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

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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

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New role of APMCs- outline of the presentation

• Shift from salesmanship to marketing
• Dealing with Service product-intangibility,simult
  aneity
• 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)

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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

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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)

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

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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.

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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 pledge finance scheme
• Problem solving methods micro-level
• Marketing extension for export market WTO
  implications, Codex, HACCP, Euro gap standards,
  Awareness on ill effects of pesticide/insecticides
  residue etc.

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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

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Area production of agri products
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(No Transcript)
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15 major food items of export (INR billion Rs)
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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

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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.

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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

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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

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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

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Transparency

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

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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.

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• STOCK TAKING
• ( Laws / rules across states)

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Status of APMC Act Amendments
States/ UTs having Amended Acts Andhra Pradesh Arunachal Pradesh Assam Chhattisgarh Goa Gujarat Himachal Pradesh Karnataka Madhya Pradesh Maharashtra Nagaland Orissa Punjab/ UT of Chandigarh Rajasthan Sikkim Tripura Uttar Pradesh 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, JK, 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

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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

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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

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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.

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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

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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

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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

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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.

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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)

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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

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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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