1. Agricultural Marketing Reforms RABI CONFERENCE-2005

2. As a Farmer I must thank all of you for your efforts and concerns But what use if I can not be facilitated to sell my produce at Remunerative Price / Quality linked returns Choose my buyer Place and time convenient to me Escape the fleecing of multiple intermediaries

4. Increasing Farmers Income 90% of effort is Production oriented Only 10% on Marketing/Post harvest phases Single intervention that can enhance income by 20-30% Private Sector Investment

5. Domestic Markets Scenario o Regulated Markets. o 7161 of 7310 Wholesale Markets Covered Under Regulation. o Of 27,294 Rural Markets, 15% Under Regulation

6. Domestic Markets Scenario o Regulated Markets Lack Need Based Infrastructure. o Development Confined to Wholesale Markets. Rural Markets Remain Out of Development Ambit o Current Mandi System Has Multiple Intermediaries and High Value Loss o APMC Regulation Prevents Companies From Directly Sourcing From Farmers

7. Domestic Markets Scenario o Fragmented Industry, with no Large Organized Players o High Wastage between the Farm and the Retailer

8. Present Scenario in Value Chain o Producer’s Share in Consumer’s Retail Price Mere 40% to 60% depending on the commodity o Only 25% of Produced Food-grains Utilise Scientific Storage o Less Than 2% of Fruits and Vegetables Production Is Processed o Post-harvest Losses estimate 10% of Food Grain and 25% of Fruits and Vegetables Production

9. Problems Competitiveness is lost Quality assurance is a ? Loss of Value Export is a problem No Grading/Standardization Consumer Dissatisfaction No Market Intelligence No Price Discovery

10. Paradigm Shift Present Agriculture is Production Driven Transition to Agri-Business Market Driven What Consumer Wants ? Cutting the value Chain Knowledge led growth Private Investment

11. Investment Requirement (Rs. in crores) ItemsPhysical (Nos) X PlanXI PlanTotal Wholesale markets3213241040166426 Modernization of markets 7293226037666026 Rural Periodic Markets27294102417062730 Grading Centers57864007501150 Modernizing Labs10010 20 Agribusiness Centres150050100150 Warehousing (lakhTonne) 5185965620012165 Total121191654828667

12. Source of Investment  Public Investment ??  Significant role of Private Sector How do we get them into the sector Create enabling Policy and Legal framework This requires Reforms

13. Road Map of Reforms Create enabling Legal and Policy environment Private / Cooperative Markets Direct Marketing and Contract Farming Programs Grading/Standardisation/Quality

14. Road Map of Reforms Establish Effective Linkages Between Farm Production And Retail Chains Public–Private-Partnership to Promote Professionalism in Existing Markets Stepping-Up of Pledge Financing and Marketing Credit

15. Road Map of Reforms Introduction of Negotiable Warehouse Receipt System In Storage Projects Link Commodity Exchange with Market Yards for Price and Risk Management Information Technology to Promote Trade/ Market Led Extension Services Facilitate Investments

16. Leaders In Reforms Kerala, Tamil Nadu Madhya Pradesh Andhra Pradesh Punjab Himachal Pradesh Sikkim Manipur Nagaland Andaman & Nicobar

17. Followers Many States Enabled some components Require all Components

18. Scheme For Development / Strengthening Of Agricultural Marketing Infrastructure, Grading And Standardization

19. Objectives of the Scheme o To Induce Private and Cooperative Sector Investments in Market Infrastructure Development Projects o To Strengthen Existing Agricultural Markets, wholesale and rural periodic, to Enhance Efficiency o To Promote Grading, Standardization and Quality Certification of Agricultural Produce at Farm/ Market Level

20. Coverage of the Scheme Agriculture/Horticulture Fisheries Meat & Poultry Minor Forest Produce Dairy Medicinal plants Apiculture

21. Components of the Scheme Functional Infrastructure Market user common facilities Shortening the Value Chain Direct Marketing Contract Farming E-Trading Infrastructure Market extension and market oriented production planning Input Supply

22. Functional Infrastructure Assembling Combine harvesters Cleaning Assembling yards Collection centers Pre-cooling Chambers Grading Mechanical graders Color sorters Standardisation

23. Functional Infrastructure Quality Certification Establishing a Quality Lab Accredited Certified agency Infrastructure On-Farm Quality Testing Infrastructure ( Sugarcane Quality Testing for timely harvesting and Maximum Sucrose Content) Grapes Certification

24. Functional Infrastructure Labeling Bar coding Packaging Pack houses Packing material manufacturing as part of the integrated project Retailing & wholesaling Food world Nilgiris Namdharis in Delhi

25. Functional Infrastructure Value addition Decortication of Groundnut Waxing of Kinnows Curing of Honey

26. Market user common facilities o Market yards o Platforms for loading/ assembling and auctioning of the produce etc o Modern auction Systems o Weighing and Mechanical Equipment

27. Shortening the Value Chain o Infrastructure for Direct marketing from producers to consumers/ processing units/ bulk buyers etc o Infrastructure for supporting Contract farming arrangements between processing/ trading units and farm producers o Infrastructure for E-Trading, market extension and market oriented production planning.

28. Scope of Infrastructure Projects Infrastructure for supply of production inputs and need based services to farmers AI infrastructure Fertilizer storage units Feed storage units Marketing Intelligence Mobile infrastructure for post-harvest operations Market extension and market oriented production planning

29. Salient Features of Scheme o Credit Linked Back-ended Subsidy on Capital Investment for  Setting up of General or Commodity Specific Infrastructure for Marketing of Agricultural Commodities; and  Strengthening and Modernization of Existing Agricultural Markets, Wholesale, Rural Periodic or in Tribal Areas

30. Persons Eligible o Individuals, Farmers, Consumers, NGOs, APMC, Corporations, Cooperatives and Marketing Boards in the Entire Country. o State Projects Assisted by NABARD/NCDC for Modernization of Existing Markets Subject to States allowing  Competitive Markets in Private Sector  Direct Marketing and Contract Farming  Rationalize levy of Market Fee Salient Features of Scheme

31. Funding Arrangement S.No. Components of Scheme Tenth Plan Provision (Rs. In crores) 1. Capital Investment Subsidy on175.00 Infrastructure Project 2. Strengthening of Central Laboratories 10.00 3. Awareness/Training, Consultancy and 5.00 Evaluation etc. Total - 190.00

32. Involve Women through SHGs

33. Expectations from Participants Treat marketing as an integral and critical link Awareness creation & Publicity Identify viable projects Capacity Building of all players NIAM, NABCONS can assist in Capacity building, Project Preparation Assistance of Trained Project preparation Experts

34. Further Details & Assistance www.agmarknet.nic.in reddywr@nic.in 011 23382416

35. Thank You