National Conference on Agriculture for ZAID/Summer Campaign 2019 - PowerPoint Presentation

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

2. Agriculture Marketing – Need for Reforms & DevelopmentProcurement systemPrice Deficiency Payment SystemChallenges: 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 &FWMinistry of Agriculture &FW

4. Need of Reforms and Govt.’s Initiative Agricultural Marketing is a State subjectMost 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 ActTo 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, 2017Salient Features of Model APLM Act, 2017Develop State/ UT level unified market Declare warehouses/cold storages as “Deemed Market”Powers and functions of MD Board and Director Marketing clearly demarcatedPublic 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 MNIsMarket fee and marketing charges rationalizedProvision for deregulation of fruits & vegetables Unified single trading licence and single point levy of market fee providedTrading through competitive e-platform Recognition of unified licenses for inter-state trade

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

7. Status of Reform-wise Adoption by the StatesState/UTUnified single market at state levelDeclaring warehouse / cold storages, as deemed marketSeparation of powers & functions of Director of Mktg. & M.D. of BoardDe-regulation of marketing of F&VPrivate marketDirect marketingE-tradingSingle unified trading licenceSingle point levy of market feeAndhra XXArunachal PradeshAssamXXXXXXBiharXAPMC Act RepealedChhattisgarh XX ChandigarhXXXXXGoa XX X X Gujarat XX Himachal Pradesh XX X 

8. Status of Reform-wise Adoption by the States Contd...State/UTUnified single market at state levelDeclaring warehouse / cold storages, as deemed marketSeparation of powers & functions of Director of Mktg. & M.D. of BoardDe-regulation of marketing of F&VPrivate marketDirect marketingE-tradingSingle unified trading licenceSingle point levy of market feeHaryanaXX X XJ & K XXXXXXXXXJharkhand XX X Karnataka XKeralaNo APMC ActMadhya PradeshXX X XMaharashtra XManipurNo APMC ActMeghalaya XXXXXXXXMizoram xX X X OdishaXXXPunjab XXXXPuducherry XXXXXXXXX

9. Status of Reform-wise Adoption by the States Contd..State/UTUnified single market at state levelDeclaring warehouse / cold storages, as deemed marketSeparation of powers & functions Director of Mktg. & M.D. of BoardDe-regulation of marketing of F&VPrivate marketDirect marketingE-tradingSingle unified trading licenceSingle point levy of market feeRajasthan XXSikkim XXXXTamil Nadu XXXXXXTelanganaXXXTripura XXXXXXXUttarakhand XXXXUttar Pradesh XXWest Bengal XXXA & N IslandsNo APMC Act

10. Status of Reform-wise Adoption by the StatesState/UTUnified single market at state levelDeclaring warehouse / cold storages, as deemed marketSeparation of powers & functions Director of Mktg. & M.D. of BoardDe-regulation of marketing of F&VPrivate marketDirect marketingE-tradingSingle unified trading licenceSingle point levy of market feeNagaland XXXXDelhiXXXXXXXXDaman & DiuNo APMC ActDNHNo APMC ActLakshdweepNo APMC Act

11. Status of Adoption of model APLM Act, 2017Model APLM Act 2017:Arunachal Pradesh have adopted in entiretyUttar Pradesh, Punjab, Chhattisgarh have adopted all major provisionsPunjab has adopted partiallyAll other States/ UTs are requested for early adoptione-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, KeralaUT without Reform:NCT of DelhiUTs without APMC ActA&N Island, Lakshwadeep,

12. E-National Agriculture Market: Coverage Reg. Farmers - 1.64 CroreReg. FPOs - 767Reg. Traders - 1.24 Lakh 16 States, 2 UTs 585 Mandis,150 Commodities 47 1954192579100 581660 22 14 10Integrated1723S.No StateTotal 1 Andhra Pradesh222 Chandigarh013 Chhattisgarh144 Gujarat795 Haryana546 Himachal Pradesh197 Jharkhand198 Madhya Pradesh589 Maharashtra 6010 Odisha 1011 Puducherry0212 Punjab1913 Rajasthan2514 Tamil Nadu2315 Telangana4716 Uttar Pradesh10017 Uttarakhand 1618 West Bengal17Total585119

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

14. Why an Exclusive Act?Contract farming as part of State APMC Act –Conflict of interestRegistration of Sponsor, recording of Agreement and dispute settlement with APMCSuffered from APMC regulation Indian Contract Act, 1872–Treats both the contracting parties as equalFarmer is weaker of the two partiesNo institutional mechanismHence, the need for a farmer-friendly Act14

15. Contract Farming- Role in Indian Agriculture

16. Salient Provisions of the Model ActEvery 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 contractSponsor 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 etc or 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 16

17. Salient Provisions of the Model ActSale- 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; andSponsor shall buy rest of the pre-agreed quantity not purchased, at lower rate mutually acceptable to both parties17

18. Salient Provisions of the Model ActNegotiation or third party mediation /conciliation Contracting parties may seek a mutually acceptable solution though mutual negotiation or through third party conciliation/mediationDispute Settlement Authority The Government may constitute a “Dispute Settlement Authority”, comprising- Sub-Divisional Magistrate/Officer or retired Judge/Magistrate as “Presiding Officer”; andother three Members, one each representing farmers / FPOs, agro-industries and domain expertsFailing to reach a mutually acceptable solution through Mediation /Conciliation , the aggrieved party may refer the dispute to the Dispute Settlement AuthorityThe Authority shall resolve the dispute democratically and in summery manner within 15 daysThe decision of the Authority shall have force of the decree of a Civil CourtAppeal 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 delayThe Board shall dispose off the appeal within fifteen days and decision of the Board shall be finalThe decision of the Board in the appeal shall have force of the decree as of the Civil Court 18

19. Progress Tamil Nadu assembly passed a Separate Contract Farming and Services Act on the line of Model Act and waiting approval Hon’ble presidentPunjab has already enacted a separate Contract Farming Act in 2013 A total of 19 States have provisioned contract farming in APMC Acts itself19

20. Thanks20