Transcript Regulatory Regime in Indian Agricultural Marketing

S.S.Randhawa
MD, COSAMB
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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.
Period
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Prior to1939
End of 1940
End of 1950
March, 1961
March, 1974
March, 1985
March, 1990
March, 2000
March, 2010
No. of Regulated Mkts
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57
73
286
715
1777
5695
6217
7077
7157
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‘Notified Market Area’ is a cluster of villages
Each notified market area may have:
One principal market yard
One or more sub market yards
Seasonal markets for particular crops, and
One or more private market yards
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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
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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 ViceChairman, either elected or nominated in the
same way as other members
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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
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APMCs are Body corporate (Corporation), and
Local authority (local government)
Have perpetual succession and common
seal, and
Also have the right to acquire, hold and sell
property
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
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
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.
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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
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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
All commodities, processed or unprocessed of :
Agriculture
Horticulture
Forestry
Sericulture
Apiculture, or
Animal husbandry
are notified by the State Government
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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
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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
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
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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 platform
clean
Cooperation in trade and fair dealing in
business
Take only the specified commission
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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)
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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
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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
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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
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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
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
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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
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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
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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
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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