National Conference on Agriculture for ZAID/Summer Campaign 2019 24.01.2019 By: Prasanta Kumar Swain Joint Secretary (Agri-Marketing)

New Marketing Initiatives and Post-Harvest Infrastructure

Presentation Structure Market Reform e-National Agriculture Market (e-NAM) Grameen Agriculture Markets(GrAMs) Agriculture Market Infrastructure (AMI) Scheme Market Intelligence- Price & Demand Forecast

Agriculture Marketing – Need for Reforms & Development Marketing of Agriculture Produce Wholesale 2339 Market yards & 4276 sub-market yards Retail 22000 Village Haats 488 Farmer Consumer market Agri Export India’s Share ˂ 3% of global Agri Export : New Export Policy Fall back Mechanism Procurement system PSS/PDPS/ PPSS Challenges: Lack of Infrastructure, fragmented & weak supply chain, Low access of farmers to markets, high post harvest losses, lack of standardization, low remunerative prices Vision: Doubling of Farmer’s Income by 2022

Agri Market Reforms: A Perspective Model APLM Act, 2017 Segregation of Regulation from Operation (04 States) Setting up of markets in Private sector (22 States/ UTs) Direct Marketing (23 States/ UTs) Contract Farming Declaring warehouses/cold storage as market sub-yard ( 05 States) De-regulation of marketing of F&V (16 States/ UT) Single point levy of market fee (23 States/ UT) Single trading license (22 States / UT) E-Trading (22 States) e-NAM Objective: Improving Marketing infrastructure, Integration of supply chain, Reduction of post harvest losses, Farmer’s access to markets, Promoting Investment etc. Model Contract Farming Act, 2018

Market Reform in State APMC Act S. No. Area of Reform State/ UT 1 Establishment of private market Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Goa, Himachal Pradesh, Karnataka, Maharashtra , Mizoram, Nagaland, Odisha, Rajasthan, Sikkim, Telangana, Tripura, Punjab, Jharkhand, Uttarakhand, West Bengal, Uttar Pradesh and UT of Chandigarh (21+1) 2 Direct wholesale purchase of agricultural produce from agriculturists (Direct Marketing) Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Goa, Himachal Pradesh, Karnataka, Maharashtra, Mizoram, Nagaland, Rajasthan, Sikkim, Tripura, Jharkhand, Uttarakhand, Uttar Pradesh, Haryana, Madhya Pradesh, Telangana, Punjab, West Bengal and UT of Chandigarh (22+1)

Market Reform Contd… 3 Establishment of farmer -consumer market in private sector (Direct sale by the producer to the consumer in retail)  Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Goa, Himachal Pradesh, Karnataka, Maharashtra , Mizoram, Nagaland, Rajasthan, Sikkim, Tripura, Jharkhand, Uttarakhand, West Bengal, Uttar Pradesh (17) 4 Contract Farming Provision Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Goa, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, Telangana (20) 5 Provision for e-trading Andhra Pradesh, Chhattisgarh, Gujarat, Goa, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Odisha, Punjab, Rajasthan, Sikkim, Uttarakhand, Telangana, Uttar Pradesh, West Bengal, Tamil Nadu, Arunachal Pradesh and UT of Chandigarh (21+1)

Market Reform Contd… (22) 6 Single point levy of market fee across the State/ UT Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Gujarat, Goa, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Uttarakhand, Telangana, Uttar Pradesh, Tamil Nadu, West Bengal and Chandigarh (22+1) 7 Unified single trading licence for State/ UT Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Gujarat, Goa, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Uttarakhand, Telangana, Uttar Pradesh, Tamil Nadu, West Bengal (22) 8 De-regulation of marketing of fruits and Vegetables Madhya Pradesh, Jharkhand, Haryana, Assam, Odisha, Gujarat, Himachal Pradesh, Maharashtra, Karnataka, Nagaland, West Bengal, Rajasthan, Meghalaya, Chhattisgarh, Assam and NCT of Delhi (15+1)

Status of Adoption of model APLM Act, 2017 Arunachal Pradesh have adopted in entirety Uttar Pradesh, Chhattisgarh have adopted all major provisions Punjab has adopted partially All other States/ UTs are requested for early adoption e-NAM: Reformed States/UTs with e-NAM: A.P., Arunachal Pradesh, Chattisgarh, Goa, Gujarat, Haryana, H.P., Jharkhand, M.P., Maharashtra, Mizoram, Odisha, Punjab, Rajasthan, Sikkim, Telangana, U.P., Uttarakhand, West Bengal UT of Chandigarh & Puducherry States/UTs without APMC Act: Can certainly implement e-NAM Bihar, Kerala, A&N Islands, Lakshadweep, Dadra Nagar Haveli, Daman & Diu UT without Reform: Needs Reform NCT of Delhi

E-National Agriculture Market: Coverage S.No State No. of Markets on e-NAM 1 Andhra Pr. 22 2 Chandigarh 01 3 Chhattisgarh 14 4 Gujarat 79 5 Haryana 54 6 Himachal 19 7 Jharkhand 8 Madhya Pr. 58 9 Maharashtra 60 10 Odisha 11 Puducherry 02 12 Punjab 13 Rajasthan 25 Tamil Nadu 23 15 Telangana 47 16 Uttar Pradesh 100 17 Uttarakhand 18 West Bengal Total 585 Additional 415 mandis to be integrated by March 2020 States may provide proposals for integration with e-NAM

FPOs on e-NAM Action: More FPOs to be on boarded by States S. N. State In order to enlarge the NAM eco-system, SFAC have registered 634 FPOs working in the vicinity of e-NAM mandis with e-NAM as sellers in 16 States. FPOs in A.P., Gujarat, Maharashtra, M.P., Odisha, Rajasthan, Telanagana U.P. and West Bengal Have started selling their produce on e-NAM. FPOs / FPCs are expected to work as aggregators of produce of their farmer members, and help in selling on e-NAM portal after proper cleaning, sorting, packing etc. Till 20th Jan 2019, FPOs have sold 775.31 MT of produce worth Rs 2.26 Crores. S. N. State FPOs/FPCs Registered 1 A.P. 36 2 Chhattisgarh 3 Gujarat 14 4 H.P. 29 5 Haryana 46 6 Jharkhand 7 Maharashtra 189 8 M.P. 9 Odisha 10 Punjab 11 Rajasthan 58 12 Telangana 53 13 Tamil Nadu 67 Uttarakhand 15 Uttar Pradesh 84 16 West Bengal 41   Total 634 Action: More FPOs to be on boarded by States

Inter-mandi Trade on e-NAM (till 20th Jan 2019) State No. of Lots Traded Total Trade Qty (MT) Total Trade Value (Rs Cr) Haryana 63092 197540.26 555.08 Telengana 6557 9131.60 17.76 Madhya Pradesh 2181 3295.44 10.46 Chhattisgarh 1154 3130.14 5.19 Andhra Pradesh 1427 1188.3 4.48 Uttar Pradesh 632 1601.65 2.22 Uttarakhand 51 68.18 0.07 Rajasthan 43 21.65 0.04 Jharkhand 4 10.03 0.01 Himachal Pradesh 1 0.21 0.001 Total (10) 75142 2,15,987.46 595.31 Actions: . To improve no. of Unified Licenses . To improve inter-mandi trade

Inter-State Trade on e-NAM (till 20th Jan 2019) Origin State/ Mandi(s) Destination State/ Mandi(s) Commodities Volume (in Quintal) Value ( in Rs) Uttarakhand Haldwani Kashipur Khatima Rudrapur Dehradun Roorkee Haridwar Rishikesh Uttar Pradesh Bareilly Moradabad Pilibhit Saharanpur Tomato Potato Cauliflower Peas Green Cabbage Carrot Brinjal 236 1,52,925 Radish Bottle Gourd 30 15,000 Telengana Gadwal Andhra Pradesh Kurnool Groundnut 16.56 70,290 10.08 50,894 Rajasthan Sumerpur Gujarat Palanpur Caster seeds Green Gram 2.8 14,280 Total 295.44 3,03,389

Grameen Agricultural Markets (GrAMs) Union Budget 2018-19: Existing 22,000 Village Haats to be upgraded to GrAMs through convergence of schemes: MGNREGA, PMGSY-III etc. GrAMs to be exempted from APMC Regulations Rs. 2000 Crore Agriculture Market Infrastructure Fund for improving markets Marketing Infrastructure development in GrAMs & APMCs Action Taken: DMI surveyed so far 11,876 existing haats for location and infrastructure DAC&FW requested concerned States to exempt GrAMs from State APMC Act. Rs.2000 Cr. AMIF fund to be created through NABARD at subsidized interest rate for development and up-gradation marketing infrastructure in GrAMs and APMCs is in advanced stage of consideration Progress: MoRD informed up gradation was in 272 Haats from MGNREGA in 18 States under progress of which 85 completed in 12 States Operational guidelines for management of GrAMs has been circulated to States/Uts and uploaded on DAC&FW/ DMI portal

Agricultural Marketing Infrastructure (AMI) scheme of DMI AMI scheme has been re-launched/re-introduced w.e.f. 22.10.2018 It has two component of Market Infrastructure Storage Other than Storage Back ended bank credit linked capital subsidy @ 25% and 33.33% For the 1st time- Mini Primary Processing machineries for selected oil seeds for oil extraction (without refining) and Mini Dal Mill allowed FPOs can avail assistance for Common Facility Centres with Common Ownership of Marketing infrastructure near to Farm gate for value addition Assistance for Village Haats/ Farmer Consumer Markets development and up-gradation allowed

Eligible Marketing Infrastructure AMI Cold Storage (up to 1000 MT) Reefer Vans Mini Oil Mill / Dal Mill FPOs’ Common Facilitation Centers Storage Infrastructure Non-Storage Infrastructure (Primary Processing) Development of Rural Haats Special Assistance North East & Hilly/ Women/SC/ST/FPOs: 33.33% Infrastructure for Market Yards (viz. Mustard seed, Sesame seed, Ground nut, Linseed, Mahua, Safflower, Nigerseed Oil, Coconut, Almond and Olive only) The subsidy for such projects is restricted to the construction of sheds and oil expellers operated up to the power of 7.5 Horse Power (HP). Actions: States to promote investment awareness amongst FPOs & Enterpreneurs Marketing Boards to submit proposals

AMI : Reforms Required for State Agency Non-Storage Projects Contract Farming Private & cooperative Market Single point levy Unified license e-trading Direct Marketing States to follow above Reforms

Market Intelligence- Price & Demand Forecast Union Budget 2018-19: An Institutional mechanism on market intelligence (Price & Demand forecasting) DAC&FW has nominated NIAP ( ICAR) as ‘Knowledge Partner’ for forecasting simulations DMI to provide Data Support to NIAP for forecasting A Technical Advisory Committee set up under Chairmanship of CEO, NRAA to analyse and validate the Price and Demand Forecast prepared by the NIAP (ICAR) Initially five commodities identified for forth coming Rabi Harvest season for Price forecast which will be analysed.

Crops and Markets Selected for Forecast for Rabi S.No. Commodity Markets 1 Mustard -Bharatpur -Sri Ganganagar -Agra 2 Bengal Gram (Chana) -Latur -Rajkot -Lalitpur 3 Onion -Lasalgaon -Bengalure -Delhi Azadpur 4 Potato -Hoogli (Champadanga) 5 Wheat -Khanna -Indore Actions: Requesting States to ensure proper and accurate data entry in Agmarknet portal States to closely work with DMI for market information collection, cleansing & compilation

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