1. National Conference on Agriculture for ZAID/Summer Campaign By: Prasanta Kumar Swain Joint Secretary (Marketing)
Conference of Agriculture Ministers of the States Model APLM ACT & Model Contract Farming Act th July 2019

2. Agriculture Marketing – Need for Reforms & Development
Marketing of Agriculture Produce
Wholesale
2558 Market Yards & 4388 Sub Market Yards
Retail
22000 Village Haats
488 Farmer Consumer market
Agri Export
India’s Share around 2% of global Agri Export
Fall back Mechanism
Procurement system
Price Deficiency Payment System
Challenges: Lack of Infrastructure, Logistics, fragmented supply chain, Low access of farmers to markets, low remunerative prices
Vision: Doubling of Farmer’s Income by 2022

3. Department of Agriculture, Cooperation &FW Ministry of Agriculture &FW
Marketing Reforms & Model Act “The—State/ UT Agricultural Produce and Livestock Marketing ( Promotion & Facilitation ) Act, 2017” Dated: the 14th June,2019
Department of Agriculture, Cooperation &FW
Ministry of Agriculture &FW

4. Need of Reforms and Govt.’s Initiative
Agricultural Marketing is a State subject
Most of the States enacted Agricultural Produce Markets (Regulation) Acts during sixties and seventies
Need of Reforms-
To enhance farmers’ market accessibility
To strengthen facilities/ infrastructure & services of the existing organised marketing system under the APMC Act
To make the APMC markets efficient and professionally managed
To facilitate development of alternative marketing channels with the participation of private sector to create competition in services
To encourage both public & private sector investment in development of post-harvest and marketing infrastructure

5. Model APLM Act, 2017 Salient Features of Model APLM Act, 2017
Develop State/ UT level unified market
Declare warehouses/cold storages as “Deemed Market”
Powers and functions of MD Board and Director Marketing clearly demarcated
Public and private sector markets placed at level playing field
Bulk purchasers / processors /exporters/ organized retailers/ consumers integrated with producers nearer to farm gate
Promotion of specialized markets and also MNIs
Market fee and marketing charges rationalized
Provision for deregulation of fruits & vegetables
Unified single trading licence and single point levy of market fee provided
Trading through competitive e-platform
Recognition of unified licenses for inter-state trade

6. Agri Market Reforms: A Perspective
Agri. Marketing Reforms
(Model APLM Act, 2017)
Segregation of regulation from operation
(07 States)
Setting up of markets in private sector
(21 States/ UTs)
Direct marketing
Unified Market
(01 States)
Declaring warehouses/cold storage as market sub-yard
( 06 States)
De-regulation of marketing of F&V
(17 States/ UT)
Single point levy of market fee
(22 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 etc.

7. Status of Reform-wise Adoption by the States
State/UT
Unified single market at state level
Declaring warehouse / cold storages, as deemed market
Separation of powers & functions of Director of Mktg. & M.D. of Board
De-regulation of marketing of F&V
Private market
Direct marketing
E-trading
Single unified trading licence
Single point levy of market fee
Andhra X 
Arunachal Pradesh
Assam
Bihar
APMC Act Repealed
Chhattisgarh
Chandigarh
Goa
Gujarat
Himachal Pradesh

8. Status of Reform-wise Adoption by the States Contd...
State/UT
Unified single market at state level
Declaring warehouse / cold storages, as deemed market
Separation of powers & functions of Director of Mktg. & M.D. of Board
De-regulation of marketing of F&V
Private market
Direct marketing
E-trading
Single unified trading licence
Single point levy of market fee
Haryana X 
J & K
Jharkhand
Karnataka
Kerala
No APMC Act
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram x
Odisha
Punjab
Puducherry

9. Status of Reform-wise Adoption by the States Contd..
State/UT
Unified single market at state level
Declaring warehouse / cold storages, as deemed market
Separation of powers & functions Director of Mktg. & M.D. of Board
De-regulation of marketing of F&V
Private market
Direct marketing
E-trading
Single unified trading licence
Single point levy of market fee
Rajasthan X 
Sikkim
Tamil Nadu
Telangana
Tripura
Uttarakhan d
Uttar Pradesh
West Bengal
A & N Islands
No APMC Act

10. Status of Reform-wise Adoption by the States
State/UT
Unified single market at state level
Declaring warehouse / cold storages, as deemed market
Separation of powers & functions Director of Mktg. & M.D. of Board
De-regulation of marketing of F&V
Private market
Direct marketing
E-trading
Single unified trading licence
Single point levy of market fee
Nagaland X 
Delhi
Daman & Diu
No APMC Act
DNH
Lakshdweep

11. Status of Adoption of model APLM Act, 2017
Arunachal Pradesh have adopted in entirety
Uttar Pradesh, Punjab, Chhattisgarh have adopted all major provisions
Punjab has adopted partially
All other States/ UTs are requested for early adoption
e-NAM reformed States/UTs:
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 without APMC Act:
Bihar, Kerala
UT without Reform:
NCT of Delhi
UTs without APMC Act
A&N Island, Lakshwadeep,

12. E-National Agriculture Market: Coverage
16 States, 2 UTs
585 Mandis,
150 Commodities
S.No
State
Total 1
Andhra Pradesh 22 2
Chandigarh 01 3
Chhattisgarh 14 4
Gujarat 79 5
Haryana 54 6
Himachal Pradesh 19 7
Jharkhand 8
Madhya Pradesh 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
585 47 19 54 25 79
100 58 16 60 22 14 10
Integrated 17 23 19 1
Reg. Farmers Crore
Reg. FPOs
Reg. Traders Lakh

13. The Model Contract Farming Act, 2018
“ The—State/UT Agricultural Produce &Livestock Contract Farming and Services (Promotion & Facilitation ) Act, 2018”

14. Why an Exclusive Act? Contract farming as part of State APMC Act –
Conflict of interest
Registration of Sponsor, recording of Agreement and dispute settlement with APMC
Suffered from APMC regulation
Indian Contract Act, 1872–
Treats both the contracting parties as equal
Farmer is weaker of the two parties
No institutional mechanism
Hence, the need for a farmer-friendly Act

15. Contract Farming- Role in Indian Agriculture
Contract Farming & Services
Enhance productivity at cost efficiency
i) Extension services
ii) Supply of quality inputs
iii) Scale of economy
Assured market with pre-agreed Price
i) No search of market
ii) Price risk negotiation
ii) Optimum value of produce
Reduction of post-harvest losses
i) Short supply chain
ii) Availability of production & post –production infrastructure
Investment & productive job opportunity
i) Attraction of investment in forward, backward and processing infrastructure
ii) Job opportunities in rural areas
Assured supply of raw agro produce to Agro industries
i) Supply in desired quantity & quality

16. Salient Provisions of the Model Act
Every Sponsor, before entering into the Agreement, shall be digitally registered and “Agreement” recorded with prescribed “Committee”, or with the designated “Officer”
Support to agricultural production and rearing of livestock
The Producer may get support from Sponsor for improving production and productivity by way of inputs & technology etc.
Farmer (s)/FPO may also enter into pre-production, production and post-production services contract
Sponsor prohibited from raising any permanent structure or creating leasehold rights or any kind of charge on the land of Producer
No title, rights, ownership or possession shall be transferred or alienated or vest in the Sponsor etc or its successor or its agent
The minimum period of the Agreement will be for one production cycle and further continuance subject to renewal thereafter
To provide reasonable protection to the weaker party to the agreement, i.e., pre-agreed price for producer determined

17. Salient Provisions of the Model Act
Sale- purchase of produce
The contracted produce shall be outside the ambit of regulation of State /UT Agricultural Marketing Act.
The Sponsor shall buy the entire pre-agreed quantity of contracted produce of the Producer –
- In case, production support has been provided for-
Sponsor shall buy entire pre-agreed quantity of the contracted produce commensurate to quality standards but not less than fixed % of pre-agreed quantity
Sponsor shall buy rest of the pre-agreed quantity, at lower rate mutually acceptable to both parties
- In case of only buying Contract-
Sponsor shall buy entire pre-agreed quantity of contracted produce commensurate to quality standards but not less than fixed % of pre-agreed quantity of the produce; and
Sponsor shall buy rest of the pre-agreed quantity not purchased, at lower rate mutually acceptable to both parties

18. Salient Provisions of the Model Act
Negotiation or third party mediation /conciliation
Contracting parties may seek a mutually acceptable solution though mutual negotiation or through third party conciliation/mediation
Dispute Settlement Authority
The Government may constitute a “Dispute Settlement Authority”, comprising-
Sub-Divisional Magistrate/Officer or retired Judge/Magistrate as “Presiding Officer”; and
other three Members, one each representing farmers / FPOs, agro-industries and domain experts
Failing to reach a mutually acceptable solution through Mediation /Conciliation , the aggrieved party may refer the dispute to the Dispute Settlement Authority
The Authority shall resolve the dispute democratically and in summery manner within 15 days
The decision of the Authority shall have force of the decree of a Civil Court
Appeal
Any person aggrieved by the decision/ order of Authority may prefer an appeal to the Board within fifteen days, or within thirty days by submitting reasons for delay
The Board shall dispose off the appeal within fifteen days and decision of the Board shall be final
The decision of the Board in the appeal shall have force of the decree as of the Civil Court

19. Progress
Tamil Nadu assembly passed a Separate Contract Farming and Services Act on the line of Model Act and waiting approval Hon’ble president
Punjab has already enacted a separate Contract Farming Act in 2013
A total of 19 States have provisioned contract farming in APMC Acts itself

20. Thanks