The Punjab Agricultural Produce Markets Act, 1961

• Regulation of the purchase, sale, storage and processing of agricultural produce.

• Establishment of markets for agricultural produce in the State of Punjab.

• Agricultural Produce - whether processed or not, of agriculture, horticulture, animal husbandry or forest as specified in the schedule of this Act : 107 crops.

Reforms in Agricultural Marketing

• Promote competitive and alternative agricultural markets in private and cooperative sector in the liberalized trade environment.

• Encourage direct marketing and contract farming programs.•Facilitate procurement of agricultural commodities directly from

farmer’s fields.

• Establishment of effective linkages between farm production and retail chains.

• Economic policies be formulated in the field of agricultural marketing for sustainable agriculture development.

• Reforms needed in domestic market to capitalize on emerging market access opportunities in post WTO World.

• Provision of additional agricultural marketing infrastructure to cope Provision of additional agricultural marketing infrastructure to cope up with the large expected marketable surpluses of agricultural and up with the large expected marketable surpluses of agricultural and allied commodities including dairy, poultry, fishery, livestock and minor allied commodities including dairy, poultry, fishery, livestock and minor forest produce.forest produce.

Setting of competitive markets

• The modern markets with all facilities are to be established under public-private participation for better competition and as an alternative to the existing set up. APMC Act is amended.

Private market yard - an enclosure , building or locality other than the principal market yard or sub-market yard in the notified market area, owned and operated by any person or company or cooperative society in accordance with the terms and conditions of a licence, granted by the State Government and where infrastructure has been developed by such person or company or cooperative society, as the case may be;

Company shall mean a company incorporated under the Companies Act, 1956.”

Declaration of Market Yards

• For each notified market area, there shall be one principal market yard, one or more sub-market yards and one or more private market yards as may be necessary.

• The State Government may, by notification, declare any enclosure, building or locality in any notified market area to be principal market yard for the area and other enclosures, buildings or localities to be one or more sub-market yards or one or more private market yards for the area.

• Every person or company or cooperative society, as the case may be, desiring to obtain a licence for private market yard, shall apply to such authority, in such manner and with such fee, as may be prescribed.

Establishment of Modern Mandis

• Pacca Platforms for marketing operations.

• Modern equipment for cleaning, weighing, grading, packing etc.

• Lifting of purchases be on the daily basis to accommodate the fresh arrivals of next day – helps to save the precious land and utilization of public money to full extent.

• Transparent open auctioning system – clock system for fruits and vegetables, flowers.

• Cold chain system and ripening chambers.

• Proper garbage disposal systems.

Qualitative Control

• Standardized and graded produce in consumable and hygienic packs only in the Mandi.

• Grading and packing centers in villages.

• AGMARK be compulsory - must be given a main thrust.

• Testing & grading laboratories in mandis with special reference to fertilizer and pesticide residue testing.

• Testing and Certification i) Domestic market FAQ ii) AGMARK certification iii) Codex situation

Direct Marketing• Purchase at the place/premises of the processing industry for quick disposal/saving market expenditures- a provision is already made.

• Middlemen must be reduced, operations be planned for the quick purchase by the consumer/processor himself- to save the time, market expenditures & margins.

• Spot payment to seller- to save the farmers from clutches of middlemen and allurement in direct purchase.

• Value addition/processing facilities be enhanced- preferably at the producers level.

Direct sale: Producer Consumer Producer Processor Producer Wholesaler/Retailer.

• Apni mandi is best substitute based on the hut markets in London.• Ryotu Bazars of Andhra Pradesh.• Hadarpur markets near Pune.

Marketing Information System

• All functions such as entry, pre weighment, cleaning, weighing, filling, disposal and payments etc be monitored on the computerized system, be accessable by all the concerned.

• Inter connectivity of APMCs and PSAMB.

• Internet kiosks in mandis: to provide market information regarding rates, arrival and demand.

• Market Intelligence Units.

Future Trading- Commodity exchanges

• Important pre-requisittes:

wide price fluctuationsuncontrolled supply and demand

• Helps in

i) Price discovery ii) Risk management

• Future trading especially in the bulk production cash crops like wheat, rice, cotton, oil seeds etc.

• Deferred sale in main crops be encouraged to use the infrastructure throughout the year to the best output capacity, thus saving lot of public money and leading to efficient operations

Commodity Markets

• Specialized markets - commodity wise.

• Special Flower Markets.

Bulk Handling of Foodgrains

• Bulk handling facilities, especially at the time of purchases, transportation and storage be encouraged, (silos and containers) – example of Moga, Jagraon and Gobindgarh.

• Marketing operations be fully mechanized and connected one after another till payment.

Setting of Agricultural Export Zones

• Export potentials of the agricultural produce as an alternative measures be popularized for better economies and also for change in cropping pattern.

• Strict enforcement of grading and standardization in the quality control.

• Pre shipment inspection of exports.

• Special certification of exports.

• Amritsar can be developed as AEZ for basmati, fruits & vegetables and flowers.

Research and Development

• Agricultural marketing research should be continuous and specific.

• Development of modern equipment, especially in processing.

• Development of varieties suitable to the needs of consumption and post harvest needs.

• Marketing & brand promotions, especially related to export.

Investment need role of Banks/ Financing Institutions

• To strengthen the research training and extension programs.

• Market Infrastructure: setting up of market yards, cold chains, testing labs, godowns, pack houses etc.,

• Market information systems-computerization.

• Setting up of direct markets/apni mandis.

• Setting up of commodity exchanges.

• Setting up of export processing zones.