Government of Karnataka Department of Agricultural Marketing Karnataka State Agricultural Marketing Board WELCOME TO THE HON'BLE CHAIRMAN, VICE-CHAIRMEN AND MEMBERS OF THE COSAMB

GOVERNMENT OF KARNATAKA Sri Jagadish Shettar Hon'ble Chief Minister Sri S. K. Bellubbi, Hon'ble Minister for Agricultural Marketing, Wakf and Haj

AGRICULTURAL MARKETING-DEVELOPMENT AND REGULATIONS IN KARNATAKA Presented by Dr.C.Somasekhara, IAS Director of Agricultural Marketing and Managing Director Karnataka State Agricultural Marketing Board in the presence of Sri. S. K. Bellubbi, Hon'ble Minister for Agricultural Marketing, Wakf & Haj, Government of Karnataka and Chairman KSAMB at the National Conference on "Agricultural Marketing-Development and Regulations in India" organised by National Council of State Agricultural Marketing Boards at Mount Abu (Rajasthan) from 28-30th August, 2012

AGRICULTURE IN KARNATAKA Karnataka has a geographical area of 190.50 lakh hectares Cultivable land is about 123.85 lakh hectares (65%). About 66 % of over 5 crores people of the state live in villages The average size of holding is 1.63 hectares The contribution of Agriculture to State Gross Domestic production is 16.1% Out of the total cultivable land about 106.21 lakh hectares constitute agricultural crops and about 17.64 lakh hectares horticultural crops  

MAJOR CROPS OF KARNATAKA Cereals: Jowar, Paddy, Ragi, Maize, Sajje Pulses: Tur, Bengalgram, Greengram, Blackgram Oilseeds: Groundnut, Sunflower, Soyabean Commercial Crops: Cotton, Tobacco, Sugarcane Fruits: Mango, Grapes, Banana, Sapota, Gua, Pomegranate, Jackfruit, Papaya Vegetables: Onion, Potato, Tomato, Beetroot, Carrot Flowers: Cutflowers, Gerbera, Crysanthemum Jasmine Plantation Crops: Coffee, Coconut, Arecanut (Betelnut), Cashewnut Spices: Dry Chillies, Ginger, Cardamom, Pepper, Turmeric,  

VISION AND MISSION VISION : To promote and encourage participatory and equitable socio-economic development of people of Karnataka through a vibrant agricultural marketing system. MISSION : To develop and regulate participative, transparent and scientific agricultural marketing system with adequate infrastructure and user friendly e-initiatives

NAME OF THE ACT AND RULES The Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 The Karnataka Agricultural Produce Marketing (Regulation and Development) Rules, 1968 The Karnataka Agricultural Produce Marketing (Regulation of Allotment of Properties in the Market Yards) Rules, 2004 The Karnataka State Warehouses Act, 1961 and Rules 1969 (Licencing aspects only) Agricultural Produce (Grading and Marking) Act, 1937 (Central Act) (Issue of Agmark Certificates)

OBJECTIVES OF THE ACT To provide for improved regulation in the marketing of agricultural produce To develop an efficient marketing system Promotion of agri-processing and agricultural exports Establishment and administration of markets for agriculture produce Provide infrastructure for marketing of agricultural produce To lay down proper procedures and systems for fulfilling the above mentioned objectives

PROFILE Agricultural Produce Market Committees - 155 Main market yards - 155 Sub-market yards - 354 Annual Turnover through APMCs - Rs. Crores - 24,000 No of Notified Commodities. - 92 No of Licensed Market Functionaries. (Traders and Commission Agents) 40000 No of Staff working in the Marketing Department - 2200 No of Staff working in the Marketing Board - 182

CONSTITUTION OF KSAMB Chairman: Hon'ble Minister for Agricultural Marketing Vice Chairman: Elected from among the elected members of the Board Elected Members: One each from Revenue Districts. 30 members elected. Each member is the Chairman of a Market Committee who is elected from among all the Chairmen of the APMCs in the district Official Members: The Secretary to Govt. Dept of Co-operation or his nominee -ex-officio The Secretary to Govt. Dept of Agriculture or his nominee -ex-officio The Director of Agricultural Marketing -ex-officio Managing Director: Director of Agricultural Marketing - ex-officio

Organisational Set-up of the Department of Agricultural Marketing, Karnataka Minister for Agrl Mktg Principal Secretary Co-op DIRECTOR ADDITIONAL DIRECTOR HEAD OFFICE   SUPT. ENGINEER MDP JOINT DIRECTOR CHIEF AUDITOR ADDITONAL DIRECTOR ADMIN PLANNING (ENFORCEMENT) EXECUTIVE ENGINEER Deput Director (G&MI) Deputy Director(D&RGN) HGA(A.D) Marketing Officer (A.D) Special Auditor (Assistant Director) D.D(Enf) (S) D.D (Enf) (N) Bangalore Hubli Mysore Belgaum Gulberga B'LORE MYSORE BELGAUM GULBERGA District Offices Division ASSISTANT EXECUTIVE ENGINEER Deputy Assistant Director

Organisational Setup of the Karnataka State Agricultural Marketing Board

CONSTITUTION OF APMC Agriculturists: (Elected from the farmers-) ...................... 11 Traders and Commission Agents: ( Elected from the licenced traders and commission agents ) ....... ..1 Agricultural Produce Co-op Marketing Society (Elected from among the members of the Marketing Societies)....... .1 Agricultural Produce Co-op Processing Society (Elected from among the members of the Processing Societies)... .....1 Nominated by the State Government.....................................................3 Officer nominated by the Director of Agricultural Marketing.................1 TOTAL: 18 (Among agriculturists 1 is reserved for women, 2 for scheduled caste and tribe and 2 for backward community) Chairman and Vice-Chairman shall always be from Agriculturists The term of Committee is 5 years and of Chairman and Vice-chairman 20 months

REGULATION Introduction of electronic weighing scales in all the markets for weighment of farmers' produce. Adoption of competetive system of sale like auction and tender systems in the markets to ensure competetive price for farmers' produce. Introduction of electronic tender system of sale in 45 APMCs. Issue of transport permits on line and given to commission agents/traders Account settlement slip to be prepared in triplicate by commission agents; one to be paid to farmer, one to APMC and the other for himself. Payment to be made to farmers by commission agents or traders after sale on the same day. In case of delay 1% per day to be paid as interest upto 5 days. After that licence will be cancelled and legal proceedings will be initiated. Commission to the agents to be paid by the trader and not the farmer. At present commission is 1.5 % of all commodities, 1% for vegetables and flowers and Rs. 5/- per head of cattle, Rs. 1/- per head of sheep and goat.

ELECTRONIC WEIGHING SCALES IN MARKET YARDS

LEVY AND REALIZATION OF MARKET FEE: Buyer of the notified agricultural produce shall pay market fee to the concerned APMCs including the private market yards. Single point levy of market fee is introduced in the State since 2001. Market fee suffered goods in a APMC need not be levied again in any of the APMCs in the State. For verification and to ensure transparency, transportation permit is obtained by the traders through e-permit system The prevailing rates of market fee – Vegetables-1% advalarum, Fruits-1.5%, Flowers-1%, Food grains, pulses, oil seeds, plantation crops, fibers etc – 1.5%, Cattle-Rs. 5 per head, Sheep or goat – Re.1 per head. Rebates – Co-operative society will be levied at 80% of the fee payable. Buyer in a Spot exchange, Direct purchase licensee, Contract farming sponsor shall be levied and collected at the rate of 70% of the market fee payable.

EXEMPTIONS Any agricultural produce imported from outside the State for the purpose of processing or manufacturing is exempted from levy of market fee. Any processed agricultural produce imported from outside the State and sold in any market area within the State are exempted from levy of market fee. No market fee is payable for a period of 5 years by a new agricultural produce processing industries in respect of purchases of agricultural produce directly from the farmers and also the existing units which undertake modernization, expansion and diversification with certain conditions.

EXEMPTIONS Karnataka Oil Seeds Growers Federation (KOF) and HOPCOMS have been exempted from payment of market fee. SAFAL market established by NDDB is exempted from the provisions of the Act.

INCOME THROUGH MARKET FEES Year Market Fee Collected (Rs. in Crores) 2007-08 177.77 2008-09 202.91 2009-10 244.10 2010-11 303.08 2011-12 313.71

MARKET DEVELOPMENT THROUGH EXTERNAL FINANCE AND SUBSIDY (Last 4 years) Scheme Total Amount Spent (Rs.in Crores). Development of markets under RKVY Scheme (e-tender and market infrastructure) 23.80 Assistance for States For Infrastructure Developments For Exports (ASIDE-GOI) 27.47 The construction of Rural Godowns under Grameena Bhandara Yojana. (GOI)(294 godowns) 33.09 Development of Rural Markets under RIDF (GOI). (76 works)

FACILITIES IN THE MARKET YARDS

RURAL GODOWNS

DEVELOPMENT OF MARKETS UNDER RKVY (Turmeric market at Chamarajanagar)

DEVELOPMENT OF MARKETS UNDER RIDF SCHEME

E-TENDER SYSTEM OF SALE CONCEPT : The prices for the commodities brought by farmers for sale in the market yards are quoted by the licensed traders electronically that is through computers and mobiles. ADVANTAGES : Competitive price for farmers produce Transparency in price determination. Save in time. Unique in the whole country . Introduced in 45 markets. Will be extended to other markets in phases.

ELECTRONIC TENDER SYSTEM OF SALE

COMPUTERISATION OF ACTIVITIES Office Management : (Adopted in 75 markets) - Accounts Management - Property management - Daily Transactions - Development Works - Trade Permit Management - Administrative Works

MAJOR ACTIVITIES OF KSAMB Agricultural Marketing Training- 2 Training Institutes - Mysore and Hubli Extension Activities- 4 Divisional Offices Research Activities- MOU with Agri Universities Advise to APMCs and Government on Act and Rules Revolving Fund- Floor Price Scheme operation Raitha Sanjeevini- welfare scheme for farmers Janashri Bima Yojana- Insurance scheme for shramiks

TRAINING AND EXTENSION PROGRAMMES

EXTENSION ACTIVITIES

SUPPORT PRICE SCHEME FOR FARMERS Objective: To protect the interests of the farmers against distress sale of commodities under Floor Price Scheme (State Govt.) Minimum Support Price Scheme and Market Intervention Scheme (GOI.) Created a Revolving Fund of Rs. 806.07crores. (State Govt. Rs. 91.48 crores and APMCs Rs. 714.59crores) The amount revolved so far is Rs. 1329.73 Crores. No of Beneficiary farmers is 5,49,044 Cabinet Sub-Committee, State Level Committee and District Level Committees to implement the scheme.

WELFARE ACTIVITIES RAITHA SANJEEVINI SCHEME : Compensation upto a maximum of Rs. 50,000 to farmers in case of accidental death & permanent disability while engaged in agriculture or marketing activities. Rs. 14.98 crores compensation is given to 3224 farmers during the last 4 years. JANASHREE BHIMA YOJANA : For Hamals, Weighmen & Cartment in APMCs. Implemented through LIC of India. Compensation amount maximum Rs. 75,000.00 Annual Premium Rs. 100.00 paid by APMCs Rs.1.29 crores compensation is given during the last 4 years

ICT INITIATIVES Electronic Tender System of Sale. Computerisation of Activities. Implementation of Development works through e-tendering process. Market Information System. E-Trading through Spot Exchanges.

INFORMATION AND COMMUNICATION TECHNOLOGY http://krishimaratavani.kar.nic.in developed through NIC for online market information flow. Electronic Price Display Boards in all the market yards connected through website. Information through toll free telephone 1800-425-1552. Market SMS free of cost through mobiles. Price Ticker Boards installed in 155 APMCs and 6 KSAMB units through NMCE for online display of Spot and Future prices of commodities.

MARKET INFORMATION THROUGH TOLL FREE NO.1800 425 1552 AND MARKET SMS

E-PORTAL FOR IMPLEMENTING DEVELOPMENTAL WORKS All works costing more than Rs.2 lakhs are implemented through E-platform. KEONICS is co-ordinating the activity. Due to E-procurements many works are quoted below scheduled rates. Helped for bringing more competitiveness, transparancy, accuracy and time saving in the system.

IMPORTANT INITIATIVES IN THE REFORMS OF THE AGRICULTURAL MARKETING SECTOR Karnataka State is pioneer in bringing reforms considering the changes in the Agricultural Marketing scenario. The Karnataka Marketing Act was amended during June 2000 to facilitate for establishment of National Integrated Produce Market. The National Dairy Development Board was permitted to establish National Integrated Produce Market for fruits, vegetables and flowers. The NDDB accordingly established SAFAL market at Bangalore investing Rs.150.00 crores.

ADOPTION OF PROVISIONS OF MODEL ACT, 2003 Providing for Promotion of Public Private Partnership in the management and development of agricultural markets. Providing for Promotion of Standardization, Grading and Quality Certification of agricultural produce and for this purpose setting up Agricultural Produce Marketing Standards Bureau. To give thrust for the promotion of Agri-Processing Sector, Direct purchase centers are allowed E-trading – establishment of Spot Exchange.

AGRICULTURAL MARKETING REFORMS Licencing at one point for multi market operations License will be issued for a period of 10 years and thereafter will be renewed for 10 years.

PRESENT REFORMS SCENARIO: Licenses issued :- Private Market 5 Licences are issued- 3 are active Spot Exchange 1. National Spot Exchange Limited, Mumbai. 2. NCDEX Spot Exchange Limited, Mumbai. 3. Reliance Spot Exchange Infrastructure Ltd., Mumbai Direct Purchase Center 1. Reliance Fresh Limited, Bangalore. 2. Metro Cash and Carry India Limited, Bangalore 3. MCF International Limited, Bangalore (UB groups) 4. Tungabhadra Ginning and Pressing Factory. 5. M/s. Milanscr Mango Center, Srinivaspura. 6. Trinetra Super Retail Pvt Ltd., Bangalore. 7. Guru Raghavendra CottonGinning and Processing. 8. Jagadish Trading Company, Manoli, Soundatti 9. Totgars Co-op Sale Society, Sirsi Single License 300 traders including corporate houses have taken.

AMENDMENTS TO BE EFFECTED IN THE ACT AND RULES As per the Karnataka Integrated Agri-Business Development Policy the amendments to be effected in KAPM(R&D)Act : Exemption from payment of Market Fee for commodities traded in Terminal Markets. Exemption for payment of market fee for Processing and Exports upto 10 years. The provision of E-trading for all markets.

NEW PROJECTS Modern wholesale market for vegetables at Byatarayanapura in Bangalore at a cost of Rs. 100 crores in 30 acres under PPP model. Development of Modern Flower Market at Mysore at a cost of Rs. 10.45 crores. Establishment of Terminal Market for Onion and Potato at Dasanapur in Bangalore in 67 acres at a cost of Rs. 102 crores. Establishment of Rice Technology Park at Karatagi in Koppal district.

NEW PROJECTS Establishment of Maize Technology Park at Ranebennur Establishment of TurTechnology Park at Gulbarga Establishment of Coconut/Copra Technology Park and Research Centre at Tiptur Establishment of e-markets (e-trading) for 11 commodities in 50 markets through NCDEX Establishment of irradiation unit at Dasanapura in Bangalore Provision of value addition facilities like grading in the selected markets Rating of the markets for systematic development

Thank You