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The Ministry of Agriculture has taken the following steps for involving private players in marketing farm products:
(i) The Ministry organized national Conference with State Governments at New Delhi on 7.1.2004 and at Bangalore on 19.11.2004 to evolve a consensus on the need for reforms in the APMC Act.
(ii) The Ministry circulated a model law to the States in order to guide them in reforming the APMC Act.
(iii) The Ministry also implemented a new reform linked Central Sector Scheme on 20.10.2004 for Development/Strengthening of Marketing infrastructure, Grading and standardization. Under this scheme, assistance for development of agricultural marketing infrastructure projects will be provided in those States/Uts that amend the APMC Act on the lines suggested in the model law.
Agriculture sector needs well-functioning markets to derive growth, employment and economic prosperity in rural areas of the country. State monopoly over agriculture 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. State Governments have, therefore, been advised to suitably modify the laws dealing with agricultural marketing (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 fold processing industries.
The Multi Commodity Exchange of India Limited (MCX), Financial Technologies (India) Ltd., and National Agricultural Cooperative Marketing Federation of India Limited (NAFED) have entered into a joint venture for the establishment of National Spot Exchange for Agriculture Produce (NSEAP), which will permit participants all over the country to trade with other electronically and settle their trades under the support and regulations of NSEAP. This joint venture was launched on 10th February, 2005 and the exchange is expected to commence live trading during the second half of the 2005-06.
This information was given by Shri Kanti Lal Bhuria, Minister of State for Agriculture in a written reply to a question in the Lok Sabha today.
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