Transcript New role of APMCs

New role of APMCs
(In the context of liberalisation for direct marketing, private
market yards, and contract farming
Dr. B.K.Paty
National Institute of Agricultural marketing
Jaipur
New role of APMCs- outline of the
presentation
 Shift from salesmanship to marketing
 Dealing with Service product-intangibility,simultaneity
 Marketing extension
 Promotion of direct marketing, contract farming,
processing- leading to export, better returns to
farmers, reduction of transaction costs etc.
 Promotion of grading and standardisation
 Making the traders association responsible
 GAP,HACCP,GHP,traceability etc. especially from
export point of view
 Professionalisation of management
 Transparency in dealing/ auctioning
 Providing infrastructure and efficient services (
Promotion of PPP mode)
dealing with a service product
 Marketers of services face a bigger
challenge due to unique nature of servicesintangibility, heterogeneity, inseparability,
perishability
 Go beyond 4 Ps- product, price,promotion
and distribution (Place) .Also
 people,
 process and
 physical evidence
Key Marketing issues
 The unique characteristics of services
present some key marketing issues
 Managing differentiation amongst services (
offer, delivery, image, service premises,
packaging, personnel, tools and equipment
used, customer, convenience, name of the
organisation)
 Managing productivity (Commitment, High
standards , Monitoring system, Customers’
complaint )
 Managing service quality(technology,selection &
training, standardisation of services, customer’s
involvement, employees’ skill utilisation)
Organization
Internal Marketing
Front Line
Employees
External marketing
Customers
Internal marketing
MARKETING EXTENSION
 Marketing extension is the order of
the day in the post-WTO regime
 The incidence of huge post harvest
losses can be attributed to poor
marketing extension to a large
extent.
Role of APMC
 Advice on production planning:- careful selection of the

crop from marketability viewpoint-internal or export
Marketing information:- price and arrivals, forecasting of
market trends, demand of other markets, facilities available in the
target markets, quality requirements, market fees etc.
 Securing markets for the farmers:-Awareness about regulated
market laws and reforms, Information regarding procurement by

Govt. agencies, contract farming arrangement for cash crops with
wholesalers, processors etc.
Advice on improved marketing practices:- packaging,
appropriate storing methods, standardization and grading and
other post harvest management practices such as maintenance of
quality, awareness about post-harvest losses etc.
Role of APMC
 Advice on establishing and operating
markets:-Farmers groups to set up and run their own markets
within framework of rules
 Processing and value addition:-
Farmers to be
educated about value addition through primary processing
 Group action:-
Help Groups(SHGs)
Promotion of informal groups and Self
 Marketing Credit:-
Educating farmers about different
schemes of marketing credits, Advice on warehousing with
pledge finance scheme
 Problem solving methods: micro-level
 Marketing extension for export market: WTO
implications, Codex, HACCP, Euro gap standards,
on ill effects of pesticide/insecticides residue etc.
Awareness
Promotion of Direct Marketing,
contract farming, processing
 Less than 2% of f & v processed in
India, as against 65% in USA, Brazil,
Phillipines, South Africa and 83% in
Malaysia
 Similarly the extent of value addition
is 7 % in India as against 23% in
China and 88 % in UK
Area & production of agri
products
Area and production of Agricultural products
(Production in million tonnes)
India
Arable Land (Million ha)
India’s Rank in
World Production
151
2
Irrigated Land (Million ha)
55
1
Wheat
72
2
124
2
Coarse grains (including maize)
29
3
Milk
91
1
Fruits
47
2
Vegetables
82
2
Edible Oilseeds
25
3
Pulses
15
1
Sugarcane
245
2
Tea
0.85
1
Cattle (million)
186
2
Rice, Paddy
15 major food items of export
(INR billion Rs)
70
60
50
40
30
20
10
0
APMC role in contract farming
 Provisions of a model agreementsensitisation
 Awareness about dispute redressal
mechanism.
 Collection of market intelligence data
about contract farming
 Registration of contracts, whre
authised
Promotion of grading and
standardisation
 Bureau for grades and standardsfeeding information and working in
close coordination with the Bureau
 Awareness about existing grades and
standards.
 Identification of commodities and
preparation of proposals for
preparation of grades and standards.
Making the traders association
responsible
 Feedback about policy issues
 Involvement in waste disposal and
management.
 role in maintenance of food safety
and quality
 Role in ensuring transparency in the
business
 Role in training of the farmers
GAP,HACCP,GHP,traceability etc.
especially from export point of view
 Testing facility in the premises of
APMC
 Awareness about the quality
management tools amongst the
stakeholders.
 Big APMCs can set up training
centres with an attached laboratories
Professionalisation of management
 Appointing professional managers as
CEOs from the panel prepared by the
Board
 Computerisation
 Computerised linkage of fees with the
arrivals through automation
 Service orientation
Transparency
 Auctioning
 Allocation of shops etc.
 Computerised linkage of market fees
with arrivals
Providing infrastructure and efficient
services ( Promotion of PPP mode
 Outsourcing
 Infrastructure in the premises in PPP
mode.
 Collection centres in PPP mode.
 Transportation, grading and packing
units etc. in PPP mode.
STOCK TAKING
( Laws / rules across states)
Status of APMC Act Amendments
States/ UTs having Amended Acts –
1.
Andhra Pradesh
2.
Arunachal Pradesh
3.
Assam
4.
Chhattisgarh
5.
Goa
6.
Gujarat
7.
Himachal Pradesh
8.
Karnataka
9.
Madhya Pradesh
10. Maharashtra
11. Nagaland
12. Orissa
13. Punjab/ UT of Chandigarh
14. Rajasthan
15. Sikkim
16. Tripura &
17. Uttar Pradesh
18. Jharkhand
Reportedly no Amendment Needed
–
• Tamil Nadu ?
Partially Amended –
• Haryana (Only Contract Farming) &
• NCT of Delhi (Only Direct Marketing)
Amendment Bills under active
finalization –
, Uttarakhand, West Bengal,
NCT of Delhi & Puducherry
Remaining States –
 Haryana, J&K, Meghalaya & Mizoram
States/ UTs with no APMC Act –
 Bihar (repealed w.e.f. 01.09.2007),
Kerala, Manipur and UTs of Andaman &
Nicobar Islands, Dadra & Nagar Haveli,
Daman & Diu & Lakshadweep
Initiative for New Markets
Initiative for setting up of new market by any person,
local authority or grower
States which have adopted the suggested provision:
 Chhattisgarh, Goa, M.P., Nagaland, Sikkim,
Tripura
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Gujarat, H.P.,
Karnataka, Maharashtra, Orissa, Punjab/ UT of
Chandigarh, Rajasthan, T.N., Uttar Pradesh
Special Markets
Provisions for setting up of Special Market and
Special Commodity Market
States which have adopted the suggested provision:
 A.P., Gujarat, Maharashtra, Nagaland, Sikkim,
T.N., Tripura, Uttar Pradesh
States which have not adopted it:
 Arunachal Pradesh, Assam, Chhattisgarh, Goa,
H.P., Karnataka, M.P., Orissa, Punjab/UT of
Chandigarh , Rajasthan
PPP in Management Activities
Set up and promote public-private partnership in
management of the Agricultural Markets
States which have adopted the suggested provision:
 H.P., Karnataka, Nagaland, Sikkim
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa,
Gujarat, M.P., Maharashtra, Orissa, Punjab/UT of
Chandigarh , Rajasthan, T.N., Tripura, Uttar Pradesh
PPP in Market Extension Activities
To promote Public-Private Partnership in
Extension activities of Market Committee
States which have adopted the suggested provision:
 A.P., H.P., Karnataka, Nagaland, Sikkim
States which have not adopted it:
 Arunachal Pradesh, Assam, Chhattisgarh, Goa,
Gujarat, M.P., Maharashtra, Orissa, Punjab/UT of
Chandigarh , Rajasthan, T.N., Tripura, Uttar Pradesh
E-trading
To promote and encourage e-trading, market committee may
establish regulatory system, create infrastructure and
undertake other activities and steps needed thereto
States which have adopted the suggested provision:
 Gujarat, H.P., Karnataka, Nagaland, Punjab/ UT of
Chandigarh, Sikkim, Uttar Pradesh
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa
(only defined), M.P., Maharashtra, Orissa,
Rajasthan, T.N., Tripura
CEO of Market Committee
Secretary to be Chief Executive Officer of Market Committee.
CEO shall be appointed by the market committee from the
panel maintained by Director/Board which may include
professionals from open market
States which have adopted the suggested provision:
 Nagaland, Sikkim
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa,
Gujarat, H.P., Karnataka, M.P., Maharashtra, Orissa,
Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura,
Uttar Pradesh
Contract Farming
Contract Farming Sponsor shall register himself with the
Market Committee or with a prescribed officer in such a
manner as may be prescribed
States which have adopted the suggested provision:
 A.P., Arunachal Pradesh, Assam, Goa, H.P.,
Karnataka, Maharashtra, Nagaland, Orissa,
Rajasthan, Sikkim, Tripura, Uttar Pradesh
States which have not adopted it:
 Chhattisgarh, Gujarat, M.P., Punjab/UT of
Chandigarh, T.N.
Contract Farming
The Contract Farming Sponsor shall get the contract farming
agreement recorded with the prescribed officer
States which have adopted the suggested provision:
 A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa,
Gujarat, Karnataka, M.P., Maharashtra, Nagaland,
Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh
States which have not adopted it:
 H.P., Punjab/UT of Chandigarh, T.N.
Contract Farming
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
States which have adopted the suggested provision:
 Arunachal Pradesh, Assam, Goa, Maharashtra,
Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar
Pradesh
States which have not adopted it:
 A.P., Chhattisgarh, Gujarat, H.P., Karnataka, M.P.,
Punjab/UT of Chandigarh, T.N.
Contract Farming
Dispute Settlement Mechanism
States which have adopted the suggested provision:
 A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa,
Gujarat, Karnataka, M.P., Maharashtra, Nagaland,
Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh
States which have not adopted it:
 H.P., Punjab/UT of Chandigarh, T.N.
Contract Farming
Exemption of market fee on the sales to the Contract Farming
Sponsor taking place out side the market yard under the
Contract Farming agreement
States allowing direct sale of produce under Contract
Farming:
Arunachal Pradesh, Goa, H.P., Karnataka (fee
reduced by 30%), Maharashtra, Nagaland, Orissa,
Punjab/UT of Chandigarh (fee exempted under the
Rules), Rajasthan, Sikkim, Tripura
States which have no provision on contract farming:
Tamil Nadu
Following States have not exempted market fee:
A.P., Assam, Chhattisgarh, Gujarat, M.P., Himachal
Pradesh, T.N., Uttar Pradesh
Contract Farming
Specification of Model Agreement for Contract Farming
States which have adopted the suggested provision:
 Chhattisgarh, Goa (as may be prescribed), Gujarat,
Karnataka (as may be prescribed), M.P.,
Maharashtra (Rules), Nagaland, Rajasthan, Sikkim,
Tripura, Uttar Pradesh (as may be prescribed)
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, H.P., Orissa,
Punjab/UT of Chandigarh, T.N.
Single point levy of Market Fee
Market fee shall not be levied for the second time in any
market area of the State by market committee
Market fee not to be levied more than once in commercial
transactions between traders or to consumers
States which have adopted the suggested provision:
 Chhattisgarh, Goa, H.P., M.P., Nagaland, Punjab/UT
of Chandigarh, Sikkim
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Gujarat,
Karnataka, Maharashtra, Orissa, Rajasthan, T.N.,
Tripura, Uttar Pradesh
Registration of Market Functionaries
Registration (not licensing) of market functionaries and single
registration for trade/ transaction in more than one
market
States which have adopted the suggested provision:
 Assam, Chhattisgarh, Goa, H.P., Maharashtra,
Nagaland, Sikkim
States which have not adopted it:
 A.P., Arunachal Pradesh, Gujarat, Karnataka, M.P.,
Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N.,
Tripura, Uttar Pradesh
No Commission Agent
No commission agent shall act on behalf of agriculturist seller
and no deduction to be made towards commission
States which have adopted the suggested provision:
 Chhattisgarh, Nagaland, Sikkim
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Goa, Gujarat, H.P.,
Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of
Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh
Private Market / Direct Marketing
Establishment of private market yard and
direct purchase from farmers
States which have adopted the suggested provision:
 A.P., Arunachal Pradesh, Assam, Goa, Gujarat, H.P.,
Karnataka, M.P.(can be done under the bye-laws),
Maharashtra, Nagaland, Orissa (excluding for
paddy/ rice), Punjab/UT of Chandigarh (not for
direct purchase), Rajasthan, Sikkim, Tripura, Uttar
Pradesh
States which have not adopted it:
 Chhattisgarh, T.N.
Consumer /Farmer Market
Establishment of consumer/ Farmer market
States which have adopted the suggested provision:
 Arunachal Pradesh, Assam, Goa, Gujarat, H.P.,
Karnataka, Maharashtra, M.P.(can be done under
the bye-laws), Nagaland, Punjab /UT of Chandigarh
(only enabling provision) Rajasthan, Sikkim,
Tripura, Uttar Pradesh
States which have not adopted it:
 A.P., Chhattisgarh, Orissa, T.N. (being set up under
Executive Orders)
Market Fee Exemption
Power to grant exemption from market fee by the
State Government
States which have adopted the suggested provision:
 A.P., Chhattisgarh, Goa, Gujarat, M.P., Maharashtra,
Nagaland, Sikkim
States which have not adopted it:
 Arunachal Pradesh, Assam, H.P., Karnataka, Orissa,
Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura,
Uttar Pradesh
Market Extension Cell & Agricultural Produce
Marketing Standards Bureau
Setting up of separate Market Extension Cell in the Board
Establishment of State Agricultural Produce Marketing
Standard Bureau
States which have adopted the suggested provision:
 Nagaland, Sikkim
States which have not adopted it:
 A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa,
Gujarat, H.P., Karnataka, M.P., Maharashtra, Orissa,
Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura,
Uttar Pradesh
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