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Review of APMC Act and Reform Initiatives (28 th -30 th August,2012)

Review of APMC Act and Reform Initiatives (28 th -30 th August,2012). Lallan Rai Ex- Asstt AMA/Consultant, Directorate of Marketing and Inspection N.H.IV, Faridabad-121001. Outline of Presentation. Agriculture Scenario Agricultural Marketing Scenario Review of APMC Act

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Review of APMC Act and Reform Initiatives (28 th -30 th August,2012)

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  1. Review of APMC Act and Reform Initiatives(28th-30th August,2012)

    LallanRai Ex-Asstt AMA/Consultant, Directorate of Marketing and Inspection N.H.IV, Faridabad-121001 COSAMB Meeting
  2. Outline of Presentation Agriculture Scenario Agricultural Marketing Scenario Review of APMC Act Present APMC Act-Issues and Concerns Need for Market Reforms Model APMC Act, 2003 Progress of Market Reforms Initiatives by States Need for Future Action COSAMB Meeting
  3. Agriculture Scenario COSAMB Meeting
  4. Production Trends COSAMB Meeting
  5. Agricultural Marketing Scenario COSAMB Meeting
  6. High Post-harvest Losses COSAMB Meeting Source: ICAR Study, 2010
  7. COSAMB Meeting Source: Price Policy for Rabi crops, the Marketing season- 2012-13
  8. How to Safeguard Small Producers? Present Agricultural Marketing -Three main Components (GMM): Statutory charges (6 to 12 per cent); Net margins of intermediates (6-20 per cent); and Real cost of performing marketing functions (68 to 88 per cent). Reduction in real cost of marketing require increasing scale of operations and technological change in the marketing system. Small farmers with low marketed surplus cannot do it. The organized sector is coming up in a big way and their role is important. Need for an institutional revolution to enable the producer organizations with professional management to emerge in the scene. Can we think of farmers’ corporations /Producers’ Companies to emerge in production as well as processing and marketing of agricultural commodities? Implications of this form of institutional set up in agricultural marketing need critical examination and serious debate. COSAMB Meeting (Source: Prof.S.S. Acharya Paper)
  9. Review of APMC Act Initial Regulatory Framework: Agriculture Marketing- a State subject- regulated through respective State APMC Act 27States and 1 UT have APMC Act Major Objectives of APMC Act: Development of Market Infrastructure Open Auction for price discovery Fair Value for farmer’s produce Standardized Charges Prompt payment to farmer Dispute Settlement COSAMB Meeting
  10. Progress of Regulation of Markets COSAMB Meeting
  11. Density of Regulated markets COSAMB Meeting
  12. Status of Cold Storages (31.12.2009) Numbers of Cold Storages Capacity in ‘000 tonnes COSAMB Meeting
  13. Establishment of Market Committee Responsibility of enforcement of provisions of the Act rests with Market Committee Except Tamil Nadu(One Committee for all markets in the District) all State Acts provide for constitution of separate Market Committee In Maharashtra separate Market Committee for Greater Mumbai The number and constituents of the membership of the Market Committee differ with other Committees of State TN Act permits Co-operative Marketing Societies to establish a market after observing certain formalities It is, therefore, necessary to have a Taluk level Market Committee with uniform pattern in all the States/UTs COSAMB Meeting
  14. Election of Members of Committee In most of the States provision of direct election of non-official members In Himachal Pradesh, the members are appointed by the Board out of the Panel maintained (given by the concerned District Commissioners) There should be indirect election of members from amongst the Panchayat members (already elected through direct election) to save wasteful expenditure COSAMB Meeting
  15. Composition of APMCs (%) COSAMB Meeting
  16. Numerical strength of Market Committees COSAMB Meeting
  17. Commodity Coverage Commodities included in the Schedule or declared as such by the Government Notification In Andhra Pradesh, Tamil Nadu, U.P., Maharashtra, Gujarat, Rajasthan, Odisha, Punjab and Chandigarh regulation is specified in the Schedule Except Andhra Pradesh and Tamil Nadu all the Acts provides for inclusion as well as deletion of any agricultural produce from the list of notified commodities Manner of Notification as well as commodity coverage also vary from State to State No provision exists for livestock inPunjab, Chandigarh, HP, MP and Tamil Nadu COSAMB Meeting
  18. Realization of Market Fee By APMCs COSAMB Meeting
  19. Contribution of income of APMCs to SAMB COSAMB Meeting
  20. Settlement of disputes in various States COSAMB Meeting
  21. Present APMC Act -Issues Issues and Concerns: Traders can not buy outside Market Yard-add to cost Market Density Low – Long travel Infrastructural facilities inadequate in markets Rural Periodic Markets not properly developed Bureaucratic management- lost original purpose Congestion in market yards Several Malpractices continue Barrier to entry-Strong associations, License linked to shops Market fee not used for development in some cases APMCs emerged as monopoly COSAMB Meeting
  22. Need for reform in Agricultural Marketing
  23. Model Act, 2003- Salient Features Establishment of Market in Private and Cooperative sector Promotion of Direct Marketing and Contract Farming Establishment of Farmer/Consumer Markets Single point licensing & Single Point levy of market fee/cess Setting up of Special Commodity Markets/ Promotion of e-trading Professional management of APMCs COSAMB Meeting
  24. Progress of Market Reforms COSAMB Meeting
  25. Provisions of Model Act Adopted (con..) COSAMB Meeting
  26. Provisions of Model Act Adopted COSAMB Meeting
  27. Initiatives Taken by States Common License for Direct procurement from farmers has been provided by Maharashtra (23), MP (8), Rajasthan (1) and Karnataka(249) License for Direct marketing has been provided by Andhra Pradesh(171), Gujarat(21), Haryana(37), Himachal Pradesh(12) Karnataka(9), Maharashtra(107), Odisha(46), Punjab(26), Rajasthan (76) and Tamil Nadu(179). License for Private Markets – Andhra Pradesh(2), Rajasthan(2), Gujarat(13), Tamil Nadu(6) and Karnataka(3) License for Spot Exchange has been granted by Gujarat, Maharashtra, Karnataka, Orissa, Rajasthan and Madhya Pradesh M.P.,Uttarakhand and West Bengal have waived market fee on sale of fruit & vegetables. Government of Haryana introduced E-license to commission agents Smart Card based electronic records for farmers and Digital Mandi system. COSAMB Meeting
  28. Need for Future Action State Governments to expedite amendment of Act/Rules on the lines of Model Act/Rules COSAMB may pursue member States to complete the Reform process Initiatives for Private Markets/infrastructure development in Reformed States Long term Policy stability to attract investment Organize farmers into Groups/Co-operatives /Producer Companies Promote barrier free National Market COSAMB Meeting
  29. Thank You COSAMB Meeting
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