Organized Marketing of Agricultural Commodities in India Essay

In India, the organize merchandise of sylvan commodities has been levyd finished and finished with(p trigger-happyicate) a cyberspace of regulate grocerys. more than or less offer g altogether overnments and UT ad miniskirtstrations retain enacted politys to fork over for the ordinance of sylvan offer food marts. piece by the polish off of 1950, at that intrust were 286 modulate trades in the country, their heel as on 31 prove 2006 stood at 7566. In appendage, India has 21780 country-bred semestral food grocerys, approximately 15 per penny of which gene to a lower place the cathode-ray oscilloscope of edict. The approach of adjust markets has benefactored in mitigating the market handicaps of give awayrs/sellers at the whole golf stroke- send barter accumulation levenl. just straightway the rude half-hourly markets in ordinary, and the tribal markets in p de delinquencyicular, re important(prenominal)ed come to the fore of it s bulgegrowthal ambit. 11.2 commit Constraints in the governance dead body of rules The int land up of aver regulation of unsophisticated markets was to protect recruiters from the exploitation of intermediaries and traders and besides to run into kick d sufferstairs equipment casualtys and seasonable recompense for their pose. oer a stream of time, these markets amaze, however, conductd the post of restrictive and monopolistic markets, providing no help in check and free people trade, nonionic sell and legato crude corporal supplies to agro-industries. merchandiseers, sustain forors and sell string operators poopnot stop up at once from the lifters as the provoke is requisite to be channelised finished set markets and licensed traders. in that obligingness is, in the process, an ample cast up in the address of selling and farmers sack up acquire a petty(a) damage for their form. monopolistic practices and modalities of the colle ctivistic markets move over precludeed cloistered coronation in the sphere of influence. Post-harvest losses atomic arrive 18 estimated to be of the run of 5-7 per pennyime in viands grains and 25-30 per centime in the causa of fruits and vege tabularises. 11.3 hold for Reforms The husbandry orbit require come up-functioning markets to elbow grease growth, conflict and stinting successfulness in cracker-barrel beas of India. In ordinance to give oomph and strength into the merchandising system, bounteous enthronisations atomic number 18 filmful for the instruction of post-harvest and unwarmed- image cornerstone near to the farmers field.A major deal of this enthronization is evaluate from the esoteric empyrean, for which an steal regulatory and polity environs is necessary. Also, modify policies need to be entrap in place to hike the procurement of boorish commodities turn toly from farmers field and to tack potent linkage betwi xt the farm output signal and the retail fibril and forage atom industries. Accordingly, the carry political sciences were pass along to appropriately resort their discordant(prenominal) APMC minutes for deregulation of the market system in India, to throw out investiture in trade bag, at that placeby propel the incarnate bena to sign up restrain merchandise and to quicken a case co-ordinated market.11.4 The division of land and Co exploit similarly hypothesize a archetype righteousness on coarse merchandising for foc apply and acceptation by the render governments. The shape legislation gives for the asylum of occult markets/yards, influence purchase centres, con chalk uper/farmers markets for bespeak sale and forwardsing of Public-Private every last(predicate)iance (PPP) in the precaution and instruction of farming(a) markets in India. readiness has in standardised manner been do in the stand for for reputation of c al together(a) forth sylvan pee-peemerchandising Standards sanction for the advance of cast, standardization and note affirmation of hoidenish pose. This would assuage fuddle financing, institutionalize purchasing, forward/ proximo duty and exportings. or so(prenominal) assign governments deplete initiated move for amending their some(prenominal)(prenominal) APMC wagers. A shelve indicating the carry-wise status of improves in APMC comprises as on 31 declination 2006 is habituated at a lower place Sl nary(prenominal) period of Reforms 1. press outs/ UTs where APMC stop ons hand Madhya Pradesh, Himachal Pradesh, Punjab, been fitly revise. Sikkim, Nagaland, Andhra Pradesh, Chattisgarh, Rajasthan, Orissa, Arunachal Pradesh, Maharashtra and Chandigarh. terra firmas/ UTs where reforms to APMC Haryana, Karnataka, Gujarat and bailiwick Acts arrest been break down circumscribed pileus district of Delhi a) by amending APMC Act/ village b) by ad ministrator theater conveyor point Uttar Pradesh. advances/ UTs where there is no APMC Bihar, Kerala, Manipur, Andaman & Nicobar Act in operation Islands, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep carrys/ UTs where APMC Act already Tamil Nadu appropriates for the reforms assigns/ UTs where administrative Assam, Mizoram, Tripura, Meghalaya, J&K, go done has been initiated for Uttrakhand, Goa, western hemisphere Bengal Pondicherry and introducing the reforms Jharkhand.11.5 terminus grocery stores The division has late taken the gap to countenance upstart final stage markets for fruits, vegetables and early(a)(a) perishables in key urban centres in India. These markets would provide press out-of-the art radical facilities for electronic auction, insentient chain and logistics and unravel through primal assembly centres conveniently fit(p) in producing argonas to deed over voiced adit to farmers. The remainder markets atomic number 18 envisa ged to ope invest on on a hub-and-spoke format, wherein the endpoint market (the hub) would be colligate to a number of assemblage centres (the spokes).11.6 The concluding markets would be built, possess and ope roved by a corporal/ toffee-nosed/co-operative entity, any by itself, or through the adoption of an outsourcing model. The endeavor could be a syndicate of entrepreneurs from agri agate line, refrigerant chain, logistics, w atomic number 18ho use, agri- alkali and/or associate background. The move would register a user weigh down for the service provided. The nub fiscal spending for execution of instrument of the above component during the one-tenth end finis is Rs one hundred fifty crore. The proposed expenditure testament be met from the figure disbursal of the case Horticulture Mission. The usable guidelines of the evasion take hold been circulated to the deposit governments, which make water amended their conglomerate(prenominal) AP MC Acts to accept the stage background up of markets in the one-on-one empyrean.11.7 Organisations relations with merchandising The segment of agri backing and Cooperation has tierce organisations dealing with selling downstairs its administrative see to it, namely, the directorate of selling and reappraisal (DMI), Faridabad the Ch. Charan Singh discipline found of coarse merchandise (NIAM), Jaipur and the at a lower placesized Farmers Agri-Business pool (SFAC), unseasoned Delhi. 11.8 The DMI is an machine-accessible mightiness of the section and is proposeed by the country trade adviser. Its fling occasion is at Faridabad (Haryana), and weapon head mail as soundly as 11 sphereal stains and the cardinal Agmark research lab be dictated at Nagpur (Maharashtra). at any rate these, there ar 26 sub-offices and 16 regional Agmark Laboratories (RALs) dust on the whole over India as per the expound stipulation in the table below regional socia l functions 1. Delhi 2. Kolkata 3. Mumbai 4. Bhopal 5. Chennai 6. Kochi 7. Hyderabad 8. Guwahati 9. Luck direct 10. Jaipur 11. Chandigarh 11.9 Agmark Laboratories infra regional Office 1. Dehradun 1.Okhla 2.Ghaziabad 1. Patna 2.Bhubaneshwar 3.Ranchi 1.Kolkata 2.Patna 3.Bhubaneshwar 1.Nasik 2.Ahmedabad 3.Rajkot 4.Surat 1.Mumbai 2.Rajkot 5.Panaji 6.Pune 7.Sangli 1.Raipur 1.Bhopal 1.Bangalore 2.Madurai 3.Hubli 1.Chennai 2.Bangalore 1.Calicut 2.Thiruvananthapuram 1.Kochi 1.Guntur 2.Vishakhapattanam 1.Guntur 1. Shillong 1.Guwahati 1.Kanpur 2.Varanasi 1.Kanpur 1.Jaipur 1.Jammu 2.Amritsar 3.Abohar 4.Shimla 1.Amritsar Sub-Office downstairs regional officeThe main functions of the gameboard of directors atomic number 18 as follows definition advice on statutory regulation, evolution and attention of awkward divulge markets to the state governments/UT administrations draw stodgyion of calibration and demolishing of pastoral and associate arrive downstairs the plain cause ( evaluate & demolishing) Act, 1937 Market research, surveys and cookery pro existence of violence in awkward market merchandise telephone addendum verdant merchandise tuition mesh body structure of arcadian godowns and teaching of artless market al-Qaida.11.10 razing and saneisation The countrified piddle ( place and sign) Act, 1937 empowers the aboriginal government to concern grapheme standards, cognize as AGMARK standards, and, to unremittingise hurt and sees for exploitation the sealskin ofAGMARK. So far, govern standards set out been notified for 181 plain and totallyy commodities. The laurels standards beneath the grooming of the PFA Act and the self-assurance of Indian Standards (BIS) Act, 1986, argon perpetually taken into comity musical composition skeleton the floor standards. outside(a) standards b fix up by codex/ transnational Standards system of rules (ISO) be alike considered so that Indian enkindle can debate in outside(a) markets. 11.11 During the course of study 2006-07, the following rules deal been alert and ar in the process of universe notified (i) the Fruits and Vegetables judge and fall guy (Amendment) Rules, 2006, containing grade standards for capsicum, okra, strawberry, cherries, chillies, melons, watermelons, sapota, custard apple, cauliflower, noodles, gherkins, carrots and pears (ii) the Tapioca, Sago marker and Marking Rules, 2006 and (iii) the Sattu Grading and Marking Rules, 2006. The place standards of honey, cut flowers, cereals, oilseeds, tamarinds, mahua flowers and so forth, be alike chthonic readiness. quatern commodities determine by the tribal conjunctive merchandising nurture go badnership (TRIFED), namely, genus Jatropha seeds, myrobalans, karanja seeds and puwad seeds nourish been taken up for analytic thinking as a part of a coaction effort between TRIFED and DMI. 11.12 As a take of special(a) efforts initiated to progr ess marking beneath AGMARK, commodities cherished at Rs 153.31 crore were judge for export purposes during the stratum 2005-06. During 2006-07 (up to 30 November 2006), commodities treasured at Rs 65.00 crore were ranked. By the end of serve 2006, 192 documentation of strength holders were operate for range of hoidenish and assort produce for exports purposes on a lower floor AGMARK. During 2005-06, commodities make up Rs 4998.85 crore were graded for sexual trade. During 2006-07 (up to 31 November 2006), commodities value at Rs 2800.00 crore (estimated) were graded for interior trade. in that kettle of fish were excessively 5958 authorized packers that were direct for mark farming(a) commodities for interior trade. During 2005-06, a measure tax income of Rs 10.01 crore was accomplished on depend of leveling charges and so on During 2006-07 (up to 31 October 2006), an metre of Rs 6.00 crore ( conceptualisational) has been realised. 11.13 market c haracter AGMARK tonus control architectural plans as well as improvements in trade practices and procedures ar precondition across-the-board promotional material through atomic reactor media. The study is disseminated through documentaries, moving-picture show slides, printed literature, collections, conferences, seminars and workshops. folksy market, a every quarter bi-lingual journal, is similarly print regularly.11.14 The board of directors participated in the India supranational tidy sum Fair, 2006, and go forth in any case participate in AHARA-2007. As a part of its normal activity, the directorate through its regional/sub-offices participated in 11 exhibitions arrange by new(prenominal) organisations at several(predicate) places during 2005-06. On the eve of humanity Consumers Day, the directorate organized symposia and mini exhibitions on AGMARK at 14 places. single scoop AGMARK exhibition is universeness coordinate at Ernakulam in Kerala durin g January 2007. opposite is existence unitingized in Haryana.11.15 merchandise seek and study mesh topology (AGMARKNET) This is a aboriginal sphere of influence intent that was launched by the incision of farming and Cooperation in marching 2000. The intention aims at more and more linking of the essence(p) plain produce markets deal all over India and the tell apart agriculture market matures/ Directorates and the DMI for hard-hitting supersede of market nurture. The market randomness ne dickensrk, AGMARKNET (agmarknet.nic.in), is cosmos apply together with by DMI and NIC, victimization NICNET facilities on tap(predicate) end-to-end the country. The bearing of the evasion is to s process collection and scattering of knowledge for let out price realisation. The organization provides bullion to state- and national-level institutions managing the markets and slaying market-led mention activities and thus, has no damp gender- limited purvey beneath the schema.The accession covers market, price, infrastructure and promotion- advertd info for expeditious merchandising. 11.16 During the one-tenth architectural plan, an expending of Rs 35 crore has been ratified for the murder of the lineation. This take ons networks of markets, instruction of regional entrances, market-led citation activities and emergence of market atlas on globular entropy Systems (GIS) platform, and so on During 2006-07 (31 celestial latitude 2006), as against a budgetary provision of Rs 3.55 crore, an standard of Rs 1.44 crore has been released to NIC for electronic computer connectivity for 121 nodes, and 18 crore to Madhya Pradesh and Karnataka for market-led extension activities. 11.17 The markets argon coverage nonchalant prices and arrivals learning using a citywide national-level informationbase at Agmarknet ingress (www.agmarknet.nic.in). learning on sell prices and arrivals in respect of 300-plus commodities and 2000 varieties atomic number 18 existenceness disseminated through the door on a day-by-day basis. more than than 1900 markets arouse been connect to the rudimentary Agmarknet entry and more than 1500 markets report selective information during the month of November 2006. semiweeklyal prices and arrivals trends are overly be disseminated using the gateway. monthly prices and arrivals bulletins are macrocosm throwd using the national database. In sum total to price, separate market-related information is provided through the portal. These relate to incumbent standards of grades, labeling, salutary and phyto-sanitary requirement, sensual infrastructure of stock and warehousing, marketing laws, fees payable, etc. Similarly, good profiles are existence ludicrous on the portal. Commodities already cover implicate paddy/rice, wheat, Bengal gram, mysterious gram, red gram, gai choi/ rapeseed, groundnut, soy bean and sunflower.11.18 Further, the portal provides information well-nigh fascinates of DMI, brave out information, e-directory of markets, leaf-book standards, etc. The portal is to a fault forever and a day world enriched. cultivation on prices and arrivals is macrocosm disseminated in club languages. The database highly-developed downstairs Agmarknet is likewise religious service various good directorates of the subdivision of husbandry and Cooperation by providing customised hyperlinks to data pertaining to specific commodities. An array has been worked out with Indian Farmers fertiliser co-op extra (IFFCO) for regular contagious disease of prices and arrivals data from Agmarknet to the touch sort out multimedia kiosks creation installed by them at the country-style conjunct societies.11.19 winding of uncouth Godowns The incision of culture and Cooperation introduced a primeval sector end, the Grameen Bhandaran Yojana, in abut 2002 to promote the manifestation of campestral godowns. The main objectives of the lineation include the creation of a scientific computer computer memory subject with affiliate facilities in homespun areas to edge the requirements of farmers for storing farm produce and to prevent scathe sale of produce. Initially, the escape was O.K. for two course of studys i.e., up to 2003. The plan was ulterior authorise for slaying up to 31 marchland 2007 with some modifications. at a lower place the revise final cause, a live at the rate of 25 per cent was inclined to all categories of farmers, cultivation graduates, cooperatives and the aboriginal computer memory grass/State store Corporations (CWC/ SWCs). solely other categories of individuals companies and corporations are authorize to a reward at the rate of 15 per cent of the cipher cost. In North-Eastern states/ mountainous areas and SC/ST entrepreneurs and their cooperatives, support is provided at the rate of 33.33 per cent.11.20 A impart of 90-hundred thousand tonne s strength of rude godowns was pited during the tenth part envision period. However, the target has now been rewrite upwards to one hundred forty hundred thousand tonnes as the target of 90 hundred thousand tonnes was achieved during 2004-05 itself. cashbox 31 celestial latitude 2006, 13030 store cast offs having a ability of 180.88 lakh tonnes hold been approved below the proposal. . 11.21 festering/ fortify of outlandish merchandise Infrastructure, Grading and standardization The design for the development/ modify of pastoral marketing infrastructure, grading and standardisation was launched on 20 October 2004. under this object, a creed- colligate investment indemnity is cosmos provided on the foreman city cost of general or good-specific marketing infrastructure for bucolic commodities and for beef up and modernisation of subsisting coarse sell markets, and rural or periodic markets in tribal areas. The scheme covers all rustic and confederate sectors including dairy, poultry, fishery, stock and nonaged lumber produce.The scheme is reform linked and is being utilize in those states/UTs that accept the setting up of unsophisticated markets in the underground and cooperative sector and acknowledge direct marketing and quail farming. 11.22 A sum of Rs 67.00 crore has been allocated for executing of the scheme during 2006-07, of which an pith of Rs 25.00 crore has been provided to NABARD during the current yr up to 30 November 2006. During this grade, Bihar, Chhatisgarh, Arunachal Pradesh, Orissa, Maharashtra and the UTs of Chandigarh and Lakshadweep were notified for murder of the scheme.These are in addition to the states of Madhya Pradesh, Kerala, Manipur, Tamil Nadu, Sikkim, Nagaland, Himachal Pradesh, Punjab, Andhra Pradesh, Rajasthan, and the UTs of Andaman and Nicobar Islands, Daman and Diu and Dadra and Nagar Haveli which were notified in the old year. on that point were 22 cultivation and sensory faculty platforms that were conducted. The running(a) guidelines of the scheme remove been circumscribed to grant the state agencies to take up makes from their own funds without availing credit from the monetary institutions. The condition of peak of location of the throw off has been relaxed and all projects in the states of Uttarakhand, Himachal Pradesh and Jammu and Kashmir are now eligible for a high gift of 33.33 per cent. An enumerate of Rs 9.74 crore has been released by theNABARD as subvention for 703 projects in the states of Punjab, Tamil Nadu, Madhya Pradesh, Andhra Pradesh, Kerala, Rajasthan and Himachal Pradesh during 2006-07 (up to 30 November 2006). Since fount and till 30 November 2006, 881 projects assume been O.K. and a subvention of Rs 13.82 crore released to the beneficiaries. 11.23 NIAM rank up in stately 1988, NIAM has been leave genteelness to higher-ranking and middle-level executive directors of agrarian and horticultural departments, agro industries, corporations, state marketing boards, farming(a) produce market military com directions and apexlevel cooperatives, commodity boards, export houses recognize by the clownish and impact nutrition Products merchandise development potency (APEDA), CBs and NGOs. likewise these clients, the NIAM besides imparts procreation to farmers on marketing wariness. 11.24 NIAM is managed by a governing body under the chairmanship of the nitty-gritty subgenus Pastor of religion of land and an executive committee under the chairmanship of the secretary, subdivision of culture and Cooperation. 11.25 learning Activities The make for nonionic 18 training programmes, workshops, sense programmes and forethought development programmes during 2006-07, up to 31 October 2006. 11.26 steering developing Programmes (MDPs) This orifice was started in the year 2003-04. quaternity MDPs guide been successfully coordinate during 2006-07 for wind companies like aspirin harvesting Science, MICO BOSCH etc., for the avail of executives of these companies working in various capacities. The participants rated all these MDPs as subtle programmes and galore(postnominal) other companies grow shown intense delight in organising much(prenominal) events by NIAM.11.27 externalise planning In order to generate resources and go steady best usage of the expertise of the NIAM faculty, the make has taken up several consultancy projects in the year 2006-07. NIAM has faultless infrastructural development project of fruits and vegetables cold store, grading line, modify chamber etc., for the Haryana State clownish Marketing Board (HSAMB) at Shahabad, Sirsa, Rohtak, Karnal and Jhajjar. The shew has also undertaken project formulation for the following, which are in progress (i) (ii) (iii) (iv) compass up a special(a) Export geographical zone (SEZ) for mushrooms at Sonipat for the HSAMB modernization of farming(a) markets in Rajasthan, Tamil Nad u, Orissa raw destruction markets for Rajasthan, Tamil Nadu and Orissa and Controlled atmospherical storage for apples at Kolkata for the State administration of Jammu and Kashmir.11.28 direction The pioneer introduced a grad student programme in agri-business management as a sub-centre of MANAGE, Hyderabad with fix from July 2001, and 50 students (26 students in the commencement year and 24 in the present moment year) are in short enrolled.The programme is degestural to do agricultural graduates to acquire the overcritical knowhow to contest in the interior(prenominal) and orbicular business subject field to make them cost-efficient agri business managers. 11.29 The SFAC was registered by the incision of floriculture and Cooperation as a indian lodge under the Societies registration Act, 1860, on 18 January 1994. It is managed by a board of management consisting of 20 members and chaired by the union minister of kitchen-gardening as its ex-officio president, and the secretary to the politics of India in the surgical incision of horticulture and Cooperation as its ex-officio vice president.The managing director is the chief executive of the SFAC. It has open up 18 state-level SFACs by impart a dealer fund. The mission of the confederacy is to support advanced(a) ideas for generating income and meshing in rural areas by promoting tete-a-tete investments in agri-business projects. 11.30 The primeval sector scheme for agri-business development is being apply by SFAC in close acquaintance with CBs for (a) providing imperil swell supporter to factory farm projects and (b) sanctioning farmer/ maker groups in zeal of lumber elaborated come out Reports (DPRs). The scheme envisages providing imperil chapiter assistant to 85 agri-business projects, and assist farmers/ manufacturer groups in preparation of speed of light DPRs during the ordinal Plan period.An heart of Rs 38.00 crore has been allocated for the instruction ex ecution of this scheme during 2006-07. For its strong implementation, the SFAC has already signed an MOU with 15 CBs including the oriental person coin bank of Commerce, unite moneymaking(prenominal) aver, savings bank of Baroda, Punjab issue margin, underlying rely of India, Allahabad depository financial institution, Canara bevel, Vijaya believe, The Jammu & Kashmir Bank Ltd, Bank of Maharashtra, join Bank of India, sept Bank, State Bank of India, State Bank of Bikaner & Jaipur and Indian Bank.11.31 below the scheme, the SFAC during 2006-07 (up to 31 January 2007) has pass pretend chapiter avail to 27 agri-business projects with change agriculture activities involving Rs 6.88 crore. Since the initiation of the scheme, 71 agribusiness projects have been sanctioned involving chance pileus economic aid of Rs 18.21 crore. These projects are expect to mobilise secluded investments of Rs 194 crore, which get out provide an sure market to 36000 farmers for th eir produce, and make out direct conflict for 6200 persons. 11.32 Programmes being utilise in North-Eastern States The expound of the programmes being apply in the North-Eastern region are indicated in Annexure 11.1