National Conference on AgricultureNational Conference on AgricultureFor Kharif Campaign-2009For Kharif Campaign-2009

POST-HARVEST MANAGEMENT & MARKETING

By

Shri Rajendra Kumar TiwariJoint Secretary

Department of Agriculture and Co-operation Ministry of Agriculture

Agricultural Markets in IndiaAgricultural Markets in India

No. of Regulated wholesale Markets: 7566

Rural Primary markets : 20,887

Average area served by a market :116 sq km

Average, area served by regulated market :435 Sq Km

Recommendation by National Farmers Commission: availability of markets within an area of 5 Km radius

(approx. 80 sq km)Area served per Regulated Markets varies from 115

Sq Km in Punjab to 11215 Sq Km in Meghalaya.

Challenges AheadChallenges Ahead

Reforms in Agricultural Marketing –Adopt model Acts & Rules

Encourage Private and Co-operative Sectors in market development

Improvement in post-harvest management through adoption of appropriate technology & practices

Improving forward & backward linkages and supply chain

Providing farmers with access to market information

POST HARVEST MANAGEMENT-A PERSPECTIVE

Perishable Agricultural produce (including that from horticulture, dairy, fisheries and animals)

Losses - Dairy – 1% - Food grains – 10% - Horticulture – 30-40 %

600 M.MT

> Estimated Rs. 80,000 Crore annually

Loss can be reduced substantially by providing appropriate Post Harvest Technology & Management (Cleaning, Sorting, Grading, Drying, Cooling, Packaging, Storage, Milling, Refining etc ) in value chain

Status of Agricultural Marketing Status of Agricultural Marketing Reform Reform (Progress of APMC Act (Progress of APMC Act Amendments)Amendments)

States/ UTs having Amended Acts –

1. Andhra Pradesh 2. Arunachal Pradesh 3. Assam 4. Chhattisgarh 5. Goa 6. Gujarat 7. Himachal Pradesh 8. Karnataka 9. Madhya Pradesh 10. Maharashtra 11. Nagaland 12. Orissa 13. Rajasthan 14. Sikkim 15. Tripura 16. Jharkhand Reportedly no Amendment

Needed –1. Tamil Nadu

States/ UTs with no APMC Act –(1) Bihar (repealed w.e.f. 01.09.2006), (2) Kerala, (3) Manipur and UTs of (4) Andaman & Nicobar Islands, (5) Dadra & Nagar Haveli, (6) Daman & Diu & (7) LakshadweepPartially Amended –(1) Punjab/ (2) UT of Chandigarh (Only private markets & contract farming)(3) Haryana (Only Contract Farming) &(4) NCT of Delhi (Only Direct Marketing)Amendment to be carried out –(1) Uttarakhand (2) U.P. (3) West Bengal (4) NCT of Delhi & (5) Puducherry (6) J&K (7) Mizoram (8) Meghalaya

States with Amended APMC Rules:

A.P., M.P., Maharashtra, Rajasthan, Orissa, H.P., Karnataka

STATUS OF MARKET REFORMS

Professional management of APMCs: Nagaland, SikkimSingle point levy of Market fee: Chattishgarh, Gujarat, Goa,H.P., M.P.,

Nagaland, Sikkim, Punjab, UT of Chd.Provision for Non-alienation of land in Contract

Farming: Arunachal, Assam, Goa, Haryana, Maharastra, Nagaland, Orissa, Rajasthan, Sikkm, Tripura,

A.P., Karnatak, JharkhandSetting up Standards Bureau & Extension Cell in

Boards: Nagaland, Sikkim, Karnatak

Major Initiatives Marketing Research and Information Network (MRIN) –

AGMARKNET -- To provide ICT based Info (Mkt & Price) to Farmers -- To cover 360 wholesale markets during XI Plan by way of computer

connectivity -- Daily arrival and prices of 300 commodities from more than 1900 markets

in 10 languages Gramin Bhandaran Yojana -- Credit-linked back-ended subsidy scheme -- Creation of Scientific Storage capacity in rural areas mainly to avoid

distress sale by farmers Marketing Infrastructure Development -- Reform-linked --Capital investment subsidy scheme for development of new

Infrastructure projects, upgrade wholesale markets/rural primary markets

--Beneficiaries: Individual Entrepreneur, Cooperatives, State Agencies Venture Capital Scheme --Venture Capital assistance to farmers/producers group for setting up

Agribusiness Ventures Terminal Market Complex Scheme --Subsidy to P.E. through NHM/SHM for establishing TMC

Status of Marketing Research and Status of Marketing Research and Information Network Scheme as on Information Network Scheme as on February,2009February,2009

AGMARKNET- Problems Specific to States

States with inadequate Computer Connectivity

& Data Reporting:Bihar(35%,100%)Gujarat(48%,50%)Haryana(40%,40%)J&K(37%,66%)Kerala(55%,48%)U.P. (35%, 63%)W.Bengal (23%,37%)

States with inadequate Data Reporting:

Maharashtra (30%) Punjab (18%) Rajasthan (33%) Tamil Nadu (21%) Arunachal (100%) Mizoram (100%) Nagaland (100%) Sikkim ( 100%) Rest NER States (<50%)

Progress of Marketing Infrastructure Progress of Marketing Infrastructure Scheme during X Plan and XI PlanScheme during X Plan and XI Plan

Venture Capital Assistance Venture Capital Assistance (SFAC)(SFAC)Objective: TO CATALYZE PRIVATE INVESTMENT IN SETTING UP OF AGRI-BUSINESS

PROJECTS FOR EXTENDING ASSURED MARKET TO FARMERS FOR THEIR PRODUCE AND INCREASING RURAL INCOME AND GENERATING EMPLOYMENT

Financial Assistance: Max. 10 % of PROJECT COST or 26 % of PROJECT EQUITY subject to

normal ceiling of Rs 75.00 Lac. HIGHER AMOUNT OF ASSISTANCE FOR PROJECTS IN HILLY AND NORTH EASTERN

STATES AND PROJECTS RECOMMENDED BY STATES / SFACS CAN BE CONSIDERED

Observations: States of Maharashtra, Karnataka, T.N., Gujarat, Kerala, J&K. are

relatively better performing States No projects in the States of Bihar, Orissa, Rajasthan

Terminal Market Complex Subsidy Scheme under NHM to promote private investment

Change of financial assistance pattern from equity participation to subsidy assistance

through NHM/SHM to P.E. Subsidy from 25% to 40% of project cost with subsidy ceiling of Rs 50.00 crore.

Provision of land by State Govt Provision upto 26% of equity for Producer Association Hub-and-Spoke Format: Terminal Market (the hub) to be linked to number

of collection centres (the spokes). Collection centres (Spokes) to be conveniently located at key production

centres to allow easy access and linkages to farmers Provide state of art facilities for

electronic auction, grading, washing and packing lines, processing and exports, banking, other services etc.

Commodities to be covered include Fruits and vegetables, Flowers, aromatics, herbs and Spices Meat, Poultry, Fish, Dairy Grains, Pulses, Oilseeds,

POST HARVEST TECHNOLOGY & MANAGEMENTSCHEME :

MAIN COMPONENTS: Establishment of units for transfer of primary

processing technology, value addition, low cost scientific storage, packaging units and by-product management in the production catchments under tripartite agreement.(40 % assistance limited to Rs 4.00 lac.)

Establishment of low cost PHT units/supply of PHT equipments with Government assistance.(40% of total cost of up to Rs 2.00 lac.)

Demonstration of technologies. (Initially 100% grant-in-aid for purchase of technology)

Training of farmers, entrepreneurs and Scientists.

Post Harvest Management Scheme Post Harvest Management Scheme under NHMunder NHM

Under NHM during 2005-06 to 2008-09, total 952 pack houses,65cold storage units,1 CA storage unit,21 refrigerated vans,162 units of mobile/primary processing units have been set up.

Major States which are yet to Use PHM Component: Bihar, Chhattisgarh, Jharkhand, Kerala, M.P.,T.N.

Issues for DiscussionsIssues for Discussions Expedite the process of market reforms by bringing

amendment on the lines of Model Act and Rules.

Operationalize and ensure regular reporting of market data in the interest of farmers and other market participants

To promote standardization & grading of agricultural commodities and promote producers’ level grading

To promote Private investment in setting up wholesale markets, terminal markets, Direct Marketing and Contract Farming

To develop cold chain to ensure better marketability of fruits & vegetables

Progress of Marketing Infrastructure and Rural Godown Schemes are slow in NE Region and States of Goa, J&K, Jharkhand, Uttarakhand

COLD CHAIN STATUS IN INDIA

Cold Chain is symbolized by Cold Stores in India5100 Cold Stores with 21M.MT capacity-Av. Capacity 3900MT

UP & WB accounts for more than 60%More than 80% are stand-alone Potato Cold StoresOnly 0.2% cold stores are for F&VUse of very low level technology results in high electricity useAverage utilization: 6 months a year

POINT OF HARVEST

PRE – COOLING

CA STORE

REFR. TRANSPORT

POINT OF SALE

Recommendations of Task Force on Cold Chain Development in India

Creation of Additional Infrastructure Capacity: -- Integrated Pack House, Controlled Atmospheric Store,

Ripening Chamber, Cold Stores -- Up gradation of existing potato cold storesCreation of Mega Perishable Commodity Centers Creation of Special Purpose Vehicle for Cold

LogisticsCreation of Multi-modal National Green Grid

SystemCreation of National Centre of cold Chain

Development (NCCD)Subsidy be Linked to Standardized InfrastructureEncouraging Use of Renewable source of energy

in Cold Chain