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G. Chandrashekhar

What is the status of agricultural marketing reforms in Andhra Pradesh and how do we address the demands from various stakeholders?

Since the Agricultural Markets Act, 1966 prohibits private markets and contract farming, the Government of Andhra Pradesh amended the Act to be in line with the model act of Government of India incorporating the provisions:

Contract Farming (section 11A of Markets Act, 1966 and rule 73A); National Integrated Produce Market (Section 7(A)); Private Market (Section 7 (7) Market rule 53A); Special Market (Section 4(3bb)); and Constitution of market committee for special markets (Section 5A).

An investment of Rs 11,172 crore in the next 10 years would be necessary for infrastructure development in agricultural marketing as estimated by an expert committee set up by the Ministry of Agriculture. A major portion of this investment is expected to come from the private sector for which an appropriate policy environment is necessary.

To develop marketing infrastructure in the State and cater to the requirements of market surplus of various farm products and get the benefits of reform-linked schemes of the Union Government, Markets Act has beenamended.

What are the initiatives taken by the department for creating new infrastructure that will address the future needs?

Some of the initiatives include development of cotton market yards under the Technology Mission on Cotton; market yards under the Government scheme for strengthening agricultural marketing infrastructure, grading and standardisation; and marketing infrastructure for horticultural commodities under the National Horticulture Mission Scheme.

According to the guidelines of the Central Government, three terminal markets with value-addition facilities will be established in Hyderabad, Visakhapatnam and Tirupati; construction of rural godowns under Gramin Bhandaran Yojana Scheme; development of market yards with agricultural market committee funds and development of Rythu Bazaars.

What are the measures taken for inviting private markets?

The Department has given licence to Metro Cash and Carry for establishing private markets under Section 7(7) read with market rules 53(A). Private entrepreneurs are coming forward to establish private markets and a few proposals, such as that of Sree Satyanarayana Cold Storage Pvt Ltd (NDR Group), are under the consideration of the State Government.

Establishment of markets under the public private partnership mode such as terminal markets by giving subsidy.

Market fee exemption for the agricultural commodities purchased by the contract farming buyer declared under the “mega project” approved by the State Investment Promotion Board is under consideration.

What is the view of the State on contract farming and corporate farming?

Though harvesting contract is in practice for commodities such as fruits, there is no dispute resolving agency.

As suggested in the Model Act to give legal status to the contract farming, AP Markets Act is amended to assign the agricultural markets a dispute resolving forum.

How do you foresee the role of terminal markets in the future?

Terminal market will act as a competitive alternative agricultural marketing platform and extract better service and efficiency from traditional markets, contributing to overall improvement in marketing activities in the State.

It will enable consumers and producers make direct contact, which should facilitate the development of products that are closely aligned with consumer tastes and demands.

What are the major benefits that these terminal markets may offer to various stakeholders such as farmers, consumers and others?

They will provide multiple choices to farmers to sell their agricultural produce directly to exporter, processor and retail chain network under a single roof; increase farmer’s income by shortening the supply chain; offer transparency in market transactions and price fixations; provides storage facilities to farmers to trade at a future date, thus offering choice of trade.

With low service charges, few intermediates, better infrastructure for handling and processing horticultural produce, terminal market ensures better produce quality, storability and efficient marketing, benefiting farmers and consumers.

What are the major achievements of the marketing department and what is your vision for the State?

Rythu Bazaars (105) play a significant role in avoiding the middle men helping price control in open market and establishing direct contact between the producer and consumer, mainly for vegetables.

On an average, 30,000 to 35,000 quintals of vegetables are sold every day in Rythu Bazaars and nearly, 4,500 to 5,000 farmers are utilising their services daily.

More Stories on : Interview | Marketing | Agriculture

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