new roles of apmc
TRANSCRIPT
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New role of APMCs(In the context of liberalisation for direct marketing, private market yards, and
contract farming
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New role of APMCs- outline of the
presentation
Shift from salesmanship to marketing
Dealing with Service product-intangibility,simultaneity
Marketing extension
Promotion of direct marketing, contract farming, processing- leading toexport, better returns to farmers, reduction of transaction costs etc.
Promotion of grading and standardisation Making the traders association responsible
GAP,HACCP,GHP,traceability etc. especially from export point of view
Professionalisation of management
Transparency in dealing/ auctioning
Providing infrastructure and efficient services ( Promotion of PPPmode)
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dealing with a service product
Marketers of services face a bigger challenge due to
unique nature of services-intangibility, heterogeneity,
inseparability, perishability
Go beyond 4 Ps- product, price,promotion anddistribution (Place) .Also
people,
process and
physical evidence
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Key Marketing issues
The unique characteristics of services present some keymarketing issues Managing differentiation amongst services ( offer, delivery,
image, service premises, packaging, personnel, tools andequipment used, customer, convenience, name of the
organisation) Managing productivity (Commitment, High standards ,
Monitoring system, Customers complaint )
Managing service quality(technology,selection & training,standardisation of services, customers involvement, employees
skill utilisation)
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Internal marketing
External marketing
Organization
Internal Marketing
Front LineEmployees
Customers
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MARKETING EXTENSION
Marketing extension is the order of the day in
the post-WTO regime
The incidence of huge post harvest losses can
be attributed to poor marketing extension to a
large extent.
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Role of APMC
Advice on production planning:- careful selection of the crop from marketabilityviewpoint-internal or export
Marketing information:- price and arrivals, forecasting of market trends, demandof other markets, facilities available in the target markets, quality requirements, marketfees etc.
Securing markets for the farmers:-Awareness about regulated market laws andreforms, Information regarding procurement by Govt. agencies, contract farmingarrangement for cash crops with wholesalers, processors etc.
Advice on improved marketing practices:- packaging, appropriate storingmethods, standardization and grading and other post harvest management practicessuch as maintenance of quality, awareness about post-harvest losses etc.
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Role of APMC
Advice on establishing and operating markets:-Farmers groups toset up and run their own markets within framework of rules
Processing and value addition:- Farmers to be educated about valueaddition through primary processing
Group action:- Promotion of informal groups and Self Help Groups(SHGs)
Marketing Credit:- Educating farmers about different schemes ofmarketing credits, Advice on warehousing with pledge finance scheme
Problem solving methods: micro-level
Marketing extension for export market: WTO implications, Codex,HACCP, Euro gap standards, Awareness on ill effects of pesticide/insecticides residueetc.
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Promotion of Direct Marketing, contract
farming, processing
Less than 2% of f & v processed in India, as
against 65% in USA, Brazil, Phillipines, South
Africa and 83% in Malaysia
Similarly the extent of value addition is 7 % in
India as against 23% in China and 88 % in UK
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Area & production of agri products
Area and production of Agricultural products
(Production in million tonnes)
2186Cattle (million)
10.85Tea
2245Sugarcane115Pulses
325Edible Oilseeds
282Vegetables
247Fruits
191Milk
329Coarse grains (including maize)
2124Rice, Paddy
272Wheat
155Irrigated Land (Million ha)
2151Arable Land (Million ha)
Indias Rank in
World Production
India
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0
10
20
30
40
50
60
70
15 major food items of export
(INR billion Rs)
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APMC role in contract farming
Provisions of a model agreement-
sensitisation
Awareness about dispute redressal
mechanism.
Collection of market intelligence data about
contract farming
Registration of contracts, whre authised
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Promotion of grading and standardisation
Bureau for grades and standards- feeding
information and working in close coordination
with the Bureau
Awareness about existing grades and
standards.
Identification of commodities and preparation
of proposals for preparation of grades and
standards.
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Making the traders association responsible
Feedback about policy issues
Involvement in waste disposal and
management.
role in maintenance of food safety and quality
Role in ensuring transparency in the business
Role in training of the farmers
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GAP,HACCP,GHP,traceability etc. especially from
export point of view
Testing facility in the premises of APMC
Awareness about the quality management
tools amongst the stakeholders.
Big APMCs can set up training centres with an
attached laboratories
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Professionalisation of management
Appointing professional managers as CEOs
from the panel prepared by the Board
Computerisation
Computerised linkage of fees with the arrivals
through automation
Service orientation
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Transparency
Auctioning
Allocation of shops etc.
Computerised linkage of market fees witharrivals
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Providing infrastructure and efficient services (
Promotion of PPP mode
Outsourcing
Infrastructure in the premises in PPP mode.
Collection centres in PPP mode. Transportation, grading and packing units etc.
in PPP mode.
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STOCK TAKING
( Laws / rules across states)
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Statusof APMC Act Amendments
States/ UTs having Amended Acts
1. Andhra Pradesh
2. Arunachal Pradesh
3. Assam
4. Chhattisgarh
5. Goa
6. Gujarat
7. Himachal Pradesh
8. Karnataka
9. Madhya Pradesh
10. Maharashtra
11. Nagaland
12. Orissa
13. Punjab/ UT of Chandigarh
14. Rajasthan
15. Sikkim
16. Tripura &
17. Uttar Pradesh
18. Jharkhand
Reportedly no Amendment Needed
Tamil Nadu ?
Partially Amended
Haryana (Only Contract Farming) &
NCT of Delhi (Only Direct Marketing)
Amendment Bills under activefinalization
, Uttarakhand, West Bengal,
NCT of Delhi & Puducherry
Remaining States
Haryana, J&K, Meghalaya & Mizoram
States/ UTs with no APMC Act
Bihar (repealed w.e.f. 01.09.2007),Kerala, Manipur and UTs of Andaman &Nicobar Islands, Dadra & Nagar Haveli,
Daman & Diu & Lakshadweep
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Initiative for New Markets
Initiative for setting up of new market by any person,
local authority or grower
States which have adopted the suggested provision:
Chhattisgarh, Goa, M.P., Nagaland, Sikkim, Tripura
States which have not adopted it: A.P., Arunachal Pradesh, Assam, Gujarat, H.P., Karnataka,
Maharashtra, Orissa, Punjab/ UT of Chandigarh, Rajasthan, T.N.,Uttar Pradesh
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Special Markets
Provisions for setting up of Special Market and
Special Commodity Market
States which have adopted the suggested provision: A.P., Gujarat, Maharashtra, Nagaland, Sikkim, T.N., Tripura, Uttar
Pradesh
States which have not adopted it:
Arunachal Pradesh, Assam, Chhattisgarh, Goa, H.P., Karnataka, M.P.,Orissa, Punjab/UT of Chandigarh, Rajasthan
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PPP in Management Activities
Set up and promote public-private partnership in management of the
Agricultural Markets
States which have adopted the suggested provision:
H.P., Karnataka, Nagaland, Sikkim
States which have not adopted it:
A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, M.P.,Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura,
Uttar Pradesh
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PPP in Market Extension Activities
To promote Public-Private Partnership in
Extension activities of Market Committee
States which have adopted the suggested provision:
A.P., H.P., Karnataka, Nagaland, Sikkim
States which have not adopted it: Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, M.P.,
Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura,Uttar Pradesh
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E-tradingTo promote and encourage e-trading, market committee may establish
regulatory system, create infrastructure and undertake other activitiesand steps needed thereto
States which have adopted the suggested provision: Gujarat, H.P., Karnataka, Nagaland, Punjab/ UT of Chandigarh, Sikkim,
Uttar Pradesh
States which have not adopted it: A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa (only defined), M.P.,
Maharashtra, Orissa, Rajasthan, T.N., Tripura
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CEO of Market CommitteeSecretary to be Chief Executive Officer of Market Committee. CEO shall be
appointed by the market committee from the panel maintained byDirector/Board which may include professionals from open market
States which have adopted the suggested provision: Nagaland, Sikkim
States which have not adopted it: A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, H.P.,
Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh,Rajasthan, T.N., Tripura, Uttar Pradesh
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Contract Farming
Contract Farming Sponsor shall register himself with the Market Committeeor with a prescribed officer in such a manner as may be prescribed
States which have adopted the suggested provision: A.P., Arunachal Pradesh, Assam, Goa, H.P., Karnataka, Maharashtra,
Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh
States which have not adopted it:
Chhattisgarh, Gujarat, M.P., Punjab/UT of Chandigarh, T.N.
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Contract Farming
The Contract Farming Sponsor shall get the contract farming agreementrecorded with the prescribed officer
States which have adopted the suggested provision: A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka,
M.P., Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, UttarPradesh
States which have not adopted it: H.P., Punjab/UT of Chandigarh, T.N.
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Contract Farming
No title, rights, ownership or possession shall be transferred or alienated or
vest in the contract farming sponsor or his successor or his agent as aconsequence arising out of the contract farming agreement
States which have adopted the suggested provision: Arunachal Pradesh, Assam, Goa, Maharashtra, Nagaland, Orissa,
Rajasthan, Sikkim, Tripura, Uttar Pradesh
States which have not adopted it: A.P., Chhattisgarh, Gujarat, H.P., Karnataka, M.P., Punjab/UT of
Chandigarh, T.N.
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Contract Farming
Dispute Settlement Mechanism
States which have adopted the suggested provision: A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka,
M.P., Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar
Pradesh
States which have not adopted it: H.P., Punjab/UT of Chandigarh, T.N.
C t t F i
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Contract Farming
Exemption of market fee on the sales to the Contract Farming Sponsor taking
place out side the market yard under the Contract Farming agreement
States allowing direct sale of produce under Contract Farming:
Arunachal Pradesh, Goa,H.P., Karnataka (fee reduced by 30%),Maharashtra, Nagaland, Orissa, Punjab/UT of Chandigarh (fee exempted
under the Rules), Rajasthan, Sikkim, Tripura
States which have no provision on contract farming:Tamil Nadu
Following States have not exempted market fee:
A.P., Assam, Chhattisgarh, Gujarat, M.P., Himachal Pradesh, T.N., UttarPradesh
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Contract Farming
Specification of Model Agreement for Contract Farming
States which have adopted the suggested provision:
Chhattisgarh, Goa (as may be prescribed), Gujarat,Karnataka (as may
be prescribed),M.P., Maharashtra (Rules), Nagaland, Rajasthan,Sikkim, Tripura, Uttar Pradesh (as may be prescribed)
States which have not adopted it:
A.P., Arunachal Pradesh, Assam, H.P., Orissa, Punjab/UT of Chandigarh,
T.N.
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Single point levy of Market Fee
Market fee shall not be levied for the second time in any market area of the
State by market committee
Market fee not to be levied more than once in commercial transactions
between traders or to consumers
States which have adopted the suggested provision:
Chhattisgarh, Goa,H.P., M.P., Nagaland, Punjab/UT of Chandigarh,
Sikkim
States which have not adopted it: A.P., Arunachal Pradesh, Assam, Gujarat, Karnataka, Maharashtra,
Orissa, Rajasthan, T.N., Tripura, Uttar Pradesh
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No Commission Agent
No commission agent shall act on behalf of agriculturist seller and no
deduction to be made towards commission
States which have adopted the suggested provision:
Chhattisgarh, Nagaland, Sikkim
States which have not adopted it:
A.P., Arunachal Pradesh, Assam, Goa, Gujarat,H.P., Karnataka, M.P.,Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N.,
Tripura, Uttar Pradesh
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Private Market / Direct Marketing
Establishment of private market yard and
direct purchase from farmersStates which have adopted the suggested provision:
A.P., Arunachal Pradesh, Assam, Goa, Gujarat,H.P., Karnataka,M.P.(can be done under the bye-laws), Maharashtra, Nagaland, Orissa
(excluding for paddy/ rice), Punjab/UT of Chandigarh (not for direct
purchase), Rajasthan, Sikkim, Tripura, Uttar Pradesh
States which have not adopted it:
Chhattisgarh, T.N.
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Consumer /Farmer Market
Establishment of consumer/ Farmer market
States which have adopted the suggested provision:
Arunachal Pradesh, Assam, Goa, Gujarat,H.P., Karnataka,Maharashtra, M.P.(can be done under the bye-laws), Nagaland, Punjab
/UT of Chandigarh (only enabling provision) Rajasthan, Sikkim,
Tripura, Uttar Pradesh
States which have not adopted it:
A.P., Chhattisgarh, Orissa, T.N. (being set up under Executive Orders)
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Market FeeExemption
Power to grant exemption from market fee by the
State Government
States which have adopted the suggested provision:
A.P., Chhattisgarh, Goa, Gujarat,M.P., Maharashtra, Nagaland, Sikkim
States which have not adopted it:
Arunachal Pradesh, Assam, H.P., Karnataka, Orissa, Punjab/UT of
Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh
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Market Extension Cell & Agricultural Produce Marketing Standards
Bureau
Setting up of separate Market Extension Cell in the Board
Establishment of State Agricultural Produce Marketing Standard BureauStates which have adopted the suggested provision:
Nagaland, Sikkim
States which have not adopted it:
A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat,H.P.,Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh,
Rajasthan, T.N., Tripura, Uttar Pradesh
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THANK YOU
Agricul tural Market ing Reform s:
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Agricul tural Market ing Reform s:
Amendments in State APMC Acts / Rules
A i M k t i I di 31 03 2007
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Agri-Markets in India as on 31.03.2007
6261Wholesale Marketsin India (majority are regulated markets)
20870Rural Primary Markets(about 15% are regulated markets)
Total27131
2459Principal Regulated Markets
5006Regulated Market Sub-yards
Total
7465
(Only 286 regulated marketsin 1950)
Contribution of Regulated Markets
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Contribution of Regulated Markets
Basic objective has been-
- to ensure reasonable gain to the farmers by creating environment inmarkets for fair play of supply and demand forces,
- to regulate market practices and attain transparency in transactions
Aimed at providing proper method of sale, correct weighment, prompt
payment and various marketing related services
Democratic set upto control and manage markets
Advent of regulated markets has helped in mitigating the market handicaps
of producers/ sellers at the wholesale assembling level
Achieved only limited successand Rural Periodic Markets in general, and thetribal markets in particular, remained out of its developmental ambit.
Agricultural Marketing Constraints
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Agricultural Marketing Constraints
Predominantly marginal or smallfarmersHence small marketable surpluses& limited bargaining power
Poor availabilityof markets & monopolistictendencies of APMCs
Inadequate infrastructurein wholesale markets/ rural primary markets
Lack of fairprice discoverymechanism
Multiple and exploitativeintermediaries low returns
Fragmented supply chain, poor cold chain & high post-harvest losses
Lackof cleaning, grading, packaging & quality certification facilities
Limited access to market informationand marketing opportunities available
Initiative of Market Reforms
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Initiative of Market Reforms Amendments in APMC Acts suggested by Expert Committee on Market
Reformsconstituted by the Ministry of Agriculture (Report in June, 2001)
Expert Committee recommendations discussed in the National Conference ofState Agriculture Marketing Ministers on 27.09.2002
Standing Committee of State Agricultural Marketing Ministers constitutedunder the Chairmanship of Union MOS (A) met & resolved to implementreforms on 29.01.2003
Committee headed by Additional Secretary (AM), GOI including StateRepresentatives set up to draft a Model Law for Agri-Marketing
Model APMR Actfinalized on 09.09.2003 by the Committee and circulated toStates by Central Government
Model Rules based on the Model Act circulated to States by the Ministry inNovember, 2007
NDC has resolved on 29th May, 2007for completion of amendments in APMC
Acts and notification of Rules there under by March, 2008.
Amendments Proposed in Model APMC Act
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Amendments Proposed in Model APMC Act
Allow establishment of Private orCooperative markets/ Farmer-consumermarkets/ Direct marketing
Safeguard the interest of the farmers through provisions for ContractFarming
Single point levy & payment of market fee/ Single point registrationoffunctionaries
Prohibition of Commission Agentsfor agriculturistsand no deduction tobe made towards commission
PPPin management & extension activities/ Promotion of e-trading/
Electronic Spot Exchanges
Encouraging professional managementin APMCs
Promotion of Grading & Standardization.
Proposed Legal Framework of Contract Farming
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Proposed Legal Framework of Contract Farming
Contract Farming Sponsor to register himself with a prescribedofficer
The Contract Farming Sponsor to get the contract farmingagreement recordedwith a prescribed officer
No title, rights, ownership or possession shall be transferred oralienatedor vest in the contract farming sponsor or his successoror his agent as a consequence arising out of the contract farmingagreement
Fast Dispute Settlement Mechanism at local level
Specification of Model Agreement for Contract Farming to ensureinclusion of terms & conditions safeguarding interest of bothfarmers & buyers.
Status of APMC Act Amendments
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Status of APMC Act Amendments
States/ UTs having Amended Acts
1. Andhra Pradesh (26.10.05)
2. Arunachal Pradesh (09.05.06)
3. Assam (19.01.07)
4. Chhattisgarh (10.02.06)
5. Goa (06.08.07)
6. Gujarat (01.05.07)
7. Himachal Pradesh (26.05.05)
8. Karnataka (16.08.07)9. Madhya Pradesh (15.06.03)
10. Maharashtra (11.07.06)
11. Nagaland (08.09.05)
12. Orissa (17.05.06)
13. Rajasthan (18.11.05)
14. Sikkim (20.04.05) &
15. Tripura (11.05.07)
Reportedly no Amendment Needed
1. Tamil Nadu
States/ UTs with no APMC Act
(1) Bihar (repealed w.e.f. 01.09.2006),
(2) Kerala, (3) Manipur and UTs of (4) Andaman
& Nicobar Islands, (5) Dadra & Nagar Haveli, (6)Daman & Diu & (7) Lakshadweep
Partially Amended
(1) Punjab/ (2) UT of Chandigarh (Only private
markets & contract farming)
(3) Haryana (Only Contract Farming) &
(4) NCT of Delhi (Only Direct Marketing)
Amendment Bills under finalization
(1) Jharkhand, (2) Uttarakhand, (3) U.P., (4) West
Bengal, (5) NCT of Delhi & (6) Puducherry
Remaining States
(1) Haryana, (2) J&K, (3) Meghalaya & (4)
Mizoram
Private Market / Direct Marketing
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Private Market / Direct Marketing
Establishment of private market yard and
direct purchase from farmersStates which have adopted the suggested provision:
A.P., Arunachal Pradesh, Assam, Goa, Gujarat, H.P., Karnataka,
M.P.{not for private market - direct sale can be permitted
under the bye-laws
Sect 36(2)}, Maharashtra, Nagaland,
Orissa (excluding for paddy/ rice), Punjab/ UT of Chandigarh
(not for direct purchase), Rajasthan, Sikkim, Tripura, T.N. & NCT
of Delhi
States which amended the Act but not adopted this provision:
Chhattisgarh
Consumer/ Farmer Market
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Consumer/ Farmer Market
Establishment of consumer/ Farmer market
States which have adopted the suggested provision:
Arunachal Pradesh, Assam, Goa, Gujarat, H.P., Karnataka,Maharashtra, M.P.(can be permitted under the bye-laws),
Nagaland, Punjab /UT of Chandigarh (only enablingprovision) Rajasthan, Sikkim & Tripura
States which amended the Act but not adopted this provision:
A.P. ((being set up under Exemption Clauses),
Chhattisgarh, Orissa, T.N. (being set up under ExecutiveOrders)
Contract Farming
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Contract Farming
The Contract Farming Sponsor shall get the contract farming
agreement recorded with the prescribed officer
States which have adopted the suggested provision:
A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat,Haryana, Karnataka, M.P., Maharashtra, Nagaland, Orissa,
Rajasthan, Sikkim & Tripura
States which amended the Act but not adopted this provision: H.P., Punjab/ UT of Chandigarh, T.N.
Contract Farming
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Contract Farming
No title, rights, ownership or possession shall be transferred or
alienated or vest in the contract farming sponsor or hissuccessor or his agent as a consequence arising out of thecontract farming agreement
States which have adopted the suggested provision:
Arunachal Pradesh, Assam, Goa, Haryana, Karnataka,Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim & Tripura
States which amended the Act but not adopted this provision:A.P.,
Chhattisgarh, Gujarat, H.P., M.P., Punjab/UT of Chandigarh,
T.N.
Contract Farming
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Contract Farming
Dispute Settlement Mechanism
States which have adopted the suggested provision: A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat,
Haryana, Karnataka, M.P., Maharashtra, Nagaland, Orissa,
Rajasthan, Sikkim & Tripura
States which amended the Act but not adopted this provision:
H.P., Punjab/UT of Chandigarh, T.N.
Contract Farming
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Contract Farming
Specification of Model Agreement for Contract Farming
States which have adopted the suggested provision:
Chhattisgarh, Goa (as may be prescribed), Gujarat, Haryana,
Karnataka (as may be prescribed), M.P., Maharashtra
(Rules), Nagaland, Rajasthan, Sikkim & Tripura
States which amended the Act but not adopted this provision:
A.P., Arunachal Pradesh, Assam, H.P., Orissa, Punjab/UT of
Chandigarh, T.N.
Prohibition of Commission Agents
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Prohibition of Commission Agents
No commission agent shall act on behalf of agriculturist seller
and no deduction to be made towards commission
States which have adopted the suggested provision:
Chhattisgarh, Nagaland, Sikkim
States which amended the Act but not adopted this provision:
A.P., Arunachal Pradesh, Assam, Goa, Gujarat,H.P.,Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of
Chandigarh, Rajasthan, T.N. & Tripura
Registration of Market Functionaries
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Registration of Market Functionaries
Registration (not licensing) of market functionaries and single
registration for trade/ transaction in more than one market
States which have adopted the suggested provision:
Assam, Chhattisgarh, Goa, H.P., Maharashtra, Nagaland,
SikkimStates which amended the Act but not adopted this provision:A.P.,
Arunachal Pradesh, Gujarat, Karnataka, M.P., Orissa, Punjab/
UT of Chandigarh, Rajasthan, T.N., Tripura
Single point levy of Market Fee
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Single point levy of Market Fee
Market fee shall not be levied for the second time in any market
area of the State by market committee
Market fee not to be levied more than once in commercialtransactions between traders or sale to consumers
States which have adopted the suggested provision:
Chhattisgarh, Goa, H.P., M.P., Nagaland, Punjab/ UT of
Chandigarh, Sikkim
States which amended the Act but not adopted this provision:
A.P., Arunachal Pradesh, Assam, Gujarat, Karnataka,
Maharashtra, Orissa, Rajasthan, T.N., Tripura
Market Extn Cell/ State Standards Bureau
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Market Extn. Cell/ State Standards Bureau
Setting up of separate Market Extension Cell in the Board
Establishment of State Agricultural Produce Marketing StandardBureau
States which have adopted the suggested provision:
Nagaland, Sikkim
States which amended the Act but not adopted this provision:
A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat,H.P., Karnataka, M.P., Maharashtra, Orissa, Punjab/UT ofChandigarh, Rajasthan, T.N. & Tripura
Special Concerns
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Special Concerns In some States, no provision for registration of contract farming sponsors,
recording of contract farming agreement,dispute settlement mechanism,indemnity against the alienationof producers land on failure of contract and a
model agreement format for contract farming
In some States, no specific provisions for setting up of private markets/ directmarketing, setting up of consumers/ producers marketsand fastredressal ofdisputeswith regard to the same
In some States, no provision forsingle point levy of market fee in the State
In some States, Licensing provided instead of registration for marketfunctionaries; No provision forsingle point registration for trade andtransaction in more than one market area
In some States, no provision to promote and encouragePPP in management ofmarkets/extension activitiesand e-trading
Rules not notifiedin many States for amended provisions (Notified only in AP,HP, Karnataka, Maharashtra, Rajasthan, Orissa so far).
Other Special Concerns
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Other Special Concerns
In some States, registration of contract farming sponsors orprocessors vested with the Secretary of the APMCshouldbe out of APMCs purview (better at State level)
In some States, contract farming dispute settlement authorityis State Level/ Divisional Officershould have been kept at
below District level for easy access to farmers
In some States, Private Markets have been restricted within aspecified distancefrom the existing regulated markets underthe Rules.
Programmatic Initiatives based on Reforms
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g f
Reform-linked central assistance to encourage public/ private investment for
development of marketing infrastructure, common facilities for aggregation & value
additionof produce and grading/ packaging/ quality certification facilities
Scheme to set up modern terminal marketsunder NHM for perishable agricultural
produce with suitable backward & forward linkages
Development of post-harvest/ cold chain infrastructure, CA storage facilities,
refrigerated transportation by road/ rail, perishable cargo centres at air & sea ports
under NHM
Action Plan for development of Food Processing Industriesincluding setting up of
Mega Food Parks
World Bankassisted MACP (5-6 States) and ADBStudy for Agri-business
Development Project (2 States)
Present Scenario in Value Chain of Perishables
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Present Scenario in Value Chainof Perishables
Cost build up for one Kg. basket Of Fruits
FARMER TRADER WHOLESALER RETAILER CONSUMERPRICE
3.3
4.1
1.72.5 11.6
Retail Markups
FARM GATE PRICES MILK FISH FRUITS &VEGETABLES
350
220160
100
Modern Terminal Market Infrastructure:P kh
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Collection Centre
Modern Terminal Market
Producers/ Farmers and
their Associations
Infrastructure:Washing, grading, sorting, weighment,transport to TM
Services:Collection & Aggregation of produce,Settlement of payment, advisory on inputs,
prices, quality, multi-modal transport
Packhouse,Quality TestingFacility,Palletisation
Services:Transport (incl.cool chain),Settlement ofPayments,Banking, Marketinformation
ElectronicAuction
Banking Institution
Storage:Cold Storage,Temperaturecontrolledwarehouse,RipeningChamber
Processor Exporter Wholesaler/ Trader/Retail chainoperator
Direct Selling
Action Required for setting up TMCs
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q f g p
State Governmentto appoint a Nodal Officer (Secretary level)inconcerned Department & make him a member of SHM
SLEC of SHMto coordinate all aspects
State to arrange feasibility study & decide bid parameters for eachidentified location
Model bid documents & OMDA suggested by Central Govt. in OperationalGuidelines Document
SHM to appoint reputed FI to assist Nodal Officer in two-stage biddingprocess, evaluation, short-listing of PE & entering into agreements
Cost of feasibility study & engaging FI can be met from MissionManagement Funds of SHM
Equity support of up to 49% to be provided from NHM for TMC StateGovt. can contribute to this equity (including land value/ rentals)
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New visions and role of APMCs
B.K. PATYDeputy Director
NIAM
New role of APMCs outline of the
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New role of APMCs- outline of the
presentation
Shift from salesmanship to marketing Dealing with Service product-intangibility,simultaneity
Marketing extension
Promotion of direct marketing, contract farming, processing- leading toexport, better returns to farmers, reduction of transaction costs etc.
Promotion of grading and standardisation
Making the traders association responsible
GAP,HACCP,GHP,traceability etc. especially from export point of view
Professionalisation of management
Transparency in dealing/ auctioning
Providing infrastructure and efficient services ( Promotion of PPPmode)
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dealing with a service product
Marketers of services face a bigger challenge due to
unique nature of services-intangibility, heterogeneity,
inseparability, perishability
Go beyond 4 Ps- product, price,promotion and
distribution (Place) .Also
people,
process and
physical evidence
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Key Marketing issues
The unique characteristics of services present some keymarketing issues Managing differentiation amongst services ( offer, delivery,
image, service premises, packaging, personnel, tools andequipment used, customer, convenience, name of the
organisation) Managing productivity (Commitment, High standards ,
Monitoring system, Customers complaint )
Managing service quality(technology,selection & training,standardisation of services, customers involvement, employeesskill utilisation)
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Internal marketing
External marketing
Organization
Internal Marketing
Front Line
EmployeesCustomers
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MARKETING EXTENSION
Marketing extension is the order of the day in
the post-WTO regime
The incidence of huge post harvest losses can
be attributed to poor marketing extension to alarge extent.
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Role of APMC
Advice on production planning:- careful selection of the crop from marketabilityviewpoint-internal or export
Marketing information:- price and arrivals, forecasting of market trends, demandof other markets, facilities available in the target markets, quality requirements, marketfees etc.
Securing markets for the farmers:-Awareness about regulated market laws and
reforms, Information regarding procurement by Govt. agencies, contract farmingarrangement for cash crops with wholesalers, processors etc.
Advice on improved marketing practices:- packaging, appropriate storingmethods, standardization and grading and other post harvest management practicessuch as maintenance of quality, awareness about post-harvest losses etc.
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Role of APMC
Advice on establishing and operating markets:-Farmers groups toset up and run their own markets within framework of rules
Processing and value addition:- Farmers to be educated about valueaddition through primary processing
Group action:- Promotion of informal groups and Self Help Groups(SHGs)
Marketing Credit:- Educating farmers about different schemes ofmarketing credits, Advice on warehousing with pledge finance scheme
Problem solving methods: micro-level
Marketing extension for export market: WTO implications, Codex,HACCP, Euro gap standards, Awareness on ill effects of pesticide/insecticides residueetc.
Promotion of Direct Marketing contract
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Promotion of Direct Marketing, contract
farming, processing
Less than 2% of f & v processed in India, as
against 65% in USA, Brazil, Phillipines, South
Africa and 83% in Malaysia
Similarly the extent of value addition is 7 % inIndia as against 23% in China and 88 % in UK
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Area & production of agri products
Area and production of Agricultural products(Production in million tonnes)
2186Cattle (million)
10.85Tea
2245Sugarcane
115Pulses
325Edible Oilseeds
282Vegetables
247Fruits
191Milk
329Coarse grains (including maize)2124Rice, Paddy
272Wheat
155Irrigated Land (Million ha)
2151Arable Land (Million ha)
Indias Rank in
World Production
India
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0
10
20
30
40
50
60
70
15 major food items of export
(INR billion Rs)
f
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APMC role in contract farming
Provisions of a model agreement-
sensitisation
Awareness about dispute redressal
mechanism.
Collection of market intelligence data about
contract farming
Registration of contracts, whre authised
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Promotion of grading and standardisation
Bureau for grades and standards- feeding
information and working in close coordination
with the Bureau
Awareness about existing grades andstandards.
Identification of commodities and preparation
of proposals for preparation of grades andstandards.
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Making the traders association responsible
Feedback about policy issues
Involvement in waste disposal and
management.
role in maintenance of food safety and quality
Role in ensuring transparency in the business
Role in training of the farmers
GAP,HACCP,GHP,traceability etc. especially
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from export point of view
Testing facility in the premises of APMC
Awareness about the quality management
tools amongst the stakeholders.
Big APMCs can set up training centres with an
attached laboratories
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Professionalisation of management
Appointing professional managers as CEOs
from the panel prepared by the Board
Computerisation
Computerised linkage of fees with the arrivals
through automation
Service orientation
T
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Transparency
Auctioning
Allocation of shops etc.
Computerised linkage of market fees with
arrivals
Providing infrastructure and efficient services (
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Providing infrastructure and efficient services (
Promotion of PPP mode
Outsourcing
Infrastructure in the premises in PPP mode.
Collection centres in PPP mode.
Transportation, grading and packing units etc.
in PPP mode.
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THANK YOU