New role of APMCs

(In the context of liberalisation for direct marketing, private market yards, and contract farming

National Institute of Agricultural marketing Jaipur

New role of APMCs- outline of the presentation

Shift from salesmanship to marketing Dealing with Service productintangibility,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)

dealing with a service product

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

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, customers involvement, employees skill utilisation)

Organization

Internal Marketing

External marketing

Front Line Employees

Customers
Internal marketing

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.

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.
market laws and reforms, Information regarding procurement by

Securing markets for the farmers:-Awareness about regulated

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.

Role of APMC
Advice on establishing and operating markets:-Farmers groups to set up and run their own markets Processing and value addition: Group action:Help Groups(SHGs)
within framework of rules

Farmers to be educated about value addition through primary processing Promotion of informal groups and Self

Marketing Credit:pledge finance scheme

Educating farmers about different schemes of marketing credits, Advice on warehousing with

Problem solving methods: micro-level Marketing extension for export market:

implications, Codex, HACCP, Euro gap standards, on ill effects of pesticide/insecticides residue etc.

WTO

Awareness

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

Area & production of agri products

Area and production of Agricultural products (Production in million tonnes)
India Arable Land (Million ha) Irrigated Land (Million ha) Wheat Rice, Paddy Coarse grains (including maize) Milk Fruits Vegetables Edible Oilseeds Pulses Sugarcane Tea Cattle (million) 151 55 72 124 29 91 47 82 25 15 245 0.85 186 Indias Rank in World Production 2 1 2 2 3 1 2 2 3 1 2 1 2

15 major food items of export (INR billion Rs)

70 60 50 40 30 20 10 0

APMC role in contract farming

Provisions of a model agreementsensitisation Awareness about dispute redressal mechanism. Collection of market intelligence data about contract farming Registration of contracts, whre authised

Promotion of grading and standardisation

Bureau for grades and standardsfeeding 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.

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

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

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

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

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.

STOCK TAKING

( Laws / rules across states)

Status of APMC Act Amendments

States/ UTs having Amended Acts 1. Andhra Pradesh 2. Arunachal Pradesh 3. Assam 4. Chhattisgarh 5. Goa 6. Gujarat 7. Himachal Pradesh 8. Karnataka 9. Madhya Pradesh 10. Maharashtra 11. Nagaland 12. Orissa 13. Punjab/ UT of Chandigarh 14. Rajasthan 15. Sikkim 16. Tripura & 17. Uttar Pradesh 18. Jharkhand

Reportedly no Amendment Needed

Tamil Nadu ?

Partially Amended
Haryana (Only Contract Farming) & NCT of Delhi (Only Direct Marketing)

Amendment Bills under active finalization

, Uttarakhand, West Bengal, NCT of Delhi & Puducherry

Remaining States
Haryana, J&K, Meghalaya & Mizoram

States/ UTs with no APMC Act

Bihar (repealed w.e.f. 01.09.2007), Kerala, Manipur and UTs of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu & Lakshadweep

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

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

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

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

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

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:

CEO of Market Committee

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

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.

The Contract Farming Sponsor shall get the contract farming agreement recorded with the prescribed officer
States which have adopted the suggested provision:

Contract Farming

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.

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.

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.

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

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.

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

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

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

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.

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)

Market Fee Exemption

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

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

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