Indira Gandhi Institute for Development Studies(IGIDR), and the International Food Policy Research Institute (IFPRI) on ‘Harnessing Opportunities to Improve Agri-Food Systems’ on July 24-25 , 2014 in New Delhi. The two day conference aimed to discuss the agricultural priority of the government and develop a road map to realise these priorities for improved agri food systems.

1. 28-07-2014
S U K H P A L S I N G H
C M A , I I M A
MAKING THE AMENDED
APMC ACTS WORK
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2. WHERE IS REGULATION OF AGRI
MARKETS?
• India: 35% of wholesale markets and 25% of all agri
markets
• Karnataka: 30% and 40%; Tamilnadu: 90% and 30%;
AP (old): 100%
• Jharkhand:14% and 25%: MP: 100% and 33%; UP:
50% and 15%
• UK:70% and 90%; Haryana: 35% and 60%; Punjab:
35% and 90%
• Gujarat: 98% and 85%. Maharashtra:33% and 22%
• WB: 14% and 20% and Orissa: 10% and 20%
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3. THE MYTH AND THE REALITY ABOUT
AMENDED APMC ACTS
• Is the farmer not free to sell anywhere s/he wishes?
• If not, how are food supermarkets procuring? and how
is contract farming going on across India? And how are
farmers’ markets being held?
• Direct purchase from farmers allowed in: Maharashtra
(130), MP (8), Chattisgarh, Karnataka (258) Andhra
Pradesh(171), Gujarat (21), Haryana (37), Himachal
Pradesh (12), Odisha (46), Punjab (26), Rajasthan (77),
Delhi, and Tamilnadu (179).
States/ UTs with no APMC Act: Bihar (repealed w.e.f.
01.09.2006),Kerala, and Manipur
MoFPI says 16 states have amended the APMC Act fully
or partially, and have agreed to delist F&V from the
APMC Act! Some have aleady done it
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4. MAJOR F& V STATES IN INDIA
• AP, Karnataka, Kerala, TN, Bihar, Orissa, WB,
Jharkhand, Chattisgarh, MP, Gujarat, Maharashtra, HP,
UK, UP, Arunachal, Manipur, Meghalaya, Sikkim, Tripura
• Where are F&V growing fast: AP, Bihar, J’khand, Guj,
Haryana, HP, J&K, MP, C’garh, Maha, Orissa, UP, UK,
WB, and the NE states
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5. THE MYTH AND THE REALITY ABOUT
AMENDED APMC ACTS
• Is contract farming not permitted anywhere in
India?
State that permit CF: Punjab, Haryana, Himachal
Pradesh, UK, Rajasthan, Maharashtra,
Gujarat, Chhattisgarh, Madhya Pradesh,
Jharkhand, Andhra Pradesh, Orissa, WB,
Karnataka, Kerala
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6. MAKING AGRI MARKETS WORK
Scrutiny of contracts, public contract terms, and competition in procurement
(monopsony)
Incentivise smallholder inclusion (unlike MoFPI and Pb. Govt. Schemes)
Link credit to CF, though not mandatory or exclusive (lower interest rates
for CF?)
Exempt F&V crops from APMC rules only for CF and Direct purchase
Promote Producer Companies to organise/encourage market oriented and
business like co-operatives (New Generation Co-operatives) which can deal
with CF agencies
Learn from the Thai Experience
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7. MAKING AGRI MARKETS WORK
Role of the state- How Much regulation? Bihar v/s Gujarat in APMC Act!
Role of the state:
Promotion of producers’ organizations for marketing of farm produce as
PPP
Provide more of marketing extension to growers
Market orientation in terms of improved marketing practices at the farmer
level.
Incentivise/promote Group contracts to reduce information asymmetry
between firm and growers, transaction cost of dealing with small growers
and for better bargaining power to growers
Legal protection to growers like in Japan/USA
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8. MAKING AGRI MARKETS WORK
Reform APMC markets- free licensing for better competition, e-payment
of market fee, ensure open auction system, better facilities, PC
representation in APMC mgt., denotification of CAs/Arthiyas like in
MP, (APMC markets serve as competitors to contract and direct purchase
and can help improve the terms offered by CF/DP to growers as
contract/contact prices are benchmarked to APMC prices
Make warehouse receipts applicable to less perishable produce like
potato/onions
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