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PRESENTER
JITENDRA SHARMA
MBA(AB) 1st yr
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á INTRODUCTION (AGRICULTURE MARKETING)
á AGRICILTURAL MARKETING CONSTRAINTS
á INITIATIVE OF MARKETING REFORMS
á APMC OBJECTIVE
á SALIENT FEATURES OF MODEL ACT
á AMENDMENTS OF APMC MODEL ACT
á IMPACT OF APMC AMENDMENT
á STATUS OF APMC AMENDMENT
á REFERENCES
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SOME FACTS:
á There are in all 34,335 markets in the country but out of that
only 7,289 markets are having proper marketing facilities.
á There are 27,294 rural periodic market of which about 15% of
functions are under the ambit of regulation of marketing
committee.
á The cold storage units are available only in 9%of the markets.
á less than one third of the markets have grading facilities.
á Two third of the markets have both open and covered auction
market platform.
 

AGRICULTURE MARKETING
á Agricultural marketing can be defined as an act comprising of all
activities involved in supply of farm inputs to the farmers and
movement of agricultural products from the farms to the
consumer.
á It involves packaging, grading, processing, storage, transport,
channels of distribution and all other functions in the process.
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AGTRICULTURAL MARKETING CONSTRAINTS

á Predominantly marginal or small farmers ² Hence small marketable
surpluses & limited bargaining power

á Poor availability of markets & monopolistic tendencies of APMCs

á Inadequate infrastructure in wholesale markets/ rural primary markets

á Multiple and exploitative intermediaries ² low returns

á Fragmented supply chain, poor cold chain & high post-harvest losses

á Lack of cleaning, grading, packaging & quality certification facilities

á Limited access to market information and marketing opportunities

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INITIATIVES OF MARKETING REFORMS

á Amendments in APMC Acts suggested by Expert Committee on
Market Reforms constituted by the Ministry of Agriculture
(Report in June, 2001)

á Expert Committee recommendations discussed in the National

Conference of State Agriculture Marketing Ministers on
27.09.2002
 

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APMC-OBJECTIVE
á The main objective of Agricultural Produce Marketing Act was to
ensure farmers get a proper price and traders & brokers are
not free to exploit producers by buying their produce at a lower
price. The "mandis" (markets) governed by the Act also offered
farmers transportation, storage, grading, besides guaranteeing
a just price.
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SALIENT FEATURES OF MODEL ACT FOR STATE

APMC ACT-2003
1 Legal person, grower and local authorities permitted to establish new
market in new area

2. No compulsion on grower to sell their produce through existing regulate

market. Establishment of direct purchases centers, consumer/farmer market
for direct sale.

3. Promotion of public-private partnership in the management and

development of agricultural market.

4. A separate constitution for separate market for commodities like onion,

fruits, vegetable and flower.

5. A separate chapter to regulate and promote contract farming, arrangements

in the country.
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 11

AMENDMENTS IN MODEL ACT

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IMPACT OF APMC AMENDMENT

å Amendments to the APMC would make the present marketing system more
effective and efficient by removing unnecessary restrictions.

å Promotion of Agricultural Markets· in private/cooperative sector will

encourage private sector to make massive investments required for
development of alternative marketing infrastructure and supporting services.

å Giant corporations can now set up private markets, not regulated by the
market committee.

å The early APMC Acts restricted the farmer from entering into direct contract
with any processor/ manufacturer as the produce was required to be
canalized through regulated market. In the changed scenario, the producer
should be free to enter into forward contract whether inside or outside the
regulated market.
 1p

STATUS OF APMC ACT AMENDMENTS

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 15


á ???.AGRIMARKET.NIC
á ???.BUSINESSTANDARD.COM
á PRATIYOGITA DARPAN 2010 (INDIAN ECONOMY)
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