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Agricultural Marketing Reforms

Agricultural Marketing Reforms. RABI CONFERENCE-2005. As a Farmer. I must thank all of you for your efforts and concerns But what use if I can not be facilitated to sell my produce at Remunerative Price / Quality linked returns Choose my buyer Place and time convenient to me

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Agricultural Marketing Reforms

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  1. Agricultural Marketing Reforms RABI CONFERENCE-2005

  2. As a Farmer • I must thank all of you for your efforts and concerns • But what use if I can not be facilitated to sell my produce at • Remunerative Price / Quality linked returns • Choose my buyer • Place and time convenient to me • Escape the fleecing of multiple intermediaries

  3. Increasing Farmers Income • 90% of effort is Production oriented • Only 10% on Marketing/Post harvest phases • Single intervention that can enhance income by 20-30% • Private Sector Investment

  4. Domestic Markets Scenario • Regulated Markets. • 7161 of 7310 Wholesale Markets Covered Under Regulation. • Of 27,294 Rural Markets, 15% Under Regulation

  5. Domestic Markets Scenario • Regulated MarketsLack Need Based Infrastructure. • Development Confinedto Wholesale Markets. Rural Markets Remain Out of Development Ambit • Current Mandi System Has Multiple Intermediaries and High Value Loss • APMC Regulation Prevents Companies From Directly Sourcing From Farmers

  6. Domestic Markets Scenario • Fragmented Industry, with no Large Organized Players • High Wastage between the Farm and the Retailer

  7. Present Scenario in Value Chain • Producer’s Share in Consumer’s Retail Price Mere 40% to 60% depending on the commodity • Only 25% of Produced Food-grains Utilise Scientific Storage • Less Than 2% of Fruits and Vegetables Production Is Processed • Post-harvest Losses estimate 10% of Food Grain and 25% of Fruits and Vegetables Production

  8. Problems • Competitiveness is lost • Quality assurance is a ? • Loss of Value • Export is a problem • No Grading/Standardization • Consumer Dissatisfaction • No Market Intelligence • No Price Discovery

  9. Paradigm Shift • Present Agriculture is Production Driven • Transition to Agri-Business • Market Driven • What Consumer Wants ? • Cutting the value Chain • Knowledge led growth • Private Investment

  10. Investment Requirement(Rs. in crores)

  11. Source of Investment • Public Investment ?? • Significant role of Private Sector • How do we get them into the sector • Create enabling Policy and Legal framework • This requires Reforms

  12. Road Map of Reforms • Create enabling Legal and Policy environment • Private / Cooperative Markets • Direct Marketing and • Contract Farming Programs • Grading/Standardisation/Quality

  13. Road Map of Reforms • Establish Effective Linkages Between Farm Production And Retail Chains • Public–Private-Partnership to Promote Professionalism in Existing Markets • Stepping-Up of Pledge Financing and Marketing Credit

  14. Road Map of Reforms • Introduction of Negotiable Warehouse Receipt System In Storage Projects • Link Commodity Exchange with Market Yards for Price and Risk Management • Information Technology to Promote Trade/ Market Led Extension Services • Facilitate Investments

  15. Leaders In Reforms • Kerala, • Tamil Nadu • Madhya Pradesh • Andhra Pradesh • Punjab • Himachal Pradesh • Sikkim • Manipur • Nagaland • Andaman & Nicobar

  16. Followers • Many States • Enabled some components • Require all Components

  17. Scheme For Development / Strengthening Of Agricultural Marketing Infrastructure, Grading And Standardization

  18. Objectives of the Scheme • To Induce Private and Cooperative Sector Investments in Market Infrastructure Development Projects • To Strengthen Existing Agricultural Markets, wholesale and rural periodic, to Enhance Efficiency • To Promote Grading, Standardization and Quality Certification of Agricultural Produce at Farm/ Market Level

  19. Coverage of the Scheme • Agriculture/Horticulture • Fisheries • Meat & Poultry • Minor Forest Produce • Dairy • Medicinal plants • Apiculture

  20. Components of the Scheme • Functional Infrastructure • Market user common facilities • Shortening the Value Chain • Direct Marketing • Contract Farming • E-Trading Infrastructure • Market extension and market oriented production planning • Input Supply

  21. Functional Infrastructure • Assembling • Combine harvesters • Cleaning • Assembling yards • Collection centers • Pre-cooling Chambers • Grading • Mechanical graders • Color sorters • Standardisation

  22. Functional Infrastructure • Quality Certification • Establishing a Quality Lab • Accredited Certified agency Infrastructure • On-Farm Quality Testing Infrastructure ( Sugarcane Quality Testing for timely harvesting and Maximum Sucrose Content) • Grapes Certification

  23. Functional Infrastructure • Labeling • Bar coding • Packaging • Pack houses • Packing material manufacturing as part of the integrated project • Retailing & wholesaling • Food world • Nilgiris • Namdharis in Delhi

  24. Functional Infrastructure • Value addition • Decortication of Groundnut • Waxing of Kinnows • Curing of Honey

  25. Market user common facilities • Market yards • Platforms for loading/ assembling and auctioning of the produce etc • Modern auction Systems • Weighing and Mechanical Equipment

  26. Shortening the Value Chain • Infrastructure for Direct marketing from producers to consumers/ processing units/ bulk buyers etc • Infrastructure for supporting Contract farming arrangements between processing/ trading units and farm producers • Infrastructure for E-Trading, market extension and market oriented production planning.

  27. Scope of Infrastructure Projects • Infrastructure for supply of production inputs and need based services to farmers • AI infrastructure • Fertilizer storage units • Feed storage units • Marketing Intelligence • Mobile infrastructure for post-harvest operations • Market extension and market oriented production planning

  28. Salient Features of Scheme • Credit Linked Back-ended Subsidy on Capital Investment for • Setting up of General or Commodity Specific Infrastructure for Marketing of Agricultural Commodities; and • Strengthening and Modernization of Existing Agricultural Markets, Wholesale, Rural Periodic or in Tribal Areas

  29. Salient Features of Scheme Persons Eligible • Individuals, Farmers, Consumers, NGOs, APMC, Corporations, Cooperatives and Marketing Boards in the Entire Country. • State Projects Assisted by NABARD/NCDC for Modernization of Existing Markets Subject to States allowing • Competitive Markets in Private Sector • Direct Marketing and Contract Farming • Rationalize levy of Market Fee

  30. Funding Arrangement S.No. Components of SchemeTenth Plan Provision (Rs. In crores) • Capital Investment Subsidy on175.00 Infrastructure Project • Strengthening of Central Laboratories10.00 • Awareness/Training, Consultancy and5.00 Evaluation etc. Total -190.00

  31. Involve Women through SHGs

  32. Expectations from Participants • Treat marketing as an integral and critical link • Awareness creation & Publicity • Identify viable projects • Capacity Building of all players • NIAM, NABCONS can assist in Capacity building, Project Preparation • Assistance of Trained Project preparation Experts

  33. Further Details & Assistance • www.agmarknet.nic.in • reddywr@nic.in • 011 23382416

  34. Thank You

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