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Agricultural Marketing

  • Overview

    Overview on Agriculture Marketing

    Agriculture sector needs structured and functional markets, preferably in vicinity of farmers, to drive growth, employment, remunerative price and economic prosperity in rural areas of the country. Enabling mechanism were also required to be put in place for procurement of agricultural commodities directly from farmers’ field and to establish effective linkage between the farm production, the retail chain and food processing industries. Agriculture being a state subject, a Model APMC Act was formulated and circulated to the States/UTs in the year 2003 for adoption.

    The Model Act provides for contract farming, direct marketing, setting up markets in private and co-operative sector, e-trading, single point levy of market fee, single registration of market functionaries, farmer-consumer market etc. Subsidy/eligibility under one central sector scheme( AMIGS) has been restricted to States/ UTs where reforms to APMC Act has been done providing for Direct Marketing, Contract Farming and Markets in Private/ Coop Sectors. States/UTs having done these three reforms are Andhra Pradesh, Arunachal Pradesh, Assam, Goa, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Mizoram, Nagaland, Orissa, Rajasthan, Sikkim, Uttarakhand and Tripura. States/ UTs where reforms to APMC Act have been done partially are NCT of Delhi, Madhya Pradesh, Chhattisgarh, Haryana, Punjab and Chandigarh. States/ UTs where there is no APMC Act are Kerala, Bihar(APMC Act repealed in year 2006),Manipur, Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, and Lakshadweep. Tamil Nadu has done reforms by executive orders instead of amending APMC Act. States/ UTs where reforms required to be done are Meghalaya, J & K, West Bengal, Puducherry, and Uttar Pradesh.

  • Programmes & Schemes

    • Central Sector Schemes

      Operational Guidelines for Price Stabilisation Fund (PSF)
      Integrated Scheme for Agricultural Marketing(ISAM)(Effective Since 01.04.2014)

      In order to provide single window approach and user & investment friendly atmosphere, all the ongoing six Plan Schemes implemented during the XI Plan period have been put under one umbrella “Integrated Scheme for Agricultural Marketing (ISAM). It aims to (i) promote agri-marketing through creation of marketing and agribusiness infrastructure including storage, (ii)incentivize agri-market reforms, (iii) provide market linkages to farmers, (iv) provide access to agri-market information and (v) support quality certification of agriculture commodities. The XII Plan outlay for ISAM is Rs.4548.00 crore.

      ISAM scheme is having five components, namely: (i) Agricultural Marketing Infrastructure (AMI), the objective of this component is to create market infrastructure including Storage Infrastructure and Integrated Value Chain Projects (IVC) [the existing schemes of Grameen Bhandaran Yojana (GBY) and Development/ Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) has been merged as AMI] (ii) Marketing Research and Information Network (MRIN) (iii) Strengthening of Agmark Grading Facilities (SAGF), (iv) Agri-Business Development (ABD) through Venture Capital Assistance (VCA) and Project Development Facility (PDF) and (v) Training, Research and Consultancy through Choudhary Charan Singh National Institute of Agriculture Marketing (NIAM).

      Rural Godown Schemes(RGS)/Grammin Bhandaran Yojana(GBY)(Effective till 31.03.2014)

      The scheme was started from 1st April 2001. The main objectives of the scheme are to meet the requirements of farmers for storing farm produce, processed farm produce, consumer articles and agricultural inputs, promotion of grading, standardization 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, and to strengthen agricultural marketing infrastructure by paving the way for introduction of a national system of warehouse 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 sector to invest in the creation of storage infrastructure in the country.

      The scheme of Rural Godowns has been formulated for creation of scientific storage capacity with allied facilities in rural areas by encouraging private and cooperative sector to invest in the creation of storage infrastructure in the country. Under the scheme, 25% back-ended subsidy (33.3% in case of NE States, Tribal & Hilly areas and SC/ST) on the total project costs is being provided for the purpose. The eligible promoters for construction of rural godowns are individual farmers, group of farmers/ growers, partnership/ proprietary firms, NGO, companies, corporations, cooperatives, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations.

      As on 31st January 2013, there are 30,574 Godown projects have been sanctioned and a storage capacity of 38.36million tonnes was created under the scheme. An amount of Rs.1017.32crores of subsidy has been released to various banks and Cooperatives through NABARD and NCDC.

      Strengthening/Developement of Agricultural Marketing Infrastructure, Grading &Standardisation(AMIGS)(Effective till 31.03.2014)

      With a view to induce large investment in the development of marketing infrastructure, the Ministry has formulated a scheme for “Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization” during 2004. Under this scheme investment subsidy is provided on the capital cost of general or commodity specific infrastructure for marketing of agricultural commodities and for strengthening and modernization of existing agricultural markets, wholesale, rural and periodic or in tribal areas. The scheme is reform linked, to be implemented in those States/UTs that amend the APMC Act wherever required to allow setting up of agricultural markets in private and cooperative sectors. Under the scheme, back ended subsidy @ 25% of capital cost of the project is provided in all States and @ 33.3% of capital cost in case of NE States, hilly areas and SC/ST entrepreneurs. In respect of infrastructure projects of State Agencies, there is no upper ceiling on subsidy to be provided under the scheme.

      Agricultural Marketing being the State subject the Directorate has only an advisory role so far as improvement/development of marketing system is concerned. In the field of grading and quality assurance also, Directorate endeavors to involve State authorities more and more to make it consumer/public oriented. Being a central coordinating organization, Directorate is actively associated with the development in agricultural marketing in both State and National level by introducing various reform initiatives of Government of India.

      Since Inception of the scheme up to 31-12-2012, a total number of 8087 marketing Infrastructure projects have been sanctioned and subsidy of Rs 782.14 crores has been released.

      Operational Guidelines for Price Stabilisation Fund (PSF)
      Terminal Market Complex
    • Programmes

      Grading And Standardisation of Agricultural and Allied Produce

      Quality standards for agricultural commodities are framed based on their intrinsic quality. Food safety factors are being incorporated in the standards to compete in World trade.Agriculture Marketing Standards are being harmonised with international standards keeping in view the WTO requirements. Certification of agricultural commodities is carried out for the benefit of producer/manufacturer and consumer. Certification of adulteration prone commodities viz. Butter, Ghee, Vegetable Oils, Ground-Spices, Honey, Wheat Atta etc. is very popular. Blended Edible Vegetable Oils and Fat Spread are compulsorily required to be certified under Agmark.

      The Certification mark under the Agricultural Produce (Grading & Marking) Act is popularly known as "AGMARK". Grading is carried out in accordance with the standards notified, following meticulous procedure of sampling, testing, packaging, marking and sealing as per the instructions issued under the Act and Rules.

  • Pledge Financing

    Pledge Financing NABARD
    Pledge Financing All States
  • Bankable Project

    Model Secheme on Onion storage
  • Attached Offices

    Attached Offices

    The Directorate of Marketing and Inspection (DMI), an attached Office of the Department of Agriculture and Cooperation under Ministry of Agriculture & Farmers Welfare,Government of India, was set up in the year 1935 to implement the agricultural marketing policies and programmes for the integrated development of marketing of agricultural and other allied produce in the country with a view to safeguard the interests of farmers as well as the consumers. It maintains a close liaison between the Central and the State Governments

  • Portal of Agriculture Market

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