s.s.randhawa md, cosamb. state governments (except kerala, manipur, bihar and uts of andaman &...
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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
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