9.Adani Agrifresh has opened 3 farmer service centers from which it sells agri inputs to
•farmers and also provides extension services.
•Apple is sold in the market after the harvest season is over when the supply of good quality apple
•is limited to imported apple, thus, benefiting the consumers. This project added a lot of economic
•benefits to Himachal Pradesh.
•75
•Annexure-XII
•Reform linked Schemes to promote Agriculture Marketing Infrastructure
(i)Scheme for Development/Strengthening of Agricultural Marketing Infrastructure Grading
•and Standardization
•With a view to induce large investment in the development of marketing infrastructure as
•envisaged above, the Ministry has formulated a scheme for “Development /Strengthening of
•Agricultural Marketing Infrastructure, Grading and Standardization”. Under this scheme,
•investment subsidy is provided on the capital cost of general or commodity specific infrastructure
•for marketing of agricultural commodities and for strengthening and modernization of existing
•agricultural markets including wholesale, Rural and Periodic Markets. The scheme is reform linked
•and is to be implemented in those States/UTs which have amended the APMC Act to allow for
•setting up of agricultu ral markets in private and cooperative sectors. Under the scheme, back
•ended subsidy @ 25 % of capital cost of the project is provided. However, subsidy is @ 33.3 % of
•capital cost in case of NE States, hilly areas and SC/ST entrepreneurs. For private sect or projects,
•there is a ceiling of Rs.50 lakh for General while Rs.60 lakh for NE States, hilly areas and SC/ST
entrepreneurs.In respect of infrastructure projects of State Agencies, there is no upper ceiling on
•subsidy to be provided under the scheme.
•(ii) Post-harvest Management and Marketing Facilities for Horticulture Crops
•In order to ensure that farmers get good returns of their produce, there is provision for creating
•market Infrastructure viz rural primary markets, wholesale markets and terminal market
•complexes under National Horticulture Mission (NHM). For rural primary markets, credit linked
•back ended subsidy @ 40 % in general areas and @ 55 % in hilly and tribal areas of the maximum
•project cost of Rs. 20.00 lakh is made available. For whol esale markets, credit linked back ended
•subsidy @ 25 % in general areas and @ 33.33 % in hilly and tribal areas with the maximum project
•cost of Rs.100.00 lakh is available.
•(iii) Terminal Market Complex (TMC)
•In order to harness the potential of emerging consumer demand (domestic and international), a
•professionally managed competitive alternate marketing structure that provides multiple choices
•to farmers for sale along with a comprehensive solution to meet key needs of the stakeholders is
necessary.Such a system entails a high investment cost and efficient skills, each of which can be
•infused by inviting private sector participation in the sector. Thus, the Modern Terminal Market
•was conceptualized with the objective of fulfilling the above goal s. The scheme is being
•implemented through a subsidy route under National Horticulture Mission through active
•involvement of all stakeholders at various levels under PPP mode during XI Plan. The funding of
•Terminal Market Complexes for fruit, vegetables an d other commodities in Public –Private–
•Partnership (PPP) mode, under the National Horticulture Mission (NHM) for implementation during
•the XI Plan period will be by providing a subsidy.
•Under the Scheme assistance @ 25 to 40 % (limited to Rs. 50.00 crores with maximum project cost
•of Rs.150.00 crore s), which includes 25 % as floor subsidy plus 15 % as subsidy on bidding is
available.Projects involving subsidy of Rs. 33.00 crore for Terminal Market Complex (TMC) at
•Pothai, Patna (Bihar) and Rs. 28.99 crore s for TMC at Perundurai, Erode District, have been
•sanctioned and in -principle approval has been accorded for establishment of two TMC at Thane
•and Nasik in Maharashtra, two at Madurai and Chennai in Tamil Nadu and one at Sambhalpur in
Odisha.
•76
•Annexure-XIII
•Recommendations by the Sub-Group on Contract Farming
•In the meeting, deliberations were made and the following Recommendations were accepted
•unanimously by the Sub-Group Members.
•A) State Act / Rules may include the following provisions:
• Registration of contract farming sponsor with District level State authority and not with
APMC.
• Details of Sponsor’s back history and financial status to be verified by registering
authority.
• Prescribed State authority will issue registration certificate (No period / perpetual).
• Prescribed State Authority be given Power / Authority to cancel registration of sponsor
•if it does not function according to intention of contract farming provisions. At present
•provisions in this regard are not in the statues enacted by the States.
• Submitting of Annual Returns by the sponsor to evaluate its functioning.
• A formula be set for amount of initial Bank Guarantee (an amount equal to the
•payment that may be made for purchase of goods in one week).
• For second time Bank Guarantee the previous year’s weekly payment may be made
•the basis.
• A formula be set for initial Solvency Certificate (an amount equal to the payment that
•may be made for purchase of goods in one month.
• For second time Solvency Certificate the previous year’s monthly payment may be
•made the basis.
• For the purpose of recording, Sponsor to submit quarterly list of farmers with whom
•contract farming agreements are executed, terminated or canceled to the District level
•State authority.
• There shall not be alienation in right, title and interest in the land of the farmers under
contract.
• There shall be dispute redressal mechanism at Block (Taluka), district or regional level
•State authorities and not with APMC.
• Filing of disputes may be allowed at Taluka Level which will be forwarded to the
•District level authority for hearing. (District level officer may go to Taluka level office to
•take hearing).
• Decision of Dispute to be given in 15 days instead of 30 days.
• While admitting / permitting an appeal, the appellate authority should direct that 50 %
•of decretal amount to be deposited.
• Decision of Appeal to be given in 15 days instead of 30 days.
• Decision of the above authorities shall have the force of decree of Civil Court and shall
•be enforceable as such and the decretal amount shall be recovered as arrears of land
revenue.
• Dispute arising out of contract farming agreement shall not be entitled to be called in
•question in any court of law.
• No market fees shall be leviable at the time of purchase of the agriculture produce
•coming under contract farming agreement and also at the time of sale of such
•agricultural produce by sponsor through its retail outlets.
• Sponsor to submit proof of export or processing to District level State authority within
•30 days from the date of export or processing and such authority shall issue certificate
•of export or processing.
• Certificate issued by District level State Authority be treated as conclusive proof of
•export or processing.
• Transaction of agricultural produce under contract farming be permitted out of market
yard.
•77
• For the purpose of contract farming activities APMC shall have no authority.
•B) Contents of the Model Contract Farming Agreement
•The contract farming sponsor and farmers should be given liberty to execute the contract farming
•agreement as per mutually agreed terms and conditions. However, such agreements should
•contain the following mandatory provisions:
• Parties to the agreement:
• Details of contract farming sponsor.
• Details of contract farming producer.
• Description of Farm land:
• Location, Acreage.
• Facilities available.
• Nature, tenure, rights of producer.
• Period:
• Seasonal.
• Annual.
• Maximum five years and renewable.
• Details of Farm produce to be procured:
• Quantity specification:
• On volume basis.
• On area basis
• Quality specification:
• Size, Weight, Degree of Maturity, Juice contents, Safety requirements, Packing
etc.
• Agency to decide quality in case of dispute.
• Consequences of nonconformity – rejection, reduction in price.
• Crop delivery arrangement:
• Farm gate,
• Specified Collection Center.
• Processing Unit.
• Transportation arrangements with the provisions of insurance of good.
• Pricing arrangement:
• Fixation of Price.
• Payment
• Advance
• Payment on Delivery
• Final Payment
• Loan/Credit
• Arrangement with Banks.
• Recovery of Bank Loan
• Credit in Cash/Kind (input)
• Provision in case of deviation in market rates from predetermined rates at the time of
•actual transactions.
• Dispute redressal Mechanism:
• Indemnity in favour of producer:
• Bank Guarantee
• Solvency certificate
•78
•Annexure-XIV
•Minutes of the Committee
A.Minutes of the first meeting of Committee of State Ministers of Agricultural Marketing to
•promote Agricultural Marketing Reforms
•The First M eeting of the Committee of State Ministers In-charge, Agricultural Marketing to
•promote Agri marketing refo rms, market information and standardization and grading was held
•under the chairmanship of Shri Harshvardhan Patil, Hon’ble Minister of Marketing & Cooperation,
Govt.of Maharashtra, on 27 th March 2010 at Maharashtra Sadan in New Delhi. The Hon’ble
•Members from Assam and Madhya Pradesh could not attend the meeting.
•The following recommendations were made in the meeting:
(i)The States are required to amend the APMC Act on the lines of Model Act and the
•reforming States may also notify Rules at an early date. It was desired that concerned
•Secretary/Principal Secretary should be invited to discuss the reasons for not notifying
•amended Rules. It is necessary that Member States may complete the process first for
•their concerned state to be quoted as the Model for other States;
•(ii) The reformed States may come forward for development of Terminal Markets in the
•State by amending their APMC Acts;
•(iii) Member States will make effort to ensure proper and regular data entry in AGMARK
•nodes provided in the Regulated Markets in the State for the benefit of the farmers;
•(iv) The Committee approved the Secretarial Assistance to be provided by the Directorate
•of Marketing and Inspection and necessary support from Maharashtra State
•Agricultural Marketing Board will be made available to the proposed Secretariat;
(v)The Committee agreed for the quorum of 1/3rd of Committee Members (four Members
•including Chairman) and decision would be based on the majority view and as far as
•possible by consensus of members;
•(vi) It was desired that officers fro m member States may be assigned the task to prepare
•the papers on reforms and provide input to the committee;
•(vii) It was desired that NIAM may design and frame the survey questionnaires to collect
•the information on reforms and related issues from the Membe r States and other
•stake holders for use by the Committee while taking appropriate decisions in this
•regard;
•(viii) The amendment of EC Act is necessary to provide a barrier free National Market for
•the benefit of farmers and consumers. It was decided to invite Food Ministers of select
•States to suggest measures for implementation of market reform and amendment in
•the EC Act to facilitate creation of barrier free National Market;
•(ix) The issue of conditionality relating to waiver of market fee for creation of marke t
•infrastructure under NHM and MI scheme for projects promoted by State Government
•agencies including APMCs was discussed, all the Members expressed their reservations
•on it and indicated that such conditionality not being part of initial reform agenda
•may adversely affect the development of the market infrastructure in all the states as
•APMCs are still the major provider of market infrastructure to the farming community.
•The detailed views on this matter may be submitted by the States after examination of
•the circular issued by GOI in this regard;
(x)Hon’ble member from Uttarakhand proposed that the next meeting may be hosted in
•Uttarakhand on 3rd May 2010 and Venue etc. may be decided in consultation with the
•State Government of Uttarakhand. All the members agreed to this; and
•(xi) It was decided that other members of committee i.e. Uttarakhand and Karnataka
•would make presentation in the next meeting and MCX/NCDEX may also be invited
•79
•also to make a presentation on Commodity exchanges for better price reali zation by
farmers.The representatives of industry may also be invited for the presentation on
•major areas of reforms for soliciting their views.
B.Minutes of the Second Meeting of Committee of State Ministers in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms.
•The Second Meeting of the Committee of State Ministers In-charge, Agricultural Marketing
•to promote Agricultural Marketing Reforms, Market Information and Standardization and Grading
•was held under the chairmanship of Shri Harshvardhan Patil, Hon’ble Minister for Marketing &
•Cooperation, Govt. of Maharashtra, on 5 th July 2010 at Mussoorie, (Dehradun), Uttarakhand. The
•Hon’ble Ministers in -charge agricultural marketing of Assam, Gujarat, Madhya Pradesh, Haryana
•and Uttarakhand participated in the meeting.
•The following decisions were taken in the meeting:
•i) The issue of waiver of market fee on fruit and veg etables including flowers were
•deliberated in the meeting and the M embers were of the view that since market fee is
•the main source of income to APMCs for maintenance and development of marketing
•infrastructure in the fruits & vegetables markets in the Sta tes, waiver of same will
•cause great hardship and may seriously affect the functioning and development
•agenda of APMCs and will cause hardship in maintaining the markets. However, it was
•agreed by the member States that they may maintain a separate account of such
•market fee realization from purchase/sale of perishable horticultural produce and
•utilize the same for development of marketing infrastructure for horticultural produce
•exclusively in order to facilitate Central Government in providing assistance to State
•agencies under NHM and other reformed-linked central sector schemes;
•ii) It was decided that the comments on the questionnaire circulated to all the member
•states may be communicated in writing for further necessary action. A workshop on
•the questio nnaire be held by NIAM, Jaipur immediately for the officers of Member
•States to explain the details on the questionnaire to help them fill up smoothly and
•correctly;
•iii) The Ministers in -charge of Agricultural Marketing and Food Processing and Food &
•Public Distribution from select non-reformed States may also be invited starting with
•the next meeting to raise the debate on reforms for arriving at national consensus;
•iv) It was decided that under direct marketing, if the entrepreneurs provide minimum
•infrastructural facilities and backward linkages to the farmers, market fee on such
•direct marketing should be waived off by the concerned State/APMC;
•v) In order to derive a simplify the registration process for encouraging contracting
•parties to register their contr acts and to develop a more user -friendly model
•agreement on contract farming, a Sub Group consisting of Principal
•Secretaries/Secretary, Agricultural Marketing of Haryana, Gujarat and Maharashtra
•may be set up to prepare the draft agreement for contract fa rming within one month
•for consideration of the Committee before recommendation for compulsory
•registration of contract farming sponsors with the farmer and waiver of market fee
•under contract farming is considered;
•vi) It was decided that there is a need for expansion of e-trading in different States in the
•interest of farmers and the models implemented in other States may be replicated.
•The selected APMCs at District level may be considered for development of enabling
•infrastructures by availing the ben efits of schemes implemented by the Ministry of
•Agriculture to begin with;
•vii) It was desired that reforming States may initiate necessary action on setting up of
•Terminal Market Complex (TMC) in their States so that the facilities of forward and
•80
•backward linkage could be provided to the farmers and other entrepreneurs involved
•in the project;
•viii) The issue of non APMC State like Bihar was discussed and it was desired that a note
•might be forwarded by Bihar stating what type of framework is required for market
•development, which may be discussed, in the next meeting;
•ix) The Committee decided that the agenda for the third meeting may include Contract
•Farming and setting up of Markets in Private and Co-operative Sectors. The Minister of
•Food, Government of Punjab and the representative from Department of Food,
•Government of India may be invited in the next meeting to discuss the issue related to
•implementation of Essential Commodities Act;
•x) The presentations from Government of Assam, Bihar and Karnataka may be made in
•the next meeting and the presentations from SAFAL and Premium Farm Fresh from the
•private sector may also be invited for making the presentation to know the progress in
•marketing and the interventions required to be addressed by the Committee. The local
•Chambers of Trade & Industry of the host state may also be invited in these meetings
•to make their representation/presentation on the issues of agri-marketing reforms;
•xi) It was decided that the next meeting of the Committee be organized by Govt. of M.P.
•in Madhya Pradesh on 6th September, 2010. It was unanimously agreed that members
•of the Committee may reach the venue at least one day in advance i.e on 5 th
•September (Sunday) in the forenoon for holding informal discussion to develop a
•consensus on debatable issue pertaining to reforms.
C.Minutes of the Third Meeting of Committee of State Ministers, in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•The Third Meeting of the Committee of State Ministers, in -charge, Agricultural Marketing
•to promote Agricultural Marketing Reforms, Market information and Grading and Standardization
•was held under the Chairmanship of Shri Harshvardhan Patil, Hon’ble Minister for Marketing and
•Cooperation, Govt. of Maharashtra on 6th September 2010 at Khajuraho (Madhya Pradesh). The
•Hon’ble Ministers, In-Charge, Agricultural Marketing of Madhya Pradesh, Orissa and Uttarakhand
•participated in the meeting.
•The following decisions were taken in the meeting:
•i) It was desired that the preliminary report of the Committee may be prepared within two
•months preferably before the next meeting;
•ii) The amended APMC Act and Rules should specify clearly the provisions for setti ng up of
•Private Wholesale Markets and Terminal Market Complex for smooth development of
•infrastructure;
•iii) The issues related to setting up of markets in private and cooperative sectors were
•discussed in details and it was decided that there should be single license / registration for
•main market (HUB) and Collection Centers (SPOKES) to enable private sector for
•development of such markets;
•iv) The private markets should be treated at par with the existing APMCs and there should be
•a reasonable security and bank guarantee including multiple point levy of market fee so as
•to facilitate entrepreneur for development of need based market infrastructure in the
country.The parameters of area of setting up of Private Market may be fixed and farmers
•from any area may c ome to sell their produce. Developmental fee to be charged from
•private market should be at par with APMC and it should be deposited with Government /
•Mandi Board which should be spent on infrastructure development outside the Mandi;
•v) There should be single point registration for private wholesale markets including collection
•centers and the validity period of registration should not be less than five years and
•81
•exceptionally upto 10 years. The private markets should be given exemption on land
•ceiling for smooth development of market infrastructure in the country;
•vi) Agricultural markets may be treated as infrastructure and service industry so as to attract
•FDI and ECB for development of infrastructure;
•vii) Compliance report of decisions taken in the first and seco nd meetings of the Committee
•may be expedited by the States so as to facilitate preparation of preliminary report;
•viii) The professionals are required for efficient management of existing markets for which
•State should either appoint CEO of the Market Committee from outside the cadre or train
•the existing personnel to manage the APMCs efficiently;
•ix) Information on waiving of market fee on fruit and vegetables may be expedited by the
•Member States so as to facilitate consideration of proposals under reform linked schemes
•of Government of India like TMC under NHM and Strengthening / Development of
•Agricultural Marketing Infrastructure, Grading and Standardization implemented by DMI;
•x) It was observed that except 3-4 States, the information on devised questionnaire have not
•been received from the Member States even after conduct of two days’ workshop held at
•New Delhi on 20 -21 August, 2010 organized by NIAM, Jaipur. It is necessary that the
•questionnaire duly filled in may be sent by 15 th September 2010 alongwith soft copy for
•compilation of information;
•xi) It was decided that NIAM, Jaipur may take up the analysis and compilation of
•questionnaire received from Member States and study on marketing constraints in
•different States by appointing Consultants. The study may be conducted State-wise or
•Zone-wise through the Consultants and the expenditure towards this account would be
•borne by the respective States;
•xii) The Sub-Group report on Contract Farming was discussed by the Committee and it was
•desired that APMC should not be the authority for registration / dispute settlement under
•contract farming. The District level authority may be set up for registration of contract
•farming and no market fee should be levied under it;
•xiii) The disputes may be settled within five days and the decretal amount of appeal should not
•be more than 10 % of the amount of goods purchased under contract farming. Appeal
•should be disposed off within 15 days instead of 30 days;
•xiv) The Committee deliberated upon the issue of stock limit and suggested that there should
•be a constant national policy on storage and movement of agricultural produce to achieve
•the objective of Unified National Market. It was decided that Contract Farming Sponsors
•and Direct marketing licensees may be exempted from the stock limits up to six months of
•their requirement in the interest of trade;
•xv) The issue for independent regulator was discussed and it was decided that there should be
•independent regulator preferably from the Government to begin with who should not
•draw salary from the Mandi Board and thereafter a separate authority like Regulatory
•Commission may be considered to set up for regulation of marketing and trade in the
•State; and
•xvi) It was decided that the APMC Rules may be amended by all the Member States so that it
•should not affect the spirit the original provision of amended APMC Acts.
D.Minutes of the Fourth Meeting of Committee of State Ministers, in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•The Fourth M eeting of the Committee of State Ministers, in-charge, Agricultural Marketing to
•promote Agricultural Marketing Reforms, Market information and Grading and Standardization
•was held on 11th November, 2010 at Orissa (Madhya Pradesh). The meeting was preceded by
•an official level mee ting of senior officers of Member States under the Chairmanship of
•82
•Agricultural Marketing Adviser and Member Secretary of the Committee to discuss the agenda
•items of the meeting and to initiate the implementation of reforms early in the interest of
farmers.The main theme of the meeting was strengthening marketing information, unified
•license for direct marketing, contract farming and setting up of markets in private and co -
•operative sector, development of marketing infrastructure, promotion of grading and
•standardization, etc.
•The following decisions were taken in the meeting:
(i)It was unanimously agreed to promote marketing reforms so as to facilitate farmers to
•have multiple choices to sale their agricultural produce and provide barrier free
•national and unified markets for efficient marketing;
•(ii) The Committee approved in principle the Interim report of the Committee for
•submission of the same to the Government of India for consideration. However, it was
•desired that for any suggestions, the comments/views of the states may be sent to the
•Member secretary within a week so that the same could be incorporated in the report;
•(iii) To promote Grades and Standards, States should promote Standard Bureau and
•farmers and traders may be educated about the same to facilitate grade based trading
•in the market;
•(iv) It was decided that to strengthen the laboratories, funds could be provided from the
•RKVY scheme to the States. It was decided that private laboratories may also be
•promoted for testing agricultural produce on paid service basis;
(v)It was suggested that Ministry of Agriculture may allocate 20% of the funds under
•RKVY Scheme for the agricultural marketing development in the States;
•(vi) It was decided that SMS based market information need to be promoted in regional
•languages and this may be converted in to service to the farmers;
•(vii) E-trading may be promoted in the APMCs for transparent trading of agricultural
•produce;
•(viii) It was decided that states should make enabling provisions for private markets with
•unified license/registration facilities;
•(ix) It was suggested that a proposal may be sent to the Ministry of Agriculture to include
•Hon,ble Minister from Punjab also as regular member in the Committee; and
(x)It was strongly recommended for investment in market infrastructure development for
•perishables fruit and vegetables and also recommended to promote contract farming
•and direct marketing expeditiously while suggesting to set up independent market
•regulatory authority to attract private investment in the sector.
E.Minutes of Fifth Meeting of Committee of State Ministers, in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•The Fifth Meeting of the Committee of State Ministers, In -charge, Agricultural Marketing to
•promote Agricultural Marketing Reforms was held under the Chairmanship of Shri
•Harshwardhan Patil, Hon’ble Minister for Cooperation and Culture on 12 th February,2011 at
•Sasan Gir (Gujarat). The meeting was preceded by an official level meeting of senior officers of
•Member States under the Chairmans hip of Agricultural Marketing Adviser and Member
•Secretary of the Committee, Shri Rajendra Kumar Tiwari to discuss the agenda items of the
•meeting, initiatives taken by the Member States to expedite the process of reforms in their
•respective States in the interest of farmers, consumers and agricultural trade.
•The following decisions were taken in the meeting:
•83
•i) It was decided that there should be single window unified single registration for
•traders/market functionaries across the State to facilitate a sm ooth trading of the
•agricultural produce;
•ii) It was agreed that the role of service provider and the regulator should be demarcated;
•iii) In many of the States, there is a provision that for taking a license, there should be
•shop in the mandi yard which is hindrance for increasing the number of buyers in the
market.Therefore, it was decided that the Member States delink the provisions of
•compulsory requirement of shop for registration of traders / market functionaries;
•iv) For transparent transa ction, there is a need of electronic trading in the mandies.
•Therefore, it was decided that to begin with at least at district level, there should be
•electronic trading;
•v) It was unanimously agreed by the Member States that cess should be levied at first
•transaction only between farmer and trader and in subsequent trading between trader
•to trader, there should be service charge related to service in the State as well as
•across the country. Dr. S.K. Goel, Principal Secretary, Co -operation, Government of
•Maharashtra responding to a discussion on unified registration for Terminal Market
•Complex including Collection Centers suggested to call the Collection Centers as sub -
•yard to provide a unified registration;
•vi) In some of the States, there is check post which h inders smooth movement of
•agricultural commodities particularly the fruits and vegetables, causing unnecessary
•delay and wastage. Therefore, it was decided that the Member States should take
•Initiative to remove such physical barriers, if any;
•vii) It was deci ded that modification in Essential Commodities Act be made to provide
•exemptions to Direct Marketeer, Contract Farming sponsor and Godown owner to the
•limit of their capacity of utilization;
•viii) It was agreed by the Member States that Market fee/cess including Rural Development
•Fund, Social Development Fund, Purchase tax etc. should be maximum 2 % of the value
•and the commission charges should be not more than 2 % for foodgrains/oilseeds and
•4 % for fruits and vegetables;
•ix) Member States deliberated the requirem ent of documents for farmers to be carried
•with the consignment and it was decided that States should notify the type of
•documents to be a farmer, so that his consignment is not halted by the check posts /
•barrier;
•x) It was agreed by the Member States (except Gujarat and Madhya Pradesh) that market
•fee on fruits and vegetables be waived off. The States of Gujarat and Madhya Pradesh
•contended that mandies dealing exclusively with the particular fruits and vegetables
•will be closed by waiving of fee;
•xi) It was unanimously agreed that investment in marketing infrastructure under RKVY be
•increased to minimum 10 -15 % of State RKVY spending in reformed States. A letter
•may be issued to the Chief Secretaries of States stipulating such minimum investment.
•It was further stipulated that efforts be made to encourage certain minimum private
•investment in marketing infrastructure outside the APMCs also;
•xii) It was decided that recommendation of 5 th meeting should also be included and
•circulated the member States withi n 15 days to seek their comments and thereafter
•within 15 days the report is drafted and submitted to the Government; and
•xiii) It was decided that revised model survey questionnaire should be forwarded to all the
•States /Union Territories in India for solicitin g their response, which will help in
•preparation of the final report of the Committee;
F.Minutes of Sixth Meeting of Committee of State Ministers, in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•84
•The Sixth M eeting of the Committee of State Ministers, in-charge, Agricultural Marketing
•to promote Agricultural Marketing Reforms was held on 25 th April, 2011 at Chandigarh
•under the Chairmanship of Shri Harshvardhan Patil, Hon’ble Minister for Co-operation and
•Parliamentary Affairs, Government of Maharashtra. The meeting was preceded by an
•official level meeting of senior officers of Member States on 24 th April, 2011 under the
•Chairmanship of Shri Rajendra Kumar Tiwari, Member Secr etary of the Committee and
•Agricultural Marketing Adviser to the Government of India.
•The following decisions were taken in the meeting:
(i)So far, only 6 States have provided amended APMC Rules with certain local
•restrictions, which need to be reconside red in order to maintain the spirit of
•reform as delineated in the model APMC Act and Rules. It was desired that the
•framing of amended APMC Rules by remaining Member States might be expedited;
•(ii) The Committee requested the Member States to take note of t he ambiguity
•reported in the reply to the preliminary Questionnaire by the Member States as
•provided in the Agenda and requested the M ember States to keep in mind the
•same while filling up the revised questionnaire. The Member States were
•requested to e xpedite their response to the revised questionnaire, while it was
•desired that remaining States might be formally reminded;
•(iii) On the issue of waiver of mandi fee for fruits and vegetables and consequent
•proposal of compensation thereof by the Government of India, Committee was of
•the view that there is a critical need to provide full compensation by central
•government to the States for five years in place of staggered compensation on
•account of the net revenue loss due to waiver of market fee. However, Dr. S K
•Goel, Principal Secretary, Cooperation and Marketing, Government of Maharashtra
•suggested that it would be ideal that NIAM as technical adviser to the Committee
•may suggest on the quantum of service charges to be collected in lieu of market
•fee to arrive at net income of the market to help suggest a suitable compensation
•mechanism;
•(iv) On the issue of linking assistance under the schemes of Ministry of Agriculture,
•Government of India with market reforms, Committee while agreeing to linking the
•assistance p rovided under various schemes of Ministry of Agriculture to the
•market reforms, it also suggested that the same should be done with abundant
•caution as there is a critical need for development of infrastructure in APMCs to
•enable it to face the market competition;
(v)It was suggested that M ember States might work out realistically the storage gaps
•in their State to assess the warehouse requirement so as to facilitate
•development of need based storage infrastructure in the States. The issue related
•to accreditation of warehouses, mechanization of warehouse activities,
•managerial and quality issues relating warehouses may be discussed in the next
•meeting by inviting the representative from WRDA Authority;
•(vi) On the issue of development of barrier -free National Markets, it was deliberated
•that the agriculture marketing being a state subject is dealt under Article 246 of
•Constitution of India and regulates the marketing of agriculture commodity within
•the States only by way of dividing the entire state area to smaller units of market
areas.However, it does not address the growing present day need of interstate
•trade to optimize the gain to farmers. It recognized the need to develop National
•level Market. However Committee felt that there is a need to evolve a cautious
•approach in development of a policy framework without in any way restricting the
•operation of the State APMC Act. It decided to further consult various stakeholders
•in this regard;
•85
•(vii) The issue of foreign visit to study the functioning and management of markets and
•marketing system was discussed and agreed in principle to the proposal of FICCI to
•organize a joint visit with Industry to Thailand, China, South Korea. However, it was
•decided that the concerned Member States would bear the respective
•expenditure accruing on the proposed visit. Committee requested the Member
•Secretary of the Committee to work out the details of the proposed visit around
•middle of June 2011;
•(viii) The Committee approved the First Report of the Committee, which was then
•signed by the Members of the Committee present in the meeting. Thereafter It
•was suggested that a convenient date may be fixed with the Hon’ble Agriculture
•Minister, Government of India by the Chairman of the Committee for submission
•of the report; and
•(ix) Shri R.T. Jindal, Agriculture Production Commissioner of Assam brought in a
•supplementary proposal stated that as the agricultural marketing system is
•different in North -East and Eastern India and requires different set of marketing
•system and reforms than rest of t he country. Therefore, a special study might be
•conducted for the Eastern States through a Consultant. It was decided that a
•special study would be entrusted to NIAM, Jaipur being technical consultant to the
•Committee to study the State of Assam and Odisha and submit a report within
•three months. The proposed cost of the study by NIAM may be shared by both
•State of Assam and Odisha.
G.Minutes of Seventh Meeting of Committee of State Ministers, in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•The Seventh Meeting of the Committee of State Ministers, in -charge, Agricultural
•Marketing to promote agricultural marketing reforms was held on 28 th May, 2012 at
•Guwahati (Assam) under the Chairmanship of Shri Harshvardhan Patil, Hon’ble Minister for
•Co-operation and Parliamentary Affairs, Government of Maharashtra. The meeting was
•preceded by an official level meeting of senior officers of Member States on 27th May, 2012
•under the Chairmanship of Shri Rajendra Kumar Tiwari, Member Secretar y of the
•Committee and Agricultural Marketing Adviser to the Government of India to discuss the
•issues related to agenda and initiatives taken by the States in agricultural marketing. The
•Ministers in-charge of Agriculture Marketing for the States of West Bengal, and all other
•seven North -East States, who are not the Members of the said Committee were also
•invited to participate in Committee’s deliberation as special invitees in order to provide an
•interaction platform particularly for North-East States.
•The Following decisions were taken in the meeting:
(i)While discussing the State wise action taken, Member Secretary requested the
•Members to initiate action on the pending issues as per decisions taken by the
•Committee in its earlier meetings. Committee observed that States of Gujarat, Assam
•and Uttarakhand may notify the Rules at an early date to implement the provisions of
•their Act. State of Madhya Pradesh and Haryana may complete the process of reform.
•The State of Madhya Pradesh needs to provide for setting up private and co-operative
•markets in the State. Haryana may provide for markets in private and co -operative
•sector as well as direct marketing as per provisions of Model APMC Act, 2003;
•(ii) Initiating the discussions on waiver of market fee on fruit s and vegetables, Member
•Secretary appealed that in order to promote marketing of perishables horticultural
•produce particularly by small and marginal farmers there is an urgent need to promote
•and encourage private investment by way of waiver of market fe e on it, as available
•infrastructure is generally and grossly inadequate for marketing of perishable
•86
•horticulture produce. This will help reduce the post -harvest wastages by integrating
•the supply chain. He informed the Committee that States of Madhya Pra desh,
•Uttarakhand and West Bengal have already waived the market fee on major fruits and
•vegetables and State of Maharashtra is in the process of doing so. He requested other
•States to initiate the process of waiving off market fee on fruits and vegetables .
•Principal Secretary, Govt. of Haryana intervening the discussion informed that his State
•has already reduced market fee on Fruits and vegetables from 2 % to 1 %. Hon’ble
•Minster of M.P., Dr. R.K. Kushmaria supported by the Managing Director, M.P. Mandi
•Board, Bhopal stressed the need for waiving of market fee on fruits and vegetables to
•help promote proper backward linkages to group of farmers/growers as well as to help
•establishment of processing unit near the farm gates in the interest of farmers. It was
•decided that waiving of market fee on perishables is necessary in order to reduce the
•wastages and to ensure smooth movement of produce across the country. Therefore,
•member States should waive off the market fee on fruits and vegetables and
•requested that Government of India may also consider compensating the losses of
•revenue during initial period for the States on this account;
•(iii) From the presentation of NERAMAC on issue, challenges and opportunities of
•agricultural marketing in North -Eastern region and arguments presented by the
•Hon’ble Ministers from Governments of Manipur, Nagaland and Arunachal Pradesh,
•Committee Members were appraised that the marketing and infrastructure needs of
•North-Eastern region are different than rest of country and differen t marketing
•strategy and support is required for the region. Government of India should
•constitute a ‘corpus fund’ for development of marketing infrastructure and
•development of marketing strategy for this region. State Governments should also
•explore the areas for private investments and PPP projects for market and marketing
•infrastructure development;
•(iv) As NIAM was compiling the results of the survey, Director General, NIAM, Jaipur
•wanted more time and further study by visiting the States to make the proper analysis
•and draw the conclusion on questionnaire of marketing reforms circulated to the
•States for soliciting their response, which is possible in next meeting of the Committee.
•It was decided that NIAM must analyze the responses and bring out conclusions so that
•the survey report is discussed in the next meeting of the Committee;
(v)Shri P.K. Swain, Director (Marketing), DAC, Ministry of Agriculture, Government of
•India made a presentation on Draft “Agricultural Produce Inter -State Trade and
•Commerce (Development and Regulation) Bill, 2012 and highlighted the need for the
•proposed Central Bill under Concurrent List of Constitution of India, which aims at
•facilitating the inter -state trade of perishable agricultural and horticultural produce
•while helping to lower the inter-state barriers and resolve the disputes. The Member
•Secretary informed the Committee the comments/ suggestions/views have been
•sought from States for consideration. Hon’ble Minister, Govt. of M.P., suggested that
•more deliberation is needed on the proposed Bill for ensuring convergence of ideas.
•Principal Secretary, Govt. of Haryana, Shri Roshan Lal and Chief Administrator, Haryana
•Mandi Board; Shri T.V.S.N. Prasad expressed some apprehension of States’ revenue
•loss and overlapping in States power of agricultural marketing. Member Secretary
•explained that Bill is designed to fill the gap existing in present State agriculture
•marketing legislation to facilitate inter -state trade and does not aim at interfering in
•the functioning of S tate APMC Act. He further proposed that initially a few
•agriculture/horticulture commodities of national importance with sufficient
•marketable surplus may be notified under the Act and based on experience, further
•course of action will be taken in this re gard. As regards identification of commodities
•87
•during the course of inter -state trade, the experience already gained from
•implementation of VAT could be a starting point. He further requested that States may
•send their comments /suggestions/views at an early date for consideration in the draft
Bill.It was decided that the Bill may be, to start with considered for a few perishable
•agriculture commodities and it may be expanded for other commodities depending
•upon the experience of its working;
•(vi) Shri Pravesh Sharma, M.D., S.F.A.C made a presentation on “Creation of a framework
•for Public Private Partnerships in Integrated Agricultural Development”. He described
•that PPP for Integrated Agricultural Development (PPPIAD) is a mechanism for
•facilitating large scale integrated projects, led by private sector players, in the
•agriculture and allied sectors, with a view to aggregating farmers, creating critical
•marketing infrastructure, introducing new technologies, adding value and integrating
•the agricultural supply chain from farm to fork. PPPIAD is proposed to cover 10 lakh
•farmers across India during the XII Plan, across agriculture and allied sectors. Each of
•the integrated agriculture projects would involve engaging a 5,000 -10,000 farmers in
•the value chain . The Committee recommended that States should explore the
•scheme, when implemented, in order to derive maximum benefit out of it; and
•(vii) Member Secretary requested D.G., NIAM, Jaipur to make presentation on study of
•Assam undertaken by them. Representative of NIAM making the presentation stressed
•the need of bringing unified regulation to agriculture/horticulture markets, presently
•under various agencies/department created under different statutes i.e; State
•Agriculture Marketing Boards under State APMC Ac t, 1972, Municipal Markets under
•Municipal Act, 1956 and Panchayat Markets under Panchayat Act,1994 . There is a
•need for development of markets and marketing infrastructure in Assam which
•requires an estimated amount of Rs 513 crore s during next ten ye ars. Member
•Secretary suggested the following to improve the report on Assam i) analysis to work
•out the source(s) of financing; ii) estimation to be firmed up considering the possible
•cost index during next 10 years to arrive at realistic projections. After the deliberation,
•it was suggested that wherever possible, private investment and PPP should be
•promoted and estimate should be firmed up on realistic basis.
H.Minutes of Eighth Meeting of Committee of State Ministers, in-charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•The Eighth Meeting of the Committee of State M inisters, in -charge of Agricultural
•Marketing to promote agricultural marketing reforms was held on 30 th October, 2012 at
•Tirupati (Andhra Pradesh) under the Chairmanship of Shri Harshvardhan Patil, Hon’ble
•Minister for Co -operation and Parliamentary Affairs, Government of Maharashtra. The
•meeting was preceded by an official level meeting of senior officers of Member States on
•29thOctober, 2012 under the Chairmanship of Shri I.Y.R. Krishna Rao, Special Chief Secretary,
•Government Andhra Pradesh assisted by Shri P.K.SWAIN, Director (Marketing), DAC, Min of
•Agriculture to discuss the issues related to agenda items and initiatives taken by the States in
•agricultural marketing.
•The following decisions were taken in the meeting:
(i)Initiating the discussion on action taken by Member States on the recommendations of
•the Committee as per the First Report of the Committee circulated to various States,
•Shri P.K.Swain, Acting Member Secretary briefed the Committee on the progress of
•action taken by Member States, which have already been discussed on the previous
•88
•day in the officers meeting in detail. Accordingly, Hon’ble Chairman requested the
•Members to initiate action on the pending issues and requested States of Gujarat,
•Assam and Uttarakhand to expedite the process of notification of amended APMC
Rules.The Committee noted with satisfaction that State of Haryana has recently
•amended it’s APM C Act to provide for Direct Marketing and e -trading. However,
•Hon’ble Chairman requested State of Haryana to consider amending State APMC Act
w.r.t. setting up Private Markets. The state of Madhya Pradesh needs to provide for
•setting up private and co -operative markets in the State. Shri H.S.Rawat, Hon’ble
•Agriculture Minister, Government of Uttarakhand, participating in the debate, stated
•that the new Government in the State is committed to Market reforms and
development.He requested that Central Gove rnment should provide for matching
•compensation for revenue loss in the State on account of the reforms particularly
w.r.t. waiver of market fee on fruits & Vegetables;
•(ii) Shri P.K. SWAIN, acting member -secretary informed that survey questionnaire on
•agricultural marketing reforms approved by Committee in its earlier meeting was
•circulated to all the States/UTs. The responses received were analyzed by NIAM,
Jaipur.Making a presentation on the result of survey questionnaire, Dr. Jairath,
•Director, NIAM, Jaipur stated that some of the States like Maharashtra, Karnataka,
•Andhra Pradesh and Uttarakhand have adopted most of the provisions of Model Act
•and others like Haryana and Punjab have done it partially, while States of Uttar
•Pradesh, West Bengal are ye t to amend their Marketing Laws. It was further stated
•that States have done reforms in bits and pieces. The matter was debated and it was
•strongly felt there is a urgent need for all the States/UTs to amend their APMC Act on
•the line of Model Act and noti fy the amended Rules thereunder at an early date. It
•was also suggested that in order to derive the benefits of reforms by small and
•marginal farmers, States may promote Self Help Groups, Commodity Interest Groups,
etc.;
•(iii) In order for farmers to reap the b enefits of reforms particularly for small & marginal
•farmers, there is a need to understand how the present system of alternative
•marketing channels of contract farming & private markets have worked and what
•needs to be done further? Prof. Sukhpal, I.I.M. -Ahmadabad, making a detailed
•presentation on the “Making Contract Farming and Private Markets Work” brought out
•that States have varied provisions for contract farming and brought out that due to
•small holdings; practically the small & marginal farmers have been left out of the
•contract farming system. There is an urgent need to promote Small and Marginal
•Farmers Group/Association or their Company/Society to encourage contract faming in
•the States and legal protection to growers should be similar to Japan/USA. In order to
•encourage investment in private markets, States must remove all legal hurdles such as
•multiple licensing, multiple levy of market fee, heavy security deposit for both physical
•market license and market functionaries operating in them, land availability for private
•markets/it’s collection centre including change in land-use pattern, minimum distance
•criteria between existing APMCs & proposed Private Markets and suggested that
•States must promote the policy conducive for the investment. Dr J S Yadav, C.O.O.,
•Premium Farm Fresh Ltd participating in the deliberation, strongly supported and
•argued in favour of above, stating that unless such legal hurdles are removed, efforts
•for setting up of private markets will remain a distant reality. It was strongly
•recommended that States may promote PPP Model and consider exempting market
•fee on trade transaction taking place inside the private market yard. However, States
•can levy minimal user charges (in lieu of market fee) for developing general
•infrastructures like connecting/ rural roads, etc preferably not exceeding 0.5 % of the
•value of produce transacted. It was also strongly felt that States need to promote
•89
•small and marginal farmers groups/associations or their company/society to
•encourage contract farming in the States. Chairman suggested that successful model
•of contract farming be developed for India after studying the successful models
•adopted in other countries;
•(iv) India is a leading producer of rice, wheat, sugarcane, tea, milk etc, y et her share in
•global trade does not commensurate with same. India produces nearly 12 % of word’s
•fruits and vegetables with its cost of production being less than that of world average,
•yet India’s share in global trade of F&V is mere 1.6 -1.7 %, leaving much to be done in
•that sphere. Even World Bank in its report(2007) “ From Competition at Home to
•Competing Abroad- a Case Study of Indian Horticulture” has brought out several
•factors such as lack of APMC reforms, fragmented supply chain explaining the low
•performance in the international trade segment. Shri S. Sivakumar, CEO -Agribusiness
•Division, ITC Ltd., argued that for improving India’s international trade performance,
•promoting contract farming and direct marketing is a pre -requisite, which will help in
•greatly reducing post harvest loss by way of better handling through integrated
•supply chain, thus reducing the marketing costs substantially and improving India’s
•export competitiveness. He further stressed that there is a need to follow focused
•product promotion (for product where India enjoys competitive advantage) with stable
•export policy backed by private participation in extension activities. Committee
•deliberated the need for immediate market reforms to be undertaken by States/UTs
•for integ ration of Domestic and Overseas Markets for facilitating better Returns to
•Indian Farmers and Agri -Commodity Price Stabilization. Chairman suggested that
•action points may be finalized to become the part of draft policy recommendations of
•the Committee in the final report in consultation with experts in the field;
(v)Shri M.K Mudgal, CEO, NABCONS, Mumbai made presentations on “ Financing of
•Agricultural Marketing and Post -Harvest Marketing Infrastructure Projects”. He
•mentioned that while Ground Level Credi t (GLC) flow to storage infrastructure and
•market yards are increasing, yet the growth of indirect credit, under which financing of
•major agriculture market infrastructure projects are considered alongside others, is
•very slow compared to that of direct cr edit growth. Even the % share of GLC for
•storage infrastructure and market yards for southern zone is very high (48 %) within
•overall GLC for the sector, while the share of eastern and western zone is less than
•10%. He suggested, among other things, that ( i) Credit for agricultural marketing and
•marketing infrastructure be considered under short -term credit (priority sector
•lending); (ii) Promoting Farmers’/ Producers’ Organizations for agri marketing support;
•(iii) Creation of a Agriculture Risk Fund to mitigate difficulty in meeting margin money,
•collateral security/guarantee requirement; (iv) Smaller Godowns of 250 MT may be
•exempted from Non Agriculture (NA) use permission. Chairman requested NABCONS
•to forward a draft paper on the financing issues for consideration in the “Final
•Report” of the Committee as well as setting up a meeting with Chairman, NABARD for
•a discussion on improving credit flow for agriculture marketing; and
•(vi) Dr. M.S. Jairath, Director, National Institute of Agricultural Marketing, Jaipur making
•the detailed presentation on “Need for Market reforms and Market development in
•States without APMC Act-A case Study of Bihar & Kerala conducted by NIAM, Jaipur – A
•way for marketing policy in the States having no APMC Act” stressed the need for a
•regulatory mechanism more of developmental in nature be put in place in Bihar. He
•further stated that the present system in Bihar is not in the interest of farmers and
•needs orderly marketing. Responding to it, Smt. Vijayalakshmi, Secretary (Agriculture),
Govt.of Bihar stated that despite no regulatory system, farmers are still getting
•remunerative prices. Shri Narendra Singh, Hon’ble Minister from Bihar responded by
•90
•stating that agriculture being a major economic activity in Bihar, State Gove rnment
•is making efforts for alternative development of agriculture marketing a meeting with
•experts has been kept on 6 th November to consider a developmental model for
•agriculture marketing in the State. Chairman advised that Bihar Govt. may invite
•NIAM for discussion and further course of action in the matter.
I.Minutes of Ninth Meeting of Committee of State Ministers, in -charge of Agricultural
•Marketing to promote Agricultural Marketing Reforms
•The Ninth Meeting of the Committee of State Ministers, In -charge of Agricultural
•Marketing to promote agricultural marketing reforms was held on 22nd January, 2013 at
•Shirdi (Maharashtra) under the Chairmanship of Shri Harshvardhan Patil, Hon’ble Minister
•for Cooperation and Parliamentary Affairs, Govt. of Maharashtra. The meeting was
•preceded by an official level meeting of senior officers of Member States on 21st January
•to discuss the draft “Final Report” of the Committee. The following decisions were taken in
•the meeting:
•i) Initiating the discussion, Member Secretary informed that sixteen States only have
•amended their APMC Acts so far and urged the non- reformed States to adopt the reforms
•early and partially reformed States to complete the process of reforms. It is, therefo re,
•necessary to adopt a time bound programme for bringing full reforms in agricultural
marketing.The Chairman also asked States to notify Rules to implement the provisions of
•the Act and also make reforms uniformly across the country. Member Secretary added that
•States of Uttarakhand and Haryana have since taken many positive actions forward.
•ii) The Joint Secretary, MoFPI, Shri J.P. Meena while making a presentation on “Linkage of
•Food Processing Projects with Marketing Reforms” in the country stated tha t Food
•Processing is an important sector in agriculture, providing huge employment opportunity
•and has good export potential. However, the sector is facing a number of challenges in
•procuring agriculture produce as raw material. He emphasized on adopting the following
•reforms (i) the double taxation on the agriculture produce purchased by the food
•processors needs to be avoided (ii) perishable horticulture/agricultural produce may be
•exempted from Mandi tax; (iii) single point registration (in one State) for direct marketing
•may be provided to the food processors; and (iv) Contract Farming registration, (v)
•Exemption of Mandi fee on processed food items.M ember Secretary informed that all the
•above suggestions except point no (v) have already been considered by the Committee
•which has made suitable policy recommendations. The Committee considered this issue
•and unanimously decided that Mandi fees should be levied on Primary Agricultural
•Produce only and Secondary Agriculture Produce( processed food articles) like Besan,
•Maida, Ghee should not be treated as eligible agricultural produce for the purpose of
•levying Mandi fees. However, user charges can be levied based on the use of
•infrastructure and services.
•iii) Member Secretary made a detailed presentation on P olicy Recommendation of the
Committee.The Committee after deliberation approved its ”Final Report” with the
•suggestions to incorporate the recommendations of Ninth Meeting as well as the minor
•modifications suggested by members of the Committee. Further, i t was recommended
•that “Final Report” of the Committee may be presented to the Govt. of India with the
•request to convene a National -level Conference on agriculture marketing at New Delhi
•under the Chairmanship of Union Agriculture Minister for consideration of the report.
•Hon’ble Minister from Haryana stated that Haryana already has sufficient marketing
•infrastructure and perhaps, there may be no need for the private market to come into the
•91
state.That notwithstanding, Haryana would like to see the s uccessful working model of
•private market in other states before deciding in this regard. Addl. Chief Secretary, Govt.
•of Maharashtra informed that there are successful private markets operating in the State
•of Maharashtra and offered his full support to the other states to visit the same.
•iv) Dr. S.K. Goel, Additional Chief Secretary (Agriculture and Marketing), Government of
•Maharashtra made a detailed presentation on “Establishing Integrated Value Chains
•through Reforms in Agricultural Marketing”. The presentation covered the progress made
•in the State of Maharashtra under Contract Farming, Development of Farmers
•Organizations/ Associations, Development of marketing infrastructure in PPP mode,
•National Vegetables initiatives, etc. It was decided that there is a strong need for
•organizing Farmers Groups to enhance their bargaining power to improve price realization
•and shorten the food value chain by introducing Direct Marketing/ Sourcing of agriculture
•produce from the farmers to the consumers and processors.
•v) Representative of NIAM, Jaipur while making detailed presentation on “Need for
•Regulatory Framework for Development of Orderly Marketing System in States having No
•APMC Act”, highlighted that there is a complete lack of required marketing infrastructure,
•organized information dissemination, general up keep and orderlyness in such agriculture
•markets in these States. The markets are unregulated where high commission charges are
•levied on farmers in transaction of their produce. In absence of any professio nal
•management in these markets, farmers are facing problems like high transaction charges,
•absence of market information on prices and arrivals, etc. Complete deregulation of
•markets in these States, rather than reducing the transaction costs has actually increased
•these and it has not helped in attracting any investment from private sector into these
markets.It is felt that a progressive and market friendly legal and institutional framework
•is necessary to attract investment in agriculture markets and en sure their proper and
•efficient functioning. It was, therefore, decided that there need to be an appropriate legal
•and institutional structure with a developmental Regulation to ensure orderly functioning
•of the agriculture markets in the State and also to attract investment for infrastructure
•development in the State.
•vi) The ‘Final Report’ of the Committee was signed by the members present with minor
modifications.It was decided that the Final Report of the Committee may be submitted to
•the Government of India for further action.
•vii) Hon’ble Chief Minister, Government of Maharashtra, Shri Prithvi Raj Chavan graced the
•occasion by his august presence and stated that there are huge challenges in agricultural
marketing.It is very heartening that the issues rel ated to its success and failure has been
•discussed in detail by the Committee and different State Governments have adopted the
•provisions of Model Act as per their requirements. He added that the increase in income
•levels has enhanced purchasing power of c ommon man and demand for high value crops
•which has resulted into price rise and inflation. In this background with increase in income
•of rural population, the vegetables and fruits are becoming a key component in their food
basket.It is necessary to deve lop alternative marketing channels and efficient post -
•harvest infrastructure to contain the marketing cost and wastages. He stated that the key
•to reform is how to increase remuneration to the farmers and good quality produce at
•affordable price to the co nsumers. The remedy lies in reducing the losses by developing
•marketing infrastructure. He stressed that Central Government need to have a more
•consistent stand in their import -export policy as any sudden switch -on and switch-off in
•policy impacts the farmers adversely.
•92
•Annexure - XV
•APPLICATION FOR OBTAINING REGISTRATION FOR OPERATING IN
•MORE THAN ONE MARKET AREA/ENTIRE STATE
•To, Date:
•Director/Managing Director
•Sir,
•I/We…………………………………… (Name)..……………………………………….(Address). , (Phone
No.)…………….… am/are making an application for Registration as a ………….for operating in more
•than one Agricultural Produce Market Committee/Entire State as per the details given below. I am
•ready and willing to pay the necessary Registration fee of Rs. ______ as per Rules.
•Details of area of Market operation (trading/commission agency, hammal, weigh men, direct
•marketing/ contract farming/private market/others to be mentioned)
