Transcript (Presentation byDr.Yadav COO,COSAMB).

Enhancing Marketing
Efficiency Through Innovative
Measures
Dr. J.S.Yadav
Chief Operating Officer(COO)
Premium Farm Fresh Produce Ltd., New Delhi
FLOW OF PRESENTATION
Marketing Innovations
1.
-Problems
-Solutions: 1. Barrier Free Single National Market
2. Private Wholesale Markets
Food Safety Innovations
2.
-Study of Good Hygiene Practices in Indian
Wholesale Markets (By PFF)
-A case of Shenzhen(China), Food Testing Facility
Sustainable Energy Innovations
3.
-Study of scope of Electricity Generation from
Solar Energy and Wastes in Indian Wholesale
Markets (By PFF)
Agriculture Marketing Credit
4.
-Present options
-Issues
-Need
5.
Innovative Policies and reforms
2
1.
Marketing
Innovations
3
Problems
 Auction based system of sale (earlier introduced to prevent exploitation of
farmers) in the open markets
 Free trade barriers:
 Taxation barriers: Levy of market fees at multiple points, variation in rates of
commission, Toll tax.
 Physical Barriers: Check post, APMC control area.
 Statutory Barriers: Licensing, Registration etc.
bind growers to follow mandatory multiple point payments and decreasing
their share of profit thereby limiting domestic liberalization.






No where in the world such restrictive marketing infrastructure prevails.
Poor Private Participation in wholesale markets.
Monopolistic environment among Players/stakeholders.
Direct Marketing System still at immature stage.
Absence of a single national barrier free market
Farmers restricted to sell produce in local mandies
4
Innovative Solutions
I.
Barrier free Single National Market
II. Private Wholesale Markets
5
Barrier free Single National Market:
Background & Need
• Agriculture Marketing is covered under State List of Article 246 of
constitution of India.
• The State APMC Act divides the state into various notified areas
• Biggest hinderance are the limiting provisions in the act like
 Marketing as a localised subject confined to a specific notified area
 Regulate sale of Agricultural Produce
 Goes to the extent of prohibiting the end-users and processors located elsewhere
from buying from the farmers directly in the absence of license from respective
APMCs
• Depending on topography agricultural commodities are grown is specific
parts of country but their demand spreads on pan-India basis. Here there
is need for free movement of produce in the whole country.
6
Contd……
• There is no such inter-state mechanism in the absence of a National
Level Act to regulate and redress the issues relating to inter-state trade
• APMC does not deal with a national level market for agricultural
marketing due to restricted jurisdiction under Article 245 of the
constitution of India
• Urgent need to regulate the trade and commerce of the agricultural
commodities and products through a national level legislation for
promotion and development of a Common Indian Market free from all
these barriers.
• To operationalise this, a National Level Regulatory Institution is
required.
7
I. Establishment of a Barrier free Single National Market
a study conducted in 2011
Sr. No.
1
2
3
4
5
6
7
States & UT’s
Delhi
Chandigarh
Haryana
Rajasthan
Gujarat
Maharashtra
Karnataka
APMC
Azadpur, Gazipur
Chandigarh
Panipat, Karnal, Panchkula
Jaipur
Ahmedabad, Rajkot, Vadodara, Surat
Mumbai, Nasik
Belgaum, Hassan, Kolar.
• Only two major aspects of the study are discussed further
– Awareness and Perception of APMC officials
– Loss of revenue from Waiving Off Market Fee on Perishable Horticultural
Produce
8
Awareness about the Concept
“A barrier free Single National Market”
% of APMC Secretary Knowing the concept
% of APMC Secretary Not knowing the concept
38%
62%
9
Comparison Between Awareness &
perception on the Concept
 A: Know the concept but against
A
B
C
D
of putting all the APMC under
uniform regulation
 B: Know the concept & in favor of
6%
putting APMC under uniform
regulation
25%
31%
 C: Not know the concept but
against of putting all the APMC
38%
under uniform regulation
 D:Not known the concept & in
favor of putting APMC under
uniform regulation
10
Contribution of Fruits and Vegetables in Total
Market fees for various states (2009-10)
Total M.F
M.F from F & V
(Rs. in crores)
(Rs. in crores)
% share of F&V in
total M.F
Madhya Pradesh
571.52
24.26
4%
Punjab
624.37
35.55
6%
Haryana
371.01
23.58
6%
Karnataka
294.15
21.93
7%
Orissa
105.59
10.56
10%
Andhra Peadesh
306.99
32
10%
Vashi (Mumbai)
56
6
11%
Gujarat
180.87
22.78
13%
Maharashtra
375.99
48.5
13%
Uttarakhand
30.26
5.53
18%
19
14.2
75%
83.6
65.44
78%
State/Market
Himanchal Pradesh
Delhi
11
Waving of Market Fees (in case of F&V)
 Vide order dated 25th Feb 2010, Ministry of Agriculture issued order
linking assistance , “ To wave the market fees on perishable horticultural
produce.” (Also recommended in 6th meeting of Committee of State
Ministers for Promoting Agricultural Marketing Reform, April, 2011)
 Govt of India wants to fix a reasonable user charge in place of market fee
which will cover nearly 50% of market fees
 As regards the modality of compensation, it is proposed that Government
of India should compensate 90% of the difference (prospective loss) is 1st
year 70% for 2nd year & 50% for 3rd year.
No follow up and consolidation of data from various states as to check the
status of implementation in the respective APMCs.
12
Responses of APMC for waving of Fees
in case of F & V
In favor but want 100%
compensation
12%
44%
APMC Sec. not in
favour
44%
APMC Sec. in
favour
13
II. Private Wholesale Markets (PWM)
• Issues of Private Investors
• Solutions
• Wholesale Markets act as Growth Centre and
should be categorised as social Project
14
Issues of Private Investors
 Inadequacy of Low Cost Commercial Borrowings in
agriculture sector as compared to other countries
 No
Classification
for
Markets
Either
as
Infrastructure/Service/Real Estate to avail economic funding
under FDI, ECB etc.
 Multiple License System for Establishment of Private
Market in Hub & Spoke Format
15
Current Status of Available & Non Available
Facilities in Major Markets of India
Market services
Non-market services
Essential services
% of total
%
Present Absent
%
%
facilities
present
Present
Absent
present
Present
Absent
present
present
Azadpur
9
15
37.50
8
14
36.36
9
5
64.29
43.33
Nashik
7
17
29.17
5
17
22.73
7
7
50.00
31.67
Kolar
5
19
20.83
4
18
18.18
7
7
50.00
26.67
Hassan
5
19
20.83
5
17
22.73
6
8
42.86
26.67
Belgaum
9
15
37.50
6
16
27.27
8
6
57.14
38.33
52.86
33.33
Average
29.17
25.45
16
Poor Viability of Marketing
Infrastructure
The Average ROIs for all the Services in
Wholesale Markets
Kind of Service
Avg. ROI
Market Services
-0.143
Non-market Services
0.924
Essential Services
-0.524
Average
0.085
17
Facility Wise Return on Investment (ROI)
Services
Market services
Facilities
Platforms
Azadpur Nashik Kolar Hassan Belgaum
-0.12
-0.03
0.00
-0.01
0.00
-
-0.04
-
-
0.05
Cold storage facility
Facilities for manual carriage of produce
0.33
-
-
-
0.03
4.20
-
-
-
-
Material handling equipment (palletisation & plastic crates)
0.84
-
0.96
-
-
Movement and parking facility for vehicles attached to market
1.36
-
-
-
-
0.60
0.29
-
-
0.12
-0.10
-0.80
-
-1.28
-30.19
0.64
0.30
0.48
0.80
7.50
6.60
0.32
-
-
0.95
0.06
Bulk weighment
Banking services including settlement of transactions related to market.
Price displays/market information services
Non-market services
Catering services
Restaurants services
Logistic Centres/Transporters shops
Porter service
Essential services
0.39
0.27
0.47
0.21
0.32
Shopping complex
-
0.83
-
0.40
0.64
Exporter’s shops
0.18
-
-
-
-
Input shops/Nurseries
0.04
0.33
0.62
-
0.94
Conference/Multipurpose Hall
-0.04
-0.06
-0.03
-
-0.02
Library
-0.03
-
-
-
-
Waiting/rest rooms
-0.02
0.00
0.00
-
-0.01
Drinking water
-0.40
-0.01
-0.04
-0.01
-0.06
Toilets
0.11
0.06
0.16
0.15
-0.03
Cleaning
-1.00
-0.88
-0.22
-0.27
-0.66
Lighting of public areas
-0.12
-0.05
-0.02
-0.02
-0.05
Information desks
-7.80
-
-0.52
-
-
Waste treatment plants
0.53
-
-
-
-
Disposal trucks
-0.65
-
-0.08
-
-
Policing & general security
-0.25
-0.31
-0.51
-0.96
Emergency services
-0.06
0.08
-
-
-0.87
18 -
Solutions
• Market is totally dependent on non-market services to make it a viable
proposition, therefore, the private investor should have the freedom of
deciding the non-market services as per his own estimates of profit
generating activities
• Also, to maximize the returns from market services, the cap on user
charge which is 2%, should be increased atleast upto 3.5%
• Private markets should retain the market fees
• Single unified REGISTRATION for entire state be issued to Private
Investors
19
A study titled “Social Cost Benefit Analysis
of Private Wholesale Markets”
was conducted in 2011
- PremiumMarket, Nashik as a case
OBJECTIVES
•To identify and assess the socio-economic benefits offered by private wholesale markets
to the society
•To quantify the benefits on the basis of volume and value generated by such markets
with particular reference to Private Wholesale Market Nasik.
•To suggest the activities enhancing the value proposition of PWM from the social
perspective.
•To prepare a presentable document to State Gov. Ministry of Agriculture and Ministry
of Commerce etc. to convince the need for reversal and matching investment pattern.
ASSUMPTIONS
•Total number of Farmers: 500
•Traders: 250
•Exporters / suppliers: 10
•Commission agents:20
• Labours: 350.
•The number of farmers, traders, exporters, labours visiting PWM is
expected to increase at a rate of 10% for the first five years and then 5% for
the next 10 years.
•For the appropriate calculation of benefits, five categories have been
considered.
1.Farmers
2.Traders
3.Exporters/suppliers
4.Labours
5.Commission agents, since they derive the maximum benefit the social
benefits have been calculated for them.
21
RESULTS
Percentage Breakup of Total Benefit Realized From All The
Facilities
Hub & Spoke Format
Electronic Grading and Sorting Line
0%
0% 2% 2%
Online Spot Commodity Trading
3%
12%
9%
Cold Storage
4%
Ripening Chamber
5%
22%
Pre-Cooling Unit
14%
5%
5%
17%
Material Handling Equipment (Crates,
pallets, etc.)
Electronic Grading and Sorting Line
Food Testing Lab
Movement and Parking Facility
Refer Vans
Employment generation
Packaging unit management
Warehouse management
22
RESULTS contd….
Quantification of Benefits Envisaged For One Year
Facilities/Services
Hub & Spoke Format
Electronic Grading and Sorting Line
Online Spot Commodity Trading
Cold Storage
Ripening Chamber
Pre-Cooling Unit
Material Handling Equipment (Crates, pallets, etc.)
Electronic Grading and Sorting Line
Food Testing Lab
Movement and Parking Facility
Refer Vans
Employment generation
Packaging unit management
Warehouse management
Value In Crores (Rs.)
39.73
71.50
17.34
55.68
17.37
47.79
14.73
13.77
29.14
0.32
7.08
0.93
6.85
9.30
Total Benefit from all the facilities - Rs. 331.53 crores
23
RESULTS contd….
Total benefit of all facilities provided through PWM over 15 years
Years
Total (In Cr.)
First Year
331.5
Increase @10% for 2nd year
364.68
Increase @10% for 3rd year
401.15
Increase @10% for 4th year
441.27
Increase @10% for 5th year
485.4
Increase @5% for 6th years
533.94
Increase @5% for 7th year
560.64
Increase @5% for 8th year
588.67
Increase @5% for 9th year
618.1
Increase @5% for 10th year
649.0
Increase @5% for 11th year
681.5
Increase @5% for 12th year
715.5
Increase @5% for 13th year
751.3
Increase @5% for 14th year
788.9
Increase @5% for 15th year
828.3
Total
8739.9
24
The total benefit to the society over a span of 15years is Rs.8740 Crores.
RESULTS contd….
The total benefit derived by the beneficiaries in a year
through various facilities provided by PWM
Beneficiaries
Total No
Value
(Rs. In Crores)
Farmers Traders
Commission Exporters
Agents
/Suppliers
Labors
5000
250
20
10
350
323.43
5.3
0.14
0.082
0.93
This shows that the Private Wholesale Market is Farmer Centric/Farmer Oriented
Service Industry
25
Details of Benefits realised by Farmers (Sample)
Respondent: Farmer (In Rs.)
Increase in transparency by electronic auction
33,959
Farmer's value realisation due to removal of intermediaries.
316
Reduction in incidences of retractment by e -auction
21,834
Discrepancy in weighment of produce saved
21,425
Farmer's value realisation due to spot trading
1,497
Efficiency increased by providing parking facility
210
Total benefit realised to the farmer
79,240
Respondent: Farmer (In Rs.)
Reduction in distance due to 'Hub and Spoke Format'
148
Increased interaction between buyer and seller
40,641
Farmer's value realisation due to do removal of intermediaries through said
format
7,632
Increased bargaining power of farmers
28,958
Total benefit realised by farmers operating through hub & spoke format
77,377
26
Respondent: Warehouse Using Farmer (In Rs.)
Increase in valuedue to storage
17,719
Decrease in distance due to Hub & Spoke Model
140
Total benefit realised by farmer using warehouse
17,859
Respondent: Cold Storage Using Farmer (In Rs.)
Reduction in Spoilage Due to Cold Store
Increase in Value of Produce by Maintaining Quality
Change in price fetched by selling later in season through CS
Transportation losses in total Losses
Pre Cooling Unit
Reduction in Spoilage Due to Pre cooling unit
Increase in Value of Produce by Maintaining Quality through PCU
harvest losses saved through PCU
Value of produce realized by maintaining Nutritional value
Total benefit realised by farmer using cold storage facility
2,126
30,094
69,469
17,532
2,478
1,956
14,625
40,21,172
41,59,452
27
Respondent: Food Testing Lab Farmer (In Rs.)
Better price can a commodity realize if quality assured, safe and hygienic
43,538
Exports can be boosted by establishing a food testing laboratory in the
market
Total benefit realised by farmer using food testing lab
98,438
1,41,975
Respondent: Ripening Chamber Farmer (In Rs.)
Reduction in spoilage by introducing ripening chamber in market
33,465
better price realised by the commodity if kept in a ripening chamber
75,938
Total benefit realised by farmer using ripening chamber
1,09,403
28
Respondent: Grading And Sorting Farmer
Better price can a commodity realize if it is
48,094
electronically sorted and graded
Total benefit realised by farmer using grading &
48,094
sorting facility
Respondent: Packaging Unit Management (In Rs.)
Increase in value due to Packaging
13,669
Decrease in distance due to Hub & Spoke Model
175
Total benefit realised through packaging unit
13,844
29
2.
Food Safety
Innovations
30
Food Safety Innovations
• There is no separate provision for Wholesale Markets into
Food Safety Act however it covers the general food premises
including those of restaurants, hotels, food outlets etc.
• Although regulations for food safety have been laid down for
general food premises by FSSAI, there are no general
hygiene practices for wholesale markets in particular.
• There is a need for provisions related to Establishment,
Design, Maintenance & Sanitation, Personal Hygiene and
Transportation particularly for the wholesale markets in
India.
31
Areas of focus
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Ventilation
Lighting
Maintenance of Premises
Temperature
Cleaning and Disinfection
Pest Control
Personal Training
Responsibility for Equipment
Services and Responsibility
Personal Hygiene
32
Study of Good Hygiene Practices for Wholesale
Market Management in India: conducted in 2011
The following 12 wholesale markets of Fruits and Vegetables were Studied
State
Delhi and NCR
Uttar Pradesh
Madhya Pradesh
Rajasthan
Punjab
Punjab & Haryana
Sr.No
1.
2.
3.
1.
2.
3.
4.
1.
1.
1.
2.
1.
Market
Azadpur
Ghazipur
Keshopur
Agra
Jhansi
Allahabad
Varanasi
Gwalior
Jaipur
Ludhiana
Panchkula
Chandigarh
33
• “General Requirements on Hygienic and Sanitary
Practices to be followed by all Food Operators” recently
prepared by FSSAI which, according to the authorities of
FSSAI, can be applied in the context of wholesale markets
as well.
• The survey was conducted, keeping in mind the various
parameters set as necessary in the “Guide to Good
Hygienic Practice for Wholesale Market Management in
Europe” developed by the World Union of Wholesale
Markets (WUWM), to find out how much the Indian
markets adhere to these parameters which are
indispensable from the World Union of Wholesale
markets‟ point of view as well as confirming to the Indian
standards.
34
Findings and Analysis
(as representative, only two aspects are discussed here)
Mechanical/Non-Mechanical
1. Ventilation
Ideal situation according to WUWM:
Prevailing situation in Indian Mkts
The place where the produce is kept
should have well circulated and ample
supply of air to prevent the produce from
a) Contamination
b) Increase shelf life
both, 75%
mechanical
non mechanical
both
non mechanical non mechanical
non
mechanical,
25%
both
non mechanical
mechanical
Auction
Sheds
0%
100%
0%
Shops
0%
100%
0%
In case of other buildings the ventilation
system, should meet two basic
requirements:
a) To supply fresh air for the occupants.
b) To change the air in the room
sufficiently so that smells, fumes and
contaminants are removed.
Other
Buildings
75%
25%
0%
35
2. Lighting
Lighting fitted with protected tubes
Prevailing situation in Indian Mkts
Ideal situation according to
WUWM/FSSAI:
Lights also need to be provided with
protective covering at all places because it
may happen that the lights break suddenly
and the particles of lighting device enter
the fruits and vegetables which are kept
uncovered.
36
Instant Food Testing Laboratory
VMO, Vegetable Market, Hongkong
 All Vegetables supplied by
Vegetable
Marketing
Organisation (VMO) must
pass
through
stringent
pesticide residue
testing
before
being
processed
according
to
customers'
specifications.
 Over Past six months, VMO
has tested 8900 samples of
local vegetables and has not
found
any
unregistered
pesticide. Only six samples
were found to have pesticide
residues exceeding permitted
levels.
37
Instant Food Testing Laboratory
VMO, Vegetable Market, Hongkong
 At the Wholesale and retail
markets, the authorities also
take samples from a variety of
vegetables including leafy
vegetables,
pulses
and
rhizomes, for tests.
 VMO established a Premium
Vegetable Section (PVS) in
1992, with an aim to assist
local farmers to build up a
network to sell their produce to
upper
class
customers
like
hotels,
restaurants, elderly homes,
supermarkets and lunch box
supplier, etc.
38
A Case of Shenzhen (FQT) Agricultural
Products Testing Tech Center Co., Ltd.
• More efficient, convincing and fair food tests carried out by
a professional third party testing agency which is
independent from the commodity traders and the market
operators.
• Owners of the goods are charged for the corresponding costs
• Testing capacity : 2000 samples per day
• More sustainable way to maintain the food safety & quality
via wholesale markets
• One-stop food quality & safety solutions including testing,
consulting, and training for wholesalers, purchasers,
growers, processing and distribution businesses, and related
companies
39
3.
Sustainable Energy
Innovations
40
Saint Charles Market, France: Solar Panels
Installed at roof
• Saint-Charles International in
Perpignan, France, the largest
European distributor of fruit and
vegetables, is now a major
producer of green energy.
• Over two years, the asbestos
cement sheets that covered the 11
buildings of the market have
been replaced by 68 000m2
of 97,000 photovoltaic tiles.
• The plant develops a total power
of 8.8 MWp. Its annual
production is expected to reach
9.7 MWh or 10% of the needs of
the city of Perpignan.
• Inaugrated on 13th Oct, 2011
41
Scope of Electricity Generation from Solar Energy
and Wastes in Indian Wholesale Markets :
study conducted by Premium Farm Fresh (2011)
42
Markets covered under the study
Terminal Market, Muhana, Jaipur.
APMC, Jamalpur, Ahmedabad.
Naroda Fruit Market,
APMC,Nasik
PFF, Nasik
Sardar Patel Market,
APMC, Surat
RESULTS
Name of the market
APMC Market, Surat
Premium Farm Fresh Market, Nasik
Sri Chimna Bhai Jiva Bhai Market, Ahmedabad
Sardar Patel Market, Ahmedabad
Muhana Mandi, Jaipur
Area available for
panel installation (sq.
m)
13935.5
2428
Area required for
panel installation
(sq. m)
12253.6
599.22
% of
Area
utilized
87.93
24.68
5563
1893
120977.4
3744.18
21449.4
23546.2
67.31
1133.09
19.46
Sample Calculation of total number of solar panels and roof area for installation in APMC, Surat
Average monthly electricity consumption - 52056 units/month
Average daily electricity consumption - 1735.2 units/day
If we take 110W Mono solar panels then the total number of such panels required to fulfil the daily energy
requirement of the market will be calculated as follows:
Size of Mono solar module: 101.1cm*80.7cm*3.55cm
Daily sunshine hours: 7 hrs
Total daily energy requirement from the panels: 1735.2 kWh/7h
= 247.8 kW
Max. Energy output of a Mono solar panel: 110W or 0.11kW
Taking the efficiency of mono-solar panels as 15%
(Source: http://www.planetarypower.com.au/solar_panels.htm)
Optimum energy output: 0.15*0.11 = 0.0165 kW
No. of solar panels required: 247.8kW/0.0165kW
= 15019 panels
Roof area required for installation of 15019 panels: 101.1*80.7*15019 = 122536567 sq.cm
= 12253.65 sq.m
44
RESULTS
Revenue
Total
Total cost
Cost of
earned
Name of the
electricity
of panel
Electricity Carbon
through
market
requirement installation saved Rs. in credits
Carbon
per yr (kWh)
(lakhs)
lakhs (A)
Credits Rs. in
Lakhs (B)
Muhana mandi
12 lakh
1399
55.46
984
13.28
Premium market
30000
35
9.31
25
0.33
APMC Market,
624672
724
31.45
512
6.92
Surat
Sardar patel
1093152
1274
1.93
896
12.10
market
Sri Chimna Bhai
Jiva Bhai Patel
189000
220
7.45
155
2.09
Market
Total
Saving
(Rs. in
Lakhs)
68.74
9.64
38.37
14.03
9.54
1 Carbon Credit = $30 @ Rs.45/dollar (2010)
45
SCOPE OF GENERATION OF ELECTRICITY FROM
WASTES
TYPES OF WASTES IN A MARKET
LEAVES
ROTEN FRUITS
PAPER
ROTEN AND LEFT
OVER VEGETABLES
WOODEN BOXES
STRAW
46
RESULTS
Name of the Market
Earnings from
Cost of electricity
carbon credits
saved (Rs lakh)
(Rs lakh)
Total Revenue
earned
(Rs lakh)
Muhana Mandi, Jaipur
Premium Market, Nashik
APMC, Nashik
APMC,Surat
55.46
9.311
6.26
31.45
297
27
84.5
23.8
352.46
36.311
90.76
55.2
Sri Chimna Bhai Jeeva Bhai
Patel Market, Ahmedabad
7.45
118
125
1.13
17.8
18.9
APMC, Naroda Fruit Market
Sardar Patel Market,
1.93
170
171.93
Ahmedabad
Note: Electricity cost taken @ prevailing rates in individual markets based on electricity bills
paid in 2010-11 (Source: Survey in enlisted APMCS)
Waste
Biogas
Electricity Production
Methane & CO2 inhibited from entering the atmosphere
Electricity cost saved
Earn Carbon Credit47
RESULTS contd…..
TOTAL REVENUE
(per year)
MARKET
Solar panel
(lakh Rs.)
Muhana Mandi
69
PFF Market Nasik
10
APMC Market,
Nasik
APMC Market
,Surat
APMC
Market,Vasna
10
3.5
1.3
36.31
3.5
12.4
55.24
125.44
18.93
14
Waste to energy
plant
352.46
90.76
38
Solar panel
(lakh Rs.)
-
Naroda Market
Sardar Patel Market
Waste to energy
plant
BREAK EVEN POINT (Yrs)
171.93
3.5
3.5
3.5
3.5
3.5
5.0
8.1
3.6
23.8
2.6
48
4.
Agriculture
Marketing Credit
49
Present Status
• Only two credit options in practice so far
 Negotiable Warehouse Receipt System (NWRs)
 Pledge financing
(The credit flow to agriculture marketing through these
schemes is very meager and misnomer since it does’nt provide
for marketing activities as such and treat it as commercial
loan)
• NABARD and other commercial banks do not give the
desired importance for financing of agricultural
marketing activities to the farmers.
50
ISSUE
For marketing activities such as







assembling,
Loading-unloading,
grading,
packing,
Packaging material,
labeling,
transportation,
 commission and market fee,
etc.,
there is an urgent need to develop a mechanism of credit
support
51
Need
• Redefine agricultural marketing activities for
the purpose of credit and finance
• An alternative banking option to act as a nodal
agency facilitating and governing the flow of
credit.
• Innovative and attractive financing models and
credit policies
52
5.
Innovative Policies
& Reforms
53
1. Second phase of reforms and
developmental initiatives be
launched immediately
2. Since most of the identified market infrastructure ( as per NHM’s
list of Market, non-market and essential services) found to be
unviable, this needs to be more incentivised.
3. Market fee/cess should be maximum 2% of the value and
commission
charges
should
not
exceed
2%
for
food
grains/oilseeds in APMCs.
4. Commission agents system be abolished in case of Government
Procurement and the system of procurement be more strictly
regulated. eg. Haryana taking 2% commission on Direct Govt.
Procurement without providing any services in lieu of it .
54
5. Classify agricultural wholesale markets under Infrastructure
category to invite economic source of funding like FDI,
ECB in addition to other Tax exemptions etc.
6. There should be a Single window clearance system for all
investors for seeking approvals/clearances like change of
zone, change of land use, market/subyard licence,
envionmental clearance, approval of drawings, etc.
7. Independent Regulatory authority needed to encourage the
Private Investors and provide them level playing field with
APMCs.
55
THANK
YOU
56