B2.1 Modernizing Wholesale Markets


I. Objective:

1.   APMCs form the hub of agricultural trading which are democratically run local bodies. The major stakeholders are farmers, traders and consumers. Recently the amendment of the APMC Act has enabled licensed direct marketing agencies and private markets to participate actively in the  agricultural  marketing.  It  is  imperative  for  the  APMCs  to  provide  to  the  stakeholders facilities for agricultural marketing in the form of basic and productive infrastructure  for the purpose of: (i) Proper Handling of Agricultural Produce, (ii) Dissemination of Marketing Information, and (iii) Efficient Waste Management.

2.   The level of investment in utility infrastructures in APMCs is low, mainly because:

i)   Public utility infrastructures  in APMCs like land development,  compound wall, drainage, electricity,  pavements,  auction  halls  and  auction  sheds,  toilets,  and  canteen  are  non productive assets. The share of these investments in the development of APMCs is large and needs longer gestation period.

ii)  The infrastructure like godown, cold storage, cleaning, grading, and packing units can come up with public private partnership (PPP), but in order to attract private investors, support would be required in the form of advisory services and establishment  of mechanisms  for risk sharing.

iii) Moreover  APMCs  do  not  get  the  loan  easily  from  the  commercial  banks  for  such development.  Many  a  times,  personal  guarantee  of  the  Directors  of  the  Committee  is demanded by the Banks for the loans of APMCs which is not agreed to by the Directors.

3.   The result of this complex situation is either slow development or no development of APMC yards.  The problem is addressed by providing assistance under MACP that would be linked to reforms  in  the  functioning,  management  and  operations  of  the  market  yard.  The  strategic objectives of modernization of APMCs are briefly stated below.

i)   Transparency:   To   improve   transparency   in  all  the  APMCs   to  be  modernized,   the transparency will be ensured by:

a)   Computerized  recording