New Roles of APMC

8/13/2019 New Roles of APMC

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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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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


H.P., Karnataka, Nagaland, Sikkim


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


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


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


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)


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


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


Chhattisgarh, Nagaland, Sikkim


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


Chhattisgarh, T.N.


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Consumer /Farmer Market

Establishment of consumer/ Farmer market


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


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


A.P., Chhattisgarh, Goa, Gujarat,M.P., Maharashtra, Nagaland, Sikkim


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


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



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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


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


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


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


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


H.P., Punjab/UT of Chandigarh, T.N.

Contract Farming


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Contract Farming

Specification of Model Agreement for Contract Farming


Chhattisgarh, Goa (as may be prescribed), Gujarat, Haryana,

Karnataka (as may be prescribed), M.P., Maharashtra

(Rules), Nagaland, Rajasthan, Sikkim & Tripura


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


Chhattisgarh, Nagaland, Sikkim


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


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



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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


Chhattisgarh, Goa, H.P., M.P., Nagaland, Punjab/ UT of

Chandigarh, Sikkim


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


Nagaland, Sikkim


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.



GAP,HACCP,GHP,traceability etc. especially from export point of view


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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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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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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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



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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

Date post:	04-Jun-2018
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New Roles of APMC

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