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Dr. B.K.Paty National Institute of Agricultural marketing

New role of APMCs (In the context of liberalisation for direct marketing, private market yards, and contract farming. Dr. B.K.Paty National Institute of Agricultural marketing Jaipur. New role of APMCs- outline of the presentation.

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Dr. B.K.Paty National Institute of Agricultural marketing

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  1. New role of APMCs(In the context of liberalisation for direct marketing, private market yards, and contract farming Dr. B.K.Paty National Institute of Agricultural marketing Jaipur

  2. New role of APMCs- outline of the presentation • Shift from salesmanship to marketing • Dealing with Service product-intangibility,simultaneity • Marketing extension • Promotion of direct marketing, contract farming, processing- leading to export, better returns to farmers, reduction of transaction costs etc. • Promotion of grading and standardisation • Making the traders association responsible • GAP,HACCP,GHP,traceability etc. especially from export point of view • Professionalisation of management • Transparency in dealing/ auctioning • Providing infrastructure and efficient services ( Promotion of PPP mode)

  3. dealing with a service product • Marketers of services face a bigger challenge due to unique nature of services-intangibility, heterogeneity, inseparability, perishability • Go beyond 4 Ps- product, price,promotion and distribution (Place) .Also • people, • process and • physical evidence

  4. Key Marketing issues • The unique characteristics of services present some key marketing issues • Managing differentiation amongst services ( offer, delivery, image, service premises, packaging, personnel, tools and equipment used, customer, convenience, name of the organisation) • Managing productivity (Commitment, High standards , Monitoring system, Customers’ complaint ) • Managing service quality(technology,selection & training, standardisation of services, customer’s involvement, employees’ skill utilisation)

  5. Organization Internal Marketing External marketing Front Line Employees Customers Internal marketing

  6. MARKETING EXTENSION • Marketing extension is the order of the day in the post-WTO regime • The incidence of huge post harvest losses can be attributed to poor marketing extension to a large extent.

  7. Role of APMC • Advice on production planning:- careful selection of the crop from marketability viewpoint-internal or export • Marketing information:- price and arrivals, forecasting of market trends, demand of other markets, facilities available in the target markets, quality requirements, market fees etc. • Securing markets for the farmers:-Awareness about regulated market laws and reforms, Information regarding procurement by Govt. agencies, contract farming arrangement for cash crops with wholesalers, processors etc. • Advice on improved marketing practices:- packaging, appropriate storing methods, standardization and grading and other post harvest management practices such as maintenance of quality, awareness about post-harvest losses etc.

  8. Role of APMC • Advice on establishing and operating markets:-Farmers groups to set up and run their own markets within framework of rules • Processing and value addition:- Farmers to be educated about value addition through primary processing • Group action:- Promotion of informal groups and Self Help Groups(SHGs) • Marketing Credit:- Educating farmers about different schemes of marketing credits, Advice on warehousing with pledgefinance scheme • Problem solving methods: micro-level • Marketing extension for export market: WTO implications, Codex, HACCP, Euro gap standards, Awareness on illeffects of pesticide/insecticidesresidue etc.

  9. Promotion of Direct Marketing, contract farming, processing • Less than 2% of f & v processed in India, as against 65% in USA, Brazil, Phillipines, South Africa and 83% in Malaysia • Similarly the extent of value addition is 7 % in India as against 23% in China and 88 % in UK

  10. Area & production of agri products

  11. 15 major food items of export (INR billion Rs)

  12. APMC role in contract farming • Provisions of a model agreement- sensitisation • Awareness about dispute redressal mechanism. • Collection of market intelligence data about contract farming • Registration of contracts, whre authised

  13. Promotion of grading and standardisation • Bureau for grades and standards- feeding information and working in close coordination with the Bureau • Awareness about existing grades and standards. • Identification of commodities and preparation of proposals for preparation of grades and standards.

  14. Making the traders association responsible • Feedback about policy issues • Involvement in waste disposal and management. • role in maintenance of food safety and quality • Role in ensuring transparency in the business • Role in training of the farmers

  15. GAP,HACCP,GHP,traceability etc. especially from export point of view • Testing facility in the premises of APMC • Awareness about the quality management tools amongst the stakeholders. • Big APMCs can set up training centres with an attached laboratories

  16. Professionalisation of management • Appointing professional managers as CEOs from the panel prepared by the Board • Computerisation • Computerised linkage of fees with the arrivals through automation • Service orientation

  17. Transparency • Auctioning • Allocation of shops etc. • Computerised linkage of market fees with arrivals

  18. Providing infrastructure and efficient services ( Promotion of PPP mode • Outsourcing • Infrastructure in the premises in PPP mode. • Collection centres in PPP mode. • Transportation, grading and packing units etc. in PPP mode.

  19. STOCK TAKING ( Laws / rules across states)

  20. Status of APMC Act Amendments

  21. Initiative for New Markets Initiative for setting up of new market by any person, local authority or grower States which have adopted the suggested provision: • Chhattisgarh, Goa, M.P., Nagaland, Sikkim, Tripura States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Gujarat, H.P., Karnataka, Maharashtra, Orissa, Punjab/ UT of Chandigarh, Rajasthan, T.N., Uttar Pradesh

  22. Special Markets Provisions for setting up of Special Market and Special Commodity Market States which have adopted the suggested provision: • A.P., Gujarat, Maharashtra, Nagaland, Sikkim, T.N., Tripura, Uttar Pradesh States which have not adopted it: • Arunachal Pradesh, Assam, Chhattisgarh, Goa, H.P., Karnataka, M.P., Orissa, Punjab/UT of Chandigarh, Rajasthan

  23. PPP in Management Activities Set up and promote public-private partnership in management of the Agricultural Markets States which have adopted the suggested provision: • H.P., Karnataka, Nagaland, Sikkim States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  24. PPP in Market Extension Activities To promote Public-Private Partnership in Extension activities of Market Committee States which have adopted the suggested provision: • A.P., H.P., Karnataka, Nagaland, Sikkim States which have not adopted it: • Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  25. E-trading To promote and encourage e-trading, market committee may establish regulatory system, create infrastructure and undertake other activities and steps needed thereto States which have adopted the suggested provision: • Gujarat, H.P., Karnataka, Nagaland, Punjab/ UT of Chandigarh, Sikkim, Uttar Pradesh States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa (only defined), M.P., Maharashtra, Orissa, Rajasthan, T.N., Tripura

  26. CEO of Market Committee Secretary to be Chief Executive Officer of Market Committee. CEO shall be appointed by the market committee from the panel maintained by Director/Board which may include professionals from open market States which have adopted the suggested provision: • Nagaland, Sikkim States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, H.P., Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  27. Contract Farming Contract Farming Sponsor shall register himself with the Market Committee or with a prescribed officer in such a manner as may be prescribed States which have adopted the suggested provision: • A.P., Arunachal Pradesh, Assam, Goa, H.P., Karnataka, Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh States which have not adopted it: • Chhattisgarh, Gujarat, M.P., Punjab/UT of Chandigarh, T.N.

  28. Contract Farming The Contract Farming Sponsor shall get the contract farming agreement recorded with the prescribed officer States which have adopted the suggested provision: • A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka, M.P., Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh States which have not adopted it: • H.P., Punjab/UT of Chandigarh, T.N.

  29. Contract Farming 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 the contract farming agreement States which have adopted the suggested provision: • Arunachal Pradesh, Assam, Goa, Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh States which have not adopted it: • A.P., Chhattisgarh, Gujarat, H.P., Karnataka, M.P., Punjab/UT of Chandigarh, T.N.

  30. Contract Farming Dispute Settlement Mechanism States which have adopted the suggested provision: • A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat, Karnataka, M.P., Maharashtra, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttar Pradesh States which have not adopted it: • H.P., Punjab/UT of Chandigarh, T.N.

  31. Contract Farming Exemption of market fee on the sales to the Contract Farming Sponsor taking place out side the market yard under the Contract Farming agreement States allowing direct sale of produce under Contract Farming: • Arunachal Pradesh, Goa,H.P., Karnataka (fee reduced by 30%),Maharashtra, Nagaland, Orissa, Punjab/UT of Chandigarh (fee exempted under the Rules), Rajasthan, Sikkim, Tripura States which have no provision on contract farming: • Tamil Nadu Following States have not exempted market fee: • A.P., Assam, Chhattisgarh, Gujarat, M.P., Himachal Pradesh, T.N., Uttar Pradesh

  32. Contract Farming Specification of Model Agreement for Contract Farming States which have adopted the suggested provision: • Chhattisgarh, Goa (as may be prescribed), Gujarat,Karnataka (as may be prescribed),M.P., Maharashtra (Rules), Nagaland, Rajasthan, Sikkim, Tripura, Uttar Pradesh (as may be prescribed) States which have not adopted it: • A.P., Arunachal Pradesh, Assam, H.P., Orissa, Punjab/UT of Chandigarh, T.N.

  33. Single point levy of Market Fee Market fee shall not be levied for the second time in any market area of the State by market committee Market fee not to be levied more than once in commercial transactions between traders or to consumers States which have adopted the suggested provision: • Chhattisgarh, Goa,H.P., M.P., Nagaland, Punjab/UT of Chandigarh, Sikkim States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Gujarat, Karnataka, Maharashtra, Orissa, Rajasthan, T.N., Tripura, Uttar Pradesh

  34. Registration of Market Functionaries Registration (not licensing) of market functionaries and single registration for trade/ transaction in more than one market States which have adopted the suggested provision: • Assam, Chhattisgarh, Goa, H.P., Maharashtra, Nagaland, Sikkim States which have not adopted it: • A.P., Arunachal Pradesh, Gujarat, Karnataka, M.P., Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  35. No Commission Agent No commission agent shall act on behalf of agriculturist seller and no deduction to be made towards commission States which have adopted the suggested provision: • Chhattisgarh, Nagaland, Sikkim States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Goa, Gujarat,H.P., Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  36. Private Market / Direct Marketing Establishment of private market yard and direct purchase from farmers States which have adopted the suggested provision: • A.P., Arunachal Pradesh, Assam, Goa, Gujarat,H.P., Karnataka, M.P.(can be done under the bye-laws), Maharashtra, Nagaland, Orissa (excluding for paddy/ rice), Punjab/UT of Chandigarh (not for direct purchase), Rajasthan, Sikkim, Tripura, Uttar Pradesh States which have not adopted it: • Chhattisgarh, T.N.

  37. Consumer /Farmer Market Establishment of consumer/ Farmer market States which have adopted the suggested provision: • Arunachal Pradesh, Assam, Goa, Gujarat,H.P., Karnataka, Maharashtra, M.P.(can be done under the bye-laws), Nagaland, Punjab /UT of Chandigarh (only enabling provision) Rajasthan, Sikkim, Tripura, Uttar Pradesh States which have not adopted it: • A.P., Chhattisgarh, Orissa, T.N. (being set up under Executive Orders)

  38. Market FeeExemption Power to grant exemption from market fee by the State Government States which have adopted the suggested provision: • A.P., Chhattisgarh, Goa, Gujarat,M.P., Maharashtra, Nagaland, Sikkim States which have not adopted it: • Arunachal Pradesh, Assam, H.P., Karnataka, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  39. Market Extension Cell & Agricultural Produce Marketing Standards Bureau Setting up of separate Market Extension Cell in the Board Establishment of State Agricultural Produce Marketing Standard Bureau States which have adopted the suggested provision: • Nagaland, Sikkim States which have not adopted it: • A.P., Arunachal Pradesh, Assam, Chhattisgarh, Goa, Gujarat,H.P., Karnataka, M.P., Maharashtra, Orissa, Punjab/UT of Chandigarh, Rajasthan, T.N., Tripura, Uttar Pradesh

  40. THANK YOU

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