Annual Report 2009-2010 - Department of Agriculture & Co-operation

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Annual Report 2009-2010 58 10 Agricultural Marketing 10.1 Organised marketing of agricultural commodities has been promoted in the country through a network of regulated markets. Most of the state governments and UTs have enacted legislation (the APMC Act) to provide for regulation of agricultural produce markets. While by the end of 1950, there were 286 regulated markets in the country, the number stands at 7,139 as on 31 March 2009. Besides, the country has 20,868 rural periodical markets, about 15 per cent of which function under the ambit of regulation. The advent of regulated markets has helped in mitigating the market handicap of producers and sellers at the wholesale assembling level. But, rural periodic markets in general and tribal markets in particular, remained out of the developmental ambit of regulated markets. 10.2 Constraints in the Present System of Agriculture Marketing in India: The purpose of state regulation of agricultural markets was to protect farmers from exploitation by intermediaries and traders and also to ensure better prices and timely payment for their produce. Over a period of time these markets have, however, acquired the status of restrictive and monopolistic markets, providing no help in direct and free marketing, organised retailing or smooth raw material supplies to agro-processing. Exporters, processors, and retail chain operators cannot procure directly from the farmers as the produce is required to be channelled through regulated markets and licensed traders. In the process, there is an enormous increase in the cost of marketing and the farmer ends up getting a low price for his/her produce. Monopolistic practices and modalities of state-controlled markets have prevented private investment in the sector. Postharvest losses are estimated to be of the order of five to seven per cent in food grains and 25 to 30 per cent in the case of fruits and vegetables. 10.3 The Government has been playing an important role in developing the agricultural marketing system in the country. The Department of Agriculture and Cooperation has three
organisations dealing with marketing under its administrative control, namely, the Directorate of Marketing and Inspection (DMI), Faridabad, Chaudhry Charan Singh National Institute of Agricultural Marketing (NIAM), Jaipur, and Small Farmers Agri-Business Consortium (SFAC), New Delhi. 10.4 Need for Reforms: The agriculture sector needs well-functioning markets to drive growth, employment, and economic prosperity in the rural areas of the country. In order to provide dynamism and efficiency to the marketing system, large investments are required for the development of post-harvest and cold chain infrastructure near farmers' fields. A major portion of this investment is expected from the private sector, for which an appropriate regulatory and policy environment is necessary. Enabling policies also need to be put in place to encourage the procurement of agricultural commodities directly from farmers' fields and to establish an effective linkage between farm production, the retail chain, and food processing industries. Accordingly, this Ministry suggested amendments to the state APMC Acts for the deregulation of the marketing system in the country in order to promote investment in the marketing infrastructure, motivate the corporate sector to undertake direct marketing, and to facilitate a national integrated market. 10.5 The DAC also formulated a model law on agricultural marketing for guidance and adoption by state governments. The model legislation provides for the establishment of private markets/yards, direct purchase centres, consumer/farmers' markets for direct sale, and promotion of public-private partnership in the management and development of agricultural markets in the country. A provision has also been made in the Act for the constitution of State Agricultural Produce Marketing Standards Bureaus for the promotion of grading, standardisation, and quality certification of agricultural produce. This would facilitate pledge financing, direct purchasing, forward/futures trading, and exports. A statement indicating the state-wise status of amendments to the APMC Act is given in Table 10.1. Table 10.1: Status of reforms in agricultural marketing (APMC Act) as on 31 December 2009 S.No. State of Reforms States/Union Territories 1. States/UTs where reforms to APMC Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Act have been made Goa, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura 2. States/UTs where reforms to APMC a) Direct Marketing: NCT of Delhi Act have been made partially b) Contract Farming: Haryana, Punjab, and Chandigarh c) Private Markets: Punjab and Chandigarh 3. States/UTs where there is no APMC Act, Kerala, Manipur, Bihar*, Andaman and Nicobar Islands, and hence not requiring reforms Dadra and Nagar Haveli, Daman and Diu, Lakshadweep 4. States/UTs where APMC Act already Tamil Nadu provides for the reforms 5. States/UTs where administrative action Mizoram, Meghalaya, Haryana, Jammu and Kashmir, has been initiated for reforms Uttarakhand, Uttar Pradesh, West Bengal, NCT of Delhi, and Pondicherry * APMC Act is repealed w.e.f. 1 September 2006 Agricultural Marketing 59
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Annual Report 2009-2010 DEPARTMENT
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Annexures S. No. Annexures Page No.
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S. No. Tables Page No. Table 8.2 Se
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CPIS Coconut Palm Insurance Scheme
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KRIBHCO Krishak Bharti Cooperative
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SAU State Agricultural University S
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Annual Report 2009-2010 2 Table 1.1
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Annual Report 2009-2010 4 223.18 la
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Annual Report 2009-2010 6 under oth
Page 21 and 22: Seeds 1.36 The major thrust of the
Page 23 and 24: The Parliamentary Standing Committe
Page 25 and 26: concerned from time to time. As par
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Page 29 and 30: y Rs.30 per quintal each. The MSPs
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Page 41 and 42: 4.35 Pulses: Pulses are a basic ing
Page 43 and 44: 7677.46 lakhs for Rabi 2009-10, to
Page 45 and 46: 5.1 Seeds are a basic and critical
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Page 57 and 58: needs of farmers. Some of the impor
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Page 65 and 66: narrowcasting centres, 18 regional
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23.1 Introduction and Salient Featu
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23.8 Stream of Projects in RKVY: RK
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24 Gender Perspectives 24.1 In line
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(i) Baseline surveys, at the rate o
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women's self-help groups and 18,075
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science and technology, implements,
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I. ATTACHED OFFICES CHAPTER-2 FUNCT
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CHAPTER-2 FUNCTIONS AND ORGANISATIO
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Sl. Commodity Variety 2005-06 2006-
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Name of Division : Extension CHAPTE
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eporting market data on arrival and
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CHAPTER-14 NATURAL RESOURCE MANAGEM
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CHAPTER-19 MACRO MANAGEMENT OF AGRI
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Sl. Division/Subject Scheme/Compone
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