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S.S.Randhawa MD, COSAMB

REGULATORY REGIME IN INDIAN AGRICULTURAL MARKETING. S.S.Randhawa MD, COSAMB. MARKETING LEGISLATION & STRUCTURE.

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S.S.Randhawa MD, COSAMB

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  1. REGULATORY REGIME IN INDIAN AGRICULTURAL MARKETING S.S.Randhawa MD, COSAMB

  2. MARKETING LEGISLATION & STRUCTURE • State Governments (except Kerala, Manipur, Bihar and UTs of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu & Lakshadweep) enacted Marketing legislation to provide competitive and transparent transactions • At base level there are Agricultural Produce Markets Committee (APMC’s) • All APMC’s are controlled by State Agricultural Marketing Board (SAMBs) • Over all controlling authority is the respective State Government.

  3. GROWTH OF REGULATED MARKETS • Prior to1939 • End of 1940 • End of 1950 • March, 1961 • March, 1974 • March, 1985 • March, 1990 • March, 2000 • March, 2010 • 57 • 73 • 286 • 715 • 1777 • 5695 • 6217 • 7077 • 7157 Period No. of Regulated Mkts

  4. NOTIFIED MARKET AREA • ‘Notified Market Area’ is a cluster of villages • Each notified market area may have: • One principal market yard • One or more sub market yards • Seasonal markets for particular crops, and • One or more private market yards

  5. AGRICULTURAL PRODUCE MARKET COMMITTEE (APMC) • Each notified market area is controlled by a separate Agricultural Produce Market Committee (APMC) • Constituted by the respective State Government • Representatives of producers, commission agents, processors and other market functionaries like weigh men, surveyors or brokers

  6. CONT.. • Number to represent each category is decided by State Government • Members are elected or nominated from categories as above by the State Government amongst the other local bodies elected members • Each APMC has a Chairman and a Vice- Chairman, either elected or nominated in the same way as other members

  7. PURPOSE OF APMCS • Provide for improved regulation • Development of efficient marketing system • Promotion of agri-processing and agricultural exports • Establishment and proper administration of markets • Put in place an effective infrastructure for marketing • Provision of other facilities required thereof, and • Lay down procedures and system thereto etc

  8. INCORPORATION OF APMCS • APMCs are Body corporate (Corporation), and Local authority (local government) • Have perpetual succession and commonseal, and • Also have the right to acquire, hold and sell property

  9. LICENSE/REGISTRATION FOR MARKET FUNCTIONARIES Unless exempted by laws - no person shall: Either for himself or on behalf of another person or of the State Government, within the notified market area, set up or establish any place for the purchase, sale, storage and processing of the agricultural produce so notified, or purchase, sell, store or process such agricultural produce, except under a license granted/registration in accordance with the law and the conditions specified in the license/registration

  10. CONT… A license is not required by a producer to sell himself or through a bona fide agent (not being a commission agent), his own agricultural produce or the agricultural produce of his tenants on their behalf, and also by a person who purchases any agricultural produce for his private use

  11. HANDLING CHARGES IN THE MARKET Notified market charges can only be levied in a market as: Incidental charges - to be paid by the seller, related to activities before the auction of produce such as unloading, cleaning, dressing (in cotton only), or Market charges - to be paid by the buyer, related to activities after the auction of produce such as filling of bags, weighing, stitching, loading and other charges like commission of commission agent, payment of market fee to APMC etc.

  12. MARKET FEE Market fee is levied and collected by APMCs: • On bought or sold of agricultural produce (also on bought for processing in some areas) • From the buyer of the produce, and • On advelorum basis (rate varies from 0%-2%), varies with crop to crop and APMC to APMC

  13. CONT.. • It is a fee, not a tax, so it can be spent only on the area from which it is realized • It is in lieu of the use of infrastructure and other marketing related facilities provided by APMCs in the notified market area, even the rural link/approach roads, culverts/bridges are constructed/maintained by the APMCs in the notified market area

  14. NOTIFIEDAGRICULTURAL COMMODITY All commodities, processed or unprocessed of : • Agriculture • Horticulture • Forestry • Sericulture • Apiculture, or • Animal husbandry are notified by the State Government

  15. COMMISSION AGENT • A person, who offers his services to sell the produce • In consideration of a commission or percentage on the amount involved in such transactions • Or, who on behalf of hisprincipal trader buys agricultural produce and makes payment • Keeps it in his safe custody and delivers it to the principal trader in due course

  16. CONT.. • Or, who receives and takes in his custody agricultural produce sent for sale within the market area or from outside the market area • Sells the same in the market area and collects payment thereof from the buyer and remits the sale proceeds to seller

  17. CONT.. Responsible for: • Safe custody of produce till delivered to buyer • Making the payment to seller on specified time • Issue sale and purchase vouchers to seller and the concerned buyer • Make arrangements for the labor required for market operations and to pay after deducting from concerned availing the services • To get the produce cleaned and make it fit for sale

  18. CONT.. • To provide equipments for unloading, leaning, filling, weighing, and stitching of bags • Conducting the auction of produce, maintain records of sales and purchases • Provide every information to APMC and file specified returns on time • Keep the market and auction platformclean • Cooperation in trade and fair dealing inbusiness • Take only the specified commission

  19. MARKET MANAGEMENT RESPONSIBILITIES • Selection of site • How much area is required • Planning and designing • Provision of institutional areas • Provide, construct, maintain and manage the public areas • Provision and supply of public utility services • Provision of suitable/reasonable space for persons to transact business • Waste management (perishable and sewerage)

  20. CONT.. • Avoid adulteration in produce • Control on the sale of produce as per quality standards • Regulation over the sale, purchase, storage and processing of produce • Management of the traffic • Regulation in the market • Facilities of value addition • Dissemination of data • Training, research and extension activities for the producer sellers, market functionaries, traders as well as small and bulk buyers

  21. RESPONSIBILITIES OF MARKET FUNCTIONARIES • Must bear the responsibilities and perform the duties assigned • Provide all the equipments and other services/facilities for which they are charging • Create working atmosphere and coordinate with all market participants visiting therein • Provide all the information of the activities undertaken

  22. CONT.. • Provide detailed information about the quantum of each kind and variety of produce sold, price charged for different produce and charges deducted as incidental or market activities • Maintain accurate records and pay the levies or services which they have used • Adopt the food safety norms and hygienic practices • Obey the regulations to achieve the purposes of the project

  23. RECENT MARKET REFORMS • Recent challenges put forth by globalization and WTO • Changed the scenario of agricultural marketing • The policy framework in agricultural marketing attained special significance in early 2000 • The roles and responsibilities of APMCs and SAMBs have been remodeled

  24. CONT.. The draft model legislation titled “The ……… State Agricultural Produce Marketing (Development and Regulation) Act, 2003”, circulated by GOI to all the State Governments for adoption indicates the provisions for: • Any legal persons, growers and local authorities can apply for establishment of new market • Establishment of private markets/yards for provision of market infrastructure or for direct purchase from producer

  25. CONT.. • Direct marketing • Contract farming • Establishment of special markets or special commodity markets • Consumer/producers’ markets for direct sale • APMCs are made specially responsible for ensuring transparency in pricing and transactions taking place there provide market led extension services

  26. CONT.. • Ensuring payment for agricultural produce sold on the same day promoting agricultural processing and value addition • Publicizing data of arrivals and rates of agricultural produce • Public private participation in management and to create infrastructure of markets • Appointment of CEO among the professionals

  27. CONT.. • Registration of contract farming sponsored, agreement and also direct sale sponsors premises • Single license for the whole state • Prohibition of purchasing agricultural produce by the commission agent himself, without the consent of seller • e–trading /market/marketing

  28. CONT… • SAMB’s are made responsible for setting a separate market extension cell for market led extension services, and • To set up a separate agricultural produce marketing standard bureau In line with the reforms suggested, States have brought amendments in some of the States/areas in the respective acts / rules / byelaws, but some of the States are in the process of implementation

  29. THANKS

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