Maharashtra APMCs: Current Status and Substitute Marketing

Maharashtra APMCs Current Status and Substitute merchandisingShivaang SharmaIn India, the trade of countrified bring is regulated by uncouth Produce grocerying (Regulation) Act 1966, which provides for the constitution of securities industry committees by enunciate governance, notification of outlandish commodities as besides place of trade of untaught piss. Hence, the marketing of notified rustic produce in renders other than notified areas is illegal. The areas so designed by the disk operating system organisation are known as uncouth Produce Market Committee (APMC) markets or Mandies. The age old monopoly of wholesale markets under the governments regulation dumbfound essentially curbed the advancement of a agonistic marketing system in the country, providing provision of religious service to farmers in film marketing, organizing retailing, smooth sum up of raw materials to industries specialising in agro processing and the adoption of an progressive marketing technologies and systems.The objectives of this newspaper publisher are toExamine the current status of state coarse markets and efforts to strengthen their marketing stem.Examine the progress made by option marketing channels such as Shetkari Bazaars and Contract farm. bucolic markets in the country are set up (Table 1) and regulated under to each one states APMC acts. The entire physical area inwardly each state is separated and affirmed to be a market area where Market Committees manage the market yards which themselves are established by the roughone state governments. When a specific location inside the state is corroborate as a market area, it automatically comes within the jurisdiction of the states appointed market committee. Within this area sole(prenominal) persons who have been granted licence for operating within the region may be free to engage in wholesale marketing activities. These legally established monopolies of wholesale markets which are go vernment regulated have essentially curbed the harvest- cartridge clip of a more(prenominal) advanced competitory system of agricultural marketing within the realm of each state. Therefore an efficient system of agricultural marketing is much needed for the expansion of the agrarian part of the parsimoniousness since it further leads to incentives and mediums for increased agricultural and allied sectors production thereby component subsistence farmers to commercialise themselves and their businesses more effectively.Table 1 Division wise dispersal of APMC main market and sub market yards in MaharashtraSource music do-or-die(a)ctor of selling (DOM), Pune.As per the policy of Government of Maharashtra, produce of agriculture, whether processed or not, including horticulture, animal husbandry, pisciculture and produce from forests are defined as agricultural produce. From time to time, the agricultural produce of the area are notified as agricultural produce for marketing in designated market place by the Directorate of trade and Inspection. In this backdrop, GOI constituted an expert committee on strengthening and underdeveloped of agriculture marketing in December 2000, which was followed by constitution of an entomb ministerial task force to review the parent system of Agricultural marketing in the country and to recommend measures to make the system more efficient. The committee in its report of June 2001 and Task force in its report of May 2002 made a account of recommendations not only to alter the existing regulated marketing network but also to kindle a parallel marketing network in the hush-hush and reconciling sector.These recommendations included analysing the requirements to provide and strengthen existing marketing infrastructure, promote competitive alternative agricultural marketing infrastructure through appointment of private and co-op sector, provide infrastructure facilities for grading, standardization and tint certifica tion of agricultural produce and to provide training for farmers, entrepreneurs and market functionaries on agricultural marketing. consequence upon this development, Ministry of Agriculture and Cooperation, GOI launched a credit linked back ended jacket investment subsidy scheme for development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) with effect from 20th October 2004 with the view to creatingAdditional Agricultural Marketing infrastructureStrengthening existing agricultural marketing infrastructurePromoting competitive alternative agricultural marketing infrastructure through the involvement of private and cooperative sectors.Since the scheme was linked to market reforms, the states which have revise the APMC Act to include private participation and contract farming are now eligible for availing the benefit of subsidy under the scheme. The state of Maharashtra macrocosm one of the leading states to adopt the new policy of Unio n government has amended its APMC act and the scheme is in operation since 5th family 2006. Some aspects of this scheme include Grain units godown, drying yard, site development and machinery milk unit- bulk coolers, combine harvesters and auction sheds.Table 2 Geographical coverage of APMCs in MaharashtraSource Director of Marketing (DOM), Pune.Considering the geographical coverage of APMCs within the state (Table 2) as of 31st March 2011, 188 intentions having a financial expending of Rs. 22,671.32 Lakh, bank impart of Rs. 14,191.68 Lakh and eligible subsidy of Rs. 4,692.61 Lakh were genuine from different banks by NABARD, Maharashtra Regional Office, Pune. In order to review the processes utilize by the APMCS of Maharashtra, a detailed study was conducted by NABARD (National Bank for Agriculture and Development).Progressing to the second objective of this report, we begin by analysing the alternative popular marketing channel which is growing in conjunction with the conven tional APMC set up i.e. Shetkari Bazars. The Farmers Market (Shetkari Bazar) is an idea of marketing the agrarian produce directly to consumers by producers (farmers). By excluding the intermediaries who in the model appear to be an inflationary force, the agrarian produce reaches its destination in good tick off due to minimal in between handlers. As a result, this order leads to better price actualisation for the farmers and also quality produce reaches the consumers at far lower lower price levels. This format of conducting agricultural marketing has previously been enforced in Andhra Pradesh (which was called Raithu Bazar). This format is meant to assist small surpass farmer producers (with fewer quantities of fragile vegetables and fruits) to secure better price levels thereby escaping commercial exploitation in the market yard by Dalals.Since second July 2002, as per the government resolution No. APMC-1099/PC.305/11-c, Govt. of Maharashtra has decided to set up Shetkari Ba zars in the state and MSAMB has been appointed as nodal agency for implementing this scheme. The produce brought by farmers will not be levied cess at the Shetkari bazaars in all districts and primal taluka places by APMCs from the area. As per this resolution, a state level committee is setup under the chairmanship of Hon. Minister of Marketing, Govt. of Maharashtra, for implementing and monitoring of this scheme. The district level committees are also set up under the chairpersonship of respective district collectors with the following objectives4To help farmers to get reasonable place for their produceTo benefit consumers by adult them fresh produce at reasonable pricesImmediate value realization of the produce to farmers without any deductionsTo provide produce in appropriate weights and measures to consumersTo organism producers and consumers together to avoid chain of middlemen.The MSAMB has planned desktop up of snow Shetkari Bazars in the state by the next 5 years. The cost of setting up a single bazaar is estimated to be around 20 25 Lakh. Hence, MSAMB is providing loan to the maximum extent of 10 Lakh per beneficiary. lodge in is subsidized up to 50% of the total loan. The rate of interest for the loan is 5% p.p. with 10 years payback period. To avail this loan, the APMC has to submit the proposal to the MSAMB on with the detailed plan and estimates and get prior approval for the said(prenominal) before beginning construction.There have been some compelling victor stories in the realm of Contract farming which have transformed the fortunes of farmers belong to specific regions of Maharashtra. Manchar village in Pune district of Maharashtra is famous for its high quality potato crops. Pepsico company recently began buying the produce of over 6000 dry land of land in the area. The key elements of Pepsicos success are its preposterous partnership with local agencies, execution of technology transfer through substantially trained extension personnel, supply of agricultural implements free of cost, regular and timely payment to farmers and the maintenance of a perfect logistic system. This is especially salutary considering the amount of PHL minimised and the time saved by farmers who otherwise would need to seizure their precious crops to the APMC market yard at the daily risk of losing some of their crops to handling, weather and potential road accidents.Recently, Sanghar Exports, Pune, also entered into contract farming of banana tree with the farmers in Pune (Phoolgaon) and Solapur. In this case however, the contract is only for the purchase of the agricultural produce.In conclusion, owing to the nature of the APMC marketing pipeline, inflationary practices have experience inescapably endemic within the APMC marketing apparatus which can only be removed by a two-fold method. Firstly promotion and financing of alternative marketing channels such as Shetkari Bazaars, Contract farming and direct marketing must be followed. Secondly, by reducing the number of middlemen currently included within the APMC marketing process (such as dalals, auctioneers etc) along with increasing the number of licenses granted to more farmers and dalal shops from operating within the market yard shall lead to considerably reduced auction price rates since it inevitably leads to greater supply and more competitive bidding at the market auction yards at the market yards.Furthermore, there exists a dire need to strengthen existing marketing infrastructure, promote competitive alternative agricultural marketing infrastructure through involvement of private and cooperative sector, promote direct marketing and direct integration of processing units with produces, supply infrastructure resources meant to be utilised for standardization, grading and quality certification of agrarian goods, to introduce negotiable warehousing receipt system, also to promote agreement financing, forward and future markets and to create a wareness and provide training to farmers, entrepreneurs and market functionaries on agricultural marketing.Hence, although these APMCs have facilitated the provision of a variety of operate and forward linkages to farmers for long time after the opening up of Indian economy in late nineties, but, the age old practices and procedures incorporated within their functioning have invited criticism from all quarters in recent past. Since their incorporation, farmers have lost confidence in APMCs due to number of malpractices desire lack of transparency, high charges levied by commission agents, wrong weightments and restriction of marketing licences for farmers and auctioneers alike (which curtails supply thereby exacerbating food price inflation).References and Bibliographywww.msamb.comwww.nabard.orgwww.agmarknet.inhttp//www.msamb.com/schemes/default.htm both table sources Maharashtra State Agricultural Marketing Board Director Marketing, GOM, Pune.