APMC Act

Group 4
4/27/12Naithani | Anurag Singh | Raghav Mishra | Viplove Sharma Anuj

APMC: Objective
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To ensure reasonable gain to the farmers: fair play of supply and demand forces To attain transparency in transactions Aimed at providing proper method of sale, correct measurement, prompt payment and various marketing related services set up to control and

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APMC: Introduction
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Regulation of Agricultural markets State subject State Markets Marketing Committee No person or agency allowed freely to carry on wholesale marketing activities Inhibits direct marketing, organized retailing, a smooth raw material supply to agro-processing industries

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Constraints
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Marginal or small farmers: Small marketable surplus & limited bargaining power Poor availability of markets & monopolistic tendencies of APMCs

Inadequate infrastructure in wholesale markets/ rural primary markets Lack of fair price discovery mechanism Multiple and exploitative intermediaries

Fragmented supply chain, poor cold chain & high postharvest losses 4/27/12

Area Served per Regulated Market in APMC

AREA SERVED PER REGULATED MARKETS
State Punjab Meghalaya Sikkim Himacham Pradesh Uttranchanl India
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Area (Sq./Km) 115 11215 7096 940 823 435

The area served by each regulated market across the States reveals large variations Farmers have to travel long distances with their produce to avail the facility of regulated market The studies have shown that increase in the density of market has a positive impact on agricultural productivity The targeted norms can be broadly achieved if the remaining wholesale markets and rural periodic markets are developed as regulated markets This is actually not the right indicator but the gross cropped area should be considered

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Model APMC Act

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Allow establishment of Private or Cooperative markets/ Farmer-consumer markets/ Direct marketing Safeguard the interest of the farmers through provisions for Contract Farming Single point levy & payment of market fee/ Single point registration of functionaries Prohibition of Commission Agents for agriculturists and no deduction to be made towards commission PPP in management & extension activities/ Promotion of e-trading/ Electronic Spot Exchanges Encouraging professional management in APMCs

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Special Market /Special Commodity Market

Caters almost exclusively to one or one group of commodity Supplies most of its arrivals to food processing industries or bulk buyers or to export trade i.e. a terminal market Major portion of arrivals or dispatches or both are from outside the State

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Contract Farming

Contract Farming Sponsor to register himself with a prescribed officer The Contract Farming Sponsor to get the contract farming agreement recorded with a prescribed officer 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 Fast Dispute Settlement Mechanism at local level

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Direct Marketing (RYTHU BAZAR/ FARMER'S MARKET)

Elimination of middlemen Direct interface between the farmers and the consumers Operate outside the purview of the Agriculture Market Committees Managed by Estate Officers under the control of Revenue Department of the State Government

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Status of APMC Act Amendments

States/ UTs having Amended States/ UTs with no APMC Act (1) Bihar (repealed w.e.f. 01.09.2006), Acts
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Andhra Pradesh (26.10.05) Arunachal Pradesh (09.05.06) Assam (19.01.07) Chhattisgarh (10.02.06) Goa (06.08.07) Gujarat (01.05.07) Himachal Pradesh (26.05.05) Karnataka (16.08.07) Madhya Pradesh (15.06.03) Maharashtra (11.07.06) Nagaland (08.09.05) Orissa (17.05.06) Rajasthan (18.11.05) Sikkim (20.04.05) & Tripura (11.05.07)
(2) Kerala, (3) Manipur and UTs of (4) Andaman & Nicobar Islands, (5) Dadra & Nagar Haveli, (6) Daman & Diu & (7) Lakshadweep

Partially Amended
(1) Punjab/ (2) UT of Chandigarh (Only private markets & contract farming) (3) Haryana (Only Contract Farming) & (4) NCT of Delhi (Only Direct Marketing)

Amendment Bills under finalization

(1) Jharkhand, (2) Uttarakhand, (3) U.P., (4) West Bengal, (5) NCT of Delhi & (6) Puducherry

Remaining States
(1) Haryana, (2) J&K, (3) Meghalaya & (4) Mizoram

Reportedly no Amendment Needed

Present Scenario in Value Chain of Perishables

Cost build up for one Kg. basket Of Fruits Source: agricoop.nic.in
1.7 4.1 3.3
FARMER TRADER WHOLESALER RETAILER CONSUME R PRICE

2.5

11 .6

Retail Markups 10 0
4/27/12 FARM GATE

16 0
MILK

22 0

35 0

FISH

FRUITS

Modern Terminal Market

Banking Institution
Electroni c Auction Processor Exporter Wholesale r/ Trader/ Retail chain operator Storage: Cold Storage, Temperatur e controlled warehouse, Ripening Chamber

Infrastructure :
Packhouse, Quality Testing Facility, Palletisation

Services:
Transport (incl. cool chain), Settlement of Payments, Banking, Market information

Direct Selling

Infrastructure:
Washing, grading, sorting, weighment, transport to TM

Collection Centre

Services:

Collection & Aggregation of produce, Settlement of payment, advisory on inputs, prices, quality, multi-modal transport

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Producers/ Farmers and their Associations

Source: agricoop.nic.in

NK THA OU Y
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