Apmc Final

REGULATED MARKETS The regulated markets are established as per the provisions of the `Marketing of Agricultural Produce Acts’ of the State Government. The Commodities, with which the market will deal, are also declared. Regulated markets aim at the development of marketing structure to ensure remunerative prices to the producers and to narrow down the price spread between the producer and the consumer. It also aims at reducing the non-functional margins of the commission agents. Basic objectives of Regulated Market 

To ensure reasonable gain to the farmers by creating environment in markets for fair play of supply and demand forces,



To regulate market practices and attain transparency in transactions



Aimed at providing proper method of sale, correct weighing, prompt payment and various marketing related services



Democratic set up to control and manage markets

For controlling the activities of the marketing, there is a `Market Committtee’. The Committee consists of representatives of the farmers, commission agents and the Government nominees. Functions of Market Committee 

The complete management of the market rests with the `Market Committee’.



The Committee issues licences to the Commission Agents, weigh men, and other functionaries.



The rate of Commission to be charged is fixed by the Committee.



Weighment is done properly by the weigh men appointed by the Committee.

1

There is an arbitration Sub-Committee to look into the grievances of the farmers. Advent of regulated markets has helped in mitigating the market handicaps of producers/ sellers at the wholesale assembling level. With the establishment of regulated markets, many fraudulent practices of the brokers are observed in the unregulated markets are overcome and the farmers get reasonable price for their produce. Not only this, amenities like rest house, place for parking of vehicles, cold-storages, etc. are also created in the market yards for the benefit of the farmers. In this respect, Government Policy is to have rapid expansion of the regulated markets in the country. Agri-Markets in India as on 31.03.2007 Types of Markets

No. of Markets

Wholesale Markets in India (majority are regulated markets)

6261

Rural Primary Markets (about 15% are regulated markets)

20870

Total Principal Regulated Markets

20870 2459

Regulated Market Sub-yards

5006

Total

7465

(Only 286 regulated markets in 1950) Regulated markets have achieved only limited success and Rural Periodic Markets in general, and the tribal markets in particular, remained out of its developmental ambit.

2

A.P.M.C. – AN INTRODUCTION Agriculture produce means all produce (whether processed or not) of agriculture, horticulture, animal husbandry, pisciculture and forests. The APMCs were established by the State Govt. for regulating the marketing of different kinds of agriculture and pisciculture produce for the same market area or any part thereof. The Maharashtra Agricultural Produce Marketing (Regulation) Act was passed in the year 1963, with a view to regulate the marketing of agricultural and pisciculture produces in market areas. After giving due consideration to various committees’ recommendations and study groups, some important changes have been made in this Act in the year 1987 and thereafter. Mission 1. MAPMC is in the business of facilitating the trade of Agricultural commodities in the geographical region of Mumbai 2. MAPMC aspires to become the most preferred trading partner of sellers and buyers of agri-commodities all over India 3. MAPMC promises to provide the most advanced and world-class infrastructure to all its functionaries 4. MAPMC wishes to be a fair employer, investing in the continuous upgradation and development of knowledge and skills of its human resources 5. MAPMC is aware of its important role in the society and therefore will always conduct itself with a measure of responsibility towards social causes and with significant accountability towards environmental preservation 6. As one of the foremost agri-trade organizations in India, MAPMC is fully cognizant of maintaining and enhancing the image of India and will always prioritize national interests in its every decision

3

7. MAPMC is a customer-driven organization and will constantly strive to achieve complete customer satisfaction and provide prompt customer support. Division wise break-up of APMC’s are as follows: No 1 2 3 4 5 6 7

Division Konkan Nasik Pune Aurangabad Latur Amravati Nagpur Total

Main Market 20 51 42 33 46 55 43 290

Sub Market 48 106 121 69 86 91 72 593

Classification of APMC’s (2003-2004) No APMC Class 1 "A" Class 2 "B" Class

No. of APMC’s 39 57

Total Income Above Rs.1 Crore Above Rs. 50 Lac to Rs. 1 Crore

3 "C' Class 4 "D" Class Total

72 122 290

Above Rs. 25to Rs. 50 Lac Less than Rs. 25 Lac

History of Regulated Markets

4

India is an agrarian economy. Approximately 70% of people are dependent on agriculture for their basic income. Indian agriculture is dependent on rain and Indian economy is dependent on agriculture. That is main reason why marketing of agriculture products is dependent on demand and supply conditions. Earlier the farmers were worried about the sales of their produce and due to low quality they could not fetch a good price. The produce had many defects and the royal commission in 1928 studied this. There weren’t enough marketing activities carried on by the farmers. So the royal commission suggested commencing with the regulated markets and accordingly various market committees were incorporated. The three basic functions of this committee were 1) To meet the demand of the Increase in population and industrial advancement 2) To increase the quality of agriculture produce 3) To fetch an appropriate price for the farmers The sale of produce in the market yard is carried on by open auction method. During any deal or transaction an employee from the association is present to note all the details of the deal like transaction cost, quantity, details of buyers and details of sellers, etc. For appropriate weighing of farmers produce, the committee has established a different weighing department. A regular inspection is carried on for this department. The committee also undertakes grading. In case any default in payment by the buyer the market committee helps in settling the dispute.

M.A.P.M.C. Vashi

5

Introduction Mumbai Agricultural Produce Market Committee (MAPMC) is an autonomous body constituted under “The Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963” in the year 1977 for the purpose of regulating the marketing of different kinds of Agricultural Produce. MAPMC was primarily set up to cater to the marketing needs of the farmers and provide them a platform for selling agricultural produce in various markets and at competitive prices. Apart from this, it also provides infrastructural facilities for marketing of agricultural produce including maintenance and management of markets. The commodities under regulation of MAPMC are food grains, fruits, vegetables, spices, dry fruits, pulses, edible oil & oilseeds.

At a Glance: 1 2

Establishment Shifting To Navi

15th January Year 1977 Year 1990

3

Mumbai Total Area Of Navi

300 hectares

Mumbai APMC

Trading /Marketing area 72.50 hec 

Developed area – 67.88 hec



Area under development – 4.62 hec

Remaining is for other infrastructure facilities 4

No. of declared

5 markets they are fruit, vegetables, food grains and

5

wholesale markets No. of galas/ shop-cum-godowns

pulses, onion and potato market, sugar and spices. 3707

6

5

6

7

Daily transport

4500 trucks •

125 onion

•

100 potato

•

30 garlic

•

800 fruits

Commodities under

• Others Onion,Potato,Sugar,Dry Fruits, Spices & Condiments, Oil

regulation

Seeds, Edible Oil, Pulses, Food Grains, Fruits, Vegetables,

Aim

Sugar Cane,etc. Growers (farmers) and consumers should be benefited appropriately.

8

9

Timings

•

Vegetable Market :3am-7am

•

Fruit Market: 8.30 am to 4.30 pm

•

All other Markets 9.30- till darkness. 4 (Fruit market 2 , Onion market 1, vegetable

No. of Auction Halls

market 1) 1

Facilities provided

•

Cash-in-hand in 24 hrs to farmers.

0

to farmers

•

Guest house service at Rs.1/day for farmers.

•

Other Services (as discussed below)

Daily Arrivals Market Onion-Potato Fruits Vegetables Dry-fruits & Spices Foodgrains & Pulses Total

Daily Arrivals (In Quintals) 25000 11000 16000 27000 40000 119000

Details of shifting of wholesale trade of agriculture commodities from Greater Mumbai to Vashi, Navi Mumbai:-

7

Sr. No.

1

Name of the

Year of

Market

No. of

No. of

Project

market

Shifting

Area in

Galas

office

Cost in

Hectare 7.92

238

blocks -

Crores 4.06

1991

19.26

660

272

28.32

Onion and Potato 1981 market

2

(Dadar market) Spices and condiments

3

market Food grain

1993

16.50

412

356

24.19

4

market Fruit &

1996

17.195

1965

364

117.00

7.01

228

518

80.00

Vegetable Market(Crawford 5

market & Dadar) Addl.

-

SCG.Comlex.

The adjoining table gives an idea of where the commodities to MAPMC come from:

8

Rice

Haryana and Delhi

Wheat

Madhya Pradesh and Delhi

Lady’s finger, Tomatoes, Cabbage, Mint

Local markets

Coriander, Methi, Spinach, Radish, Brinjal

Bangalore

Drum stick

Gujarat

Peas

Jabalpur, Indore

Apple

J&K, HP, New Zealand and Australia

Oranges

Nagpur

Pomegranates

Solapur, Sangola taluka

Grapes

Sangli and Nashik.

Chiku

Thane and Dahanu.

Pineapple

Kerala and Karnataka

Mango

Karnataka, Sindhudurg and Ratnagiri

Lime

Solapur district

Green chilly

Andhra Pradesh and Karnataka

Onions and potatoes

Shirur and Puranda

Bananas

Jalgaon, Bhusawal and Nanded

Commodity Seasons Sr. No.

Name of

Begin

End

Peak

Commodity 1.

Banana

2.

Citrus Lime

Round the Year Aug.

Dec.

Sep., Oct., Nov.

9

3.

Citrus Mosambi

Sep., Feb.

Dec., Apr.

Oct., Nov. Mar.

4.

Citrus Orange

Feb., Sep.

May., Dec.

Mar., Apr., Nov.

5.

Grapes

Mar.

May

Mar. Apr.

6.

Guava

Nov.

May

Dec., Apr.

7.

Mango

Mar.

June

Apr. May

8.

Pomegranate

Nov., Feb.

Jan., Apr.

Dec., Mar

9.

Ber

Oct.

Jan.

Nov., Dec.

10.

Apple

Aug.

Nov.

Sep., Oct.

11.

Papaya

Round the Year

12.

Sapota

Round the Year

13.

Brinjal

Round the Year

14.

Cabbage

15.

Cauliflower

16.

Onion

Oct., Mar.

Dec., May

Nov., Apr.

17.

Potato

Feb.

May.

Mar., Apr.

18.

Tomato

Dec.

Mar.

Jan., Feb.

Round the Year

Round the Year

Functions of APMC Market: •

Grant, renew, refuse, suspend or cancel license.

•

Provide the necessary facilities for the marketing of agricultural produce within the market.

•

Regulate and supervise the auctions of notified agricultural produce in accordance with the rules and the bye-laws.

•

Regulate the entry of persons and of vehicular traffic into the market.

•

Supervise the behavior of those who enter the market for transacting business.

•

Maintain and manage the markets, including admissions to, and conditions for the use of markets.

•

Regulate the making, carrying out and enforcement or cancellation of sales, Weighment, delivery and payment to be made thereof.

•

Promote and organize grading and standardization of the agricultural produce. 10

•

Take measures for the prevention of purchases and sales below the minimum support prices as fixed by the government from time to time.

•

Collect, maintain, disseminate and supply information in respect of production, sale, storage, processing, prices and movement of notified agricultural produce including information relating to crops statistics and marketing intelligence.

•

Carry out publicity about the benefits of regulation, system of transactions, facilities provided in the market area etc.

•

Provide for settling of disputes arising out of any kind of transactions connected with the marketing of agricultural produce.

•

Receive charges, fees, rates and other sum or money to which the Market Committee is entitled.

•

Inspect and verify the books of accounts and other documents maintained by the licensees.

•

Provide storage and warehousing facilities in the market area.

Advantages of APMC markets: 1) Ethical practices in selling the produce through open agreement. 2) It has removed malpractices in weighing the produce. 3) Use of certified weighs and measures. 4) It has overcome adulteration. 5) Quick settlement of disputes. Benefits to farmers: 1) The farmers get fair price (minimum support price) for the produce, as the intermediaries are not able to indulge in malpractices. 2) Correct weighing of the produce. 3) Storage facilities for agricultural produce. 4) Ethical practices in selling the produce i.e. open auctions and open agreement. 5) Maintenance of daily list of prices of commodities for the benefits of farmers.

11

6) Immediate payment after disposal of the produce (within 24 hrs ) Market working:All the traders work on a commission basis. They have a fixed ceiling on the amount of commission that they can charge. This varies from commodity to commodity. The commission is charged on the selling price of the farmers. They are thus called commission agents. The purchaser pays a levy of 0.8 % on the amount purchased to the commission agent. This includes a market fee of 0.75% and a 0.05% maintenance fee. Both the receipts are then forwarded to the market yard office by the commission office. Quite a few commission agents and traders have now got into the export act and are mainly supplying to clients in Europe and the Middle East. As India opens itself and sets itself free from the shackles of licensing, a world of opportunity is opening up for exporters. MAPMC is fully geared to support these exporters and ensure that Indian produce gets the recognition and the price that is due. Being located in Mumbai gives the MAPMC that edge - both the Sahar International airport and the JNPT port are merely an hour away from the MAPMC market. PARTICIPANTS OF THE MARKET •

Producers / Seller ( farmers) : These are the ones who are not directly involved in the working but are the part of the whole cycle of agricultural marketing.

•

Commission Agents : o Brokers: They are the ones which take minimum risk and as a part of their income brokerage is paid to them. The commission paid is between 2%10% o Traders : They are the same as Brokers but level of risk is high o Adatya’s :

•

Wholesaler

•

Retailers

•

Consumers

12

Number of Market Functionaries in the Market Sr. No.

Functionaries

Numbers

1.

Traders – Fruit

1029

2.

Traders – Vegetable (Onion, Potato & Garlic)

238

3.

Traders – Other Vegetables

936

4.

Traders 0 Dry Fruit, Condiments & Spices, Sugar Jaggery, 660 Coconut, Ghee & Wheat flour

5.

Traders Food grains, Pulses & Oil Seeds etc.

412

6.

Others – Shop Cum Godowns

228

7.

Warehouse facilities (Storage Capacity)

5000 MT

Marketwise Rates of Tolai, Commission, Hamali etc. Sr. No.

1

Name of the

Rate of

Market

Commission(on Rs.

Onion market

100 sale value Rs. 6.50

Rate of Hamali

Rate of Tolai

Gunny6 bag Rs.

Rs. 1.82(per 100

5.17 and sack Rs.

Kg)

Rs. 6.00

3.10 -- “ ---

---“---

3

market Oilseeds market

Rs. 6.00

---“---

---“---

4

Food grains &

Rs. 2.75

---“---

---“---

2

Spices & condiments

pulses market

13

5

Fruit market

Rs. 10.00

Per pati/pati/bag

Rs. 1.81(per 100

Rs. 2.25

Kg) Rs. 0.57(per peti/peti) Loose truck Rs. 150/-

6

Vegetable market

Rs. 8.00

---“---

Rs. 0.68 (per peti/peti/bag) Rs. 0.45(leafy veg.)(Per 100 Nos. of judis)

14

15

16

Functions performed at collection centres (millers) Primary Marketing Functions: 1. Assembling: Assembling means collecting and bringing together goods of the same type from various sources or places of supply at a central place. A trader dealing in agricultural produce collects the goods lying at different places from different farmers and then brings the goods as a central place for the purpose of selling. The farmers are highly scattered over a wide geographical area and they produce in small quantities. There are variants with regard to quantity and quality of the produce. Therefore, Assembling is an important function and many intermediaries participate in the process. a. In case of APMC market farmers directly bring their produce to the nearby market. b. Big farmers collect produce from the small farmers. c. Mobile Merchants who move from village to village to collect agricultural produce. Kachcha arhatias assemble the produce in the market. 2. Processing: activities to convert raw materials and bring the product near to human consumption. It involves change in the form if the commodity. It adds value to the produce. a. Paddy to boiled rice and raw rice. b. Tea processing c. Coffee processing d. Cashew processing e. Milling of pulses. 3. Distribution: After assembling and processing, the farm produce is taken to the market for consumption. This involves storage, of ownership of the produce through intermediaries and physical movement of stocks.

17

Secondary Marketing Functions 1. Standardization and Grading: Standardization involves fixing certain norms for the products. The norms are established by customs and tradition or by certain authority. Grading follows standardization and refers to classification of produce based by standards. Standardization and grading benefits both the producers and consumers. It helps the consumers since they are able to get goods of standard quality and helps the producers in getting better price for their products.

2. Packaging: The main objective of packaging is to preserve the quality and quantity of the produce during the storage and transit. It also helps in easy handling of the produce. a. Cotton after ginning is pressed into bales. b. Fruits like apple, grapes are packed in hardboard boxes. 3. Transportation involves moving the agricultural produce from the place of production (farms) to the place of consumption. Agricultural products are perishable and therefore quick transportation from the farm to the consumption centres is required to maintain the quality of the produce. Transportation cost and handling charges for the agricultural produce are high due to long distances between farm and market nad number of middleman between the producer and consumer. 4. Storage: While agricultural production is seasonal, the consumption takes place throughout the year. a. Commodities like potatoes, apples can be stored in cold storage to make them available during the off-season also.

18

5. Financing: Agricultural produce takes place in the interior villages. The produce has to be moved long distances and takes place long time to reach the consumers and capital remains locked up during this period. Credit and money have to be made available to meet the cost of selling the produce to the final consumer. 6. Selling involves identification of different categories of customers, understanding their needs and wants and supplying the produce to meet their requirements and collecting money for the produce sold.

19

System of Sale in APMC Market •

Wholesaler-to-Wholesaler

•

Wholesaler-to-Agents

•

Wholesaler-to-Corporate

•

Wholesaler-to-Consumers 1. Cash Basis 2. Credit Basis – only by agents

Methods of Sale carried out by APMC Market i.

Sale by Sample

It is the most convenient method of sale where the produce is systematically graded. It saves the cost of transportation and inspection. However, utmost honesty in the dealing is to be followed. The producer or the commission agent shows the sample to the trader and finalizes the price. Example – During the auction of chilies, the buyer quotes the price for the produce by looking at the samples. This sale by sample is also practiced in food grain sector. Food grains such as wheat, rice, etc. are bought by buyer and to verify that the quality matches the sample they hit the gunny bag with sickle and check the food grains.

ii.

Open Auction: The farmers undertake a bidding process in which the commission agents bid over the prices of the produce being auctioned and the produce is sold by the farmer to the highest bidder.

iii.

Dara sale: In this system, the heaps of grains of different quantity/quality are sold at a fixed price. The advantage is that within a short time a large number of sales can be affected. Hence, the buyer may get better quality of produce at an

20

average price. Also, the farmer will not spend more on HYV seeds or any such agricultural inputs that will increase the quality of the produce if the method of sale is Dara sale. Example – This type of sale is practiced in onion and potato market .As such there is no wholesale market for commodities like oil, masala powder, etc. These commodities are available in any market at a wholesale price.

iv.

HATTA Sale (Under Cover)

This method of sale is legally not permitted to be practiced in the regulated markets. But it is learnt that Hatta or undercover sale is practiced in the fruit and vegetables market. •

Codes: 1 finger = Rs 10 1 tapping = Re 1 Fist = Rs100

E.G: holding 3 fingers and then tapping the finger 2 times would communicate Price of Rs.32/kg. If the prices are acceptable to both the parties, lapping hands signals the deal as done. The main reason why it is practiced is well justified by the wholesalers in the market. Acc to them there has been a sharp increase in the number of retail clients visiting the A.P.M.C market. If the prices offered to the wholesale buyers are negotiated via talking or discussing loudly, even the retail buyers would demand a similar price which would not be acceptable to the wholesale buyers or sellers. So, with a view of maintaining confidentiality of wholesale prices the hatta system is often practiced in the market.

21

Facilities * Infrastructure Available in the Market or nearby Market

Sr. No.

Facilities/Infrastructure

Number

Capacity

1.

Cold Storage

20

30,000 MT

2.

Waxing/Grading Line

01

3 Ton/hour

3.

Ripening Chambers

01

7 Ton

4.

Packaging unit

01

8 Ton

5.

Vapour Treatment Plant

01

6.

Rest House for farmers

01

7.

Post Office

01

8.

Banks

15

9.

Independent Police Station

01

10.

Central facility Building

05

11.

Weigh bridges

08

12.

Dispensary

01

13.

Export House

02

14.

Sanitary Blocks

04

15.

Passenger transport facility

-

16.

Restaurants/Canteen

-

30 no.

Tax provision in Maharashtra The traders in the APMC market are liable to pay tax as mentioned: •

Food grain sector – NIL

•

Masasla market – 4% VAT

•

Cash crops – 12% VAT

Insurance –

22

Market provides Fire as well as Flood Insurance. However, after the 26 July deluge in Mumbai, the traders of the APMC Market are no longer provided the facility of Flood insurance. Loan – As a supplement to the finance of APMC, the Maharashtra State Agricultural Marketing Board gives some amount as loan to enable APMCs to undertake developmental programmes. However, MSAMB insists on availing loans from Banks by the APMCs for their development programmes. The development works include land, drinking water facility, compound wall, gate, internal roads, electrification, auction halls and platform, godowns, computers, farmer’s hostel, trader's and commission agent's shops, etc. The loans are sanctioned as per the norms prescribed by MSAMB. APMCs submit the loan applications with details, which are being processed at the head office. As per the rules of the Marketing Board, the rate of interest for development works are as follows: Sr. Class of APMC

Rate of Interest

No. 1

Class A and B

12%

2

Class C and D

10%

3

Konkan and Tribal Area

8%

Role of Banks – Financial institutions such as ICICI, SBI, COSMO Bank, UNION BANK, HDFC, etc are located around the market due to the proximity of these Financial Institutions; it becomes very convenient for traders to do the daily transactions. They also provide banking facilities to these traders such as loans, credit facilities, ATM’S, etc.

23

Factors Affecting Price: The pricing decision is dependent on a number of factors: •

Main Market – The Commission agents update the A.P.M.C merchants about the prevalent market prices on a day to day basis. The prices in the A.P.M.C market change accordingly.

24

•

Season and Supply – During the winter season from December to February, the supply decreases and thus the price rises during this period. Price varies during the other seasons as per the supply. For eg. If there is a very heavy rainfall and the crop has damaged, then the prices will rise. Basically, it is dependent on the demand – supply conditions.

•

Brand – There are a lot of brands available in case of grains and this has a major impact on the prices. There are certain well established brands which enjoy high recognition and are sold for higher prices.

•

Multi-Commodities Exchange (MCX) – Today, due to the emergence of Multi-Commodities Exchange and easy internet accessibility, the merchants pricing decisions are affected by the prevalent MCX prices.

•

Transport conditions – The transport route and charges also affect the prevalent prices of the grains.

•

Rains: This is a major factor in determining the total quantity of production, which is the total supply which determines the price in coordination with the demand.

PRODUCT HANDLING AND WASTAGE Product Handling In APMC, product Handling is majorly performed manually by laborers. These laborers work on daily basis and transfer goods and commodity from one katta ( shop) to another katta or from katta to trucks. On the other hand product handling during trading between APMC and retailers or semi-wholesalers is done in 3 ways: 25

i)

Trucks: Trucks and Tempo’s are used as medium of road transportation in order to cover shorter distances and to reach the interiors of city.

ii)

Railways: Railways are also used as a medium of transportation goods to longer distances. They are comparatively cheaper when it comes to road transportation.

iii)

Steamers: Some of the commodities from APMC Market are also exported and imported. Therefore, Steamers are used as a medium of water transportation. Daily wages of laborers in APMC are as follows: Kg

Amount

30 kg

Rs. 2/-

50 kg

Rs. 4/-

100 kg

Rs. 6/-

Wastage Generally, in all the sectors of APMC the production of wastage is very low. However, in Fruits and Vegetables Market, wastage is up to 35% of the overall produce as these goods are perishable in nature. Hence, in order to reduce this wastage, the wholesalers sell them at a lesser amount compared to the original price.

TRANSPORTATION FACILITIES For the smooth functioning of the entire market, efficient and effective transportation is a must. Transportation facilities are widely used from Village APMC/ Mills to APMC and from APMC to retailers/ Semi-wholesalers and vice-versa. Any type of obstacles during transportation can largely hamper the working in the APMC market. There are 3 modes of transportation:

26

1) Road transport – Trucks and Tempo’s 2) Rail transport 3) Water transport – Steamers. Daily average arrivals of all Agricultural commodities is 3500 trucks per day approx. 1 truck has the loading capacity of 10 tones (approx). Transportation cost forms a major cost factor compared to the other costs of a commodity. Higher the transportation cost, higher will be the price of the commodity. Trucks and Tempo’s deliver the goods area wise and the cost is bared by their customer. A single transport agency receives approx 30 to 35 contracts on a daily basis. There are various associations formed in order to manage the transportation facilities such as: -

Mathadi Kamgaal Pranit Association.

-

Retail Motor Transport.

-

Tempo Owners Association.

-

Local Tempo Association

These associations handle the entire day to day working of transportation. These committees also provide solution to the local transportation problems. -

Letter Box

CONTRACT FARMING Contract Farming takes place between farmers and the contractor. According to this contract, the farmer has to plant the contractor’s crop on his land. Post harvest the farmer needs to deliver the promised produce to the contractor, based upon anticipated yield and contracted land. This could be at a pre agreed price.

27

In the APMC Market, Contract Farming is not practiced by small or local parties. Till date contract farming was not practiced in any of the APMC’s in Maharashtra. The State Government has thus realized the importance of contract farming and is therefore making necessary efforts to promote the same. Maharashtra will soon join the ranks of Andhra Pradesh, Gujarat, Karnataka, Punjab and Tamil Nadu in promoting contract farming. This move is ostensibly aimed at bailing out the farming community from its distress, manifested in the number of unprecedented farmer suicides in the state in recent months. The state government has proposed an amendment to the Maharashtra Agriculture Produce Marketing Act to allow corporations, retailers or food processing companies to directly enter into agreements with farmers to market their produce. The corporate sector has been the first to rejoice, much before the farmers who are the supposed beneficiaries of the new Act. Multinational giants like Metro Cash & Carry, Cargill Foods, Hypercity, Shoprite and Wal-Mart have signaled their intention to get into agreements with Maharashtra’s farmers. Many states in India are promoting contract farming, ostensibly to allow “technology transfer, capital inflow and an assured market” for crops. Reliance is the first major player to have shown interest in getting into contract farming after the Act was passed. Reliance’s proposal has been submitted to the state’s director of marketing. The RIL plan will be studied in accordance with the state’s policy on contract farming. The government may seek further information from RIL on its proposed crop pattern before it decides on its proposal. “This is to ensure that the land quality doesn’t get affected. Reliance Industries wants to lease about 100, 000 acres of prime farm land in Pune to grow tonnes of vegetables, flowers and other produce required to feed its huge retail operations.

28

The fabrics-to-oil giant has submitted a proposal to the Maharashtra government seeking over 100,000 acres of farmland on a 50-year exclusive lease. According to the state’s policy on contract farming, which allows corporates to take farm land on lease and strike a buyback agreement with the farmers for the produce by paying market-related prices. This is designed to ensure better prices and a ready market for farmers, while at the same time, allowing companies to deal directly with farmers, bypassing middlemen. RIL is not seeking to take over the land belonging to the farmers. It wants the land on lease and will pay a fixed price of Rs 4,451 per acre per year. It’s like BOT. Instead of build, it will be cultivate-operate-transfer. RIL will also pay market price to the farmers for their produce.

AGMARK GRADING AND STANDARDISATION  Objectives Promotion of Grading and Standardisation of agricultural and allied commodities under Agricultural Produce (Grading & Marking) Act, 1937.

29

 Salient features Quality standards for agricultural commodities are framed based on their intrinsic quality. Food safety factors are being incorporated in the standards to complete in World trade. Standards are being harmonized with international standards keeping in view the WTO requirements. Certification of agricultural commodities is carried out for the benefit of producer/manufacturer and consumer. Certification of adulteration prone commodities viz. Butter, Ghee, Vegetable Oils, Ground-Spices, Honey, Wheat Atta etc. is very popular. Blended Edible Vegetable Oils and Fat Spread are compulsorily required to be certified under Agmark. Facilities for testing and grading of Cotton for the benefit of cotton growers is provided through six cotton classing centers set up in cotton growing belt in the country. During the year 1999-2000, agricultural commodities worth Rs.429767 lakhs were graded and marked under AGMARK. Check is kept on the quality of certified products through 23 laboratories and 43 offices spread all over the country. APMC traders also require AGMARK Certificate for maintaining the quality of the produce.

Fully Automatic grading system for fruits at Vashi Market Trade of coconut at Vashi Market

30

LICENSES AND CERTIFICATIONS.

31

Licensing of market functionaries is dispensed with and a time bound procedure for registration is laid down. Registration for market functionaries provided to operate in one or more than one market areas. The following licenses are required in APMC: -

APMC License

-

Food Dealing License (FDL) – Food Grain Sector and Masasla Market

-

Pulse Dealing License (PDL)

-

MPSA License – Drug License. This license is required to curb adulteration in the market.

During the commencement period, approx Rs. 5000/- is to be paid by the traders as certification fees. This certificate needs to be renewed on a yearly basis for which a nominal fees is charged. If any trader is found without license then he is liable to pay Rs. 10,000

ROLE OF GOVERNMENT

32

The State government plays a way crucial role in the working of APMC. Provision made for imposition of single point levy of market fee on the sale of notified agricultural commodities in any market area and discretion provided to the State Government to fix graded levy of market fee on different types of sales. Provision made for resolving of disputes, if any, arising between private market/ consumer market and Market Committee. The State Agricultural Marketing Board made specifically responsible for promoting grading, standardization and quality certification of notified agricultural produce and for the purpose to set up a separate Agricultural Produce Marketing Standards Bureau.

The government also intervenes by releasing buffer stocks during crisis in the market. Also in order to order to reduce exploitation in the market, government sets up the minimum. Support price for the produce sold in the market area. It states that the market should have a specified quantity of goods and it should not exceed the stated stock limit. However, this is not practiced in the state of Maharashtra. Only 1/6th of the total production of the market is allotted to the government under State Trading Corporation. For example, once in the food grain sector, scarcity of pulses had arise. Therefore, the government created an action plan and stated the new stock limit i.e Retailers up to 750 quintals and wholesalers up to 3000 quintals.

Steps Taken by the Maharashtra State Agricultural Marketing Board (MSAMB) for Betterment of Farmers 33

FARMERS MARKET (SHETKARI BAZAR):

The farmer has no say while fixing price of his produce in the market. In present agricultural marketing system a no. of middle men are involved till the produce reaches the final consumer, as a result the farmer gets only 30 to 35% of the every rupee paid by the consumer. Farmer’s market (Shetkari Bazar) is a concept of direct marketing, by producer (farmer) to consumers. Objectives of Shetkari Bazar •

To help farmers to get the reasonable rates to their produce.

•

To benefit consumers by giving him fresh produce at reasonable prices.

•

Immediate value realization of the produce to the farmers without any deductions.

•

To provide produce in appropriate weights and measures to consumer.

•

To bring Producers and Consumers together to avoid chain of middlemen.

The minimum facilities made available to the farmers and consumers in the Shetkari Baazar are as follows: 1. The covered sale platforms (Ottas) of 6'x 8' Size for the farmers. These ottas will be made available to the farmers on "first come first serve basis". 2. Drinking Water Supply. 3. Parking area. 4. Garbage disposal arrangements.

34

5. Office for the supervising staff of APMC. 6. Ladies and Gents Toilet. 7. Vegetable washing Platform. 8. Grocery Shop. 9. Shop for Agricultural Inputs. 10. Canteen 11. Telephone Booth. 12. Compound Wall. It is proposed to set up Shetkari Bazars in the state in following three phases: •

In first phase the Shetkari Bazars will be set up at all districts head quarters in the state

•

In second phase the Shetkari Bazars will be set up in the cities where the population is more then 1 lac.

•

In third phase the Shetkari Bazars will be set up in all importants cities in the state.

•

Shetkari Bazars in operation

= 05

ONION STORAGE STRUCTURE:

35

Maharashtra State produces 25-30% onion of the total production of the country. Maharashtra State contributes about 80-85% in the total onion export. Out of the total onion production in the State, 10-15% onion production is in Kharif season, 30-40% production is in Late Kharif and 50-60% production is in Rabi/Summer season. Generally onion produced in Kharif and Late Kharif season is not suitable for storage while onion produced in summer season can be stored upto 5-6 months and it can be brought in the market during rainy season i.e. from June to October. There are certain problems which arises during conventional storage of onion viz. loss in weight, sprouting and rotting of bulb. To overcome these losses onion must be stored in scientific manner and its prices.

MSAMB with the help of NABARD and National Research Centre for Onion and Garlic, Rajgurunagar has developed revised plan for scientific onion storage (Kanda chawl) to promote onion producers for scientific onion storage. The onion storage as per this plan will minimize the storage losses and quality deterioration of the onion which will in turn help the farmers to fetch better prices for their produce. To encourage the farmers for setting up of scientific onion storage systems, MSAMB has formulated the subsidy scheme for scientific onion storage. The construction cost of the onion storage structure is assumed at Rs. 6000/- per MT for this scheme. As per the scheme, subsidy to the extent of Rs.1500/- per MT storage capacity RURAL GODOWN SCHEME (GRAMIN BHANDARAN YOJANA) 36

In India about 165.77 mill. Ha land is under agriculture, producing 526.77 mill tons of agriculture produce comprising mainly food grains, pulses, oilseeds, cotton, jute, sugarcane, etc. The agriculture production of the country has increased four fold during the last five decades. However, in spite of being self sufficient in production of food grains, the farmers are unable to obtain remunerative prices for their produce. They lack sufficient storage facilities, distributed in various parts of the country. So under Rural Godown Scheme, farmers will be provided with appropriate storage facilities.

GRAIN HANDELING UNIT: As an additional value added service to farmers, bringing their grain for sale, some APMC’s in the State have set up Cleaning and Grading machines for grains. The machine is set up in the APMC yard and the farmers can get their grain cleaned and graded on charge basis. This has helped farmers demand and get better prices for their produce and the trader and consumer gets a clean and graded produce a treasonable charges. This has resulted in more and more farmers coming forward to use the facility.

PROJECTION TV SYSTEM FOR MARKET INFORMATION DISPLAY:

37

MSAMB is collecting arrival and price information of Agricultural Commodities from various APMC’s through MARKNET. For Dissemination of this information to farmers and other concerns, new scheme of install. Under this scheme, Projection TV System is installed at Market Yard in such a way that, daily arrivals, prices and Agricultural information can be displayed effectively for the benefits of farmers and other concerns , new scheme of installation of Market Information Display has been started by MSAMB. Functioning: Each of the APMC participating in the scheme has Projection TV System connected to computer with software for information display and Internet connectivity. The consolidated information of arrival and price is made available on MSAMB's web site. That is downloaded on the computer of Projection TV. The information can be displayed either APMC wise or Commodity wise on the TV through customized software developed in regional language. Besides displaying price information, this System is used for following purposes. 1. To display the information related to Post harvest technology, grading, packing etc. 2. To display the information about new technology in agriculture, new seeds, fertilizers, pesticides, various crop diseases and solution for the same etc, for the use of farmers. 3. The information about various schemes, projects of the State and the Central Government. 4. For the training of farmers. 5. While displaying price and other information, various advertisements can be displayed on commercial basis to get the revenue, which can be used for maintenance of this system CONTROLLING AUTHORITY

38

GROMA – Grain, Rice and Oilseeds Merchant Association The controlling authority for the grain market is GROMA. It undertakes the registration of brokers. This helps to regulate their activities and also curb any kind of illegal activities. The main benefit for brokers, on registration, is they can acquire the grains as per their requirement and in sufficient quantities. This is not the case with the unregistered brokers; they are not assured of the entire quantity as per their requirement. The association is 105 years old. About 600-650 grain merchants are registered with the authority. The entire trading is highly regulated as regards to damaged grains or pilferated grains dealing, corruption, etc. There is a casual checking held every 6 months. The stock limit prescribed for cereals and pulses is 3000 quintals per trader. There is no limit for stocking of rice. The authority conducts a meeting every 6 months with the merchants to enable them voice their opinions. The authority specifies the following rules: •

In case of a weighing error and subsequent calculation error of the total bill amount, the weight and amount of the authority books will be considered final.

•

Sales Tax, General Tax, VAT and any such other taxes have to be borne by the customers over and above the cost of products.

•

In case of any association or Dharmada being the buyer, they have to pay the other relevant Taxes also.

39

•

Once the goods have been sold and delivered, the authority or merchant will not be responsible for it.

•

Until and unless, the total amount specified in the bill is not paid, the merchant has a prior lien over the goods.

•

The goods are sold under the Maharashtra State’s Food Grain Licensing Order Law.

•

Pilferated, damaged or lower quality goods are sold as animal food.

•

According to the weighing rules, the goods are given at Net Weight, the buyer has to return the gunny sacks or pay as under:

•

o Cereals, pulses, general items

Rs.14/-

o 50 kg gunny sack

Rs.7/-

o Cotton, covers in a gunny sack

Rs.7/-

o Gunny sack per kg

Rs.40/-

The buyer has to bear the following expenses over and above the bill amount and this is also the source of income for APMC market:

•

o Marking Fee

0.75 paise

o Supervision charges

0.05 paise

o Entry charges

0.20 paise

In case of credit sale, the following charges per day on delayed payment: o Payment within 30 days after due date

Rs.1.75 %

o Payment after 30 days after due date

Rs.2.50 %

(1.75 + 0.75 % delayed charges) •

The goods are cleaned once but the user is expected to clean them once again for safety purpose.

•

The payment for the goods has to be made to the person at the “pedhi” (cash counter). The authority is not responsible for payment made to any other person.

Problems: 40

o Lack of awareness among traders and farmers about different facilities provided by APMC such as VST and VHT. o Distribution chain is still long because farmers don’t directly come to APMC Vashi, as there is no village near by. o Middlemen’s are unavoidable part of market functions. o Low wages to Hamali and Mathadi people which leads to mismanagement and strikes. Suggestions: o Awareness should be generated among farmers about cooperative marketing of agricultural produce and various schemes that are provided by State Boards. o Farmers cooperatives should be formed which will lead to economic benefit of farmers as they can demand high prices for their produce due to various variety and higher quantity of produce. o Even economies scale can be achieved and different cost such as transportation, weighing, packing , storage etc. due to cooperative marketing. o Even farmers should be given education and training related to new facilities available for processing, storage,etc to improve their produce. o Government should focus on decreasing intermediaries:

41

o They should focus on using electronic auction halls like:

o Mechanised Handling of Produce:

42

o To link Farmers to the Markets by shortening supply chains and enhance efficiency, thus increase Farmer’s income o Provide professionally managed competitive alternative marketing structures that provide multiple choices to farmers for sale of agricultural produce; To drive reforms in agricultural marketing sector resulting in accelerated development of marketing and post harvest infrastructure including cool chain infrastructure in the country through private sector investment; o To bring transparency in the market transactions and price fixation for agricultural produce and through provision of backward linkages to enable farmers to realize higher price and thus higher income to the farmers.

Some New Markets Coming up o Mumbai Flower Auction Market at Goregaon (east). o Thane Terminal Market

43