W E L C O M E

1. WELCOME STATE AGRICULTURAL PRICES BOARD

2. STATE AGRICULTURAL PRICES BOARD – OBJECTIVES & ACTIVITIES The State Agricultural Prices Board was constituted in 1994 as per G.O. (Ms) 29/94/AD dated 4/2/1994 with the following objectives:

3. To organize the collection and analysis of data on the prices of important agricultural commodities produced within the State, their demand, supply situations, export and import potentials and to conduct studies on cost of cultivation on a continuous basis. • To advise the Government as well as the farmers on the current and future price situation in respect of major crops so as to promote optimum land use and cropping patterns within the State.

4. To suggest improvements in market structure and recommend methods of market intervention when necessary so as to ensure remunerative prices to producers and to encourage the adoption of improved technology in agricultural production and marketing. • To recommend minimum support price for major crops and to monitor the implementation of price support programmes and working of various institutions entrusted with the task, so as to make them more effective.

5. To organize research studies in the field of marketing and price policies and to examine the prevailing methods and cost of markets and recommending fair price margins at different stages of marketing so as to prevent exploitation of the consumer. • To keep under review the developing price situation and to make appropriate recommendations as and when necessary within the frame-work of the overall price policy. • To suggest improvements in market infrastructure such as market yards/warehouses, improved transportation, suitable institutions for market intervention, etc.

6. To analyze the ‘terms of trade’ between agricultural and non-agricultural sectors. • To study the impact of price policy on the rest of economy, particularly on the cost of living, wages industrial cost structure and competitiveness in international markets. • To advise on any problem relating to agricultural prices and production that may be referred to the Board by Government from time to time. The Board is an advisory body to Government with the above mentioned aims and objectives and is functioning as an autonomous body under the Ministry of Agriculture.

7. The following were the personnel who held the post of the Chairman since the inception of the Board. Sl.No. Name Period 1. Dr. M.V.George 15.04.1994 to 31.03.2000 2. Dr. Thomas Varghese 05.05.2000 to 13.12.2001 3. Sri. V.Thyagarajan 14.12.2001 to 17.06.2006 4 Dr. Thomas Varghese 23.06.2006 to 18-5-2011

8. The organizational set up CHAIRMAN

9. Some of the major activities so far taken up by the Board: • Preparation of detailed project reports on Price Policy for Kharif Crops every year for submission to the Commission for Agricultural Costs & Prices (CACP), Government of India, through the State Government. . For this, relevant data are collected from various sources/institutions and detailed answers to the questionnaire forwarded by CACP are prepared and submitted to CACP through State Government.

10. Preparation of detailed project report for Copra based on cost of production and other data pertaining to the State every year for declaring the Minimum Support Price (MSP) by Government of India. The project report is submitted to the Commission for Agrl: Costs & Prices (CACP), Government of India, New Delhi, through the State Government. The Board also actively participates in the presentation and discussions convened by the CACP to finalize the support price of Copra. • The Board regularly prepares and submits weekly review reports on price trends of agricultural commodities in various markets of the State, with detailed explanatory note to the Government.

11. The Board had taken up a study on ‘Price Spread Analysis on Coconut & Banana in Thiruvananthapuram District’ in collaboration with the Department of Economics & Statistics, and completed the study and prepared the final report recently. The Board is intending to spread the study in other Districts also. • The Board is regularly attending the Price Monitoring Committee meetings of the Coconut Development Board, Kochi.

12. The Board prepared various draft memoranda to Government of India as required by the State Government from time to time. The Board had prepared a detailed Special Package Programme for Palakkad, Wayanad and Kasargod Districts, which were severely hit by drought, by collecting inputs from Departments like Agriculture, Animal Husbandry, Dairy, Soil Conservation, Co-operation, Fisheries, Revenue, etc. • Various representations and other matters received by Government and referred to the Board for remarks and comments are suitably answered.

13. The Board prepares answers to the L.A. Interpellations /Call Attention Motions connected with agricultural sector and submit to Government for answering in Kerala Legislative Assembly Sessions. • In addition, reports and notes to Government on relevant topics are being prepared and submitted to Government from time to time. • The Board had assisted in preparing the project report on Market Intervention Scheme for Pepper, and Arecanut and Coffee.

14. The Board had taken a lead role in the preparation for Management of Root (wilt) affected Coconut hold9ngs and enhancement of productivity of coconut in Kerala with a total outlay of Rs.1924 crores. • A detailed and scientific study on cost of production of Coconut in Kerala was conducted in association with Coconut Development Board, Government of India and State Department of Economics & Statistics • The Secretary of the Board had acted as the drawing & disbursing officer of the Commission on WTO Concerns in Agriculture constituted under the Chairmanship of Prof.M.S.Swaminathan. All sittings were also arranged by the Board.

15. Expert opinion on matters like Seed Bill 2004, APMC Act, Price Stabilization Fund, Export-Import Policy, Foreign Direct Investment, VAT, Paddy Procurement, etc. were furnished to Government, as directed by Government. • The Board had organized a State Level Workshop on Land Reforms and Contract Farming which was inaugurated by the Honourable Minister for Agriculture & Coir and lead papers were presented by Dr.T.Haque, Chairman, CACP, New Delhi, Additional Secretary of Government of India and representatives from international organizations.

16. The Board had conducted a study on the terms of trade between agricultural and non-agricultural sectors in Kerala in collaboration with Centre for Development Studies, Directorate of Economics & Statistics and State Planning Board and published the report in 1998. • The Chairman of the Board has actively participated in the training programmes conducted by the Department of Agriculture as well as Institute of Management in Government by giving lectures on selected topics. • The Board had assisted Government in matters relating to WTO until a separate WTO Cell was constituted.

17. The Chairman had attended various committees, seminars, etc. both at State level and national level as directed by State Government. • Since the Board is an advisory body to Government, no schemes/plans are being operated by the Board directly, and hence, no physical achievement could be worked out. However, due to the intervention/follow up action of the Board and by timely announcement of Minimum Support price by Government, the farmers are indirectly benefited by getting remunerative price for their produce.

18. BACKGROUND NOTE ON PRICE POLICY OF AGRICULTURE PRODUCE OBJECTIVESOF AGRICULTURAL PRICE POLICY • The main objectives of the Governments price policy for agricultural produce are aimed at: • Ensuring remunerative prices to the growers for their produce with a view to encourage higher investment and production, and • To safeguard the interests of consumers by making available supplies at reasonable prices

19. PROCEDURE OF FIXATION OF MSP BY THE GOVERNEMENT • The Government decides on the MSPs for various agricultural commodities taking into account the recommendations of Commission for Agricultural Costs and Prices(CACP), the views of State Governments and concerned Central Ministries as well as such as other relevant factors, which in the opinion of the Government, are important for fixation of MSPs.

20. CRITERIA ADOPTED BY THE CACP FOR RECOMMENDING THE MSP • While recommending MSPs, the CACP keeps in view • the need to provide incentive to the producer for adapting improved technology and for developing a production pattern broadly in the light of national requirements; • the need to ensure rational utilization of land, water and other production resources; • the likely effect of the price policy on the rest of the economy, particularly on the cost of living, level of wages, industrial cost structure, etc. and • terms of trade between agricultural sector and non-agricultural sector.

21. FACTORS CONSIDERED BY THE CACP • Apart from making a comprehensive overview of the structure of the economy of a particular commodity, the CACP considers the following important factors while formulating its recommendations on price policy • Cost of Production; • Changes in input prices • Input/Output price parity; • Trends in market prices; • Demand and supply situation; • Inter-crop price parity; • Effect on Industrial cost structure; • Effect on general price level; • Effect on cost of living ; • International market price situation; • Parity between prices paid and prices received by farmers (terms of trade)

22. COST OF PRODUCTION • The Cost of cultivation/production taken into account includes all paid out costs, such as those incurred on account of hired human labour, bullock labour/machine labour (both hired and owned) and rent paid for leased in land besides cash and kind expenses on use of material inputs like seeds, fertilizers, manures, irrigation charges including cost of diesel/electricity for operation of pump sets, etc. Besides, cost of production includes imputed value of wages of family labour and rent for owned land. The cost also covers depreciation of farm machinery and buildings. As such, the cost of production covers not only actual expenses in cash and kind but also imputed value of owned assets including land and family labour. • Various crops under consideration of minimum support price scheme are given in the following table-

23. VARIOUS CROPS UNDER MINIMUM SUPPORT PRICE • Sl.No Commodity Variety • 1 KHARIF CROPS • PADDY* Common • Grade ‘A’ • 2 JOWAR Hybrid • Maldandi • 3 BAJRA • 4 MAIZE • 5 RAGI • 6 ARHAR (Tur) • 7 MOONG • 8 URAD • 9 COTTON F-414/H-777/J34 H-4

24. 10 GROUNDNUT IN SHELL • 11 SUNFLOWER SEED • 12 SOYABEEN BLACK/YELLOW • 13 SESAMUM • 14 NIGERSEED • RABI CROPS • 15 WHEAT • 16 BARLEY • 17 GRAM • 18 MASUR(LENTIL) • 19 RAPESEED/MUSTARD • 20 SAFFLWOER • 21 TORIA

25. OTHER CROPS • 22 COPRA* Milling • Ball • 23 JUTE • 24 SUGARCANE • 25 TOBACCO(VFC) Black Soll(F2 • Gr)Light Soll(L2 Gr) • Out of the above 25 crops only 2 crops namely paddy &coconut are relevant for Kerala

26. HISTORY OF AGRICULTURAL MARKETING IN KERALA • In order to save farmers from exploitation by middlemen many Governments had promoted marketing of agricultural commodities in the country through a network of regulated markets. Most of the state Governments and Union Territories except Kerala, Jammu & Kashmir and Manipur have enacted legislations to provide for development and regulation of agricultural produce markets. As on 31.3.2001, 7177 markets have been covered under regulation. Regulated markets have helped in mitigating the market handicaps of producer-sellers at the wholesale assembling level. These markets have also provided physical facilities and institutional environment to the traders, processors and other market functionaries for conducting their trading activities.

27. The idea of regulating agricultural produce markets was first conceived by the end of 19th century. The first market at Karanja was regulated in 1886 under Hyderabad Residency Order. Many states followed suit and under the Madras Commercial Crop Act of 1933, five regulated markets were established in the Malabar district of erstwhile Madras Presidency. These markets were at Vattamkulam, Othukungal, Perambra, Thalakalathur and Kanhangad. Farmers utilized marketing facility to their advantage for a long time. The All India Report on working of regulated market, 1968 states as follows: • “In Kerala at present the old Madras Commercial Crop Act 1933 is in force in Malabar District which formed part of Madras State before the re-organization of the state. • Many attempts were taken for an enactment, but did not succeed. Due to the failure of the Govt to enact a Comprehensive Act applicable to the entire state, the Hon’ble High Court in 1997 has declared the Act 1933 as invalid.

28. EEC MARKETS IN KERALA • There are six Agricultural Wholesale Markets constructed with the assistance of European Economic Community owned and operated by Department of Agriculture. The markets were established with an intension to help farmers by enacting APMC in the State From 2010 onwards, auction of farmer’s produce has been started in these markets with agricultural produce being sourced from farmers clusters formed for this purpose. Transport of agricultural produce from farmer fields to these markets has been arranged by market themselves. Priority has been given for direct marketing by farmers.

29. Since APMC Act has not been enacted in the State, and hence, there are no regulated markets. There are six wholesale agricultural markets under Department of Agriculture at Anayara and Nedumangad in Thiruvananthapuram, Maradu and Muvattupuzha in Ernakulam, Vengeri in Kozhikode and Sulthan Bathery in Wayanad. The scheme for strengthening of six wholesale markets was implemented during 2010-11 utilizing an amount of 107.50 lakhs. In addition, 125 lakhs had been set apart for providing warehouse/cold storage and transport subsidy to farmers for the wholesale markets Anayara, Nedumangad, Muvattupuzha and Maradu. Cold storage facilities have already been established at Anayara and work is in progress in the remaining markets.

30. THANK YOU