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Regulated markets system in India

The document discusses the regulation of agricultural marketing in India, detailing the establishment and objectives of regulated markets to improve conditions for farmers, reduce exploitation, and enhance efficiency. It outlines the historical development of these markets, key features, and the administrative structure supporting agricultural marketing boards, along with recent initiatives aimed at strengthening agricultural marketing infrastructure. Despite progress in creating regulated markets, challenges like bureaucratic management and monopolization remain, necessitating further reforms and enhanced market facilities.

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REGULATION OF AGRICULTURAL MARKETING REGULATED MARKETS STATE AGRICULTURAL MARKETING BOARDS RECENT INITIATIVES FOR IMPROVING AGRICULTURAL MARKETING Lecture 16
INTRODUCTION  Under the traditional system of marketing of the agricultural products, producer -sellers incurred a high marketing cost, and suffered from unauthorized deductions of marketing charges and the prevalence of many marketing malpractices.  To improve marketing conditions with a view to creating fair competitive conditions, the increase in the bargaining power of producer sellers was considered to be the most important prerequisite of orderly marketing.  Most of the defects of, and malpractices under, the then existing marketing system of agricultural products have been more or less removed by the exercise of public control over the markets i.e by the establishment of regulated markets in the country
DEFINITION  A regulated market is one which aims at the elimination of the unhealthy and unscrupulous practices ,reducing marketing charges and providing facilities to produce sellers in the market .  Any legislative measure designed to regulate the marketing of agricultural produce in order to establish, improve and enforce standard marketing practices and charges may be termed as one which aims at the establishment of regulated markets.  The basic objective has been to create conditions for efficient performance of the private trade ,through facilitating free and informal competition.  The basic philosophy of the regulated market s is elimination of malpractices in the system and assignment of dominating power to the farmers or their representatives in the functioning of markets
OBJECTIVES  To prevent the exploitation of the farmers by ovrcoming the handicaps in the marketing of their products  To make the marketing system most effective and efficient so that farmers may get better prices for their produce and the goods are made available to consumers at reasonable prices  To provide incentive prices to farmers for inducing them to increase the production both in quantitatve and qualitative terms  To promote an orderly marketing of agricultural produce by improving the infrastructural facilities
HISTORY  The need for the regulation of markets arose from the anxiety of the British rulers to make available supplies of pure cotton at reasonable prices to the textiles mills in Manchester.  The first regulated market Karanjia cotton market was established as early as in 1886 under the Hyderabad residency order.  The first legislation was the Berar cotton and grain market act of 1897.under the provision of this act ,the British resident acquired the authority to declare any place in the assigned district a market for the sale and purchase of agricultural produce and to form a committee to supervise the regulated markets.
 The 1897 act became a model act for legislation in the other parts of country .The Indian committee ,appointed by the government of India in1917 ,recommended the regulation of cotton markets on the lines of the Berar act.  In 1927 ,the government of Bombay province was the first to enact the Bombay cotton market act. this was the first law in the country which attempted to regulate markets with a view to evolving fair market practices.  The royal commission on agriculture in its report 1928recommed regulation of market practices .its recommendations were subsequently endorsed by central banking enquiry committee1931  In 1935 The government of India established the office of the agricultural marketing advisor (DMI) under the ministry of food and agriculture .
 Regulation of markets for agricultural produce was stressed by several committees and commissions from time to time. They have recommend for bringing all the agricultural products including horticulture, forestry and livestock under the purview of agricultural produce markets acts.
PROGRESS  Though the establishment of regulated markets was started during 1930s the programme got momentum after independence. The number of regulated markets which before the commencement of first FYP(Ap 1951) was only 236,increased to 715 in march 1961,5766 in April 1986,7161 in march 2001, 7521 in march 2005,and further to 7566 in march 2006.ther e no. decreased to 7465 in march 2007 and 7157 march 2010 due to the merger or deregulation of some markets as in Bihar state.  The no. of regulated markets is negligible in the states of Arunachal Pradesh, Manipur, Meghalaya, Nagaland and Sikkim  Market regulation has not been enacted in two states ( Jammu and Kashmir and Manipur) and three union territories(Andaman and Nicobar islands ,Dadra and Nagar Haveli and Lakshadweep.
 On average each regulated market in the country serves an area of 459 sq km. the situation varies from state to state in terms of area covered per regulated market. National commission on agriculture had recommended that regulated market should be available within 5km radius. Accordingly the country needs 41838 markets but 27738 markets spread all over the country (21221 are primary and 6261 are terminal and wholesale markets)
IMPORTANT FEATURES OF REGULATED MARKETS  Classification of markets  Based on income class Annual income A class 1.5 - 2.5 cr B class 75lakh – 1.5 cr C class 25 – 75 lakh D class Less than 25 lakh
 Based on major commodities transacted-food grain markets, fruits and vegetables market, flower market, wool market, cotton market and so on.  Method of sale-open auction or close tender  Weighment of produce  Grading of produce  Market news service  Market charges  Payment of value  Licensing of market functionaries  Supervision  Market committees  Finances  Functions of market committee  Settlement of disputes  Eliminating malpractices  Provision of amenities in the market  Farmers response regarding available facilities in regulated markets
NEED FOR REORIENTATION OF MARKET REGULATION  The benefits of regulation in a market vary directly in proportion to the availability or creation of market infrastructural facilities in them  Emphasis in most of the regulated markets has remained mainly on the construction activities( roads ,yards and building) and on collection of market fees  Several weaknesses and malpractices are still reported in the working of the regulated markets  Bureaucratization in the management of the regulated markets exists in most states which resulted in continuation of several malpractices  Most of the regulated markets do not have qualified staff to manage and movement of agricultural produce in the country is not smooth.  Most producers refrain from bringing their commodities to theseregulated markets as they report that there is no additional benefit to them.  The regulated markets have indirectly led to monopolization of trade by the way of granting licenses to different types of market middlemen which in turn are not allowing others to enter in the business of market yards.
STATE AGRICULTURAL MARKETING BOARDS/DIRECTORATES  Delhi Agricultural Marketing Board  Krishi Maratavahini (Karnataka State Daily Market Price Information)  Madhya Pradesh State Agricultural Marketing Board  Maharashtra State Agricultural Marketing Board, Pune  Meghayala State Agricultural Marketing Board  Orissa State Agricultural Marketing Board, Bhubaneswar  Punjab State Marketing Board  Rajasthan State Marketing Board  AP Agricultural Marketing Site  Domestic & Export Market Intelligence Cell, Tamil Nadu Agricultural University and Agricultural Marketing Board, Tamil Nadu
 HP State Agricultural Marketing Board  Haryana State Agricultural Marketing Board  West Bengal State Agricultural Marketing Board  Uttar Pradesh State Agricultural Marketing Board  Gujarat State Agricultural Marketing Board  Jharkhand State Agricultural Marketing Board  Goa State Agricultural Marketing Board
FUNCTIONS  To carry out the training of officers and staff, create facilities for grading and standardization ,construct market roads and approach roads to the markets ,construct market yard and subyards, establish and maintain the board office and others specified  To tender advice to their government on the functioning of market committees and on improvement in the agricultural marketing as and then referred to  To frame by laws,help in he functioning of market committee and supervise their operations
ADMINISTRATIVE STRUCTURE  Chairman  Secretary  Administrative wing  Accounts wing  Technical wing(engineering)with field officers  Town planning (architect) cell  Computer and data analysis section  Quality control section  Publicity and training cell  Post harvest and export promotion cell
COUNCIL OF STATE AGRICULTURAL MARKETING BOARDS (COSAMB)  Its an apex body of the state agricultural marketing boards ,established in February 1988. COSAMB was established with a view to -  Setting up a common forum of national stature to build a think tank and to share the know how and experience in the cause of strong and efficient agricultural marketing.  Providing assistance to the member states and to credit institutions to fix norms for arranging credit from the bank and mobilizing central for development.  Setting up a common organization to hold seminars, workshops , exhibitions and to educate and inspire various functionaries in achieving a sound system of agricultural marketing.
 Creating a national non political autonomous body to pursue policies and issues at the national level  Setting common libraries and build a stock of literature  Establishing contacts with other institutions and organizations in the country and abroad for the latest developments in the field of agricultural marketing and build a data bank  Undertaking and assisting professional ,technical, management and infrastructural and consultancy services in the working of agricultural marketing  Assisting and advising the central government and the state governments or members in setting up training centers'  Seeking representation of COSAMB in various committees of the central and state governments
RECENT INITIATIVES FOR IMPROVING AGRICULTURAL MARKETING  High powered committee on agricultural marketing,1992(guru committee)- it was appointed by the government of India under the chairman ship of Shri Shankar lal Guru, the then chairman of COSMB and Gujarat SAMB to suggest improvements in the functioning of the market regulation scheme. Committee made in all 89 recommendations relating to agricultural marketing like legal frame work , marketing organizations,central assistance scheme, marketing credit, post harvest technology ,research and education.
EXPECT GROUP ON AGRICULTURAL MARKETING(ACHARYA GROUP)  The ministry of rural areas and employment of the government of India in July 1998,constitutedan expert group for suggesting measures to strength the agricultural marketing division of the ministry and to widen its scope to facilitate the development of marketing network as growth centers in rural areas, the expect group recommended for setting up of a strong division of agricultural marketing in the union ministry of agriculture and making NIAM as professional body
EXPECT COMMITTEE ON STRENGTHENING AND DEVELOPING OF AGRICULTURAL MARKETING (GURU COMMITTEE)  Under chairmanship of Shri Shankar lal Guru, this committee was appointed in December 2000giving 45 recommendations one of recommendations was to make an investment of 2,70,000cr in agricultural marketing infrastructure during 10 years which was based on the detailed exercise done by working group on agricultural marketing infrastructure constituted under the chairmanship of Dr.S.S.Achraya.
INTER-MINISTERIAL TASK FORCE ON AGRICULTURAL MARKETING (JAIN)  It was constituted by the ministry of agriculture ,GOI to operationalise the recommendations of expert committee on strengthening and developing of agricultural marketing under the chairmanship of Shri,R.C.A.Jain,the then special secretary , agriculture on 4th july 2001 . High level committee on long term grain policy (abhijit sen)  The committee was constituted by the union ministry of consumer affairs ,food and public distribution for formulating a long term grain policy for the policy for the country on 17th nov 2000
WORKING GROUP ON AGRICULTURAL MARKETING AND TRADE FOR XI FYP  As a part of preparation of this strategy for agricultural marketing reforms and international trade in agricultural commodities, the planning commission (GOI) constituted a working group in 2006 under the chairmanship of Dr.S.S.Archaya to suggest measures in this regard. the working group reviewed the entire scenario of agricultural marketing and trade and several recommendations.
NEW INITIATIVES  Provision of credit facilities to the producer farmers  Supply of agricultural inputs to the producer farmers  Provision of transport facilities for carrying their produce to the markets from place of production  Providing market extension services  Strengthening of market intelligence activities
AGMARKNET  During the ninth FYP (1997-2002), the directorate of marketing and inspection(DMI).GOI embarked on an ICT project named AGMARKNET has been started for linking all important APMCs, SAMBs, state directorates and DMI regional offices located throughout the country for effective exchange of information on market prices and arrivals of important commodities.  AGMARKNET is expected to play catalytic role in market led extension in India.  The AGMARKNET scheme was started in October 2000 and more than 2700 whole sale markets have been provided electronic connectivity under the scheme.
Regulated markets system in India