Roundtable Meeting on Reforms in Mandi Act
&
Ease of Doing Business in Agri Marketing
in Uttar Pradesh
“Uttar Pradesh State Agricultural Produce Markets Board, U.P.”
Wednesday, 27 November 2019:
Fairfield by Marriott, Lucknow, Uttar Pradesh
04. Ease of Doing Business
in Agri Marketing in Uttar
Pradesh
01. U.P. in Numbers
03. Reforms in
Mandi Act
01
02
0304
0505. Road ahead
Flow of Presentation
02. Organization
introduction & Objective
U t t a r P r ad es h - K ey h i gh l i gh t s
State capital Lucknow
Geographical area 240,928 sq. km
Population (Census 2011) 199.8 mn
Gross state domestic product (GSDP) ₹ 15.80 lakh crore (US$230 billion) (2019–20 est.)
FDI inflows US$ 686 million (2000 to 2018)
Total National Highway length (kms) 11,737
Rail length (route kms) 9,077
Airports International – Lucknow, Varanasi
Domestic – Agra, Ghaziabad, Panki, Gorakhpur
GDP ₹15.80 lakh crore (US$230 billion)(2019–20 est.
GDP rank 3rd
GDP growth 7% (2018–19 est.)
GDP by sector Agriculture (27%) , Industry (26%) , Services (47%) (2016-17)
Main Industries Cement, Vegetable Oil, Textiles, Cotton Yarn, Sugar, Jute, Locks,
Carpet, Brassware, Glassware, Bangles and Marble Inlay etc.
Cold Storage Capacity 14500773 Metric Tonnes (1St
in Country)
Source: 1- "Uttar Pradesh Budget Analysis 2018-19“ PRS Legislative Research. Retrieved 28 March 2018.
2- Satatistical Department U.P. & Directorate Census, Lucknow
3- http://www.mospi.gov.in/statistical-year-book-india/2017/190
4- https://morth.nic.in/
UP has the longest network of rivers and canals
in India supporting a multitude of agricultural
activities . The state has the largest network of
railways and 2nd largest network of roads in India
Strategic location as Gateway to East India and
Nepal–well-connected through extensive rail/road
network
Uttar Pradesh has favourable agro-climatic
conditions with nine agro-climatic zones
favouring cultivation of a multitude of
agricultural crops, vegetables and fruits round the
year
S t a t e G eo - g r ap h i ca l i n t r od uc t io n ( A gr i cu l t u r e )
NEPAL
DELHI
RAJASTHAN
MADHAY PRADESH
UTTARA KHAND
BIHAR
HARIYANA
HIMANCHAL PRADESH
The state is surrounded by Bihar in the East; Madhya Pradesh in the South; Rajasthan, Delhi, Himachal
Pradesh and Haryana in the West; and Uttarakhand and Nepal in the North.
Uttar Pradesh has 177.21 lakh hectares of cultivable area.
P r o d u c t i on H i gh l i gh t s o f t h e s t a t e
Largest producer of food grains with total production of 51.25 million tonnes 2017-18. Rank 1 in
production of Wheat & Sugarcane; (21% share of total production of the country).
Largest producer of vegetables with a total production 283.16 Million Tonnes (15.4% share of total
production of country)
3rd Largest producer of fruits with total production 10539.77 thousand tonnes (10% share of total
production of country)
Largest producer of Sugarcane in India.
Uttar Pradesh is the largest milk producing state in India contributing around 17% to the total milk
production,
Uttar Pradesh has the largest livestock population (15% of india’s total livestock population) in
India leading to the state being the largest producer of milk in the country.
Uttar Pradesh has 7.35 percent (Quantity wise) share in National Agricultural Exports.
Uttar Pradesh has Largest Numbers of Cold Storages with the capacity of 1,45,00,773 Metric Tonnes.
Source:- 1- Horticultural Statistics at a Glance 2018, Horticulture Statistics Division Department of Agriculture, Cooperation &
Farmers Welfare Ministry of Agriculture & Farmers Welfare Government of India
2- Directorate of Economics and Statistics, Ministry of Agriculture
3- Directorate of Marketing and Inspection (DMI) upto 2009, National Horticulture Board (NHB)
4- UP Export Policy, 2019
The Organisation
UP Agricultural Produce Marketing Board (UPSAMB) Rajya Krishi Utpadan
Mandi Parishad was established in1973 to organize, control and guide various
activities related to Agricultural Marketing through APMCs spread over U P.
Presently there are 251 APMCs spread functioning through built up 220 Principal
Market Yards and 95 built up Sub-Market Yards, established under Uttar Pradesh
Krishi Utpadan Mandi Adhiniyam 1964
Principal Objective of UPSAMB (MANDI PARISHAD)
Offer a regulated platform for farmers and traders to trade in marketable
Agricultural Commodities in a fair and transparent manner.
Facilitate farmers and other stakeholders in handling of agri-produce from
farms to the Market Area.
Creating infrastructural facilities (e.g. pack houses, assaying labs etc.)
Physical Infrastructure
Total Regulated Markets & Sub-Markets 251 & 382
Constructed Market yards 220
Constructed Sub-Market yards 95
Constructed Fruits & Vegetable market yards 72
Constructed Fish market yards 05
Constructed Milk market yards 05
Rural hats 225
Rural Godowns 238
Rural Link Roads 19630 K.M
Farmers Service Center 87
Kisan Bazar 07
Agriculture market hub 1643
RIN (Rural infrastructure Nuclei ) 133
Unified License- To facilitate traders to trade in all APMS,s of U.P. through a single
license.
Online sale-purchase through eNAM
Support in establishment of processing units (backhand/upfront support)
Single point levy
Export Facilitation and promotion
Farmer Help Line-155241
Farme wellfare schemes like Barn fire accident help scheme, personal accident help
and other welfare schemes for all stakeholders.
E-Licence Pranali
Export Policy
We Offer
Total Arrivals & income has been increasing with the time
Arrival & Income
Agriculture Year Total Arrival
( Lac M.T.)
Total Income
( in Crores Rs)
1972-73 37.90 1.92
2018-19 620.75 1821.61
2019-20
(Till oct., 19)
362.19 1103.34
The Statutory Reforms in Agricultural Marketing
THE UTTAR PRADESH KRISHI UTPADAN MANDI ADHINIYAM, 1964 has been
amended in pursuance of the Draft Agricultural Produce and Livestock Marketing
(Promotion & Facilitation) Model Act, 2017 proposed by Government of India. In March,
2018, Uttar Pradesh became the first state in India to march ahead with the most
progressive reforms in the field of Agricultural marketing.
Key Reforms :-
– Provision of establishment of Private Mandis in the state.
– Cold Store / Silo / Warehouse / Other Locations etc. to be declared as Sub Market Yard.
– Freedom of Marketing to the Farmer / Producer .
– Direct marketing (Direct purchase from farmers in proximity of the production area).
– Greater Financial Autonomy to Mandi Samiti.
– Democratization of Mandis
Licensing authority- Director Agricultural Marketing.
For 17 listed cities ( Kanpur, Lucknow, Bareilly, Barabanki, Varanasi, Agra, Lalitpur,
Gorakhpur, Prayagraj, Shahjahanpur, Lakhimpur, Ghaziabad, Meerut, Gautam Buddh
Nagar, Aligarh, Moradabad, Saharanpur) rupees 10 crore investment for providing
infrastructure excluding the cost of land and minimum of 2 hectare of land.
For other district head quarter and other places rupees 5 crore investment and 4 hectare
of land.
License fee for grant or renewal of licence for 3 years
For 17 listed cities rupees 2lacs
For other places rupees 1 lac.
Establishment of Private mandi in the state
The private market yard licensee may collect user charge on the produce transacted
in the private market yard not exceeding as notified by the State Govt. and
contribute one-fourth of it to a separate fund maintained by Director Agriculture
Marketing.
Bank guarantee required ;
For listed 17 cities- 50 lacs.
For other places – 25 lacs.
Private market yard can not established ;
At any place within a radius of 5 km from the existing principal market yard.
And 3 km from the existing sub-market yard or market sub-yard.
Private mandi (Continued)
Now any structure, enclosure, open space, locality, street including
warehouse/silo/cold storage/ packhouse / cleaning, grading & processing unit
can be declared as market sub-yard, having not less than 5000 tons storage
capacity.
Fee for declaration
Rs. 2000 per annun for a minimum period for 3 years.
Rs. 20,000 for 20 years.
Bank guarantee/ security of 5 lacs.
Declaration of market sub-yard
Owner of such structure or places shall get Mandi license and pay mandi fee to
concern mandi samiti.
Apply before Director, Agricultural Marketing.
Benefits
Farmers can sell their produce according to their own selection.
The processor / merchants/ traders can buy the produce at their own premises
instead of Principal market yard or sub market-yard.
Only market fee is payable to mandi samiti.
Market sub-yard (Continued)
Establishment of Collection / aggregation centers in the proximity of the
production area to purchase directly from the farmers.
Licensing authority – Director Agriculture Marketing.
License fee
Rs. 1000 per annun for a minimum period for 3 years.
Rs. 10,000 for 20 years.
Bank guarantee/ security of 1 lacs.
Direct marketing License
No mandi license is required.
Applicant may apply for more than one direct purchase centers in one or
more market areas.
Mandi fee deposited in fund maintained by Board.
Benefits
Farmer’s Cooperatives, FPO, Exporters, processors can purchase directly from
the farmers.
Only mandi fee is payable and no cess.
Middle man may be eliminated thus reduceing the procurement cost.
Farmers can get payment within 72 hours.
Direct Marketing License (Continued)
MANDI PARISHAD towards EASE of DOING BUSINESS
Unified license fee to be Rs 10,000.00 instead of Rs 1,00,000.00
Vide amendments made in Section 9A, and by-laws thereof, the process has
been simplified
– Same license can be upgraded to unified licence and can also be
downgraded to single license.
– If guarantor is not available, the concerned entrepreneur can now submit
FDR equivalent to six months of estimated Mandi fees.
MANDI PARISHAD towards AGRI. INDUSTRIES
Promoting the establishment of industrial and agricultural processing
units
Promoting marketing of specified agricultural production and Under the
Uttar Pradesh Infrastructure and Industrial Investment Policy 2012.
New agro-processing unit , with a cost of plant and machinery of Rs.
five crore or more, will be exempted from the mandi fee (or reduction
therof) for a maximum period of five years, limited to the cost of plant
and machinery.
Uttar Pradesh Agriculture Export Policy 2019
To promote the export of agricultural produce, the Uttar Pradesh
Export Policy, 2019 has been implemented with a view to provide
new framework for promoting agriculture exports, to harness the
potential of exports of agricultural produce and products, and to
substantially augment the income of farmers and other stakeholders.
MANDI PARISHAD towards AGRI. EXPORT
Implementation Framework UPAEP 2019
Strengthening Institutional Mechanism:
State level Agriculture
Export Monitoring Committee
Nodal Agency Directorate of Agriculture
Marketing and Agriculture Foreign Trade,
UP
Divisional level Agriculture Export
Monitoring committee
District level Cluster
Facilitation Cell
Nodal Department
Department of Agriculture Marketing
and Agriculture Foreign Trade, UP State level Sectoral
Departments
Brand Promotion and Transportation Subsidy for Marketing and Export of
o Mangoes under the brand name of ‘Nawab’ (Nawab Brand Mango Export Promotion
Policy, 2018)
o Potatoes under the brand name of ‘Taj’ (Potato Export Promotion Policy, 2018).
MANDI PARISHAD towards AGRI. EXPORT & BUSINESS
Brand promotion Subsidy payable on mango
exports produced in U.P.
(Rs.Per kg)
Transport freight Subsidy payable on
mango exports produced in U.P.
(Rs. Per kg)
TO EXPORTER
TO PRODUCER TO EXPORTER BY AIR / SEA
ROUTE
BY ROAD
TRANSPORT
6.00 10.00 15.00 7.50
On the export of potato
produced in Uttar
Pradesh by road
In case of export of potato by water route
Road transport freight Rs.
1.00 per kg or 25% of the
actual fare whichever is less.
Rs 0.50 per kg as road transport freight subsidy to the nearest port or 25
per cent of the actual fare whichever is less and additional as water
transport freight assistance: -
1.Rs. 1.50 per kg for Asian or Middle East countries.
2. Rs. 2.50 per kg for Europe, America, Latin America, Africa, Australia.
Exemptions of Mandi fee and development cess levied on export of
o Mentha Export Policy 2018 (Exemption from 1% mandi fees and 0.5% development Cess)
o Rice Export Promotion Scheme 2017-22 (Exemption from 2% mandi fees and 0.5% development
Cess)
o U.P. Processed Sesame export policy, 2017-22 (Exemption from 2% mandi fees and 0.5%
development Cess)
Brand Promotion & Export Transportation Subsidy on
o Garlic (Subsidy of Rs. 1 per Kg for Foreign export & Rs. 0.25 per kg. for Marketing to other states)
o Potato Transportation Subsidy & promotion scheme (Subsidy of 50 Rs. Per Qt.)
o Kala Namak Rice (Subsidy of Rs. 0.50 per kg for Brand Promotion & Rs. 2.0 per kg for Export
Transportation )
Export Promotion Incentive Scheme, 2018 has been launched to promote new agricultural export
entrepreneurs.
Mandi Fees Compounding Schemes For GUDH & KHANDSARI Units
MANDI PARISHAD towards AGRI EXPORT & BUSINESS
MANDI towards
TRANSPARENT SYSTEM AND TRANSACTIONS
E-nam for unified national market for trading
In line with future of the technology, UPSAMB has integrated 100 of its biggest
Mandis in the Govt. of India’s sponsored National Agriculture Marketing Network popularly
known as e-NAM. Apart from this, 25 other APMCs are being linked with e-NAM.
E-mandi
Mandi Parishad Converts all 251 APMC in E-mandi under the concept of-
• Virtual Platform supported/linked by physical mandi
• Integrated online system for all business activities
• Web based /mobile app based system (daily rate registration)
• Linked with other online services like BANK through Secured and Robust
Gateway
In APMC’s For the convenience of farmer and traders registration E-licence
process has been implemented.
Under BGREI Scheme the Storage capacity has been augmented at 4 places and 7 more
projects have been initiated
Partnership is being done with State Ware Housing Corporation for development of 5000
MT to 10000 MT Godowns in about 40 APMC Market Yards
UPSAMPB has established Mango Pack Houses (Lucknow & Saharanpur) in which
series of activities from mango sorting to cleaning, washing, grading and packing after
processing with the help of computerised machines (Grading Line, Pre Cold Room, V.H.T.
Plant Hot Water Dip Immigration Treatment etc. of E.U. standard) (We invite interests of
private players in it)
There are various schemes aimed at providing critical support to Farmers in case of
accidents and emergencies and in case of damages to crops. Similarly, there are welfare
schemes for traders also in case of an accident.
MANDI PARISHAD Marching Ahead
1. Creation of
Private markets
Consumer-to-farmer
Markets of national importance (MNI)
Special commodity markets
Concept of market-sub yard at warehouse/cold storage/silos
Direct marketing (Direct interface between farmers & processors/exporters/ bulk
buyers/ end users)
2. Strengthening the Present act
One nation one market
Liberalisation
Emphasis to Promotion and Facilitation
Value addition in Agri produce
Creation of Marketing Infra Backbone
Local-Meet-Global & Global-Meet-Local
Road ahead
Thank You"State Agricultural Produce Markets Board, Uttar Pradesh"
Kisan Mandi Bhawan, Vibhuti Khand, Gomti Nagar, Lucknow - 226010
E-mail : [email protected]
hone : 0522 - 2720383, 2720384, 2720405
Fax : 0522 – 2720382
For Any Query ContactName Designation Contact Number
Amit Mohan Prasad
(IAS)
Principal Secretary,
Agriculture Marketing And Agriculture
foreign trade, Govt of UP
0522-2237617
Arvind Kumar Singh
(IAS)
Director,
Directorate of Agriculture Marketing &
Agriculture Foreign Trade U.P.
0522-2720326,
6306693068
Jitendra Pratap Singh
(IAS)
Director,
Mandi Parishad, Uttar Pradesh
0522-2720381,
9670998822,
8765957000
Kumar Vineet (PCS) Additional Director,
Mandi Parishad, Uttar Pradesh
0522-2720387,
9415074322,
8765956777