1. Directorate of Marketing and Inspection
Dr. Rajendra R. Karpate
(M.Sc., M.Phill. B.Ed. Ph.D)
Deputy Agricultural Marketing Adviser

2. AGRICULTURAL MARKETING REFORMS
STATUS / IMPACT OF
AGRICULTURAL MARKETING REFORMS ON
SOUTHREN STATES
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

3. Indian Agriculture has made rapid strides since independence
From food shortages and import
to self-sufficiency and exports.
From subsistence farming
to intensive and technology led cultivation.
Today , India is the front ranking
producer of many crops in the world.
Ushered in through the
green, white, blue and yellow revolutions
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

4. Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

5. Inadequacy of Agricultural Marketing infrastructure
Faults………………..
Inadequacy of Agricultural Marketing infrastructure
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

6. Challenges of Agricultural Marketing
To provide Multiple and Competitive Marketing Channel
Attract Large scale investments for building Post-Harvest
infrastructure
To create adequate and efficient Marketing Infrastructure
To empower farmers with Market Information
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

7. Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

8. Strengthening of institutional infrastructure
The first ever National Agriculture Policy was announced on 28th July, 2000 has indicated a nine-fold package of policy initiatives to achieve the objectives
Development of Sustainable agriculture
Food and Nutritional security
Generation and Transfer of Technology
Improvement of input efficiency
Provision of incentives for agriculture
Promotion of Investments in agriculture
Strengthening of institutional infrastructure
Better risk management
Introduction of Management Reforms
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

9. Interventions Reforms led assistance Gramin Bhandarn Yojana MRIN
Marketing Infrastructure
Facilitate private investment
Promote direct marketing/Contract Farming
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

10. Reforms Initiatives Undertaken
Model APMC Act formulated by Ministry of Agriculture to
Promote competitive agricultural markets in private and cooperative sector,
Encourage direct marketing and contract farming programs,
Facilitate procurement Of agricultural commodities directly from farmer’s fields, and
Establish effective linkages between farm production and retail chain.
National Conference on Marketing Reforms held at Delhi on and at Bangalore on
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

11. Other Reform Initiatives
‘Integrated Food Law’ to bring convergence of several food related laws including PFA Act;
Negotiable Warehousing Receipt System for agricultural commodities at rural godowns;
Liberalization of EC Act to Remove Controls on Movement, Storage and Marketing of Agricultural Commodities; and
FC (Regulation) Act to Allow Futures Trading in Agricultural Commodities for price discovery/risk management.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

12. Vital Areas of Reforms as per Model APMC Act 2003
Establishment of private market yards / private markets managed by a person other than a Market Committee;
Establishment of private yards and direct purchase of agricultural produce from agriculturist by a person other than a Market Committee (Direct purchasing from producer).
Establishment of consumer / farmers market by a person other than Market Committee (Direct Sale by the producer to the consumers).
Provision of Contract Farming.
Single registration / license for trade transaction in more than one market.
To promote and encourage e-trading.
Single point levy of market fee.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

13. STATUS OF MAJOR REFORMS IN ANDHRA PRADESH
Sl.
No.
Area of Reforms
Whether provision mentioned in (2) provided in the State/UT APMC Act (Yes/No). If yes, relevant section / Sub-section / Clause may also be mentioned
Whether Rules are notified for the area mentioned in (2) (Yes/No). If yes, relevant Rules (s) No. may also be mentioned 1 2 3 4
Title of the Act
Andhra Pradesh (Agricultural Produce and Livestock ) Markets Act 1966
The Andhra Pradesh (Agricultural Produce and Livestock) Markets (Amendment) Act, 2005
Setting up of Special Markets and Special Commodity Market
A provision is made in the Act. Under Section 4(I-B) and 5A for establishing of Special Market --
PPP in Market Extension activities of Market Committee
No specific amendment is carried out. However, Government issued orders to setting up of Terminal Markets vide G.O.Ms.No.295, dt: of Agril. & Co-op(AM-II) Dept., A.P.,
To promote and encourage e-trading, Market Committee may establish regulatory system, create infrastructure and undertake other activities and steps needed thereto
Necessary amendments are made to the section 2 & 7 of Andhra Pradesh (AP & LS) Markets Act, 1966 for issue of licence to establish the Spot exchange for providing electronic platform (E-trading) negotiate between buyers and sellers in delivery based spot trading only.
Rule 53-B of AP (AP & LS) Markets Rule, 1969 5
Secretary to be Chief Executive Officer of Market Committee. CEO shall be appointed by the Market Committee from the panel maintained by the Director / Board which may include professional from open Market
No specific amendment is carried out, because there is no board in place. Agricultural Market Committee employees, Govt. employees they cannot be dispensed with
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

14. STATUS OF MAJOR REFORMS IN ANDHRA PRADESH6
Contract Farming Sponsor shall register himself with the Market Committee or with a prescribed officer in such a manner as may be prescribed
A provision is made under section section 11 A of AP (AP & LS) Markets Act, 1966
Rule 73-A (AP & LS) of Markets Rule, 1969 7
The contract farming sponsor shall get the contract farming agreement recorded with the prescribed officer 8
No, title, rights, ownership or possession shall be transferred or alienated or vest in the contract farming sponsor or his successor or his agent as a consequence arising out of contract farming agreement
A provision is made under section 11 A of AP (AP & LS) Markets Act, 1966 9
Dispute settlement mechanism --
Rule 73-A (8) of AP (AP & LS) of Markets Rule, 1969 10
Exemption of Market Fee on the sales to the contract farming sponsors taking place outside the market yard under the Contract Farming
Under section 11 A of AP (AP & LS) Markets Act, 1966
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

15. STATUS OF MAJOR REFORMS IN ANDHRA PRADESH11
Specification of model agreement for Contract Farming
Model Agreement is prescribed in form 11-A -- 12
Single point levy of Market fee in the State
A provision is in existence before amendment of Andhra Pradesh Markets Act
Rule 74 (1) of AP (AP & LS) of Markets Rule, 1969 13
Single registration / license for trade / transaction in more than one market
Rule 48 (6) of AP (AP & LS) of Markets Rule, 1969 14
Establishment of Private market yards / private markets managed by a person other than a market committee
Under Section 7(7) of AP (AP &LS) Markets Act, 1966
Rule 53-B of AP (AP & LS) of Markets Rule, 1969 15
Establishment of farmers / consumers market managed by a person other than a market committee (Direct sale by the producer)
Rythu Bazars – The Government of Andhra Pradesh exempted business transactions taking place in Rythu Bazars from the provisions of Section 7 and 12(10 of Markets Act vide G.O.Ms.No.37, dated of Agricultural & Co-operation (Mktg.I) Department, Andhra Pradesh, Hyderabad
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

16. STATUS OF MAJOR REFORMS IN ANDHRA PRADESH16
Establishment of private yards and direct purchase of agricultural produce from agriculturist (Direct purchasing from producer)
Under Section 7(7) of AP (AP & LS) Markets Act, 1966
Rule 53-B of AP (AP & LS) of Markets Rule, 1969 17
Power to grant exemption from market Fee by the State Government
A provision is exist in Andhra Pradesh Markets Act under Section 35 before amendment -- 18
Setting up of separate Market Extension cell in the Board, estt. of State Agricultural Produce Marketing Standard Bureau
No such Amendment is carried out 19
Exemption of market fee on Fruits and Vegetables reform not concerned with Model Act, 2003
An amount of Rs crores is being collected as Market Fee per year by the 44 important fruit and vegetable markets of A.P. These market committees incur expenditure towards the administrative cost and infrastructure around Rs crores per year and Rs crores per year respectively. Complete waiver of market fee on perishables would affect the resource mobilization of AMC and prevent them to create infrastructure required in the markets of fruits and vegetables.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

17. STATUS OF DEVELOPMENT ACTIVITIES
IN ANDHRA PRADESH 20
No. of licenses issued for establishing Private Markets 03 21
No. of Contract Farming sponsors registered 01 22
No. of Licenses issued for Direct Marketing (Direct Purchase of Agricultural Produce from agriculturist)
171 23
No. of single Unified licenses issued for trading in more than one APMC
In Rule 48(6) of AP (AP & LS) Markets Rules, 1969 a trader whom license is granted by a AMC, can purchase and sell in any notified area and exempted from obtaining license from other AMC. Hence, a trader is having a single Unified License 24
No. of licenses issued for Trading and e-marketing
Under process 25
Any other development taken place in respect of Agricultural Marketing
Establishment of fully owned and introducing Comprehensive Electronic Bidding facilities in six AMCs.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

18. Implemented w.e.f. 20/10/2004 in the country.
Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization
Implemented w.e.f. 20/10/2004 in the country.
Scheme is reform linked and is implemented in those States/UTs which amend their APMC Acts, wherever required, to allow 1. Direct Marketing 2. Contract Farming and permit setting up of Markets in private and cooperative sectors. So far, 28 States/ UTs have been permitted to take the benefits of the Scheme.
Sl. No.
Category of Projects
Type of Projects 1
Primary Processing and Value Addition Facility
Primary Processing Plants, Parboiling Units, Cotton ginning and pressing units, Seed Primary Processing and Testing Centers, Drying Yards/Automatic Bulk Dryers 2
Cleaning, Grading, Storage and Packaging Unit
Cleaning, Grading, Storage Units, Waxing and Packaging Units, Packaging Lines, Grain Colour Sorter, Pack Houses, Quality Testing / Grading Laboratories, Milk Packaging Unit, Milk Quality Testing Lab, Plastic Crates. 3
Pre-cooling/Cold chain facility (Cold Storages, Reefregrated Vans, Milk Chilling Plants etc)
Pre-cooling Units, Ripening Chambers, Curing Chambers, Milk Collection & Chilling Centre, Bulk Chilling Unit, Pasteurization Plant, Cold Chain Projects with Reefer Vans Fish Chilling Plant, Fish Storage, Individual Quick Frozen (IQF) Plant, Cold Storage as a part of Integrated Marketing Infrastructure. 4
Market User Common Facility (Auction platform, Weigh Bridge, Mechanical Handling Equipments)
Auction Platforms, Electronic Weighing Centers, Electronic Display Boards, Shop cum Godowns, Internal Roads, Automatic Produce Handling Plants. 5
Mobile Infrastructure
Combined Harvester, Threshers, Groundnut Decorticator, Fishing Boat, Fish Trawler. 6
Establishment of private markets/ Purchase Centres/ Collection Centres/ Market Yards
Market Yards, Purchase Centre/ Collection Centre and other related market infrastructures. 7
Other Infrastructures
Automatic Milking Machines, Fishing Net, Honey Extraction Centre, Shellac Processing Unit.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

19. Project Sanctioned by NABARD Total subsidy released
STATUS OF
SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION
IN ANDHRA PRADESH
Year-wise Details
(Rs. in lakhs)
PLAN
YEAR
Project Sanctioned by NABARD
No.
TFO
Eligible subsidy
Total subsidy released
Xth PLAN 16
218
SUB TOTAL
234
XIth PLAN
314 45 26
118 55
558
XIIth PLAN 1
15.6
3.9 22 23
GRAND TOTAL
815
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

20. STATUS OF IN ANDHRA PRADESH RURAL GODOWN SCHEME
Category Capacity TFO Advance Final Subsidy Subsidy
Andhra Pradesh
Subsidy Rate
15%
347404
396.96
121.63
25%
33.33%
450
9.91
1.23
1.17
Gender
Male
Female
824171
None
506283
843.08
737.31
Category SC
Others
Area Category
Classification
Cooperative
16790
337.64
34.97
29.27
Enterpreneur
Farmer
612112
587.86
Private Corporate
44248
705.25
60.45
43.04
State/State Agency
172987
330.00
269.45
Partnership
234559
376.08
349.56
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

21. Computer Connectivity
STATUS OF
MARKET RESEARCH AND INFORMATION NETWORK SCHEME
IN ANDHRA PRADESH
Computer Connectivity
Total No. Computers provided = 398
Agmarknet Nodes APMC/(Market) = 354
Computers provided to field officers of Dept. of Marketing Govt. of A.P.(SAMB/DOM) = 42
Computers provided to DMI offices = 2
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

22. No. of Nodes Reporting Data
Month
No. of Markets Reported
Rank
April,2012
270
1st
May, 2012
264
June, 2012
267
July, 2012
265
August, 2012
271
September, 2012
278
October, 2012
282
November, 2012
274
December, 2012
January, 2013
February, 2013
March, 2013
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

23. STATUS OF MAJOR REFORMS IN TAMILNADU
Sl.
No.
Vital Areas of Reforms
Status 1
No. of valid Licenses issued for
establishment of Private Markets alongwith the list
The salient features of the model act 2003 such as Establishment of Private Markets, licenses for Direct Markets, Contract Farming, E-trading licenses, Consumer / Farmers Market are included in the new proposed Act 2011 (i.e. Tamil Nadu Agricultural Produce Marketing (Development & Regulation) Act 2011) and the same had been sent to Government. The work regarding the amendment of the Act is under processing. 2
No. of Licenses issued for Direct
Marketing (Direct purchase of Agriculture Produce from farmers) alongwith list 3
No. of Unified licenses issued for
purchase of agricultural produce
in the State 4
Status of Contract Farming
i) No. of sponsoring individual /
companies registered alongwith the list. Status of companies / firms like Indian/foreign collaborative
ii) Area covered crop wise
iii) No. of Farmers benefited 5
Status of single point levy of market
fee
As per the provisions available in the existing Tamil Nadu Agricultural Produce Marketing (Regulation) Act 1987 and Rules 1991, the Market Committees in Tamil Nadu are already exercising the single point levy system 6
No. of E-trading licenses issued
Nil 7
No. of consumer / farmers market
i) Promoted by State Govt. / APMC
179
ii) Promoted by private --
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

24. Number of projects sanctioned Total eligible subsidy in Rs. 2012-13 22
STATUS OF
SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION
IN TAMILNADU
Number of projects sanctioned
Total eligible subsidy in Rs.
Since inception 22
1093
3,03,55,435
38,86,17,131
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

25. STATUS OF IN TAMILNADU RURAL GODOWN SCHEME Tamilnadu Subsidy Rate 15%
65764
993.19
42.56
54.15
25%
298885
427.56
376.70
33.33%
17475
333.01
43.68
Gender
Male
228458
325.04
208.20
Female
117023
165.51
105.45
None
45946
976.89
44.17
117.20
Category SC
28536
548.19
64.60
Others
362892
470.11
430.84
Area Category
391427
534.71
Classification
Agri Graduate
3623
105.35
6.43
4.10
Cooperative
150
199.98
34.72
Enterpreneur
16232
464.91
24.52
7.92
Farmer
258922
413.48
237.60
Private Corporate
3782
54.79
5.51
State/State Agency
1030
38.40
1.33
3.96
87491
81.48
112.26
Partnership
2512
44.40
2.26
2.28
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

26. STATUS OF IN TAMILNADU Pondicherry Subsidy Rate 25% 449 16.50 1.12
RURAL GODOWN SCHEME
IN TAMILNADU
Pondicherry
Subsidy Rate
25%
449
16.50
1.12
0.88
Gender
Male
Category
Others
Area Category
Classification
Farmer
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

27. MARKET RESEARCH AND INFORMATION NETWORK SCHEME
STATUS OF
MARKET RESEARCH AND INFORMATION NETWORK SCHEME
IN TAMILNADU
Sl. No
Action Point
Progress made in TAMIL NADU
Progress made in PUDUCHERRY
Computers provided
Market Nodes
212
189 5 4 1
Installation
187 3 2
Connectivity
133
Training
116
Data Reporting by
179
Data Reporting by Non-Market Nodes 16
Market Profile Available
173
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

28. STATUS OF MAJOR REFORMS IN KARNATAKA
Area of Marketing Reforms
Amendment made in the State APMC
Act (Yes/No)
Date of the amendment notified in the APMC Act, if yes in Col.2
Respective Rules
amended (Yes/No)
Date of notification of amended Rules, if yes
in Col.4
Direct purchase of agricultural produce from agriculturist (Direct Marketing)
Yes
Private Market
Contract Farming
Single unified license for trading in more than one market
Not
applicable
Single point levy of Market fee
E-trading
Farmer-consumer markets by a person other than Market Committee
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

29. STATUS OF MAJOR REFORMS IN KARNATAKA
Sl.
No.
Vital areas of Reforms
No.s
Detailed List along with address and contact details including Mobile/Phone number of promote/Company 1
No. of valid licences
issued for
establishment of
Private Markets 02 2
No. of licences issued for Direct Marketing (Direct purchase of Agricultural Produce
from Farmers) 07 3
No. of Unified licences issued for purchase of agricultural produce in the State
410 4
Status of Contract Farming
No registration has been made in the APMCs of the State 5
Single Point levy of market fee
Single Point Levy System is in force in the State of 6
No. of E-trading
licences issued 03 7
No. of consumer/ farmer markets
No registration received for grant of license 8
Any new initiatives in the State
Recommendations made by the High Power Committee constituted by the Government of India is under consideration
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

30. Number of projects sanctioned Total eligible subsidy in Rs. 2012-13
STATUS OF
SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION
IN KARNATAKA
Number of projects sanctioned
Total eligible subsidy in Rs.
Since inception 42
103
1,27,00,000
2,08,00,000
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

31. STATUS OF IN KARNATAKA RURAL GODOWN SCHEME Karnataka Subsidy Rate 15%
182591
167.19
37.52
25%
33.33%
83614
178.27
96.63
Gender
male
802162
Female
201612
388.74
242.19
None
593987
868.07
553.28
Category SC
30972
605.37
54.28
60.81 ST
14075
340.76
36.55
16.14
Others
Area Category
Hilly
7863
159.50
6.05
13.65
Tribal
7081
185.93
8.06
1.03
Classification
Cooperative
20762
534.41
45.40
31.16
Enterpreneur
101343
128.30
148.43
Farmer
NGO
11874
262.69
3.49
Private Corporate
132219
209.73
220.13
State/State Agency
137234
257.03
258.77
5682
165.62
7.38
3.39
Partnership
13768
347.71
22.90
31.40
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

32. MARKET RESEARCH AND INFORMATION NETWORK SCHEME
STATUS OF
MARKET RESEARCH AND INFORMATION NETWORK SCHEME
IN KARNATAKA
Sl. No
Action Point
Progress made in KARNATAKA
Computers provided
Market Nodes
224
192 1
Installation
223 2
Connectivity
175 3
Training
172 4
Data Reporting by
123
Data Reporting by Non-Market Nodes 9 5
Market Profile Available
142
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

33. There is no Contract farming within Kerala State.
STATUS OF MAJOR REFORMS IN KERELA
KERALA AGRICULTURAL MARKETING SYSTEM
Kerala does not have APMC act. There are no statutory regulations prevail. There are no controls for agricultural market. Government and LSG institutions provide marketing Infrastructure. There is complete liberal market scenario prevail in Kerala markets.
DEPARTMENT OF AGRICULTURE MARKETS
There are six whole sale agricultural markets are functioning in Kerala viz. three urban whole sale markets (1.Trivandrum, Anayra, 2.Ernakulam, Maradu 3.Khozhikode, Vengeri) and three rural whole sale markets (1. Trivandrum, Nedumangadu 2. Ernakulam, Moovatupuzha 3.Wayanad, Sultan Bathery )
These six Agricultural Wholesale Markets of Kerala are Government owned markets constituted under Department of Agriculture. These markets were designed under Kerala Agricultural Market Project(KAMP),with financial assistance from the European Union(EU),the enterprise envisages to ensure efficient handling of Agricultural produce and to facilitate its proper marketing .At present ,these markets are functioning as per market rules framed by Govt. of Kerala.
There is no Contract farming within Kerala State.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

34. STATUS OF IN KERELA Year 25% Category 33.33 % Category No. of Projects
SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION
IN KERELA
Year
25% Category
33.33 % Category
No. of Projects
TFO
Subsidy Released
Advance
Final
Nil 7
43.08
7.124 25 37 1
1.00
0.3333 45
77.502 15
35.19
64.914
677.00
74.193
63.942 16
62.084 22
6.156
63.310
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

35. STATUS OF IN KERELA RURAL GODOWN SCHEME
Kerala
Subsidy Rate
15%
9077
164.18
7.77
7.22
25%
27055
33.73
55.31
33.33%
950
24.41
1.17
4.82
Gender
Male
23142
715.73
25.66
27.25
Female
5536
292.20
3.85
27.44
None
6106
148.50
10.75
12.66
Category ST
350
11.50
0.77
Others
36732
41.50
66.58
Area Category
Hilly
600
12.91
4.05
North East
36132
62.53
Classification
Cooperative
5000
110.00
8.15
8.20
Enterpreneur
4699
108.40
3.62
9.53
Farmer
23979
899.53
25.90
45.16
NGO
Private Corporate
186
7.20
0.98
570
19.80
1.43
2.71
Partnership
2298
38.50
2.41
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

36. Thank you