and marketing
knowledge. They are to be trained for providing the training to the farmers for
which though the material is available from FAO and other agencies, but need
to be tailored as per local conditions.
Another prominent problem is of low retaining power/bargaining power of the
farmers, it is suggested that the farmers more particularly the marginal and
small farmers should be provided the loans at lower rates for which the
formalities should be reduced to the bare minimum. Provision of loan to the
farmers will make them free from the clutches of the money lenders, who
squeeze them badly. It is rightly said that farmers are born into debt, live in
debt and die in debt. Right from the beginning the farmers approach money
lenders for investing into cultivation, paying very high rate of interest to the
village money lenders, who pocket the maximum amount of share of consumer
from the produce. In the name of security too, the pledging of land should be
avoided and co-lateral security should be accepted. If the repayment of loan is
delayed due to some unforeseen circumstances, the farmers should not be
harassed. It has been pointed out that the majority of farmer’s suicides have
taken place on account of mounting loans and their unability to repay their loans
in time due to subsequent crop failures and harassment faced due to pressure for
repayment from money lenders. If the loan is available, the farmers will avoid
immediate post harvest sales since in the peak marketing season, the price of the
produce touch the lowest level. The farmers profit would increase.
175
The tendency of the farmers to market their produe has been increasing. The
production process is complete only when the produce has been marketed at a
rumerative price. It is imperative that the marketing activity should be guided
by certain principles, which could help in increasing the income to the farmers.
o Impurities, stones or the straw particles present in the grains lower the
price offered by the traders-buyers in the mandis. Generally it is
observed that the fall in prices is more than the quantum of foreign
particles present in the produce. It is therefore suggested to always bring
the produce to the mandis for sale after duly cleaning it and removing
the foreign particles.
o It is again suggested that while selling the different varieties of the
produce, all the varieties should be sold separately. The farmers could
get a higher price because of the purchaser’s preferances for specific
varieties. This would help farmers getting the higher price if marketed
separately.
o Clean and graded produce is sold off quickly and at higher price. The
additional income generated by the adoption of grading and
standardization is more than the cost incurrd in the process of grading
and standardization, which could be taken up as an accentive for the
farmers to produce quality products for sale in the market.
Transportaion from the mandi to the production point is not available. Only the
prevalent practice is to bring the produce by tractor-trollies or bullock carts.
Bringing the produce through tempos/trucks is costlier since the produce is to be
filled in bags, stitched and then emptied in the mandi which involves additional
labour and cost. The transporteion system which may help the marginal and
small farmers could be improved or it could be market linked transportation
system. Efficient transport facilities need to be developed.
Storage facilities in the production area as well as in the mandis need to be
improved so that the farmers are not compelled to induldge in distress sale. For
the purpose the government should give loans/advances to farmers or private
entrepreneurs to construct stores/ware houses where the farmers could store
176
their produce for a certain period on rent basis. The farmers too can avail the
credit, by showing the receipts of the produce stored in these godowns/ware
houses.
Though in the past there were number of cold stores, where the farmers were
storing their perishable farm produce like potatoes, vegetables and fruits, but
they are on the decrease. Action by the government should be taken to improve
this situation to help the farmers.
One of the prime problems faced by the farmers and more particularly the paddy
farmers is about the moisture content. As the procurement agencies/sheller
owners accept a particulars range of moisture content, so after bringing the
produce in the mandi many a times it is rejected. In the absence of sufficient
drying place, it becomes a serious problem for the farmer to take back and bring
the produce after drying, hence this problem of the farmer should be properly
redressed and the crop with more moisture content or defective/discoloured and
damaged grains be accepted. Strict limit on this account should be avoided.
The prices of the farm produce should be linked with the price index as also
with the inputs price cost so that the farmers could get the remunerative price of
their products. Moreover the MSP of the produce should be enhanced as per the
index of production inputs. To help farmers decrease the cost of production, it
is essential to provide free/subsidized power supply. The power supply should
be given to the farmers on priority and for longer periods.
The time gap between the arrival of the produce in the mandi and the time of
auction is very high and hence needs to be reduced.
The existing legislations are out-dated and are not in tune with the changing
trends and technological inventions and the same needed to be updated.
Elimination of the existing loop holes in the present legislation needs to be
plugged.
Various infrastructure facilities like parking facilities, medical aid/hospital/vetry
hospital needs to be improved in the mandi area.
177
Action should be taken against hoarders, and black marketers who buy the
stocks direct from the farmers at cheap rates, create artificial scaracity and sell
their stocks at higher prices affecting the consumers and producers alike.
Conselling centers should be set up in the villages for awareness of the farmers
regarding the worth of their stocks that they can sell at better price. This could
be done by the Government at Panchayat level by holding periodical seminars,
discussion and lectures or by other formal and informal methods. The help of
non-governmetn organization could also be solicited in this context.
To get the fair, just and remunerative prices for farmers direct marketing is
another good option. Efforts could be made to lift the entire stock that the
farmers are prepared to sell at an incentive price. To generate a new distribution
work that connects the farmers directly to the consumers to get maximum
returns as the present channel of distribution involves multiple mediatory who
take away the major portion of profit which otherwise farmer is supposed to get.
Creating local outlets where the farmers sell their stock direct to the consumers
or authorized buyers at fixed prices would help to a great extent in the
marketing of agricultural produce.
Cooperative farming to some extent improved the system of agricultural
marketing in the country, but the major benefits have gone to the large farmers,
who have adequate marketable supplies. The small and marginal farmers
should therefore form their own cooperative marketing societies to obtain fair
prices of their produce since cooperative marketing can confer multifarious
advantages to the farmers which will help increase their bargaining strength,
develop direct contact with the buyers, can avail credit at cheap and low rates,
avail transport facilities at low cost, avail storage, grading and standaralisation
facilities, can have an access to market prices, influence the market prices, can
get farm inputs and other consumable at low prices and can undertake
processing activities. Above all the system will arouse self confidence.
The two institutions viz. regulated markets and cooperative marketing
developed together can help the farmers to a great extent and help in improving
the marketing system. The activities of the marketing societies should be
178
further diversified. They should arrange for adequate storage facility means of
transport and graduing of goods etc. For this they should be provided necessary
and technical assistance by the State Government.
To help the farmers to have adequate knowledge of prices, the market
information system needs to be strengthened. In simple words, market
information system used in gathering analyzing and dissemination information
relevant to farmers. Modern communication technologies like SMS on cell
phones/mobiles and the FM radio stations, local cable network could be used to
disseminate the prices prevalent in the market to the farmers. When internet
facility has improved and has gone to villages should also be used for the
purpose. However the problems associated with the cost and accuracy of data
collection should be addressed properly and the time lag between the collection
of data and dissemination of data should be reduced to the minimum.
The concept of Apni Mandi, which is successful in perishable goods and
vegetables should also be replicated in grains etc.
Contract farming, where farmers cultivate for and on behalf of big business
establishment or Government agencies and selling the produce at a pre decided
rate, which is generally higher needs to be encouraged.
The root cause of most of the problems faced by the farmers is the farm credit,
which should be made available to the farmers at low rates. According to
NSSO report, the government’s efforts of financeial inclusion have so far not
met with significant success. The study showed that only 27 percent of the
cultivator households (mostly influentional farmers) get institutional credit.
Another 22 percent borrow from money lenders, while the remaining 1 percent
do not get loan at all, which means that over fifty percent of the rural
households lack access to the credit agencies or they do not have the capacity to
borrow. It could be further added that rural credit accounts for about 15 percent
of the total credit.
The overall environment prevailing in agriculture market needs to be improved.
Since agricultural marketing needs to be conducted within a supportive policy,
legal, institutional, macro economic, infrastructural and burenucratic
179
environment, traders and others cannot make investments in a climate of
arbitrary policy changes such as restrictions in the movements of produce within
the country or on imports and exports, it affects not only business man trader,
but the farmers alike. Poor support institutions such as extension services,
municipalities, export promotion bodies should place a constructive role in
increasing the market efficiency. Above all the ever present problem of
corruption at various levels in the process, which seriously affects the impact on
agriultyural marketing efficiency, could be tackled on war footing.
5.5 PROBLEMS FACED BY HSAMB
The discussion in the foregoing section leads to conclude that HSAMB is doing
a lot of work to improve the condition of farmers by improving the agricultural
marketing structure, reduction of marketing costs, by lowering the margins of
intermediaries, improving the transportation system of constructing new roads,
development and repair of roads and creating the facilities in the mandis for the
farmers, shop keepers/arhtiyas/departmental officers etc. But till today the desired
results are not available and a lot of work still needs to be done. The discussions held
with the farmers, arhtiyas, marketing committee people and staff at the head quarter
revealed that lot of problems both organizational & operational are being faced at the
various ends. The solution to these problems can help in increasing the efficiency of
the board. Here in this section, the problems of the board are being taken up.
5.5.1. Administrative Problems
As already discussed the board started its operations only with 58 market
committees and 60 sub yards in 1969. But as on today, the board has to administer the
working of 106 market committees/principal yards, 178 sub yards and 182 purchase
centres totaling around 466 units, which is around 4 times the initial figures. Moreover,
due to the increase in production and more and more produce coming to the mandis, the
quantum of work has increased many folds. To organize the work in the state properly
and efficiently, the state has been divided into three zones viz., Karnal, Hissar and
Gurgaon zones covering 8 districts, 5 districts and 5 districts respectively. The board is
headed by a Chief Administrator/Chairman and Additional Chief Administrator at the
180
head quarter. The Chairman/Additional Chief Administrator is an officer of the rank of
Head of Department and is nominated by the State Government. He is again assisted
by a team of eleven other members of whom, four are officials and seven non officials
nominated by the Government. These officers being the Haryana Governent officers
cannot remain in the post for a long time and being a work of technical nature, it takes
them pretty long time to understand its working The moment they equip themselves
and exert in the work, they are transferred, which creates problems in the working of
the board. The board cannot use the experience for the development of activities for a
long time.
As per the constitution of the Marketing Board, official members are usually the
Director and three Officials usually representing the Agricultural Department Co-
operative Department and Animal Husbandry Department. The remaining seven
members represent the (i) producers, member of a committee, (ii) registered
organization of the farmers (iii) progressive producers (iv) licensee under section 10 as
are members of the committee (v) co-operative societies (vi) Licensee under section 10
and (vii) from panchayat samitis. Since these members are mainly from the affluent
farmers group, the interests of small and marginal farmers are rarely cared for. Again in
the absence of technical members, which are very few, the policy made at the
headquarter end, some times lack practical application in the field.
The work of the enforcement of rules and regulations is entrusted with the Chief
Marketing Enforcement Officer, who is assisted by the Zonal and District Marketing
Enforcement Officers. But since in the district there are a large number of
mandis/collection centres, the proper supervision and proper enforcement of rules
during the flush/ harvesting periods, when there are plenty of arrivals in the market and
every farmer wants that his produce should be immediately sold and the payment made
within the stipulated period becomes very difficult. So at certain times, the rules are
not properly implemented. Lack of supervision due to rush of work is major problem
being faced.
As already mentioned that the Board is governed by the state Government rules,
as such the transfer of the officers on political and other flimsy grounds create
problems.
181
Because of the large number of operations, monitoring of the work relating to
the various jobs becomes difficult. Sending of reports in the flush period, their
scrutinisation and decision making takes time. Due to the delay many problems arise.
5.5.2 Acquisition of Land
Since most of the mandis in the past were located in the interior of cities, the
transportation of the produce was a big problem in the urban area and the people were
faced with problems of daily traffic jams and accidents. To get rid of this problem, the
Board took up the case of shifting mandis to the open place away from the packed and
congested urban areas. To implement these, the Board faced and is still facing
innumerous problems.
5.5.2.1. Selection of new site
Selection of new site is a big problem being faced by the authorities, because of
the pulls and push of various members, producer groups and functionaries. Each of
them wants the mandi to be located near their village for getting the multifarious
advantages of (i) reducing the transportation cost and (ii) increase in the price of their
land being near to mandis. Many a times due to the extraneous searsons, the site of the
mandi is not selected properly resulting in the difficulty to the farmers to reach the
mandis. Because of this reason, the mandis/market committees incur losses, as many
small and marginal farmers donot bring the produce to the mandi and sell it in their own
village to Kacha Arhtiyas and the village banias. Many a times, the traders reach the
villages and contact/encourage the farmers for direct sale. The market committee loses
its share of market fee as also the various market functionaries, whose earnings are
reduced. Sale of paddy direct to sheller owners during the season is an example. Many
a times, the new mandi is inaugurated, while in the old mandi, the operations continue
resulting in the problems to the farmers and market functionaries.
5.5.3. Acquiring of Land
Once the site is selected and finalized, acquiring the land is a tedius and time
consuming process. Several notices under various sections of the Act are issued to the
farmers and or given in the press to aquire the land for which the representations are
182
received to get their land free from the acquisition process siting several reasons
genuine or otherwise. Many a time due to political or personal influence the land of
certain persons is exempted creating chain reactions. The agitation by the farmers and
their unions has become the order of the day. Daily, we are wittnessing the traffic jams
on the National/State Highways and the railway tracks resulting in the difficulty to the
common people. The proceedings in the process of aquiring are stayed by the courts at
the district as well as high court level to get it vacated, takes its own time and the whole
process lingers on..
Fixation of land prices is another problem, which at many a times is arbitrary
and are much lesser than the market price, because the data available for the fixation of
land price is not realistic. The people purchase the land at a higher price and the
registratrion of the land is got executed at a lower price to save stamp duty, which
forms one of the basis of fixation of price in the area. The people go to courts to get the
prices increased. Due to such reasons, the projects are delayed. Since inflation is
bound to be there, the project cost increases resulting in double loss to the Board. At
the first place, the project cost doubles and triples and again due to the time gap returns
are not available for the gap period. The Board after acquiring the land, sells the shops
at a certain price, but the courts after many years gives the decision to increase the price
not at one stage, but in the local courts, district courts, high courts and even in the
supreme court. Since the Board has to pay the revised prices, many a times, it incurs
losses.
These days a new situation has arisen, while the land is being acquired, the
farmer bodies require their share of flesh. They always agitate and require that since
after the acquisition of land, they will be rendered jobless, so either they or their
dependents should be rehabilitated by giving them the jobs in the Board/Market
Committees. Even at certain times, they demand the allotment of shops/booths in the
mandis creating problems for the Board. These people get the shops/booths allotted at
the book value and sell these in black market pocketing huge profits.
In short, the problem of land acquisition is the major problem being feed by the
Board and is responsible for the delay in the projects on the one hand and the escalation
of cost of the project and the loss incurred due to the delay on the other hand.
183
5.5.4 Litigation
Litigation is another booming problem of the board. The cases of litigation
pending in the courts pertain to the acquisition of land, employees and staff of the
board/marketing committees and selection /election of the board/committee members,
staff members and the various market functionaries. These cases in the court not only
divert the attention of the authorities, but many times, Board has to shell out lot of
money. The trade unions and the employees union too pose a threat to the organization.
5.5.5. Lack of Funds
The board though having a great desire to do the maximum work to benefit the
farmers, but many a times faces financial crunch, as a result, the development work
suffers. It is needless to say that the board does not have a fixed income. The income
of the board is highly dependent on the total production of agricultural produce, which
again is dependent on nature and the monsoon. If the monsoon is favorable and natural
calamities are not there, the crop would be plenty and the arrivals in the market too
would be high. In other words, higher production would lead to higher arrivals in the
mandis, collection of higher market fee and the higher income of the board leading to
higher expenditure. The board is faced with the problem of preparing the advanced
budget assuming the income of the market committees, which fluctuates widely. Not
only this, there is pilferage in the income of market committees as many a times, the
produce does not find its way to the market and is sold directly in the villages to kacha
Arhtiyas/banias and even the sheller owners/rice mills and floor mills benefitting both
the producers and the mill owners. The farmers/producers save the money on account
of transportation cost and various market charges like loading, unloading and cleaning
of produce in the mandi and the mill owner gets the produce at the rate decided by the
Government and saves the money on account of various market charges, but the market
committee is the loser on account of market fee etc.
5.5.6. Sub Standard Products
Many a times due to the rain or any other problem or due to the wagaries of
nature, the produce is not of the desired quality. Though this happens in most of the
crops, but it is more pronounced in case of paddy crop. If the moisture content is
higher in the paddy, the millers will face a problem in shelling of paddy as the broken
184
rice will be more than the prescribed quantity. For the procurement of paddy the
specified moisture content is around 17 percent, but many a times it goes upto 22
percnet. Again the percentage of damaged and discoloured paddy has been fixed from
4-4.5 percent, but if the paddy is affected by rain after or before harvesting, both the
water content as well as the damaged and discoloured grains would be high resulting in
the rejection of produce both by the FCI and millers alike creating problems for the
marketing committee and the board. During the previous season too such a problem
was faced by the marketing committees/HSAMB and the Government alike, G.T. Road
was blocked at several places in the paddy producing area, FCI-Arhtiyas had a problem
to thrash out the payment problem and so-on. Farmers’ paddy was not purchased and
rejected because of more than 17 percent moisture content. Arhtiyas spokesman told
that they were willing to work, but there were no buyers as the millers were on strike.
DFSC complained that the paddy was to be purchased jointly with the millers/rice
sheller owners, who were on strike and they did not have the enough infrastructure for
making the entire purchase alone. Even though the matter was sorted out, the
procurement started late, but the farmer’s bodies complained that they were being paid
much less for their produce than announced by the government. The arhtiyas too had
their own point. They wanted the Government to abolish hoarding charges, raise the
percentage of damaged and discoloured paddy from 4 and 4.5 percent respectively and
decrease the quantum of rice per quintal of paddy to 64 kgs. There was a stalemate
between the FCI and Arhtiyas and for 4-5 days, the FCI did not purchase even a single
grain creating problems for the farmers. However the stalemate ended with the
intervention of Food and Agriculture Minister-Sharad Pawar on the lines to revert back
to the old system of payment to commission agents. The commission agents
maintained that as per the Punjab Agriculture Produce Markets (General) Rules, 1962,
in rule 24, for sub rules 11,12 and 13, the Kacha Arhtiya shall make payment to the
seller through an account payee cheque or by electronic transfer after weighment is
over. The buyer shall make the payment to the Arhtiya witin two days. The
modification in rules had caused problems in the grain maket of three states. (The
Tribune, Chandigars dated Oct. 1, 2, 3, 4, and 5, 2010). This year again in the base of
strike, the entire proceedyre was reverted and the payments were given to the farmers
185
through the commission agents, who had advanced the loans to the farmer bodies
without interest charges. Making direct payments to the farme3rs meant the arhtiyas
were losing their ow money.
5.5.7 Problems faced in giving contracts.
Haryana State Agriculture Management Board has a separate construction wing
for development works headed by a chief engineer who is located at the head quarter.
There are 5 circles headed by a Superintending Engineer each and one Superintending
Engineer at the head quarter. To help them, there are Executive Engineers, Sub
Divisional Engineers and Junior Engineers located at the head quarter as also at the
various district headquarters. All the development work is carried through contract
work. For the purpose enlistment of contractors of varying classes depending upon the
value of contract is done at the board/circle/district level for which a certain fee is
charged. In each category, a certain number of contrectors are listed.Though the
contract is given by the authorities by calling quotations/tenders from amongst the
listed contractors, many a times, there is a chance of pooling by these registered
contractors and they quote a higher rate than desired resulting in a loss to the board
/market committee. It also happens that these contractors develop intimacy with these
officers and pick up loopholes and exploit resulting in a loss to the board. Though the
enlistment of contractors is renewed every two years and some more contractors enter
the fray by enlisting themselves, the old guards rarely allow them to undertake the
contracts.
5.5.8 Lacking Technical Persons
The Board is governed by the Government of Haryana and all the top officers
are nominated by the government. Most of the persons at the helm of affairs are either
IAS or HCS offices. Though there is representation of agriculture, animal husbandry,
cooperatives and panchayat samiti departments etc., the component of technically
trained persons is very low. As such, many a times policies framed at the higher level
are not practicable and create problems.
186
One of the missing linking in the entire board is neither there is a trained
economist in the board nor there is a marketing person. It has been observed that the
accounts though being audited internally, the external audit takes a longtime and many
a times, the audit figures are revealed after a gap of three to four years after these are
approved by the governing body. To quote, the figures for 2007-08 financial year have
been approved only very recently. In the absence of an Agricultural Economist, we
cannot analyse the figures from economic point of view and cannot suggest the ways
and measures to reduce the cost and increase the efficiency of the board. In the event of
a trained marketing person, the marketing efficiency too cannot be improved.
5.5.9 Market Information and Market Intelligence
Market information and market intelligence is another factor the board is
lacking. The farmers want the latest information on market prices, demand and supply
to all the market committees. But till today the board is lacking the statistical wing and
in the absence of that it is very difficult to supply this information. The available
information from CSO and other organizations of state governments reach after a gap
of weeks and as such many a times, the information looses its importance and proper
utility.
5.5.10 Computerisation and net working
To monitor the different marketing committees and have a proper contact with
them, the system is still not very strong. All the data pertaining to the different
committees, collection centers must be available at the head quarter, which is not
possible in the absence of a strong computer net working facilities. In the present age
since the activities of the board have expanded, without computerization this is not
possible. Though an attempt has been made on this account and a system has been
developed at the headquarter in the name of “RFP for functional Information System”.
In this report the roles and responsibilities, functional requirements, technical
requirements, operational requirements, acceptance criteria, bid documents and bidding
process, technical/commercial bid evaluation, award of contracts and miscellaneous
terms and conditions have been taken into account. But for all this money is required,
which is a limitation.
187
5.5.11 Hinderances and Road Blocks
As already discussed earlier that the board is represented by cooperative
societies representeative, Panchayat Samiti representative etc., so each of them have
their own interest. In the system every day new techniques are coming forth. Some day
it is the organic farming, the other day it is the cooperative farming and the contract
farming etc. No clear cut path is available with the Government. All these systems
when functional on a large scale will affect to a great extent the profitablitlity of the
board. In all these syetems, the produce will by–pass the mandis and will reach the
consumers from the producers through the intermediaries, who will make huge profits
making HSAMB incur losses on that count. HSAMB thus is helpless in the matter and
is problem faced because of the multifarious team of board.
5.5.12 Expenditure on HSAMB
Basically the board has been set up for the development of infrastructure in the
mandis and enhancing the profit of the farmers. But the analysis on expenditure
conducted for different years revealed that lot of emphasis is being given to the
development of buildings and infrastructure at the headquarters. Even the expenditure
on salaries, wages and purchase of various contingencies & non recurring amount to
about 22 percent of the total expenditure varying form 12.4 percnet in 2001-02 to 34.4
percnet in 1998-98, In addition to this the investment on addition of buildings etc. at
the headquarter have been taklen into account. By all counts the expenditure is on the
higher side, which needs to be curtailed.
5.5.13 Development of additional facilities.
Resources is said to be the main constraint in further developing not to talk of
the buyers/mill/sheller owners. Even the farmers complain that the charges being
charged from tehm are on the higher side and these need to be curtailed. If these are
cutailed, which is not possible, the resource crunch will increase and the facilities in the
mandi will not be provided at all. Even some times the repair of platforms, inner roads,
parking place is not repaired immediately.
5.5.14 Loop holes in various rules & regulations
Another problem facing the HSAMB is that the people dealing with HSAMB –
producers, Arhtiyas and consumers always try to find loop holes in the various rules
188
and regulations framed by the organization. Due to this exploitation, the work of the
board suffers. The people siting the loop holes go to the court on various trifles and
thus waste the resources of the board.