Agriculture Marketing – Need for Reforms & Development

1. Conference of Agriculture Ministers of the StatesModel APLM ACT 2017 & Model Contract Farming Act 20188th July 2019 National Conference on Agriculture for ZAID/Summer Campaign 201924.01.2019By: Prasanta Kumar SwainJoint Secretary (Marketing)

2. Agriculture Marketing – Need for Reforms & Development Procurement system Price Deficiency Payment System Challenges: Lack of Infrastructure, Logistics, fragmented supply chain, Low access of farmers to markets, low remunerative prices Vision: Doubling of Farmer’s Income by 2022

3. Marketing Reforms & Model Act “The—State/ UT Agricultural Produce and Livestock Marketing ( Promotion & Facilitation ) Act, 2017”Dated: the 14th June,2019 Department of Agriculture, Cooperation &FW Ministry of Agriculture &FW

4. Need of Reforms and Govt.’s Initiative Agricultural Marketing is a State subject Most of the States enacted Agricultural Produce Markets (Regulation) Acts during sixties and seventies Need of Reforms- To enhance farmers’ market accessibility To strengthen facilities/ infrastructure & services of the existing organised marketing system under the APMC Act To make the APMC markets efficient and professionally managed To facilitate development of alternative marketing channels with the participation of private sector to create competition in services To encourage both public & private sector investment in development of post-harvest and marketing infrastructure

5. Model APLM Act, 2017 • Salient Features of Model APLM Act, 2017 • Develop State/ UT level unified market • Declare warehouses/cold storages as “Deemed Market” • Powers and functions of MD Board and Director Marketing clearly demarcated • Public and private sector markets placed at level playing field • Bulk purchasers / processors /exporters/ organized retailers/ consumers integrated with producers nearer to farm gate • Promotion of specialized markets and also MNIs • Market fee and marketing charges rationalized • Provision for deregulation of fruits & vegetables • Unified single trading licence and single point levy of market fee provided • Trading through competitive e-platform • Recognition of unified licenses for inter-state trade

6. Agri Market Reforms: A Perspective e-NAM Objective: Improving Marketing infrastructure, Integration of supply chain, Reduction of post harvest losses, Farmer’s access to markets etc.

7. Status of Reform-wise Adoption by the States

8. Status of Reform-wise Adoption by the States Contd...

9. Status of Reform-wise Adoption by the States Contd..

10. Status of Reform-wise Adoption by the States

11. Status of Adoption of model APLM Act, 2017 Model APLM Act 2017: • Arunachal Pradesh have adopted in entirety • Uttar Pradesh, Punjab, Chhattisgarh have adopted all major provisions • Punjab has adopted partially • All other States/ UTs are requested for early adoption e-NAM reformed States/UTs: A.P., Arunachal Pradesh, Chattisgarh, Goa, Gujarat, Haryana, H.P., Jharkhand, M.P.,Maharashtra, Mizoram, Odisha, Punjab, Rajasthan, Sikkim, Telangana, U.P., Uttarakhand, West Bengal, UT of Chandigarh, Puducherry States without APMC Act: Bihar, Kerala UT without Reform: NCT of Delhi UTs without APMC Act A&N Island, Lakshwadeep,

12. E-National Agriculture Market: Coverage 16 States, 2 UTs 585 Mandis, 150 Commodities 19 19 16 1 54 100 25 58 79 17 19 14 10 60 47 Integrated 22 Reg. Farmers - 1.64 Crore Reg. FPOs - 767 Reg. Traders - 1.24 Lakh 23

13. The Model Contract Farming Act, 2018 “ The—State/UT Agricultural Produce &Livestock Contract Farming and Services (Promotion & Facilitation ) Act, 2018”

14. Why an Exclusive Act? • Contract farming as part of State APMC Act – • Conflict of interest • Registration of Sponsor, recording of Agreement and dispute settlement with APMC • Suffered from APMC regulation • Indian Contract Act, 1872– • Treats both the contracting parties as equal • Farmer is weaker of the two parties • No institutional mechanism • Hence, the need for a farmer-friendly Act

15. Contract Farming- Role in Indian Agriculture

16. Salient Provisions of the Model Act • Every Sponsor, before entering into the Agreement, shall be digitally registered and “Agreement” recorded with prescribed “Committee”, or with the designated “Officer” • Support to agricultural production and rearing of livestock • The Producer may get support from Sponsor for improving production and productivity by way of inputs & technology etc. • Farmer (s)/FPO may also enter into pre-production, production and post-production services contract • Sponsor prohibited from raising any permanent structure or creating leasehold rights or any kind of charge on the land of Producer • No title, rights, ownership or possession shall be transferred or alienated or vest in the Sponsor etcor its successor or its agent • The minimum period of the Agreement will be for one production cycle and further continuance subject to renewal thereafter • To provide reasonable protection to the weaker party to the agreement, i.e., pre-agreed price for producer determined

17. Salient Provisions of the Model Act • Sale- purchase of produce • The contracted produce shall be outside the ambit of regulation of State /UT Agricultural Marketing Act. • The Sponsor shall buy the entire pre-agreed quantity of contracted produce of the Producer – - In case, production support has been provided for- • Sponsor shall buy entire pre-agreed quantity of the contracted produce commensurate to quality standards but not less than fixed % of pre-agreed quantity • Sponsor shall buy rest of the pre-agreed quantity, at lower rate mutually acceptable to both parties - In case of only buying Contract- • Sponsor shall buy entire pre-agreed quantity of contracted produce commensurate to quality standards but not less than fixed % of pre-agreed quantity of the produce; and • Sponsor shall buy rest of the pre-agreed quantity not purchased, at lower rate mutually acceptable to both parties

18. Salient Provisions of the Model Act • Negotiation or third party mediation /conciliation • Contracting parties may seek a mutually acceptable solution though mutual negotiation or through third party conciliation/mediation • Dispute Settlement Authority • The Government may constitute a “Dispute Settlement Authority”, comprising- • Sub-Divisional Magistrate/Officer or retired Judge/Magistrate as “Presiding Officer”; and • other three Members, one each representing farmers / FPOs, agro-industries and domain experts • Failing to reach a mutually acceptable solution through Mediation /Conciliation ,the aggrieved party may refer the dispute to the Dispute Settlement Authority • The Authority shall resolve the dispute democratically and in summery manner within 15 days • The decision of the Authority shall have force of the decree of a Civil Court • Appeal • Any person aggrieved by the decision/ order of Authority may prefer an appeal to the Board within fifteen days, or within thirty days by submitting reasons for delay • The Board shall dispose off the appeal within fifteen days and decision of the Board shall be final • The decision of the Board in the appeal shall have force of the decree as of the Civil Court

19. Progress • Tamil Nadu assembly passed a Separate Contract Farming and Services Act on the line of Model Act and waiting approval Hon’ble president • Punjab has already enacted a separate Contract Farming Act in 2013 • A total of 19 States have provisioned contract farming in APMC Acts itself

20. Thanks