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The Government has been playing an important role in developing the Agricultural Marketing System in the country. Department of Agriculture and Cooperation has three organizations dealing with marketing under its administrative control, namely, the Directorate of Marketing & Inspection (DMI), Faridabad, Ch. Charan Singh National Institute of Agricultural Marketing (NIAM), Jaipur and Small Farmers Agri-Business Consortium (SFAC), New Delhi. 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 (Har yana), Branch Head Office at Nagpur (Maharashtra) and 11 Regional Offices at Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Chandigarh, Jaipur, Lucknow, Bhopal, Kochi and Guwahati and the Central Agmark Laboratory at Nagpur. Besides, there are 26 Sub-Offices, 17 Regional Agmark Laboratories (RALs) spread all


over the country as per the details given on next page :The main functions of the Directorate are as follows :1. Rendering advice on statutory regulation, development and management of agricultural produce markets to the States/UTs.; Promotion of Standardization and Grading of agricultural and allied produce under the Agricultural Produce (Grading & Marking) Act, 1937; Market Research, Surveys & Planning; Training of personnel in Agricultural Marketing; Marketing Extension; Agricultural Marketing Information Network; Construction of Rural Godowns; and Development of Agricultural Marketing Infrastructure.


3. 4. 5. 6. 7. 8.

Regional Offices 1. 2. Delhi Kolkata

Sub-Office under Regional office 1. Dehradun 1. Patna 3. Ranchi 2. Bhubaneshwar

Agmark Laboratories under Regional Office 1. Okhla 2. Ghaziabad 1. Kolkata 2. Patna 3. Bhubaneshwar 1. Mumbai 2. Rajkot 1. Bhopal 1. Chennai 2. Bangalore 1. Kochi 1. Guntur 1. Guwahati 1. Kanpur 1. Jaipur 1. Amritsar 2. Shillong



1. Nasik Road 2. Ahemdabad 3. Rajkot 4. Surat 5. Panaji 6. Pune 7. Sangli 1. Raipur 1. Bangalore 2. Madurai 3. Hubli 1. Calicut 2. Thiruvananthapuram 1. Guntur 2. Vishakhapattanam 1. Shillong 1. Kanpur 2. Varanasi Nil 1. Jammu 2. Amritsar 3. Abohar 4.Shimla

4. Bhopal 5. Chennai 6. Kochi 7. Hyderabad 8. Guwahati 9. Lucknow

10. Jaipur 11. Chandigarh

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 Gover nment provides guidance and assistance in regulation and development of agricultural produce markets. 7418 markets have been brought under regulation. 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 181 agricultural and allied commodities. The purity standards under the provision 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. Inter national Standards framed by Codex/ International Standards Organisation (ISO) are also considered so that Indian produce can compete in the International market.


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 countr ies. The standards of Litchi, Pomegranate, Mangoes, Pineapples, Guavas, Grapes, Headed Cabbage, Spinach, Peas, Sugar Snap Peas, Ribbed Celer y, Onions, Garlic, Papaya, Bananas, Plums, Brussels sprouts, Tomatoes are framed har monised with International standard. These fruits and vegetables are taken into Preliminary draft notification of Fruits and Vegetables G & M Rules, 03 which was published in the Gazette. The Standing Committee on harmonization of Fruits and Vegetables have approved the grade standards of Beans, Melons, Water Melons, Cherries, Strawberries, Pears, Cauliflowers formulated by the DMI. During the year 2004-05, final notification of Fruits and Vegetables G & M Rules, Makhana G & M Rules, Pulses G & M Rules have been published in the Gazette of India. Preliminary draft notification of Spices G & M Rules is in the process of publication in the Gazette. The core group of Standing Committee on harmonisation of fruits and vegetables have approved the grade standards of

Capsicum, Okara, Chillies, Gherkins, Sapota, Custard apple formulated by DMI. The approval for Citrus fruits and Carrot is in process As a result of special efforts initiated to increase grading under AGMARK, commodities valued at Rs.3,36,500 thousand were graded for export purposes during the year 2003-04. During 2004-05 (upto December), commodities valued at Rs.121000 thousand have been graded for export purpose. As on 1st April, 2004, 874 Certificate of Authorisation holders were operating for grading of agricultural and allied produce for export purposes under AGMARK. During 2003-04, commodities worth Rs. 46907500 thousand were graded for internal trade. During 2004-05 (upto December), commodities valued at Rs. 325,00,000 thousand were graded for internal trade. 8669 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. 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. 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 Cereals, viz. Paddy, Wheat, Jowar, Bajra, Maize, Ragi & Barley and Pulses, viz. Red Gram (Arhar or Tur), Gram (Chana), Green Gram (Moong). The report of paddy has been approved and is under process of publication. The draft reports in respect of wheat, jowar, bajra, maize, ragi, bengal gram, barley, black gram, red gram, lentil and green gram are under finalization.


Training Directorate of Marketing & Inspection conducts a number of training courses relating to agricultural marketing for the benefit of employees of State Governments/ Union Territories, Co-operatives, Corporations, Market Committees, Marketing Boards and other statutory bodies. During 2004-05 (upto December), 119 personnel have been trained under different training programmes. 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. The Directorate par ticipated in India International Trade Fair, 2004 and AHARA-2004. As a routine feature, Directorate through its Regional/ sub offices participated in 12 exhibitions organised by other organizations at different places during 2003-04. On the eve of World Consumers' Day, the Directorate organized symposiums on Agmark at 11 places. The Directorate organized an exclusive Agmark Exhibition from 13-12-2004 to 16-12-2004 at Nasik and also proposes to organize an Agmark exhibition at Jaipur during 2004-05. Marketing Research and Information Network A new Ninth Plan Scheme Agricultural Marketing Information Network was approved during March, 2000 with an outlay of Rs.99478 thousand to establish a nationwide information network for speedy collection and dissemination of market information. The objective of the scheme is to facilitate collection and dissemination of information for better price realization by the farmers. The information covers Market related, Price related, Infrastructure related and promotion related for efficient marketing. 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 the Directorate through the National Informatics Centre (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 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), Fibers (Cotton, Jute) and Oilseeds (Groundnut, Mustard, Soyabean, Sunflower, Sesame). During 2004-05 as against budgetary provision of Rs. 110,000 thousand for the scheme, an amount of Rs.99600000 has been released for computer connectivity for 600 nodes, and market-led extension activities in 11 states. The state level portals in 8 states (Andhra Pradesh, Assam, Gujarat, Haryana, Jammu & Kashmir, Orissa, Punjab and Rajasthan) are in the process of development for disseminating information in regional languages. About 1000 additional markets are expected to be covered during 2004-05 out of targeted 2000 markets to be networked during Tenth Plan. The markets are reporting daily prices and arrivals data using a comprehensive National level database: A portal on agricultural marketing (http:// has also been operationalised. Wholesale prices and arrivals information in respect of 300+ commodities and about 2000 varieties are being disseminated through the portal on daily basis. The complete commodity list is accessible from the AGMARKNET por tal ( commodity1.htm). Weekly prices and arrivals trends are also being disseminated using the portal. Weekly and monthly prices and arrivals bulletins are also being generated using the national database. The portal also has linkages with various organizations


concerned with agricultural marketing. On an average about 400 markets are reporting data on daily basis. Further expansion AGMARKNET is being enriched to serve as a single window service for market led extension by adopting following measures:


Evolving Regional Por tals to facilitate dissemination of market information in local languages, Compiling and web Publishing Market Profiles over AGMARKNET, Preparing a Data warehouse of market information, Preparing a National Atlas of markets including various thematic maps to facilitate GIS based analysis, Preparing Commodity profiles, Conducting Market Research Studies and publishing such information on the AGMARKNET portal.





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, 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; 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 co-operative sectors 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 percent 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 percent. 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 is 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, NGOs, companies, corporations, co-operatives, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations. The scheme had been approved on 26.2.2002. During 2004-05, an amount of Rs. 770000/thousand has been released to NABARD, NCDC and NIAM for implementation of the scheme. As on 31.12.2004, 8292 projects with 127.00 lakh tones capacity have been sectioned by NABARD and NCDC The scheme with certain modifications has been approved for continuation beyond 30.9.2004 upto 31.3.2007 for which provision of Rs.115,0000 thousand has been made for creation of 36 lakh tones capacity. Under the revised scheme, 15 percent subsidy will be provided to individuals, companies and corporates and 25 percent subsidy will be provided to all categories of farmers, agricultural graduates, co-operatives and CWC/ SWC. Scheme on Development/ Strengthening of Agricultural Marketing Infrastructure, Grading and Standardisation The Tenth Plan suggests to provide back­ ended subsidy on capital investment for setting up of new general or commodity specific agriculture produce markets and for strengthening of existing markets, wholesale, rural periodic or in tribal areas to the farm producers any or all of the different categories of services like i) assembling, grading, packing, standardization, quality control and certification; ii) retailing, wholesaling and/or e-trading and exports; iii) direct marketing from producers to consumers; iv) direct integration of processing units


with rural producers; and v) market intelligence, extension and market oriented production planning. In this context, a new Central Sector Scheme for Development/ Strengthening of Agricultural Marketing Infrastructure, Grading and Standardisation has been approved recently (on 20.10.2004) by the Government. It aims at providing credit-linked, back-ended subsidy on capital investment for setting up of marketing infrastructure & suppor t ser vices such as grading & standardization etc., during the Tenth Plan. The scheme is under the process of implementation. The Scheme will be implemented in those states which amend their APMC Acts, wherever required, to allow direct marketing and contract farming and to permit setting up of markets in private and cooperative sectors. The Scheme would provide increased access to small and marginal farmers to agricultural marketing infrastructure for better price realization and to open greater market opportunities for growth, employment and poverty reduction. The Scheme will be implemented through National Bank for Agriculture & Rural Development, National Cooperative Development Corporation by Directorate of Marketing & Inspection. Marketing Reforms Agriculture Sector needs well-functioning markets to drive growth, employment and economic prosperity in rural areas of the country. The State monopoly over agricultural markets has to be eased to facilitate greater participation of private sector and in particular to attract large investments required for

the post harvest and cold chains infrastructure in the sector. The Task Force on Agricultural Reforms set up by the Ministry of Agriculture has suggested various refor ms measures for promotion of competitive marketing in the countr y. The Department has formulated a Model Law on Agricultural Marketing to promote competitive markets in private and cooperative sectors to encourage direct marketing and contract farming arrangements. The State Governments have been advised to suitably modify APMC Act to facilitate (a) development of competitive markets in private and cooperative sectors; (b) allow procurement of agricultural commodities directly from farmers fields; and (c) to establish effective linkage between the farm production and the retail chain and food processing industries. In the wake of the economic liberalization, the concept of contract farming in which national and multi-national companies enter into contracts for marketing of agricultural produce and to provide technology and capital to farmers has gained importance. These arrangements have to be promoted as an effective method of linking small farmers to sources of extension, advice, mechanization, seeds and credit and to assured and profitable markets. The Department has suggested certain legal changes in APMC Act to create an institutional framework for recording of the agreements and to equitably resolve disputes, if any, between the sponsors of contract farming and the farmer. The Model Act and the suggested reforms were discussed at the national conference of State Agriculture Ministers held on 7th January 2004 at New Delhi and on 19 th November, 2004 at Bangalore. The States were requested to complete the process of amendment to the APMC Act within 2-3 months time. In this context, States were informed that Central assistance under the newly formulated Scheme on marketing infrastructure grading and standardization will be provided only in the reforming States. Revenue During 2003-04, a total revenue of Rs. 92399 thousands (Provisional) was realized on account of grading charges etc. During 2004-05 (upto


December, 2004), an amount of Rs.60941 thousands (provisional) has been realized. Ch. Charan Singh National Institute of Agricultural Marketing (NIAM), Jaipur 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 hor ticultural departments, Agro Industries, Corporations, State Marketing Boards, Agricultural Produce Market Committees and Apex level Cooperatives, Commodity Boards, export houses recoganized by Agricultural and Processed Food Products Export Development Agency (APEDA), Commercial banks and non governmental organizations. Besides these clients, the NIAM also imparts training to farmer on marketing management. The main objectives of NIAM are the following:1. To provide specialized training in agricultural marketing designed to develop leadership potential in the management of agricultural marketing enterprises and services; To undertake research in agricultural marketing for Gover nment, Cooperative and other Institutes, both on public funding and by contract; To undertake appraisal of markets/marketing projects for approval and financial support by the Central Government, on consultancy basis; To formulate objective criteria for selective development of physical markets and to evolve a practical methodology for the application of such criteria in their planning; To offer advisory and consultant services on marketing policies, investment programmes and marketing development strategies and specific advice to marketing enterprises (State, Private and Cooperatives); To survey, study and analyze the rural market management and to examine in depth the principal and practice of market regulation as a development sector in the agricultural economy.






NIAM is managed by a Governing Body under the Chairmanship of Minister of Agriculture and an Executive Committee under the Chairmanship of Secretary, Department of Agriculture & Cooperation. Training, Research and Project Formulation Activities The Institute organizes training programmes for Marketing Personnel, Farmers, Entrepreneurs and Other Functionaries engaged in agricultural marketing. During the year 2003-2004 the Institute organized 115 training programmes and trained 1319 Officers in 50 programmes and 5976 Farmers in 65 training programmes. The institute proposes to organize 50 training programmes, 5 MDP and would also organise National Seminars. The Institute has undertaken following research studies during year 2003-2004: 1. Public-Private Partnership in Agricultural Marketing Effect of Contract Farming on Agricultural Marketing Marketing Infrastructure: Potential for Cleaning & Grading Structure, Conduct and Performance of Regulated Markets Preparation and Development of Market Atlas in Selected States


Action research on `Rural Connectivity for Agricultural Market Intelligence.

In order to generate resource and sharpening the skill of the faculty the Institute took up sponsored consultancy projects and completed following consultancies during the year 2003-04: 1. 2. State Master Plan for Market Development of Chhattisgarh Establishment of Integrated Pre-cooling and Pack-house facilities for Marketing and Export of Fruit & Vegetable at Market yard Hazipur, Bihar

PGPABM at NIAM, Jaipur The Institute has undertaken Post Graduate Programme in Agri-Business Management (PGPABM) as a Sub-centre 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 graduate to acquire the critical knowhow to compete in the domestic and global business arena to make them efficient agri-business managers. PGPAWCCM NIAM, Jaipur Ch. Charan Singh National Institute of Agricultural Marketing, Jaipur decided to develop manpower in this field of agri- warehousing and cool chain management. This Post Graduate Programme has been appropriately designed and structured for the benefit of not only the in service personnel manning the warehouses at present but also to the prospective candidates, who may take up the career in warehouse and cool chain management in the years to come. The overall objective of the programme is to improve the knowledge and skill in managing the warehouses and cold storages on scientific lines. Programme for North-Eastern States In order to develop the agricultural produce markets of North ­ Eastern States, separate State Master Plan for Tripura has been formulated during the year. Five programmes will be organized in


2. 3. 4. 5.

During 2004-05, the Institute has initiated research studies in the following areas: 1. Warehousing, Storage and Handling Infrastructure for Wheat and Rice: Pattern in Large Cities of India. Role of States in Promotion of Agricultural Exports: Case of Agri-Export Zones in India Marketing of Medicinal and Aromatic Plants in Northern States of India: Constraints and Policy Frame Work Study on Marketing Infrastructure ­ Potential for Cleaning & Grading Facilities for Groundnut in India Study on Structure Conduct & Performance Analysis of Agricultural Produce Markets

2. 3.



North East, one each at Guwahati, Shillong, Jorhat, Tura and regional programme at Guwahati. Under Central Sector Scheme of Construction of Rural Godowns, besides organizing sensitization programme in Arunachal Pradesh, two programmes for training of trainer's for bankers were also organized in collaboration with Banker Institute of Rural Development, Lucknow during 2003-04. Farmers were also empowered in the North ­ Eastern Region by conducting 7 programmes. During the year 2004-05 the Institute proposes to empower co-operative and bank officers besides conducting 15 farmer awareness programme and two entrepreneur awareness and development programme. Small Farmers Agri-Business Consortium (SFAC), New Delhi SFAC was registered as a Society in 1994 and started its core function of promoting Agribusiness in the country from 1998-99 onwards. During the year 2003-04 and 2004-05, SFAC successfully implemented the Scheme of Horticulture Technology Mission in North Eastern States including Sikkim, Jammu & Kashmir,

Himachal Pradesh and Uttaranchal. During 200304, an amount of Rs. 10535,23 thousand was made available to the States under this Scheme, and during 2004-05 an amount of Rs. 8779,10 thousand has been released till date. SFAC implemented the Agri-clinics and Agribusiness Scheme and an amount of Rs. 1540,70 thousand has been spent till date and 5428 candidates have been trained and a further 1260 candidates are undergoing training for taking up Agri-business ventures. SFAC organized the 1st National Level Meet of 16 State level SFACs at New Delhi in March, 2004 and also organized the 1st National Seminar on Marketing of Agricultural Products. SFAC has also funded various training programmes and sponsored workshops and seminars organized by Research Institutes and farmers' organizations during the year. SFAC in 2004-05, has initiated measures for restructuring of the organization and revising its Venture Capital Scheme in consultation with Banks. The draft scheme has been forwarded to Planning Commission for their `in principle' approval and the same is awaited.



S.N. Scheme/Programme/ Activity Al 1 2

Out of total strength in a Group

Note: For Group A and B, the p One vacancy each in Gro




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