Government of KarnatakaDepartment of Agricultural Marketing

Karnataka State Agricultural Marketing Board

GOVERNMENT OF KARNATAKA

Sri Jagadish Shettar Hon'ble Chief Minister

Sri S. K. Bellubbi,Hon'ble Minister for Agricultural

Marketing, Wakf and Haj

AGRICULTURAL MARKETING-DEVELOPMENT AND REGULATIONS IN KARNATAKA

Presented byDr.C.Somasekhara, IAS

Director of Agricultural Marketing and Managing Director Karnataka State Agricultural Marketing Board

in the presence of

Sri. S. K. Bellubbi, Hon'ble Minister for Agricultural Marketing, Wakf & Haj,

Government of Karnataka and Chairman KSAMBat the National Conference on "Agricultural Marketing-Development

and Regulations in India" organised by National Council of State Agricultural Marketing Boards

at Mount Abu (Rajasthan) from 28-30th August, 2012

AGRICULTURE IN KARNATAKA

• Karnataka has a geographical area of 190.50 lakh hectares• Cultivable land is about 123.85 lakh hectares (65%).• About 66 % of over 5 crores people of the state live in

villages• The average size of holding is 1.63 hectares• The contribution of Agriculture to State Gross Domestic

production is 16.1%• Out of the total cultivable land about 106.21 lakh hectares

constitute agricultural crops and about 17.64 lakh hectares horticultural crops

MAJOR CROPS OF KARNATAKA

• Cereals: Jowar, Paddy, Ragi, Maize, Sajje• Pulses: Tur, Bengalgram, Greengram, Blackgram• Oilseeds: Groundnut, Sunflower, Soyabean• Commercial Crops: Cotton, Tobacco, Sugarcane• Fruits: Mango, Grapes, Banana, Sapota, Gua, Pomegranate, Jackfruit, Papaya• Vegetables: Onion, Potato, Tomato, Beetroot, Carrot• Flowers: Cutflowers, Gerbera, Crysanthemum Jasmine• Plantation Crops: Coffee, Coconut, Arecanut (Betelnut), Cashewnut• Spices: Dry Chillies, Ginger, Cardamom, Pepper,

Turmeric,

VISION AND MISSION

VISION :

• To promote and encourage participatory and equitable

socio-economic development of people of Karnataka

through a vibrant agricultural marketing system.

MISSION :

• To develop and regulate participative, transparent and

scientific agricultural marketing system with adequate

infrastructure and user friendly e-initiatives

NAME OF THE ACT AND RULES

• The Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966

• The Karnataka Agricultural Produce Marketing (Regulation and Development) Rules, 1968

• The Karnataka Agricultural Produce Marketing (Regulation of Allotment of Properties in the Market Yards) Rules, 2004

• The Karnataka State Warehouses Act, 1961 and Rules 1969 (Licencing aspects only)

• Agricultural Produce (Grading and Marking) Act, 1937 (Central Act) (Issue of Agmark Certificates)

OBJECTIVES OF THE ACT

• To provide for improved regulation in the marketing of agricultural produce

• To develop an efficient marketing system• Promotion of agri-processing and agricultural exports• Establishment and administration of markets for agriculture

produce• Provide infrastructure for marketing of agricultural produce• To lay down proper procedures and systems for fulfilling the

above mentioned objectives

PROFILE

Agricultural Produce Market Committees - 155

Main market yards - 155

Sub-market yards - 354

Annual Turnover through APMCs - Rs. Crores - 24,000

No of Notified Commodities. - 92

No of Licensed Market Functionaries. (Traders and

Commission Agents) 40000

No of Staff working in the Marketing Department - 2200

No of Staff working in the Marketing Board - 182

CONSTITUTION OF KSAMB

• Chairman: Hon'ble Minister for Agricultural Marketing• Vice Chairman: Elected from among the elected members of the Board• Elected Members: One each from Revenue Districts. 30 members elected. Each member is the Chairman of a Market Committee

who is elected from among all the Chairmen of the APMCs in the district• Official Members: The Secretary to Govt. Dept of Co-operation or his nominee -ex-officio The Secretary to Govt. Dept of Agriculture or his nominee -ex-officio

The Director of Agricultural Marketing -ex-officio• Managing Director: Director of Agricultural Marketing - ex-officio

Organisational Set-up of the

Department of Agricultural Marketing, Karnataka

Minister for Agrl Mktg

Principal Secretary Co-op

DIRECTOR

ADDITIONAL DIRECTOR

HEAD OFFICE

   

SUPT.ENGINEER

MDPJOINT DIRECTOR JOINT DIRECTOR

CHIEF AUDITOR

ADDITONAL DIRECTOR

  ADMIN PLANNING (ENFORCEMENT)

       

EXECUTIVE ENGINEERDeput Director

(G&MI) Deputy

Director(D&RGN)HGA(A.D)

Marketing

Officer (A.D)

Special Auditor (Assistant Director)

D.D(Enf) (S)

D.D (Enf) (N)

   Bangalor

eHubli

 

     Bangalo

reMysor

eBelga

umGulber

ga

B'LORE

MYSORE

BELGAUM

GULBERGA

District Offices DivisionDivisi

onDivisio

nDivisio

n

ASSISTANT EXECUTIVE ENGINEER

Deputy Assistant

Director Director

Organisational Setup of theKarnataka State Agricultural Marketing Board

CONSTITUTION OF APMCAgriculturists: (Elected from the farmers-) ...................... 11 Traders and Commission Agents: ( Elected from the licenced traders and commission agents ) ....... ..1 Agricultural Produce Co-op Marketing Society (Elected from among the members of the Marketing Societies)....... .1Agricultural Produce Co-op Processing Society (Elected from among the members of the Processing Societies)... .....1Nominated by the State Government.....................................................3Officer nominated by the Director of Agricultural Marketing.................1 TOTAL: 18(Among agriculturists 1 is reserved for women, 2 for scheduled caste and

tribe and 2 for backward community)Chairman and Vice-Chairman shall always be from AgriculturistsThe term of Committee is 5 years and of Chairman and Vice-chairman 20

months

REGULATION Introduction of electronic weighing scales in all the markets for

weighment of farmers' produce. Adoption of competetive system of sale like auction and tender systems

in the markets to ensure competetive price for farmers' produce. Introduction of electronic tender system of sale in 45 APMCs. Issue of transport permits on line and given to commission

agents/traders Account settlement slip to be prepared in triplicate by commission

agents; one to be paid to farmer, one to APMC and the other for himself.

Payment to be made to farmers by commission agents or traders after sale on the same day. In case of delay 1% per day to be paid as interest upto 5 days. After that licence will be cancelled and legal proceedings will be initiated.

Commission to the agents to be paid by the trader and not the farmer. At present commission is 1.5 % of all commodities, 1% for vegetables and flowers and Rs. 5/- per head of cattle, Rs. 1/- per head of sheep and goat.

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ELECTRONIC WEIGHING SCALES IN MARKET YARDS

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Buyer of the notified agricultural produce shall pay market fee to

the concerned APMCs including the private market yards.

Single point levy of market fee is introduced in the State since 2001.

Market fee suffered goods in a APMC need not be levied again in any of the APMCs in the State.

For verification and to ensure transparency, transportation permit is obtained by the traders through e-permit system

The prevailing rates of market fee –

Vegetables-1% advalarum, Fruits-1.5%, Flowers-1%, Food grains, pulses, oil seeds, plantation crops, fibers etc – 1.5%, Cattle-Rs. 5 per head, Sheep or goat – Re.1 per head.

Rebates – Co-operative society will be levied at 80% of the fee payable.

Buyer in a Spot exchange, Direct purchase licensee, Contract farming sponsor shall be levied and collected at the rate of 70% of the market fee payable.

LEVY AND REALIZATION OF MARKET FEE:

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Any agricultural produce imported from outside the State for the purpose of processing or manufacturing is exempted from levy of market fee.

Any processed agricultural produce imported from outside the State and sold in any market area within the State are exempted from levy of market fee.

No market fee is payable for a period of 5 years by a new agricultural produce processing industries in respect of purchases of agricultural produce directly from the farmers and also the existing units which undertake modernization, expansion and diversification with certain conditions.

EXEMPTIONS

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Karnataka Oil Seeds Growers Federation (KOF) and

HOPCOMS have been exempted from payment of market fee.

SAFAL market established by NDDB is exempted from the provisions of the Act.

EXEMPTIONS

INCOME THROUGH MARKET FEES

YearMarket Fee Collected

(Rs. in Crores)

2007-08 177.77

2008-09 202.91

2009-10 244.10

2010-11 303.08

2011-12 313.71

SchemeTotal Amount Spent (Rs.in

Crores).

Development of markets under RKVY Scheme (e-tender and market infrastructure)

23.80

Assistance for States For Infrastructure Developments For Exports (ASIDE-GOI) 27.47

The construction of Rural Godowns under Grameena Bhandara Yojana. (GOI)(294 godowns) 33.09

Development of Rural Markets under RIDF (GOI). (76 works)

33.09

MARKET DEVELOPMENT THROUGH EXTERNAL FINANCE AND SUBSIDY

(Last 4 years)

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FACILITIES IN THE MARKET YARDS

RURAL GODOWNS

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DEVELOPMENT OF MARKETS UNDER RKVY (Turmeric market at Chamarajanagar)

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DEVELOPMENT OF MARKETS UNDER RIDF SCHEME

E-TENDER SYSTEM OF SALE

CONCEPT :

• The prices for the commodities brought by farmers for sale in the market yards are quoted by the licensed traders electronically that is through computers and mobiles.

ADVANTAGES :

1. Competitive price for farmers produce2. Transparency in price determination. 3. Save in time.• Unique in the whole country .• Introduced in 45 markets. • Will be extended to other markets in phases.

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ELECTRONIC TENDER SYSTEM OF SALE

COMPUTERISATION OF ACTIVITIES

Office Management : (Adopted in 75 markets)

- Accounts Management

- Property management

- Daily Transactions

- Development Works

- Trade Permit Management

- Administrative Works

MAJOR ACTIVITIES OF KSAMB

• Agricultural Marketing Training- 2 Training Institutes -

Mysore and Hubli

• Extension Activities- 4 Divisional Offices

• Research Activities- MOU with Agri Universities

• Advise to APMCs and Government on Act and Rules

• Revolving Fund- Floor Price Scheme operation

• Raitha Sanjeevini- welfare scheme for farmers

• Janashri Bima Yojana- Insurance scheme for shramiks

TRAINING AND EXTENSION PROGRAMMES

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EXTENSION ACTIVITIES

SUPPORT PRICE SCHEME FOR FARMERS

• Objective: To protect the interests of the farmers against distress sale

of commodities under Floor Price Scheme (State Govt.) Minimum

Support Price Scheme and Market Intervention Scheme (GOI.)

• Created a Revolving Fund of Rs. 806.07crores. (State Govt. Rs. 91.48

crores and APMCs Rs. 714.59crores)

• The amount revolved so far is Rs. 1329.73 Crores.

• No of Beneficiary farmers is 5,49,044

• Cabinet Sub-Committee, State Level Committee and District Level

Committees to implement the scheme.

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WELFARE ACTIVITIESRAITHA SANJEEVINI SCHEME :

• Compensation upto a maximum of Rs. 50,000 to farmers in case of accidental death & permanent disability while engaged in agriculture or marketing activities.

• Rs. 14.98 crores compensation is given to 3224 farmers during the last 4 years.

JANASHREE BHIMA YOJANA :

• For Hamals, Weighmen & Cartment in APMCs.

• Implemented through LIC of India.

• Compensation amount maximum Rs. 75,000.00

• Annual Premium Rs. 100.00 paid by APMCs

• Rs.1.29 crores compensation is given during the last 4 years

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ICT INITIATIVES

• Electronic Tender System of Sale.

• Computerisation of Activities.

• Implementation of Development works through

e-tendering process.

• Market Information System.

• E-Trading through Spot Exchanges.

INFORMATION AND COMMUNICATION TECHNOLOGY

• http://krishimaratavani.kar.nic.in developed through NIC for online market information flow.

• Electronic Price Display Boards in all the market yards connected through website.

• Information through toll free telephone 1800-425-1552.

• Market SMS free of cost through mobiles.

• Price Ticker Boards installed in 155 APMCs and 6 KSAMB units through NMCE for online display of Spot and Future prices of commodities.

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MARKET INFORMATION THROUGH TOLL FREE NO.1800 425 1552 AND MARKET SMS

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E-PORTAL FOR IMPLEMENTING DEVELOPMENTAL WORKS

• All works costing more than Rs.2 lakhs are implemented

through E-platform.

• KEONICS is co-ordinating the activity.

• Due to E-procurements many works are quoted below

scheduled rates.

• Helped for bringing more competitiveness, transparancy,

accuracy and time saving in the system.

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Karnataka State is pioneer in bringing reforms considering the changes in the Agricultural Marketing scenario.

The Karnataka Marketing Act was amended during June 2000 to facilitate for establishment of National Integrated Produce Market.

The National Dairy Development Board was permitted to establish National Integrated Produce Market for fruits, vegetables and flowers.

The NDDB accordingly established SAFAL market at Bangalore investing Rs.150.00 crores.

IMPORTANT INITIATIVES IN THE REFORMS OF THE AGRICULTURAL MARKETING SECTOR

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Providing for Promotion of Public Private Partnership in the management and development of agricultural markets.

Providing for Promotion of Standardization, Grading and Quality Certification of agricultural produce and for this purpose setting up Agricultural Produce Marketing Standards Bureau.

To give thrust for the promotion of Agri-Processing Sector, Direct purchase centers are allowed

E-trading – establishment of Spot Exchange.

ADOPTION OF PROVISIONS OF MODEL ACT, 2003

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Licencing at one point for multi market operations

License will be issued for a period of 10 years and thereafter will be renewed for 10 years.

AGRICULTURAL MARKETING REFORMS

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Private Market 5 Licences are issued- 3 are active

Spot Exchange 1. National Spot Exchange Limited, Mumbai.2. NCDEX Spot Exchange Limited, Mumbai.3. Reliance Spot Exchange Infrastructure Ltd., Mumbai

Direct Purchase Center

1. Reliance Fresh Limited, Bangalore.2. Metro Cash and Carry India Limited, Bangalore3. MCF International Limited, Bangalore (UB groups)4. Tungabhadra Ginning and Pressing Factory.5. M/s. Milanscr Mango Center, Srinivaspura.6. Trinetra Super Retail Pvt Ltd., Bangalore.7. Guru Raghavendra CottonGinning and Processing.8. Jagadish Trading Company, Manoli, Soundatti9. Totgars Co-op Sale Society, Sirsi

Single License 300 traders including corporate houses have taken.

PRESENT REFORMS SCENARIO:

Licenses issued :-

AMENDMENTS TO BE EFFECTED IN THE ACT AND RULES

As per the Karnataka Integrated Agri-Business

Development Policy the amendments to be effected in

KAPM(R&D)Act :

•Exemption from payment of Market Fee for

commodities traded in Terminal Markets.

•Exemption for payment of market fee for Processing

and Exports upto 10 years.

•The provision of E-trading for all markets. 42

NEW PROJECTS Modern wholesale market for vegetables at

Byatarayanapura in Bangalore at a cost of Rs. 100 crores

in 30 acres under PPP model.

Development of Modern Flower Market at Mysore at a

cost of Rs. 10.45 crores.

Establishment of Terminal Market for Onion and Potato

at Dasanapur in Bangalore in 67 acres at a cost of Rs. 102

crores.

Establishment of Rice Technology Park at Karatagi in

Koppal district. 43

NEW PROJECTS Establishment of Maize Technology Park at Ranebennur

Establishment of TurTechnology Park at Gulbarga

Establishment of Coconut/Copra Technology Park and Research Centre at Tiptur

Establishment of e-markets (e-trading) for 11 commodities in 50 markets through NCDEX

Establishment of irradiation unit at Dasanapura in Bangalore

Provision of value addition facilities like grading in the selected markets

Rating of the markets for systematic development

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