This led to the demand of having regulated markets in India. The regulated market aims at the elimination of unhealthy and unscrupulous practices, reducing market costs and providing benefits to both producers as well as the sellers in the market. It authorized the States to set up and regulate marketing practices in wholesale markets.
The objective was to ensure that farmers get a fair price for their produce. NAM, announced in Union Budget , is a pan-India electronic trading portal which seeks to connect existing APMCs and other market yards to create a unified national market for agricultural commodities. However, in order for a state to be part of NAM, it needs to undertake prior reforms in respect of.
In current days of mass production and marketing which is being replaced by customer-based or market-driven strategies, an effective marketing extension service is the need of the hour. This has added significance in the light of post-WTO scenario. If the Indian farmers have to withstand the possible onslaught of international competitors, both in domestic as well as overseas markets, agricultural marketing services have to be strengthened.
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Also, avoid reading redundant old articles. Your email address will not be published. UPSC Calendar What is agricultural marketing? Why is agricultural marketing so important? Click here to sign up. Download Free PDF. Siba Sankar Mohanty. A short summary of this paper. Following the guidelines of the model national Agricultural Produce Marketing Committee APMC Act of , Uttarakhand also adopted the Act in the year with a hope that the Act would streamline the marketing possibilities for farmers and the sector would flourish with new investments pouring in through increased private participation.
The present article substantially draws on a GIZ sponsored study on the same topic and the authors are indebted for the financial support extended by GIZ for completion of the study. The stagnation in the countryside might have been the primary reason for rampant outmigration1 from the state compared to Chhatishgarh and Jharkhand Singh, Being a mountainous state, the scope of spatial expansion in the sector agriculture was never a rational proposition.
So, most policy circles including the corporate lobbies2 have been advocating for possibilities of value addition, improvements in postharvest management and adequate marketing facilities in the state3.
In its memorandum submitted on 5th June to Shri B. However, the preparations had started much earlier. In the year itself, chief minister had handed over the model Act to a subcommittee that visited several states including Andhra Pradesh to study the prospects of the Act.
It was expected that soon after the enactment in the state assembly, there would be a remarkable change in the scenario of agricultural marketing in the state Prashant, The optimism was evident from the remarks of the agriculture secretary Mr. Om Prakash to the media, "through the new Act, the government would open doors for private investors like Reliance Industries and ITC which have recently entered the agriculture sector in a big way.
We have done our job; it is now for the private players to take benefit of the proposed act"6. The present paper is an attempt to highlight an assessment of the impact of the APMC Act on the growth of agri-business in the state after three years of its implementation. The study also attempted to highlight the concerns, bottlenecks and the hurdles that have restricted the scope of the Act in the state and made some policy recommendations for the effective implementations of the Act.
Since the Act was supposed to build an ambience of market promotion for the agricultural produce, it was expected to have a bearing on the size of the market, exports of agro produce, growth of agro processing centres, growth in capital formation in the sector and private investment in the sector, growth in the institutional infrastructure and price support for the farmers after the implementation of the Act.
In order to study the investment scenario and the growth in agri processing units, we have referred to budget documents of the state government,Annual Survey of Industries ASI , and the information from District Industries Centre DIC , Directorate of Economics and Statistics DES and the annual reports of various other agencies. In some specific cases, in order to study the impact of the Act on price and arrival, we have used dummy variable based univariate analysis to assess the differences before and after the implementation of the Act.
The major findings are summarised in the sections below. Since the scheme is a demand driven one, this may clearly indicate apathy from the side of state government to demand for and utilize funds to develop infrastructure towards agricultural marketing and such other facilities in the state. These include horticulture crops, medicinal plants and herbs, litchi and basmati rice. The volume of exports of litchi after was less than the volume in Even the unit price of exported litchi was lower in than in The total area under fruit, vegetables and spices and their output in the country increased significantly.
But in Uttarakhand, except for spices, in other horticultural crops there was no significant change in the area under horticultural production. Again, in spices, although there is an increase in the area under crops, there hardly was any impact on the production and in fact the yield rate, although placed at a much higher level than the Indian average, declined in the state.
Even after implementation of APMC Act, there hardly was any progress in creation of new export oriented units in the state. As per the reports of the Ministry of Commerce, there were only three formally approved exports oriented SEZs and two notified SEZs in Uttarakhand compared to formally approves and notified SEZs in the country as on 31 December After two years, as on 11 February , there were formally approved and notified SEZs in the country.
But in Uttarakhand, there were only two formally approved and only one notified SEZs on 11 February So, on many counts, the performance of the state as far as agricultural export is concerned has deteriorated in the state of Uttarakhand after implementation of the Act.
Investment in Agriculture in Uttarakhand In a state lacking basic marketing infrastructure, it is presumably expected that in order to promote private investment, the initiative should be taken by the government. Such initiative may not be limited only to formulation of an Act for market promotion. In Uttarakhand, there hardly were any effort by the government to promote investment in the state. As evident from the figures of the State Budget Documents, there has not only been a low priority of the state for investment in agriculture, the investment efforts from the government have also declined in the post APMC years.
Here, we have considered only the planned expenditure of the government of Uttarakhand both in Revenue Account and Capital Account Table-2 and Table In the recent budget, the government scaled down most of its activities in the sector except for agricultural research and education.
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