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Enhancing Marketing Efficiency Through Innovative Measures

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Title: Enhancing Marketing Efficiency Through Innovative Measures


1
Enhancing Marketing Efficiency Through Innovative
Measures
  • Dr. J.S.Yadav
  • Chief Operating Officer(COO)
  • Premium Farm Fresh Produce Ltd., New Delhi

2
FLOW OF PRESENTATION
1.
2.
3.
4.
5.
3
(No Transcript)
4
Problems
  • Auction based system of sale (earlier introduced
    to prevent exploitation of farmers) in the open
    markets
  • Free trade barriers
  • Taxation barriers Levy of market fees at
    multiple points, variation in rates of
    commission, Toll tax.
  • Physical Barriers Check post, APMC control area.
  • Statutory Barriers Licensing, Registration etc.
  • bind growers to follow mandatory multiple
    point payments and decreasing their share of
    profit thereby limiting domestic liberalization.
  • No where in the world such restrictive marketing
    infrastructure prevails.
  • Poor Private Participation in wholesale markets.
  • Monopolistic environment among Players/stakeholder
    s.
  • Direct Marketing System still at immature stage.
  • Absence of a single national barrier free market
  • Farmers restricted to sell produce in local
    mandies

5
Innovative Solutions
  1. Barrier free Single National Market
  2. Private Wholesale Markets

6
Barrier free Single National Market Background
Need
  • Agriculture Marketing is covered under State List
    of Article 246 of constitution of India.
  • The State APMC Act divides the state into various
    notified areas
  • Biggest hinderance are the limiting provisions in
    the act like
  • Marketing as a localised subject confined to a
    specific notified area
  • Regulate sale of Agricultural Produce
  • Goes to the extent of prohibiting the end-users
    and processors located elsewhere from buying from
    the farmers directly in the absence of license
    from respective APMCs
  • Depending on topography agricultural commodities
    are grown is specific parts of country but their
    demand spreads on pan-India basis. Here there is
    need for free movement of produce in the whole
    country.

7
Contd
  • There is no such inter-state mechanism in the
    absence of a National Level Act to regulate and
    redress the issues relating to inter-state trade
  • APMC does not deal with a national level market
    for agricultural marketing due to restricted
    jurisdiction under Article 245 of the
    constitution of India
  • Urgent need to regulate the trade and commerce of
    the agricultural commodities and products through
    a national level legislation for promotion and
    development of a Common Indian Market free from
    all these barriers.
  • To operationalise this, a National Level
    Regulatory Institution is required.

8
I. Establishment of a Barrier free Single
National Marketa study conducted in 2011
  • Only two major aspects of the study are discussed
    further
  • Awareness and Perception of APMC officials
  • Loss of revenue from Waiving Off Market Fee on
    Perishable Horticultural Produce

Sr. No. States UTs APMC
1 Delhi Azadpur, Gazipur
2 Chandigarh Chandigarh
3 Haryana Panipat, Karnal, Panchkula
4 Rajasthan Jaipur
5 Gujarat Ahmedabad, Rajkot, Vadodara, Surat
6 Maharashtra Mumbai, Nasik
7 Karnataka Belgaum, Hassan, Kolar.
9
Awareness about the Concept A barrier free
Single National Market
10
Comparison Between Awareness perception on the
Concept
  • A Know the concept but against of putting all
    the APMC under uniform regulation
  • B Know the concept in favor of putting APMC
    under uniform regulation
  • C Not know the concept but against of putting
    all the APMC under uniform regulation
  • DNot known the concept in favor of putting
    APMC under uniform regulation

11
Contribution of Fruits and Vegetables in Total
Market fees for various states (2009-10)
State/Market Total M.F M.F from F V share of FV in total M.F
State/Market (Rs. in crores) (Rs. in crores) share of FV in total M.F
Madhya Pradesh 571.52 24.26 4
Punjab 624.37 35.55 6
Haryana 371.01 23.58 6
Karnataka 294.15 21.93 7
Orissa 105.59 10.56 10
Andhra Peadesh 306.99 32 10
Vashi (Mumbai) 56   6 11
Gujarat 180.87 22.78 13
Maharashtra 375.99 48.5 13
Uttarakhand 30.26 5.53 18
Himanchal Pradesh 19 14.2 75
Delhi 83.6 65.44 78
12
Waving of Market Fees (in case of FV)
  • Vide order dated 25th Feb 2010, Ministry of
    Agriculture issued order linking assistance ,
    To wave the market fees on perishable
    horticultural produce. (Also recommended in 6th
    meeting of Committee of State Ministers for
    Promoting Agricultural Marketing Reform, April,
    2011)
  • Govt of India wants to fix a reasonable user
    charge in place of market fee which will cover
    nearly 50 of market fees
  • As regards the modality of compensation, it is
    proposed that Government of India should
    compensate 90 of the difference (prospective
    loss) is 1st year 70 for 2nd year 50 for 3rd
    year.

No follow up and consolidation of data from
various states as to check the status of
implementation in the respective APMCs.
13
Responses of APMC for waving of Fees in case of F
V
14
II. Private Wholesale Markets (PWM)
  • Issues of Private Investors
  • Solutions
  • Wholesale Markets act as Growth Centre and should
    be categorised as social Project

15
Issues of Private Investors
  • Inadequacy of Low Cost Commercial Borrowings in
    agriculture sector as compared to other
    countries
  • No Classification for Markets Either as
    Infrastructure/Service/Real Estate to avail
    economic funding under FDI, ECB etc.
  • Multiple License System for Establishment of
    Private Market in Hub Spoke Format

16
Current Status of Available Non Available
Facilities in Major Markets of India
  Market services Market services Market services Non-market services Non-market services Non-market services Essential services Essential services Essential services  
  Present Absent present Present Absent present Present Absent present of total facilities present
Azadpur 9 15 37.50 8 14 36.36 9 5 64.29 43.33
Nashik 7 17 29.17 5 17 22.73 7 7 50.00 31.67
Kolar 5 19 20.83 4 18 18.18 7 7 50.00 26.67
Hassan 5 19 20.83 5 17 22.73 6 8 42.86 26.67
Belgaum 9 15 37.50 6 16 27.27 8 6 57.14 38.33
Average 29.17 25.45 52.86 33.33
17
Poor Viability of Marketing Infrastructure
The Average ROIs for all the Services in
Wholesale Markets
Kind of Service Avg. ROI
Market Services -0.143
Non-market Services 0.924
Essential Services -0.524
Average 0.085
18
Facility Wise Return on Investment (ROI) Facility Wise Return on Investment (ROI) Facility Wise Return on Investment (ROI) Facility Wise Return on Investment (ROI) Facility Wise Return on Investment (ROI) Facility Wise Return on Investment (ROI) Facility Wise Return on Investment (ROI)
Services  Facilities Azadpur Nashik Kolar Hassan Belgaum
Market services Platforms -0.12 -0.03 0.00 -0.01 0.00
  Bulk weighment - -0.04 - - 0.05
  Cold storage facility 0.33 - - - 0.03
  Facilities for manual carriage of produce 4.20 - - - -
  Material handling equipment (palletisation plastic crates) 0.84 - 0.96 - -
  Movement and parking facility for vehicles attached to market 1.36 - - - -
  Banking services including settlement of transactions related to market. 0.60 0.29 - - 0.12
  Price displays/market information services -0.10 -0.80 - -1.28 -30.19
Non-market services Catering services - - - 0.80 -
  Restaurants services 0.64 0.30 0.48 7.50 6.60
  Logistic Centres/Transporters shops 0.32 - - 0.95 0.06
  Porter service 0.39 0.27 0.47 0.21 0.32
  Shopping complex - 0.83 - 0.40 0.64
  Exporters shops 0.18 - - - -
  Input shops/Nurseries 0.04 0.33 0.62 - 0.94
  Conference/Multipurpose Hall -0.04 -0.06 -0.03 - -0.02
  Library -0.03 - - - -
Essential services Waiting/rest rooms -0.02 0.00 0.00 - -0.01
  Drinking water -0.40 -0.01 -0.04 -0.01 -0.06
  Toilets 0.11 0.06 0.16 0.15 -0.03
  Cleaning -1.00 -0.88 -0.22 -0.27 -0.66
  Lighting of public areas -0.12 -0.05 -0.02 -0.02 -0.05
  Information desks -7.80 - -0.52 - -
  Waste treatment plants 0.53 - - - -
  Disposal trucks -0.65 - -0.08 - -
  Policing general security -0.25 -0.31 -0.51 -0.96 -0.87
  Emergency services -0.06 0.08 - - -
19
Solutions
  • Market is totally dependent on non-market
    services to make it a viable proposition,
    therefore, the private investor should have the
    freedom of deciding the non-market services as
    per his own estimates of profit generating
    activities
  • Also, to maximize the returns from market
    services, the cap on user charge which is 2,
    should be increased atleast upto 3.5
  • Private markets should retain the market fees
  • Single unified REGISTRATION for entire state be
    issued to Private Investors

20
  • A study titled Social Cost Benefit Analysis of
    Private Wholesale Markets was conducted in 2011
  • - PremiumMarket, Nashik as a case
  • OBJECTIVES
  • To identify and assess the socio-economic
    benefits offered by private wholesale markets to
    the society
  • To quantify the benefits on the basis of volume
    and value generated by such markets with
    particular reference to Private Wholesale Market
    Nasik.
  • To suggest the activities enhancing the value
    proposition of PWM from the social perspective.
  • To prepare a presentable document to State Gov.
    Ministry of Agriculture and Ministry of Commerce
    etc. to convince the need for reversal and
    matching investment pattern.

21
ASSUMPTIONS
  • Total number of Farmers 500
  • Traders 250
  • Exporters / suppliers 10
  • Commission agents20
  • Labours 350.
  • The number of farmers, traders, exporters,
    labours visiting PWM is expected to increase at a
    rate of 10 for the first five years and then 5
    for the next 10 years.
  • For the appropriate calculation of benefits, five
    categories have been considered.
  • 1.Farmers
  • 2.Traders
  • 3.Exporters/suppliers
  • 4.Labours
  • 5.Commission agents, since they derive the
    maximum benefit the social benefits have been
    calculated for them.

22
RESULTS
23
Quantification of Benefits Envisaged For One Year
RESULTS contd.
Facilities/Services Value In Crores (Rs.)
Hub Spoke Format 39.73
Electronic Grading and Sorting Line 71.50
Online Spot Commodity Trading 17.34
Cold Storage 55.68
Ripening Chamber 17.37
Pre-Cooling Unit 47.79
Material Handling Equipment (Crates, pallets, etc.) 14.73
Electronic Grading and Sorting Line 13.77
Food Testing Lab 29.14
Movement and Parking Facility 0.32
Refer Vans 7.08
Employment generation 0.93
Packaging unit management 6.85
Warehouse management 9.30
Total Benefit from all the facilities - Rs.
331.53 crores
24
Total benefit of all facilities provided through
PWM over 15 years
RESULTS contd.
Years Total (In Cr.)
First Year 331.5
Increase _at_10 for 2nd year 364.68
Increase _at_10 for 3rd year 401.15
Increase _at_10 for 4th year 441.27
Increase _at_10 for 5th year 485.4
Increase _at_5 for 6th years 533.94
Increase _at_5 for 7th year 560.64
Increase _at_5 for 8th year 588.67
Increase _at_5 for 9th year 618.1
Increase _at_5 for 10th year 649.0
Increase _at_5 for 11th year 681.5
Increase _at_5 for 12th year 715.5
Increase _at_5 for 13th year 751.3
Increase _at_5 for 14th year 788.9
Increase _at_5 for 15th year 828.3
Total 8739.9
The total benefit to the society over a span of
15years is Rs.8740 Crores.
25
The total benefit derived by the beneficiaries in
a year through various facilities provided by PWM
RESULTS contd.
Beneficiaries Farmers Traders Commission Agents Exporters /Suppliers Labors
Total No 5000 250 20 10 350
Value (Rs. In Crores) 323.43 5.3 0.14 0.082 0.93
This shows that the Private Wholesale Market is
Farmer Centric/Farmer Oriented Service Industry
26
Details of Benefits realised by Farmers (Sample)
Respondent Farmer (In Rs.) Respondent Farmer (In Rs.)
Increase in transparency by electronic auction 33,959
Farmer's value realisation due to removal of intermediaries. 316
Reduction in incidences of retractment by e -auction 21,834
Discrepancy in weighment of produce saved 21,425
Farmer's value realisation due to spot trading 1,497
Efficiency increased by providing parking facility 210
Total benefit realised to the farmer 79,240
Respondent Farmer (In Rs.) Respondent Farmer (In Rs.)
Reduction in distance due to 'Hub and Spoke Format' 148
Increased interaction between buyer and seller 40,641
Farmer's value realisation due to do removal of intermediaries through said format 7,632
Increased bargaining power of farmers 28,958
Total benefit realised by farmers operating through hub spoke format 77,377
27
Respondent Warehouse Using Farmer (In Rs.) Respondent Warehouse Using Farmer (In Rs.)
Increase in valuedue to storage 17,719
Decrease in distance due to Hub Spoke Model 140
Total benefit realised by farmer using warehouse 17,859
Respondent Cold Storage Using Farmer (In Rs.) Respondent Cold Storage Using Farmer (In Rs.)
Reduction in Spoilage Due to Cold Store 2,126
Increase in Value of Produce by Maintaining Quality 30,094
Change in price fetched by selling later in season through CS 69,469
Transportation losses in total Losses 17,532
Pre Cooling Unit -
Reduction in Spoilage Due to Pre cooling unit 2,478
Increase in Value of Produce by Maintaining Quality through PCU 1,956
harvest losses saved through PCU 14,625
Value of produce realized by maintaining Nutritional value 40,21,172
Total benefit realised by farmer using cold storage facility 41,59,452
28
Respondent Food Testing Lab Farmer (In Rs.) Respondent Food Testing Lab Farmer (In Rs.)
Better price can a commodity realize if quality assured, safe and hygienic 43,538
Exports can be boosted by establishing a food testing laboratory in the market 98,438
Total benefit realised by farmer using food testing lab 1,41,975
Respondent Ripening Chamber Farmer (In Rs.) Respondent Ripening Chamber Farmer (In Rs.)
Reduction in spoilage by introducing ripening chamber in market 33,465
better price realised by the commodity if kept in a ripening chamber 75,938
Total benefit realised by farmer using ripening chamber 1,09,403
29
Respondent Grading And Sorting Farmer Respondent Grading And Sorting Farmer
Better price can a commodity realize if it is electronically sorted and graded 48,094
Total benefit realised by farmer using grading sorting facility 48,094
Respondent Packaging Unit Management (In Rs.) Respondent Packaging Unit Management (In Rs.)
Increase in value due to Packaging 13,669
Decrease in distance due to Hub Spoke Model 175
Total benefit realised through packaging unit 13,844
30
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31
Food Safety Innovations
  • There is no separate provision for Wholesale
    Markets into Food Safety Act however it covers
    the general food premises including those of
    restaurants, hotels, food outlets etc.
  • Although regulations for food safety have been
    laid down for general food premises by FSSAI,
    there are no general hygiene practices for
    wholesale markets in particular.
  • There is a need for provisions related to
    Establishment, Design, Maintenance Sanitation,
    Personal Hygiene and Transportation particularly
    for the wholesale markets in India.

32
Areas of focus
  • Ventilation
  • Lighting
  • Maintenance of Premises
  • Temperature
  • Cleaning and Disinfection
  • Pest Control
  • Personal Training
  • Responsibility for Equipment
  • Services and Responsibility
  • Personal Hygiene

33
The following 12 wholesale markets of Fruits
and Vegetables were Studied
Study of Good Hygiene Practices for Wholesale
Market Management in India conducted in 2011
State Sr.No Market
Delhi and NCR 1. Azadpur
Delhi and NCR 2. Ghazipur
Delhi and NCR 3. Keshopur
Uttar Pradesh 1. Agra
Uttar Pradesh 2. Jhansi
Uttar Pradesh 3. Allahabad
Uttar Pradesh 4. Varanasi
Madhya Pradesh 1. Gwalior
Rajasthan 1. Jaipur
Punjab 1. Ludhiana
Punjab 2. Panchkula
Punjab Haryana 1. Chandigarh
34
  • General Requirements on Hygienic and Sanitary
    Practices to be followed by all Food Operators
    recently prepared by FSSAI which, according to
    the authorities of FSSAI, can be applied in the
    context of wholesale markets as well.
  • The survey was conducted, keeping in mind the
    various parameters set as necessary in the Guide
    to Good Hygienic Practice for Wholesale Market
    Management in Europe developed by the World
    Union of Wholesale Markets (WUWM), to find out
    how much the Indian markets adhere to these
    parameters which are indispensable from the World
    Union of Wholesale markets? point of view as well
    as confirming to the Indian standards.

35
Findings and Analysis (as representative, only
two aspects are discussed here)

Mechanical/Non-Mechanical
  • Ventilation
  • Prevailing situation in Indian Mkts

  • Ideal situation according to WUWM

  • The place
    where the produce is kept should have well
    circulated and ample supply of air to prevent
    the produce from
  • Contamination
  • Increase shelf life
  • In case of other buildings the ventilation
    system, should meet two basic requirements 
  • To supply fresh air for the occupants.
  • To change the air in the room sufficiently so
    that smells, fumes and contaminants are
    removed.

36
  • Lighting
  • Prevailing situation in Indian Mkts


Lighting fitted with protected tubes
Ideal situation according to WUWM/FSSAI Lights
also need to be provided with protective covering
at all places because it may happen that the
lights break suddenly and the particles of
lighting device enter the fruits and vegetables
which are kept uncovered.
37
Instant Food Testing LaboratoryVMO, Vegetable
Market, Hongkong
  • All Vegetables supplied by Vegetable Marketing
    Organisation (VMO) must pass through stringent
    pesticide residue  testing before being processed
    according to customers' specifications.
  • Over Past six months, VMO has tested 8900 samples
    of local vegetables and has not found any
    unregistered pesticide. Only six samples were
    found to have pesticide residues exceeding
    permitted levels.


38
Instant Food Testing LaboratoryVMO, Vegetable
Market, Hongkong
  • At the Wholesale and retail markets, the
    authorities also take samples from a variety of
    vegetables including leafy vegetables, pulses and
    rhizomes, for tests.
  • VMO established a Premium Vegetable Section
    (PVS) in 1992, with an aim to assist local
    farmers to build up a network to
    sell their produce to upper class
    customers like hotels, restaurants, elderly
    homes, supermarkets and lunch box supplier, etc.

39
A Case of Shenzhen (FQT) Agricultural Products
Testing Tech Center Co., Ltd.
  • More efficient, convincing and fair food tests
    carried out by a professional third party testing
    agency which is independent from the commodity
    traders and the market operators.
  • Owners of the goods are charged for the
    corresponding costs
  • Testing capacity 2000 samples per day
  • More sustainable way to maintain the food safety
    quality via wholesale markets
  • One-stop food quality safety solutions
    including testing, consulting, and training for
    wholesalers, purchasers, growers, processing and
    distribution businesses, and related companies

40
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41
Saint Charles Market, France Solar Panels
Installed at roof
  • Saint-Charles International in Perpignan, France,
    the largest European distributor of fruit and
    vegetables, is now a major producer of green
    energy.
  • Over two years, the asbestos cement sheets that
    covered the 11 buildings of the market have been
    replaced by 68 000m2 of 97,000 photovoltaic
    tiles.
  • The plant develops a total power of 8.8 MWp. Its
    annual production is expected to reach 9.7 MWh or
    10 of the needs of the city of Perpignan.
  • Inaugrated on 13th Oct, 2011

42
Scope of Electricity Generation from Solar
Energy and Wastes in Indian Wholesale Markets
study conducted by Premium Farm Fresh (2011)
43
Markets covered under the study
  • Terminal Market, Muhana, Jaipur.
  • APMC, Jamalpur, Ahmedabad.
  • Naroda Fruit Market,
  • APMC,Nasik
  • PFF, Nasik
  • Sardar Patel Market,
  • APMC, Surat

44
RESULTS
Name of the market Area available for panel installation (sq. m) Area required for panel installation (sq. m) of Area utilized
APMC Market, Surat 13935.5 12253.6 87.93
Premium Farm Fresh Market, Nasik 2428 599.22 24.68
Sri Chimna Bhai Jiva Bhai Market, Ahmedabad 5563 3744.18 67.31
Sardar Patel Market, Ahmedabad 1893 21449.4 1133.09
Muhana Mandi, Jaipur 120977.4 23546.2 19.46
Sample Calculation of total number of solar
panels and roof area for installation in APMC,
Surat
Average monthly electricity consumption - 52056
units/month Average daily electricity consumption
- 1735.2 units/day If we take 110W Mono solar
panels then the total number of such panels
required to fulfil the daily energy requirement
of the market will be calculated as follows Size
of Mono solar module 101.1cm80.7cm3.55cm  Daily
sunshine hours 7 hrs Total daily energy
requirement from the panels 1735.2 kWh/7h

247.8 kW Max.
Energy output of a Mono solar panel 110W or
0.11kW Taking the efficiency of mono-solar panels
as 15 (Source http//www.planetarypower.com.au/
solar_panels.htm) Optimum energy output
0.150.11 0.0165 kW No. of solar panels
required 247.8kW/0.0165kW
15019 panels Roof
area required for installation of 15019 panels
101.180.715019 122536567 sq.cm

12253.65 sq.m
45
RESULTS
Name of the market Total electricity requirement per yr (kWh) Total cost of panel installation (lakhs) Cost of Electricity saved Rs. in lakhs (A) Carbon credits Revenue earned through Carbon Credits Rs. in Lakhs (B) Total Saving (Rs. in Lakhs)
Muhana mandi 12 lakh 1399 55.46 984 13.28 68.74
Premium market 30000 35 9.31 25 0.33 9.64
APMC Market, Surat 624672 724 31.45 512 6.92 38.37
Sardar patel market 1093152 1274 1.93 896 12.10 14.03
Sri Chimna Bhai Jiva Bhai Patel Market 189000 220 7.45 155 2.09 9.54
1 Carbon Credit 30 _at_ Rs.45/dollar (2010)
46
SCOPE OF GENERATION OF ELECTRICITY FROM WASTES





TYPES OF WASTES IN A MARKET
ROTEN AND LEFT OVER VEGETABLES
STRAW
ROTEN FRUITS
47
RESULTS
Name of the Market Cost of electricity saved (Rs lakh) Earnings from carbon credits (Rs lakh) Total Revenue earned (Rs lakh)
Muhana Mandi, Jaipur 55.46 297 352.46
Premium Market, Nashik 9.311 27 36.311
APMC, Nashik 6.26 84.5 90.76
APMC,Surat 31.45 23.8 55.2
Sri Chimna Bhai Jeeva Bhai Patel Market, Ahmedabad 7.45 118 125
APMC, Naroda Fruit Market 1.13 17.8 18.9
Sardar Patel Market, Ahmedabad 1.93 170 171.93
Note Electricity cost taken _at_ prevailing rates in individual markets based on electricity bills paid in 2010-11 (Source Survey in enlisted APMCS) Note Electricity cost taken _at_ prevailing rates in individual markets based on electricity bills paid in 2010-11 (Source Survey in enlisted APMCS) Note Electricity cost taken _at_ prevailing rates in individual markets based on electricity bills paid in 2010-11 (Source Survey in enlisted APMCS) Note Electricity cost taken _at_ prevailing rates in individual markets based on electricity bills paid in 2010-11 (Source Survey in enlisted APMCS)
48
RESULTS contd..
MARKET TOTAL REVENUE (per year) TOTAL REVENUE (per year) BREAK EVEN POINT (Yrs) BREAK EVEN POINT (Yrs)
MARKET Solar panel (lakh Rs.) Waste to energy plant (lakh Rs.) Solar panel Waste to energy plant
Muhana Mandi 69 352.46 3.5 1.3
PFF Market Nasik 10 36.31 3.5 12.4
APMC Market, Nasik -  90.76 3.5 5.0
APMC Market ,Surat 38 55.24 3.5 8.1
APMC Market,Vasna 10 125.44 3.5 3.6
Naroda Market   18.93 3.5 23.8
Sardar Patel Market 14 171.93 3.5 2.6
49
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50
Present Status
  • Only two credit options in practice so far
  • Negotiable Warehouse Receipt System (NWRs)
  • Pledge financing
  • (The credit flow to agriculture marketing
    through these schemes is very meager and misnomer
    since it doesnt provide for marketing activities
    as such and treat it as commercial loan)
  • NABARD and other commercial banks do not give the
    desired importance for financing of agricultural
    marketing activities to the farmers.

51
ISSUE
  • For marketing activities such as
  • assembling,
  • Loading-unloading,
  • grading,
  • packing,
  • Packaging material,
  • labeling,
  • transportation,
  • commission and market fee, etc.,
  • there is an urgent need to develop a mechanism of
    credit support

52
Need
  • Redefine agricultural marketing activities for
    the purpose of credit and finance
  • An alternative banking option to act as a nodal
    agency facilitating and governing the flow of
    credit.
  • Innovative and attractive financing models and
    credit policies

53
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54
  1. Second phase of reforms and developmental
    initiatives be launched immediately
  2. Since most of the identified market
    infrastructure ( as per NHMs list of Market,
    non-market and essential services) found to be
    unviable, this needs to be more incentivised.
  3. Market fee/cess should be maximum 2 of the value
    and commission charges should not exceed 2 for
    food grains/oilseeds in APMCs.
  4. Commission agents system be abolished in case of
    Government Procurement and the system of
    procurement be more strictly regulated. eg.
    Haryana taking 2 commission on Direct Govt.
    Procurement without providing any services in
    lieu of it .

55
  • 5. Classify agricultural wholesale markets under
    Infrastructure category to invite economic source
    of funding like FDI, ECB in addition to other Tax
    exemptions etc.
  • 6. There should be a Single window clearance
    system for all investors for seeking
    approvals/clearances like change of zone, change
    of land use, market/subyard licence, envionmental
    clearance, approval of drawings, etc.
  • 7. Independent Regulatory authority needed to
    encourage the Private Investors and provide them
    level playing field with APMCs.

56
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