The Government has been playing an important role in developing the Agricultural Marketing System in the country.  Department of Agriculture and Cooperation has two organizations dealing with marketing under its administrative control, namely, the Directorate of Marketing & Inspection (DMI) and the National Institute of Agricultural Marketing (NIAM), Jaipur. 

Directorate of Marketing and Inspection 

It is an attached office of the Department and is headed by Agricultural Marketing Adviser.  The Directorate has its Head Office at Faridabad (Haryana), Branch Head Office at Nagpur (Maharashtra) and 11 Regional Offices/ Sub-Offices headed by Dy. Agricultural Marketing Advisers (Dy.AMAs.) at Delhi, Mumbai, Chennai, Kolkata, Guntur, Chandigarh, Jaipur, Lucknow, Bhopal, Kochi and Guwahati and the Central Agmark Laboratory at Nagpur.  Besides, there are 34 Sub-Offices and 23 Regional Agmark Laboratories (RALs) spread all over the country as per the details given below:-

The main functions of the DMI are the following:- 

1.            Rendering advice on Statutory regulation, development and management of agricultural produce markets of the States/Union Territories;

2.            Promotion of Standardisation and Grading of agricultural and allied produce under the Agricultural Produce (Grading & Marking) Act, 1937;

3.            Marketing Research, Surveys and Planning;

4.         Training of personnel in agricultural marketing;

5.            Marketing Extension;

6.            Administration of Meat Food Products Order, 1973;

7.            Promotion of Cold Storage;

8.            Agricultural Marketing Information Network; and

9.            Construction of Rural Godowns. 

1.            Regulation, Development and Management of Agricultural Produce Markets 

Agricultural Markets are regulated and managed under the Agricultural Produce Market Act enacted by the respective State Governments.  The Central Government provides guidance and assistance in regulation and development of agricultural produce markets.  7001 markets have been brought under regulation.

2.            Grading and Standardisation 

The Agricultural Produce (Grading and Marking) Act, 1937 empowers the Government to fix quality standards, known as “AGMARK” standards and to prescribe terms and conditions for using the seal of ‘AGMARK’.  So far, grade standards have been notified for 163 agricultural and allied commodities.  The purity standards under the provisions of the Prevention of Food Adulteration (PFA) Act, 1954 and Bureau of Indian Standards (BIS) Act, 1986 are invariably taken into consideration while framing the grade standards.  International standards framed by Codex/ International Standards Organisation (ISO) are also considered so that Indian product can compete in International market.  During the year 2001-02, final notification of Cereals Grading & Marking Rules, 2002 & Roasted Bengal Gram (split) Grading & Marking Rules, 2002 were published in the Gazette of India.  Preliminary notification of Pulses Grading & Marking Rules, 2002 was published in the Gazette of India.  Final notification of Garlic Grading & Marking Rules and preliminary draft notification of Rice Grading & Marking Rules, Vermicelli Grading & Marking Rules are at the stage of publication in the Gazette.  Directorate General of Foreign Trade, Ministry of Commerce issued a notification to the effect that DMI would be the inspecting agency for fresh fruits and vegetables for exports to the European Union.  The standards of Litchi, Pomegranate, Mangoes, Pineapple, Guava, Grapes, Headed Cabbage, Spinach, Peas and Ribbed Celery are framed and discussed in the meting of Core Group of Standing Committee on harmonization of fruits and vegetables. 

            As a result of special efforts initiated to increase grading under AGMARK, commodities valued at Rs.602071 thousand were graded for export purposes during the year 2001-02.  During 2002-2003 (upto December), commodities valued at Rs.420000 thousand have been graded.  By the end of March, 2002, 902 Certificate of Authorisation holders are operating for grading of agricultural and allied produce for export purposes under AGMARK. During 2001-2002, commodities worth Rs. 40587000 thousand were graded for internal trade.  During 2002-2003 (from April to Dec., 2002), commodities valued at Rs. 35050000 thousand were graded for this purpose.  7628 number of authorized packers have been operating for grading of agricultural commodities for Internal trade. The Central Agmark Laboratory (CAL) at Nagpur and Regional Agmark Laboratories (RALs) at Mumbai, Delhi, Kolkata and Chennai have also been provided with veterinary biological control testing units. 

3.            Training 

Directorate of Marketing and Inspection conducts a number of training courses relating to agricultural marketing for benefit of employees of State Governments/ Union Territories, Co-operatives, Corporations, Market Committees, Marketing Boards and other statutory bodies.  During 2001-2002, 263 personnel and during 2002-2003, 177 personnel have been trained under different training programmes, (upto December). 

4.            Marketing Extension 

Agmark quality control programmes as well as improvements in marketing practices and procedures are given wide publicity through mass media.  The information is disseminated through documentaries, cinema slides, printed literature, exhibitions, conferences, seminars and workshops.  A quarterly journal ‘AGRICULTURAL MARKETING’ is brought out regularly. 

During 2002-2003, the Directorate organized ‘AGMARK’ exhibitions at Kochi and Lucknow for educating consumers and creating awareness about ‘AGMARK’ and also  use of IT in agricultural marketing, rural godowns with private participation, etc.  Besides, the Directorate participated in eight exhibitions organized by different States during 2002-2003.  The Directorate participated in India International Trade Fair, 2002 and AHARA-2003.  The Directorate also displayed Agmark advertisement on Translite at IGI Air Port for six months through Department of Posts during the year. 

5.            Promotion of Cold Storage 

The DMI was implementing the Cold Storage Order, 1980, which has been rescinded on 27.5.1997.  The Directorate is now engaged in providing free consultancy and technical services to intending entrepreneurs in construction, maintenance and operation of cold storages.  During 2001-2002, training was imparted to 26 Supervisors and 156 Operators on management, operations and maintenance of Cold Storages. Two training programmes were organized during 2002-2003.  Besides, technical guidance has been provided to prospective entrepreneurs.  The Cold Storage directory and statement showing sector wise and commodity wise distribution of cold storage have been updated. 

6.         Meat Food Products Order, 1973 

The objective of the Meat Food Products Order, 1973 is to ensure quality control and hygienic manufacturing conditions of meat food products for domestic consumption and the order is applicable all over the country.  During 2001-02, 2865.506 MT of meat food products valued at Rs.381240 thousand were manufactured by licenced manufacturers.  186 manufacturers were operating under Meat Food Products Order, 1973 as on 31.3.2002.  During 2001-2002, 720 samples were drawn and analysed and 544 inspections were carried out to ensure proper implementation of the Order.  During 2002-2003 (upto December, 2002), 268 inspections were carried out and 328 samples were drawn and analysed. 

7.            Market Research, Surveys and Planning 

            Research surveys and studies on different aspects of agricultural marketing have been one of the major activities of the Directorate of Marketing and Inspection.  Studies are undertaken and technical guidance is rendered to State Governments in planning, designing and development of markets. Under Research Grant Scheme, 33 research studies have been undertaken, out of which 31 studies have been completed and draft reports of two studies have been returned back to Principal Investigator for revision. The   scheme   for Estimation  of  Marketable   Surplus   and Post-Harvest Losses of Foodgrains being implemented by the Directorate aims at finding out the quantum of marketable surplus and post-harvest losses  to  pin  point the causes of losses and  to  suggest  remedial measures,  besides  generating data for various user agencies. The survey was taken up for Paddy, Wheat, Jowar, Bajra, Maize, Ragi & Barley and Pulses, viz. Red Gram (Arhar or Tur), Gram (Chana), Green Gram (Moong).  The reports for Wheat, Paddy, Maize, Bajra, Jowar and Red Gram have been prepared and are under finalisation. Reports for remaining commodities are under preparation. 

8.            Agricultural Marketing Information Network 

            The new IXth Plan Scheme Agricultural Marketing Information Network was approved during March 2000 with an outlay of Rs. 99478 thousand to establish a  nation-wide network for speedy collection and dissemination of market information.  Under the scheme 735 important agricultural produce markets and 48 State Agricultural Marketing Boards/Departments as well as 27 DMI offices (total 810 nodes) have been provided with computer facilities and Internet connectivity.  The scheme is being implemented by DMI through NIC. V-SAT and SERVER have been installed at Faridabad.  Procurement, installation, maintenance, software development  and training to state personnel are being done by NIC.  The data received from markets is being displayed on the website www.agmarknet.nic.in.  Software packages are being developed in all regional languages for easy understanding of the farmers.

            The important commodities identified for daily monitoring of arrivals and prices under the scheme, for the present are – Cereals (Wheat, Maize, Paddy, Rice & Jowar), pulses (Bengal Gram, Red Gram, Green Gram, Black Gram), Spices (Ginger, Garlic, Chillies (Red), Fruits (Mango, Apple, Orange, Banana, Pineapple Grapes), Vegetables (Onion, Potato), Fibres (Cotton, Jute), and Oilseeds (Groundnut, Mustard, Soyabean, Sunflower, Sesame). 

            In accordance with the rationalization of the Plan Schemes in the Department, the Schemes of Estimation of Marketable Surplus and Post Harvest Losses of Foodgrains, Research Grants and Agricultural Marketing Information Network have been merged together with new nomenclature ‘Marketing Research and Information Network’. In the Xth Plan, the scheme is proposed to cover 2000 more markets and utilizing the network for market –led extension. 

9.            Construction of Rural Godowns 

The main objectives of the scheme include creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce, consumer articles and agricultural inputs; promotion of grading, standardisation and quality control of agricultural produce to improve their marketability; prevention of distress sale immediately after harvest by providing the facility of pledge financing and marketing credit; to strengthen agricultural marketing infrastructure in the country by paving way for the introduction of national system of warehousing receipts in respect of agricultural commodities stored in such godowns and to reverse the declining trend of investment in agriculture sector by encouraging private and cooperative section to invest in the creation of storage infrastructure in the country.  The financial assistance will not be routed through State Governments. Under this scheme, 25% of the capital cost is to be provided  as credit-linked, back-ended subsidy in the same way as has been formulated for the cold storage scheme being implemented by National Horticulture Board (NHB).  For the north east and other hilly areas in the country and entrepreneurs belonging to SC/ ST, the subsidy would be 33.33%. The fund is provided in the budget of Directorate of Marketing & Inspection (DMI), an attached office of DAC and placed at the disposal of NABARD/ NCDC.  The funds for awareness building and training programme will be placed at the disposal of NIAM, Jaipur and other national/ State level implementing agencies. The eligible promoters for construction of rural godowns can be individual farmers, group of farmers/ growers, partnership/ proprietary firms, NGO, companies, corporations, cooperatives, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations.  The scheme has been approved on 26.2.2002.  Under the scheme new storage capacity of 18.50 lakh MT and modernization of cooperative godowns of 1.50 lakh MT has been envisaged.  A sum of Rs.900000 thousand has been allotted for implementation of the scheme by March 31^st, 2003.  Under this scheme a total of 2373 godowns with a storage capacity of 36.62 lakh MT have been sanctioned by NABARD & NCDC  as on 31.12.2002.  Out of these, 390 projects with a capacity of  28.75 lakh MT have been sanctioned by NABARD and 1983 projects with a capacity of 7.87 lakh MT have been sanctioned by NCDC.  973 projects have been sanctioned by NCDC for renovation of about 95,600 MT storage capacity as on 31.12.2002. 

10.            Revenue

During 2001-2002, a total revenue of Rs.102200 thousand was realized on account of grading charges etc. During 2002-03 (upto December, 2002), an amount of Rs.58900 thousand (provisional) has been realized. 

National Institute of Agricultural Marketing (NIAM)

National Institute of Agricultural Marketing (NIAM) started functioning at Jaipur (Rajasthan) with effect from 8^th August, 1988. NIAM  has been imparting training to senior and middle level executives of agricultural and horticultural Departments, Agro Industries, Corporations, commodity and apex level cooperatives, commodity Boards, export houses recognised by Agricultural and Processed Food Products Export Development Authority (APEDA), Commercial banks and non-governmental organisations.  Besides these clients, the NIAM also imparts training to farmers on marketing management.  The main objectives of NIA M  are the following :- 

(i)                  to undertake and promote study of applied and operational research in problems of agricultural marketing;

(ii)                to act as a national nodal point for coordination of various research studies and dissemination of technologies relevant to agricultural marketing in the country;

(iii)               to undertake adoptive research aimed at vertical and horizontal integration of the marketing functions and functionaries  so as to reduce the cost of marketing thereby ensuring a fair price to the growers and consumers;

(iv)              to provide specialized training in agricultural marketing designed to develop leadership potential in the management of agricultural marketing enterprises and services;

(v)                to undertake research in agricultural marketing for Government, Cooperative and other institutions, both on public funding and by contract;

(vi)              to offer other specialized marketing courses at various levels as may be necessary to supplement existing facilities;

(vii)             to help State Governments and Urban City authorities to formulate proposals for institutional funding from national and international agencies for their development projects relating to agricultural produce markets on consultancy basis;

(viii)           to study the internal market and distribution infra-structure for agricultural and allied products and suggest proposals for their improvement;

(ix)              to offer technical services for the study, analysis and planning of physical distribution system for agricultural produce on a state, regional and national basis to State Govts. Public sector undertakings, development authorities and other State and Central agencies, both on public funding and by contract; 

NIAM  is managed by a Governing Body under the Chairmanship of Minister for Agriculture and an Executive Committee under the Chairmanship of Secretary, Department of Agriculture and Cooperation. 

Training, Research and Project Formulation Activities 

During the year 2002-03, NIAM organised 90 training programmes against the annual target of 150 programmes till 31.12.2002. 

NIAM has also prepared suitable Training Modules for Training to Farmers, Entrepreneurs and Training of Trainers (TOT) on Rural Godowns Scheme announced by the Govt. of India for the year 2002-03.  Large scale campaign has been launched to popularise the scheme by orgainsing sensitisation programmes for various Stake holders in the country. 

The Research Studies being undertaken by NIAM in the year 2002-03 are as     under :- 

1.                  Study of Schemes and Programmes of different Ministries on Agricultural Marketing.

2.                  Export Potential of Vegetables from Rajasthan.

3.                  Organic Farming Certification.

4.                  Development of Market Atlas.

5.                  Preparation of Statistical Abstract on Agricultural Marketing. 

NIAM has taken-up long term projects for the formulation of Master Plan for the development of Agricultural Marketing in the State of Madhya Pradesh and Tripura.  The Institute has also completed Online Marketing information system for the State of Karnataka and Delhi. The projects for Agro. Industries Corporation of Maharashtra and Punjab are in progress.  Following Consultancy Projects have been taken up during the year 2002-03. 

1.                  Preparation of State Master Plan for Market Development in Tripura.

2.                  Monitoring of APMC's of Delhi and Development of Market Atlas.

3.                  Integrated Facility Centre in Azadpur Market, Delhi.

4.                  Introduction of Electronic Auction System in Fruits and Vegetables.

5.                  Networking of Markets and Designing of Online System for Punjab. 

Strengthening of IT infrastructure in NIAM

'State of the Art' Technologies has been established in the Institute.  The objective was to establish the latest Information and Communication facilities at NIAM, more advanced high-speed network and video conference.  This will enable a new generation of applications to support scientific research, distance education, training and consultancy.  NIAM has its own web site and all the activities undertaken by NIAM are available on the website http:// www.niamonline.com 

PGPABM at NIAM, Jaipur

The Institute has undertaken Post Graduate Programme in Agri-business management as a sub-center of MANAGE, Hyderabad with effect from July 2001 and 50 students are presently undergoing Post Graduate Programme in Agri-business - 26 and 24 in first and second year, respectively.  The programme is designed to assist agricultural graduates to acquire the critical know-how to compete in the domestic and global business arena to make them efficient agribusiness managers. 

Programme for North-Eastern States 

State Master Plan for Tripura is under progress and some training programmes have also been organized in the States of Assam & Tripura in agricultural marketing. 

PROGRAMMES FOR  NORTH-EASTERN STATES