1. PRESENTATION ON AGRIBUSINESS INFRASTRUCTURE : EASE OF DOING BUSINESS By Dr. J. S. Yadav, Director World Union of Wholesale Markets (WUWM) The Hague, Netherlands cum CEO, Premium Markets, New Delhi (15 th February, 2016 at NPC, New Delhi)

2. 1. Definition of Infrastructure Differs Drastically ( DIPP, RBI, MoF, IDB ) 2.Classification of Agribusiness Infrastructure needs clarity ( Agriculture, Industry, Service Industry, Business Premise and Institution )

3. Where do we stand in terms of Handling Infrastructure?

4. PRESENT MARKETING SCENARIO

5. TRANSPORT SYSTEM

6. UNLOADING

7. PACKING

9. TRAFFIC CONGESTION

10. AUCTIONS

11. Conduct and Structure of Transit Infrastructure

12. COMMODITY BASKET Top 10 markets of the country in terms of Arrivals, handle 74% of total throughput of F&V of all the markets – shows strong interdependency. Top 10 F&V account for 80% of the total arrival in a market. Top 5 Fruits constitute: Apple, Mango, Banana, Citrus and Guava Top 5 Vegetables: Onion, Potato, Tomato, Brinjal and Cabbage/Cauliflower On the basis of production, the top 5 fruits constitute of 75% of the total fruit production and the top 5 vegetables constitute 60% of the total vegetable production (Source: Country Level Action Plan)

13. COMMODITY BASKET Top 10 markets of the country in terms of Arrivals, handle 74% of total throughput of F&V of all the markets - shows strong interdependency. Top 10 F&V account for 80% of the total arrival in a market. Top 5 Fruits constitute: Apple, Mango, Banana, Citrus and Guava Top 5 Vegetables: Onion, Potato, Tomato, Brinjal and Cabbage/Cauliflower On the basis of production, the top 5 fruits constitute of 75% of the total fruit production and the top 5 vegetables constitute 60% of the total vegetable production.

14. POPULATION SERVED BY THE MARKETS S.No.Particulars City Population Range (In Million) 0.5 – 1.01.O – 2.00.5 – 1.0Total 1Number of Cities32090748 2Number of Markets431644103 3Total population served22.5712.2436.1670.97 4.Average population served/market (million/market) 0.520.82 0.7

15. STRUCTURAL DYNAMICS OF TRADERS’ PROFILE Population of City (in million No. of Cities No. of Markets No. of Traders No. of Traders per Market No. of Traders per City 0.5 – 1.0324314378334449 1.0 – 2.00916107406711193 2.0 & above0744163503722336 Total4810341468459 Avg. 1326 Avg. There are 1/3 rd (33%) of the cities where 50% traders are without premises. 66% cities offer less than 40 sqm for average shop area (including display, sorting and cleaning, office and storage etc) to traders. In 75% cities traders are operating with inadequate shop area

16. TRANSPORT UTILIZATION PATTERN 29% of the total cities (16) witness more than 1000 vehicles entering the market on a normal day. The share of medium trucks (10 tonne) in total vehicular entries is less than 10% in majority of the cities. Only in 8% of the cities (4), large trucks (10 mt) dominate with a share of more than 50% of total vehicular traffic. 82% of the trucks operate in seven big cities of first category. The ratio between outgoing and incoming vehicles is 1:4 and 1:5

17. SOME FACTS ABOUT MARKETS There are more than 7500 wholesale markets managed by APMCs. India is a country where Auctions are compulsory. Market Fee @ 1% (average) is levied for every transaction (ad valorem) and retained by market operators – No additional infrastructure. Market operators (APMCs) are not allowed to participate in buying and selling.

18. CURRENT STATUS OF MARKET INFRASTRUCTURE IN APMC MARKETS The National Horticulture Mission, India has provided a list of market, Non-Market and Essential Services which can be considered as a benchmark for Private Markets, but current status of facilities in APMC Markets is as under: CATEGORY OF SERVICESAVAILABILITY STATUS IN MARKETS Market Services29.17% Non-market Services25.45% Essential Services52.86% Average of total facilities33.33% Most of the markets are old, to suit conditions very different from those of the present day. Towns are growing at a rate of more than 5% per year leading to a doubling of urban population within few years. Shifting of trade from old to new market is a gigantic task and takes around 5-6 years (hence always an apprehension of under - utilization).

19. AVERAGES FOR VARIOUS PARAMETERS FAO STANDARDS Sales area as % of total area12.2%25-33% Per trade area allotted47.25 sqm100 sqm Parking & Circulation as a% of total area 32.87%65% Water consumption per meter square of total area per day 0.74 liters4 liters Produce handled in MT/Sqm Per Annum 21.57 mts10 mts PARAMETERS AVERAGE OF DIFFERENT MARKETS

20. CONTRIBUTION OF FRUITS AND VEGETABLES IN TOTAL MARKET FEES FOR VARIOUS STATES Acc. 2009-2010 State / Market Total M.F M.F from F&V % of Share of F&V in total M.F Madhya Pradesh571.5224.264% Punjab624.37 35.556% Haryana371.0123.586% Karnataka294.15 21.93 7% Orissa105.5910.5610% Andhra Pradesh306.993210% Vashi (Mumbai)560611% Gujarat180.8722.7813% Maharashtra375.9948.513% Uttarakhand30.265.5318% Himachal Pradesh1914.275% Delhi83.665.4478%

21. 21 Market servicesNon-market servicesEssential services Presen tAbsent % presentPresentAbsent % presentPresentAbsent % present % of total facilities present Azadpur91537.5081436.369564.2943.33 Nashik71729.1751722.737750.0031.67 Kolar51920.8341818.187750.0026.67 Hassan51920.8351722.736842.8626.67 Belgaum91537.5061627.278657.1438.33 Average29.1725.4552.8633.33 Current Status of Available & Non Available Facilities in Major Markets of India

23. WEAK FINANCIAL VIABILITY OF MARKETING INFRASTRURE The Average ROIs for All the Services in Wholesale Markets

24. RESULTS

28. EASE OF DOING BUSINESS

29. DECISION MAKING CRITERIA FOR INVESTMENT Return on Investment Land Acquisition / Purchase Developmental Process Permissions / Licenses / Approvals / Compliances etc Finance & Mortgaging

30. AGRIBUSINESS INVESTORS NEED IMMEDIATE ATTENTION ON 1.Uniform Definition of Infrastructure 2.Classification of Agri-Infrastructure as Service Industry 3.Permission to purchase land with no rights of Return to Govt. (some States ask for advance investment in land). 4.Service charge of 21% by IDB not a valid charge 5.Agri-Infra providers be treated as Agriculturist 6.Conversion of Land use - Mix use preferred as ROI is low

31. PRIVATE INESTMENT NEEDS IMMEDIATE ATTENTION ON: 7. Change of Municipal Zone w.r.t Road-Load-Factor 8. All Rules are Regulation oriented with no “Development Responsibility” 9. Approval of Drawings as per Mix use 10. Collection of User Change as per Viability of Project. Return of Market Fee not a valid charge on APMC 11. Private Markets be allowed in all states as isolated infrastructure is risky. 12. Direct Marketing Licence to Pvt. Market Investors

32. PRIVATE INESTMENT NEEDS IMMEDIATE ATTENTION ON: 13. Investor be treated as infrastructure provider at par with Govt. APMCs 14. Terminal Markets are allowed only in Hub & Spoke Format – hence, spokes be declared as Sub-yards 15. Level Playing Field with APMC 16. No Annual Assessment of Business required by Govt. 17. No separate Licence / Fee be charged for spokes (e.g Rs.50 Lakh each spoke) 18. Private Market Authority be allowed to issue DML and Single Unified Licence to Traders Registered with them.

33. PRIVATE INESTMENT NEEDS IMMEDIATE ATTENTION ON: 19. Location limit of 25 km/ 10 km from existing APMC be removed. Rather this provision be extended to Pvt. Markets so as to ensure sustainability. 20. Private Markets should also be allowed to issue Warehouse Receipts and act as Procurement Centers for MSP operations 21. Spokes be allowed to act as Farmers’ Market 22. License for Market Development should be “Permanent” not adhoc or annual renewal basis.