Agricultural marketing in india apmc

1. Legal framework on
agricultural marketing in
india-APMC Act

2. Agri-Markets in India
 6261 Wholesale Markets in India (majority are regulated
markets)
 20870 Rural Primary Markets (about 15% are regulated
markets)
Total – 27131
 2459 Principal Regulated Markets
 5006 Regulated Market Sub-yards
Total – 7465
(Only 286 regulated markets in 1950)

3. Contribution of Regulated
Markets
Basic objective has been-
 to ensure reasonable gain to the farmers by creating environment
in markets for fair play of supply and demand forces,
 to regulate market practices and attain transparency in
transactions
 Aimed at providing proper method of sale, correct weighment,
prompt payment and various marketing related services
 Democratic set up to control and manage markets
 Advent of regulated markets has helped in mitigating the market
handicaps of producers/ sellers at the wholesale assembling level
 Achieved only limited success and Rural Periodic Markets in
general, and the tribal markets in particular, remained out of its
developmental ambit.

4. Initiative of Market Reforms
 Amendments in APMC Acts suggested by Expert Committee on
Market Reforms constituted by the Ministry of Agriculture (Report in
2001)
 Expert Committee recommendations discussed in the National
Conference of State Agriculture Marketing Ministers on 2002
 Standing Committee of State Agricultural Marketing Ministers
constituted under the Chairmanship of Union MOS (A) met &
resolved to implement reforms on 2003
 Committee headed by Additional Secretary (AM), GOI including State
Representatives set up to draft a Model Law for Agri-Marketing

5.  Model APMR Act finalized on 2003 by the Committee
and circulated to States by Central Government
 Model Rules based on the Model Act circulated to
States by the Ministry in November, 2007
 NDC has resolved for completion of amendments in
APMC Acts and notification of Rules there under by
March, 2008.

6. Amendments Proposed in
Model APMC Act
 Allow establishment of Private or Cooperative markets/
Farmer-consumer markets/ Direct marketing
 Safeguard the interest of the farmers through provisions
for Contract Farming
 Single point levy & payment of market fee/ Single point
registration of functionaries
 Prohibition of Commission Agents for agriculturists and
no deduction to be made towards commission

7.  PPP in management & extension activities/ Promotion
of e-trading/ Electronic Spot Exchanges
 Encouraging professional management in APMCs
 Promotion of Grading & Standardization.

9. Proposed Legal Framework of
Contract Farming
 Contract Farming Sponsor to register himself with a
prescribed officer
 The Contract Farming Sponsor to get the contract
farming agreement recorded with a prescribed officer
 No title, rights, ownership or possession shall be
transferred or alienated or vest in the contract farming
sponsor or his successor or his agent as a consequence
arising out of the contract farming agreement

10.  Fast Dispute Settlement Mechanism at local level
 Specification of Model Agreement for Contract
Farming to ensure inclusion of terms & conditions
safeguarding interest of both farmers & buyers.

11.  The specific areas identified for reforms in the
State Agricultural Produce Marketing
Regulations Acts (APMC) are
(a) Promotion of integrated markets in Private
/Co-Operative sector

12.  The integrated market infrastructure services will in
addition to the physical infrastructure include: -
 Assembling
 Cleaning Sorting Grading packaging and quality
certification
 Storage and finance
 Transport
 Retailing and Wholesaling
 E- trading
 Warehousing and pledge financing
 Value addition and
 Market information exchange service.

13. b) Direct Marketing
c) Contract Farming
d) Direct Contract between Producers &
Processing Factories
e) Direct Purchase from farmers without any
license
f) Notification of Commodities
g) Single Point Levy of Market Fee
h) Tax

14. Programmatic Initiatives
based on Reforms
• Reform-linked central assistance to encourage public/
private investment for development of marketing
infrastructure, common facilities for aggregation &
value addition of produce and grading/ packaging/
quality certification facilities
• Scheme to set up modern terminal markets under NHM
for perishable agricultural produce with suitable
backward & forward linkages
• Development of post-harvest/ cold chain infrastructure,
CA storage facilities, refrigerated transportation by
road/ rail, perishable cargo centres at air & sea ports
under NHM

15. • Action Plan for development of Food Processing
Industries including setting up of Mega Food Parks
• World Bank assisted MACP and ADB Study for Agri-
business Development Project.

16. Other Special Concerns
 In some States, registration of contract farming
sponsors or processors vested with the Secretary of the
APMC – should be out of APMC’s purview (better at
State level)
 In some States, contract farming dispute settlement
authority is State Level/ Divisional Officer – should have
been kept at below District level for easy access to
farmers
 In some States, Private Markets have been restricted
within a specified distance from the existing regulated
markets under the Rules.

17. References
 http://agricoop.nic.in/policyincentives/p
rogress.pdf
 http://www.freshproduceindia.com/res
ources/documents/1333121395Sukhp
al_Singh.pdf
 http://agmarknet.nic.in/amrscheme/am
r1.htm

18. Thank you….