Agricultural Marketing Reforms P K Swain Joint Secretary

Agricultural Marketing Reforms P. K. Swain, Joint Secretary (Marketing) Department of Agriculture, Cooperation and Farmers Welfare Ministry of Agriculture and Farmers Welfare

Need of Reforms Enhance Farmers’ market accessibility Make the APMC markets efficient & professionally managed Encourage both public & private sector investment in development of post Harvest and marketing infra. Need of Reforms Strengthen facilities/ infrastructur e & services Development of alternative marketing channels. Participation of Pvt sector

A. Model APLM Act, 2017 • Salient Features of Model APLM Act, 2017 ü Develop State/ UT level unified market and restrict enforcement power of the APMCs to the market yard ü Setting up of wholesale markets in private sector ü Allow Direct purchase from agriculturists from farm gate by processors /exporters/ Bulk purchasers / organized retailers/ ultimate buyers- Direct marketing ü Declare warehouses/cold storages as “Deemed Market” ü Demarcation of powers and functions of MD Board and Director Marketing as service provider and regulator respectively ü Unified single trading licence ü Single point levy of market fee across the State/ UT ü Trading through competitive e-platform ü Provision for deregulation of fruits & vegetables

Agri Market Reforms: A Perspective e-NAM Direct marketing (21 States/ UTs) Setting up of markets in private sector (22 States/ UTs) Single point levy of Single trading license De-regulation market fee Declaring of marketing of F&V of warehouses/cold States / UT) (23 States/ UT) (23 Segregation regulation from(17 storage as market States/ UT) E-Trading operation sub-yard (22 States) (07 States) ( 05 States) Objective: Improving Marketing infrastructure, Integration of supply chain, Reduction of post harvest losses, Farmer’s access to markets etc. Unified Market (01 States) Agri. Marketing Reforms (Model APLM Act, 2017) *Separate Model Contract Farming Act has been circulated for adoption, which will be outside the ambit of APMC regulation 4

Status of Reform-wise Adoption by the States State/UT Andhra Arunachal Pradesh Assam Unified single market at state level Declaring warehouse / cold storages, as deemed market Separation of powers & functions of Director of Mktg. & M. D. of Board Deregulatio n of marketi ng of F&V Private market Direct marketing E-trading Single unified trading licence Single point levy of market fee X X X X X X APMC Act Repealed Bihar X X X X X X Goa X X Gujarat X X Himachal Pradesh X X X Chhattisgarh Chandigarh

Status of Reform-wise Adoption by the States State/UT Unified single market at state level Declaring warehouse / cold storages, as deemed market Separation of powers & functions of Director of Mktg. & M. D. of Board Deregulation of marketing of F&V Haryana X X X J&K X X X X X Jharkhand X X X Karnataka X Maharashtra Direct marketing E-trading Single unified trading licence Single point levy of market fee No APMC Act Kerala Madhya Pradesh Private market Contd. . . X X No APMC Act Manipur X X X X X Mizoram x X X X Nagaland X X X X Meghalaya Odisha

Status of Reform-wise Adoption by the States State/UT Declaring warehouse / cold storages, as deemed market Separation of powers & functions Director of Mktg. & M. D. of Board Deregulation of marketing of F&V X X Puducherry X X X X X Rajasthan X X X X X X X X X Uttarakhan d X X Uttar Pradesh X X West Bengal X X X Punjab Sikkim Tamil Nadu Telangana Tripura Private market Direct marketing E-trading Single unified trading licence Single Contd. . point levy Unified single market at state level of market fee

Status of Reform-wise Adoption by the States State/UT Unified single market at state level Declaring warehouse / cold storages, as deemed market Separatio n of powers & functions Director of Mktg. & M. D. of Board Deregulati on of marketi ng of F&V A& N Island Delhi Daman & Diu DNH Lakshdwe ep Private market Direct marketing E-trading Single unified trading licence Single point levy of market fee No APMC Act X X No APMC Act X X

Actionable points for States/ UTs States are requested to adopt the Model APLM Act in its true spirits States may make endeavours that reform linked development take place on the ground level and ensure that farmer are benefitted from reform

Status of Adoption of Model APLM Act, 2017 Model APLM Act 2017 States & UTs without APMC Act UT without Reform • Arunachal Pradesh have adopted in entirety • Uttar Pradesh, Punjab, Chhattisgarh have adopted major provisions excepting few • Bihar, Kerala, Manipur, A&N Island, Lakshwadeep, Daman & Diu • NCT of Delhi

B. Model Contract Farming& Services Act, 2018 Why an Exclusive Act? • Contract farming as part of State APMC Act – • Conflict of interest ü Registration of Sponsor, recording of Agreement through APMC ü Dispute Resolution through APMC • Indian Contract Act, 1872– • Treats both the contracting parties as equal • Farmer is weaker of the two parties • No institutional mechanism • Hence, the need for a farmer-friendly Act 11

Contract Farming- Role in Indian Agriculture Enhance productivity at cost efficiency Assured market with pre-agreed Price i) Extension services ii) Supply of quality inputs iii) Scale of economy i) No search of market ii) Price risk negotiation ii) Optimum value of produce i) Short supply chain Contract Farming & Services Reduction of post-harvest losses Investment & productive job opportunity Assured supply of raw agro produce to Agro industries ii) Availability of production & post – production infrastructure i) Attraction of investment in forward, backward and processing infrastructure ii) Job opportunities in rural areas i) Supply in desired quantity & quality

Salient Provisions of the Model CF Act, 2018 ØRegistration and recording of agreement is to be electronically made at lowest level (Taluka/ Block/ Tehsil level) ØSponsor prohibited from raising any permanent structure ØNo title, rights, ownership or possession shall be transferred or alienated or vest in the Sponsor ØThe contracted produce shall be outside the ambit of regulation of State /UT Agricultural Marketing Act. 13

Salient Provisions of the Model CF Act, 2018 ØDispute • Settle Negotiation or third party mediation /conciliation – Failing to reach a mutually acceptable solution through Mediation /Conciliation , the aggrieved party may refer the dispute to the Dispute Settlement Authority – The decision of the Authority shall have force of the decree of a Civil Court Appeal • Any person aggrieved by the decision/ order of Authority may prefer an appeal to the Board • The Board shall dispose off the appeal within fifteen days and decision of the Board shall be final • The decision of the Board in the appeal shall have force of the decree as of the Civil Court 14

Progress • Tamil Nadu assembly passed a Separate Contract Farming and Services Act on the line of Model Act and waiting approval of Hon’ble president • Punjab has already enacted a separate Contract Farming Act in 2013 • A total of 19 States have provisioned contract farming in APMC Acts itself 15

Actionable points for States/ UTs States are requested to adopt the Model Contract Farming Act in its true spirits States may ensure that Contract farming sponsors/ buyers may engage themselves with the farmers in the value chain development to promote export and processing

Thanks 17