S.S.RandhawaMD, COSAMB

REGULATORY REGIME IN

INDIAN AGRICULTURAL

MARKETING

State Governments (except Kerala, Manipur, Bihar and UTs of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu & Lakshadweep) enacted Marketing legislation to provide competitive and transparent transactions

At base level there are Agricultural Produce Markets Committee (APMC’s)

All APMC’s are controlled by State Agricultural Marketing Board (SAMBs)

Over all controlling authority is the respective State Government.

MARKETING LEGISLATION & STRUCTURE

GROWTH OF REGULATED MARKETS

Period No. of Regulated Mkts

• Prior to1939• End of 1940• End of 1950• March, 1961• March, 1974• March, 1985• March, 1990• March, 2000• March, 2010

57 73 286 715 1777 5695 6217 7077 7157

‘Notified Market Area’ is a cluster of villages

Each notified market area may have:

One principal market yardOne or more sub market yardsSeasonal markets for particular crops, andOne or more private market yards

NOTIFIED MARKET AREA

Each notified market area is controlled by a separate Agricultural Produce Market Committee (APMC)

Constituted by the respective State Government

Representatives of producers, commission agents, processors and other market functionaries like weigh men, surveyors or brokers

AGRICULTURAL PRODUCE MARKET COMMITTEE (APMC)

Number to represent each category is decided by State Government

Members are elected or nominated from categories as above by the State Government amongst the other local bodies elected members

Each APMC has a Chairman and a Vice- Chairman, either elected or nominated in the same way as other members

CONT..

Provide for improved regulation Development of efficient marketing system Promotion of agri-processing and agricultural

exports Establishment and proper administration of

markets Put in place an effective infrastructure for

marketing Provision of other facilities required thereof,

and Lay down procedures and system thereto etc

PURPOSE OF APMCS

APMCs are Body corporate (Corporation), and Local authority (local government)

Have perpetual succession and commonseal, and

Also have the right to acquire, hold and sell property

INCORPORATION OF APMCS

Unless exempted by laws - no person shall: Either for himself or on behalf of another

person or of the State Government, within the notified market area, set up or establish any place for the purchase, sale, storage and processing of the agricultural produce so notified, or purchase, sell, store or process such agricultural produce, except under a license granted/registration in accordance with the law and the conditions specified in the license/registration

LICENSE/REGISTRATION FOR MARKET FUNCTIONARIES

A license is not required by a producer to sell himself or through a bona fide agent (not being a commission agent), his own agricultural produce or the agricultural produce of his tenants on their behalf, and also by a person who purchases any agricultural produce for his private use

CONT…

Notified market charges can only be levied in a market as: Incidental charges - to be paid by the seller,

related to activities before the auction of produce such as unloading, cleaning, dressing (in cotton only), or

Market charges - to be paid by the buyer, related to activities after the auction of produce such as filling of bags, weighing, stitching, loading and other charges like commission of commission agent, payment of market fee to APMC etc.

HANDLING CHARGES IN THE MARKET

Market fee is levied and collected by APMCs: On bought or sold of agricultural produce

(also on bought for processing in some areas)

From the buyer of the produce, and On advelorum basis (rate varies from 0%-

2%), varies with crop to crop and APMC to APMC

MARKET FEE

It is a fee, not a tax, so it can be spent only on the area from which it is realized

It is in lieu of the use of infrastructure and other marketing related facilities provided by APMCs in the notified market area, even the rural link/approach roads, culverts/bridges are constructed/maintained by the APMCs in the notified market area

CONT..

All commodities, processed or unprocessed of : AgricultureHorticultureForestrySericultureApiculture, orAnimal husbandry are notified by the State Government

NOTIFIED AGRICULTURAL COMMODITY

A person, who offers his services to sell the produce

In consideration of a commission or percentage on the amount involved in such transactions

Or, who on behalf of his principal trader buys agricultural produce and makes payment

Keeps it in his safe custody and delivers it to the principal trader in due course

COMMISSION AGENT

Or, who receives and takes in his custody agricultural produce sent for sale within the market area or from outside the market area

Sells the same in the market area and collects payment thereof from the buyer and remits the sale proceeds to seller

CONT..

Responsible for: Safe custody of produce till delivered to

buyer Making the payment to seller on specified

time Issue sale and purchase vouchers to seller

and the concerned buyer

Make arrangements for the labor required for market operations and to pay after deducting from concerned availing the services

To get the produce cleaned and make it fit for sale

CONT..

To provide equipments for unloading, leaning, filling, weighing, and stitching of bags

Conducting the auction of produce, maintain records of sales and purchases

Provide every information to APMC and file specified returns on time

Keep the market and auction platformclean

Cooperation in trade and fair dealing inbusiness

Take only the specified commission

CONT..

Selection of site How much area is required Planning and designing Provision of institutional areas Provide, construct, maintain and manage

the public areas Provision and supply of public utility

services Provision of suitable/reasonable space for

persons to transact business Waste management (perishable and

sewerage)

MARKET MANAGEMENT RESPONSIBILITIES

Avoid adulteration in produce Control on the sale of produce as per quality

standards Regulation over the sale, purchase, storage and

processing of produce Management of the traffic Regulation in the market Facilities of value addition Dissemination of data Training, research and extension activities for

the producer sellers, market functionaries, traders as well as small and bulk buyers

CONT..

Must bear the responsibilities and perform the duties assigned

Provide all the equipments and other services/facilities for which they are charging

Create working atmosphere and coordinate with all market participants visiting therein

Provide all the information of the activities undertaken

RESPONSIBILITIES OF MARKET FUNCTIONARIES

Provide detailed information about the quantum of each kind and variety of produce sold, price charged for different produce and charges deducted as incidental or market activities

Maintain accurate records and pay the levies or services which they have used

Adopt the food safety norms and hygienic practices

Obey the regulations to achieve the purposes of the project

CONT..

Recent challenges put forth by globalization and WTO

Changed the scenario of agricultural marketing

The policy framework in agricultural marketing attained special significance in early 2000

The roles and responsibilities of APMCs and SAMBs have been remodeled

RECENT MARKET REFORMS

The draft model legislation titled “The ……… State

Agricultural Produce Marketing (Development and Regulation) Act, 2003”, circulated by GOI to all the State Governments for adoption indicates the provisions for:

Any legal persons, growers and local authorities can apply for establishment of new market

Establishment of private markets/yards for provision of market infrastructure or for direct purchase from producer

CONT..

Direct marketing Contract farming Establishment of special markets or special

commodity markets Consumer/producers’ markets for direct

sale APMCs are made specially responsible for

ensuring transparency in pricing and transactions taking place there provide market led extension services

CONT..

Ensuring payment for agricultural produce sold on the same day promoting agricultural processing and value addition

Publicizing data of arrivals and rates of agricultural produce

Public private participation in management and to create infrastructure of markets

Appointment of CEO among the professionals

CONT..

Registration of contract farming sponsored, agreement and also direct sale sponsors premises

Single license for the whole state Prohibition of purchasing agricultural produce

by the commission agent himself, without the consent of seller

e–trading /market/marketing

CONT..

SAMB’s are made responsible for setting a separate market extension cell for market led extension services, and

To set up a separate agricultural produce

marketing standard bureau

In line with the reforms suggested, States have brought amendments in some of the States/areas in the respective acts / rules / byelaws, but some of the States are in the process of implementation

CONT…

THANKS