Introduction

http://www.youtube.com/watch?v=ESi5vNcjf6k
In India organised marketing of agro commodities has been

promoted through network of regulated markets. Most State Governments have enacted legislation for regulation of agro produce markets. By end 1950 there were 286 regulated markets and their number stood at 7566 in end March 2006. In addition there are 21780 rural periodical markets with about 15% functioning with regulation. The advent of regulated markets has helped in mitigating market handicaps of producer/sellers at a wholesale level. Constraints in the system: The purpose of the markets was to to protect farmers from exploitation by intermediaries and ensure better prices. These markets have however become restrictive and monopolistic as the trades must be channeled through licenced traders. Post harvest losses are 5-7% in food grains and as much as 25-30% in fruits & vegetables

Need for reform

In order to bring dynamism in the markets there needs to be investment in post harvest and cold chain infrastructure nearer the farmers field. Major investment is

expected in this area from the private sector which requires regulatory and policy environment. State Governments should amend their APMC Acts (Agricultural produce market committee) to enable investments in marketing by corporates to facilitate a nationally integrated market Department of Agriculture has formulated a model law for guidance and adoption by State Governments. This provides for establishment of private markets/ yards, direct purchase centres, consumer/ farmer markets in a Public Private Partnership model for developing agriculture markets. There is provision for a State Agriculture Produce Marketing Standards Bureau for grading standardisation and quality certification of Agricultural produce. This would facilitate pledge financing, direct purchasing, forward/ future trading and exports. Terminal markets The Department has recently taken initiative to promote modern terminal markets for fruits, vegetables and other perishables in important urban centres. The markets provide latest infrastructure for electronic auction, cold chain and logistics and operate through primary collection centres in a hubspoke model

Terminal markets contd.

The terminal markets would be built owned and operated by a

corporate/ private/ coop entity either by itself or by using an outsourcing model. The enterprise would be run by consortium of entrepreneurs from agri-business, cold chain, logistics, warehousing, agri-infrastructure or related background. They would charge a service charge for services provided. The total outlay for this in the 10th Plan period was Rs.150 crores. State Governments have amended their APMC Acts to allow setting up of these markets in the private sector. Organisations dealing with Marketing: The department of Agriculture & Cooperation (DAC) has 3 organisations dealing with marketing viz. Directorate of Marketing & Inspection Faridabad (DMI) The Ch Charan Singh National Institute of Agricultural Marketing (NIAM) Jaipur and the Small Farmers Agri Business Consortium (SFAC) New Delhi.

Terminal markets contd.

The

DMI is an attached office of the Department & is headed by an Agricultural Marketing Adviser. It has 11 Regional Offices and Central Agmark laboratory at Nagpur (Mah). Other offices as per table below:
Sub Offices 1.Dehradun 1.Patna2.Bbsr 3.Ranchi Nasik, Ahm, Rajkot,Surat, Panaji, Pune, Sangli Raipur Bangalore, Madurai Hubli Calicut Triruvananthapuram Guntur Vishakhapatnam Shillong Agmark Labs 1.Okhla 2.Ghaziabad Kolkatta,Patna & Bbsr Mumbai & Rajkot Bhopal Chennai,Bangalore Kochi Guntur Guwahati

Regional Off. 1.Delhi 2.Kolkatta 3.Mumbai 4.Bhopal 5.Chennai 6.Kochi 7.Hyderabad 8.Guwahati

9.Lucknow
10 Jaipur 11. Chandigarh

Kanpur & Varanasi

Jammu Amritsar Abohar Shimla

Kanpur
Jaipur Amritsar

Functions of the Directorate

The main functions of the Directorate are: Rendering advice on statutory regulation, development & management of agro produce markets to State Govt.s/Uts Promotion & standardisation / grading of agro produce under Agricultural Produce (Grading and Marking) Act 1937 Market research surveys and planning Training of personnel in agricultural marketing Marketing extension Agro marketing information network Construction of rural godowns Development of agricultural marketing infrastructure Grading and standardisation: The Act of 1937 empowers the Central Govt. to fix quality standards, known as AGMARK standards and to prescribe terms and conditions for use of seal. So far grade stadards have been notified for 181 commodities. The purity standards under PFA Act and Bureau of Indian Standards (BIS) Act 1986/ISO standards are also considered so that products can compete in International markets

Grading and standardisation

During 2006-07 the following rules were framed & notified: 1. The Fruit & Vegetable Grading and Marking Amendment Rules 2006

2. The Tapoica Grading and Marking Rules 2006

3.Sattu Grading and Marking Rules 2006

Grading standards for other commodities are under preparation and certain seeds identified by Tribal coop Marketing Development Federation (TRIFED) have been taken up for analysis The AGMARK brand plays a big role in promoting exports and192 certificate of authorisation holders were operating for grading of agro and allied produce for exports under AGMARK Various exhibitions and representation at the India International Trade Fairs spread awareness of these quality initiatives in Marketing

Marketing Research & Information Network (AGMARKNET)

This scheme was launched in 2000 by DAC. Aims at progressively

linking important agricultural produce markets and State Agricultural Boards and DMI for effective exchange of market information. The network is being operated by DMI and NIC using NICNET facilities. The object being to disseminate information for better price realization. During 10th Plan an outlay of Rs.35 cr was approved for this scheme. This includes networking of markets, development of portals, development of markets and a market atlas on a Global Information Systems (GIS) platform. The markets are reporting daily prices and arrivals data using national level database at Agmark portal (www.agmarknet.nic.in) in respect of over 300 commodities and 2000 varieties on daily basis. Commodity prices are also being loaded daily .Portal is in 9 languages and is being constantly enriched with information. Arrangement with IFFCO to get data on touch screens at multi-media kiosks in rural cooperative societies

Construction of rural godowns strengthening agri marketing infrastructure

DAC introduced a scheme Grameen Bhandaran Yojana in 2002 to

promote construction of rural godowns To help farmers store their produce and prevent distress sales The scheme was approved for implementation upto 2007 Subsidy of 25% given to farmers, agricultural graduates cooperatives and CWC/SWC all other got a subsidy of 15% In NE 33.33% was given A total capacity of 180 lakh tonnes was sanctioned for 13030 storage units Scheme for strengthening marketing infrastructure through grading was launched in 2004. A credit linked subsidy was provided for capital cost of marketing infrastructure & for improving wholesale markets. The scheme encourages private participation and direct marketing/contract farming A sum of Rs.67 cr allocated for implementation of which Rs.25 cr provide by NABARD. Launched in various states with state level funding of subsidy

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