1. Agricultural Marketing Reforms in Karnataka WEL-COME
Government of Karnataka Department of Agricultural Marketing Karnataka State Agricultural Marketing Board
Agricultural Marketing Reforms in Karnataka
Presented By
G. N. Shivamurthy, IAS.,
Director of Agricultural Marketing and
M.D. Karnataka State Agricultural Marketing Board
WEL-COME

2. Vision and Mission
Vision: To promote and encourage participatory and equitable socio-economic development of farmers in particular and stakeholders of the market in general of Karnataka through vibrant, self reliant and competitive agricultural marketing system.  
Mission: To develop participative, transparent and scientific Agricultural Marketing System with adequate infrastructure and user friendly e- initiatives.

3. Agricultural Marketing in Brief
The Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 and Rules 1968
There are 156 main and 355 sub-markets.
92 agricultural commodities are notified for the purpose of regulation (foodgrains, oilseeds, fruits, vegetables, cotton, jaggery, arecanut, coconut, cashewnut, livestock)
Around Rs. 33,000 crores worth commodities transacted in APMCs annually.
About 36,000 traders and commission agents are licenced to operate in the market yards
APMCs are managed by a Committee consisting of elected representatives of farmers (11), traders and commission agents (1), marketing co-op. (1), processing co-op (1), Govt. nominees (3) and official (1) ---Totally 18

4. Some of the Schemes
Provision of infrastructure facilities in market yards through annual action plans of APMCs
Market Development under RKVY assistance
Rural Market Development under RIDF Scheme
Development of backward area markets
Technology parks for Rice and Maize
Floor Price Scheme- Revolving Fund
Capacity building through training and extention
Market information through website, sms, toll free phone
Welfare schemes for farmers and shramiks

5. Karnataka on the forefront of Agricultural Marketing Reforms
As per the Model Act 2003 of Government of India the State has amended the Act in 2007 and Rules in 2008 and brought in the following reforms. Major amendments include
---Establishment of Private Markets
---Establishment of Farmer-Consumer Markets
---Contract Farming
---Development of markets under Public Private Partnership
---Establishment of Grading and Standardisarion Bureau
---Establishment of Direct Purchase Centres
---E-Trading—Establishment of Spot Exchanges

6. STATE AGRICULTURAL MARKETING REFORMS COMMITTEE
The Karnataka Government constituted a Committee on Agricultural Marketing Reforms on to identify the major problems and suggest needed interventions
The Committee submitted its report on
Major recommendations of the Committee are:
--- Introduction of Comprehensive Electronic Auction System in APMCs
--- Introduction of technology in all activities including weighment, payment, filing of returns, payment of market fee, charges, etc.
--- Encouragement to Warehouse based sales
---PACS and TAPCMS to act as aggregators
---Capacity Building

7. Agricultural Marketing Reforms Report
Recommendations-
Agricultural Marketing Reforms Report
Transparency
In all market operations
Efficiency
Use of technology
Information dissemination
Increased competition
Simplify
Process flow in operations
Financial process

8. AMRC Recommendations Leveraging technology Information Dissemination
Integrating Markets
Creating Virtual Markets
Commodity Funding

9. AMRC Recommendations Farmer Producer Organisations Private Markets
Secondary Market Linkages
Creation of Infrastructure
Capacity Building for Stakeholders

10. Karnataka Agricultural Marketing Policy 2013
The policy aims at “Creating hassle free market for the agricultural produce to help the farmers to obtain best price for their produce.”
AMRC KAMP 2013

11. Karnataka Agricultural Marketing Policy 2013
Improved access to markets
Accredited Warehouse as sub-market yards, alternate and safe storage options
Access to market through aggregation at village level
Linkages with financial Institutions
Simple process for pledge loans
AMRC KAMP 2013

12. Karnataka Agricultural Marketing Policy 2013
Enable true price-discovery of the Agricultural produce
Primary value addition of agricultural produce at village level
Grading and assaying at market yard and warehouse
Market integration
Increased competition
AMRC KAMP 2013

13. Karnataka Agricultural Marketing Policy 2013
Address delay in Payments
Timely payment from buyer to be routed through Bank accounts
Online transfer of Payment
Transparency in Payments
AMRC KAMP 2013

14. Karnataka Agricultural Marketing Policy 2013
Empowerment of Farmers
Simplified marketing processes and ensuring online timely payment to the farmers account.
Market Access; Physical, Information and Financial
Organize farmers groups to initiate primary value addition and encourage village level aggregation
Farmer to decide when to sell the produce and at what price, with a right to reject the price offered.
AMRC KAMP 2013

15. Karnataka Agricultural Marketing Policy 2013
Better Market Access
Increased competition
Timely payment
Market reforms
Market automation
True price discovery
Farmer Empowerment

16. Unified Market Platform Market Integration Scenario
Trader 1
Trader 2
Traders 3
Single virtual Market
APMC
Unified Market Platform
APMC 1
Warehouse 2
Warehouse 1
Market Integration Scenario
APMC 2
AMRC KAMP 2013

17. Amendments to Act AMRC KAMP 2013 Enabling warehouse based sales
Single trader license
Private market fee rationalization
Perishable - market fee waiver
Exemption from market fee for FPOs
Concessional Market fee for Direct purchase centers and Private Markets
Simplification of Contract farming arrangements
AMRC KAMP 2013

18. Amendments to Rules AMRC KAMP 2013
Simplified procedure for issue of single trading license
Provisions to notify markets for trading on unified market platform
Arrangement for Assaying
Enabling provisions for online payments
Provisions for dispute resolution
Provisions for transaction charge to be levied
AMRC KAMP 2013

19. S P V Rashtriya e Market Services Pvt Ltd.
“A Special Purpose Vehicle (SPV) with a Mandate to operate with cutting edge technology and be constantly adapting the practices of advanced markets to the agricultural markets in the state, to ensure market efficiency and competitiveness in the agricultural market system for the benefit of farmers and consumers, while making participation of all other market participants sustainable” 
AMRC KAMP 2013

20. S P V Structure A JVC between GOK and NSPOT
Rashtriya e Market Services Pvt. Ltd ( 20th January 2014)
Share holding pattern of 50:50
Chief Secretary GOK as Chairman
3 Directors each from GOK and NSPOT
3 Independent Directors
Provision to raise the total to 12 directors
Certain matters Reserved for Government
(up till GOK holds up to 10%)
AMRC KAMP 2013

21. Unified Market Platform Market Integration Scenario
Trader 1
Delhi
Trader 2
Bangalore
Traders 3
Hubbali
Single virtual Market
APMC
Unified Market Platform
Gadag Market
Shimoga Market
Warehouse
Raichur
Tiptur Market
Market Integration Scenario

22. Unified Market Platform
Trading platform capable of –
Providing multiple price discovery models
Risk management on par with exchanges
Flexible parameters for various markets
Displaying assayed parameters for quality based bidding
Supporting browser based and SMS based bidding

23. Unified Market Platform
Material accounting module capable of
Tracking of goods
Reconciliation of quantities arrived and exited
Inventory tracking – trader wise, commission agent wise, etc.

24. Unified Market Platform
Trade fulfilment module capable of
Managing post trade processes.
Integrated pre and post sale processing.
Setting up flexible rules depending on the market.

25. Unified Market Platform
Fund management module capable of –
Collecting funds from buyers and crediting to sellers
Payment of commission agent charges
Collection of market fee
Collection of other dues – weighing, warehouse rents, etc.
Maintenance of individual ledgers for accounting

26. Unified Market Platform
Document management module capable of
Generating sale bills, purchase bills, etc.
Generating permits for transportation, with automated verification
Management of returns to be filed
Elimination of reconciliation currently required

27. Process flow in UMP market:
Unique lot
Number given
Farmer with produce
comes to APMC
APMC Gate entry
Produce exposed on the platform ready for sale
Post auction Activity
Bid finalization
Sale bill
SMS to Farmer
Payment
Bidding across for the lots available
Highest bidder wins lot
Delivery
E permit

28. UNIQUENESS OF THE KARNATAKA PROJECT
Not a mere computerization effort,
Redesigning of the market structure
More comprehensive
and
all encompassing
Connecting
markets
Breakaway from the traditional IT architecture
Ease of adding markets
and
ease of replication

29. Phases of Implementation
SlNo
Month & Year
No of Markets 1
February, 2014 3 2
July, 2014 4
August, 2014 10
September, 2014 14 5
October, 2014 7 6
November, 2014 8
December, 2014

30. Phases of Implementation
SlNo
Month & Year
No of Markets 1
January, 2015 3 2
March, 2015
April, 2015 4
June, 2015 5
August 19
Total 74

31. List of 74 UMP Markets SL Market Live On 1 Tiptur 22/02/14 19
Turvekere
04/09/14 2
Arasekere 20
Huliyar 3
Chamrajnagar 21
Hosdurga
08/09/14 4
Gadag
09/07/14 22
Sira
09/09/14 5
Chitradurga
17/07/14 23
Bhadravathi 6
Tumkur
28/07/14 24
Bagalkote
15/09/14 7
Bijapur
30/07/14 25
Haveri 8
Challakere
01/08/14 26
Soundatti
18/09/14 9
Hubli 27
Ramdurga
21/09/14 10
Dharwad
08/08/14 28
Siddapura
26/09/14 11
Gubbi
11/08/14 29
Bailahongal 12
Bellary
12/08/14 30
Channagiri
27/09/14 13
Mandya
15/08/14 31
Harapanahalli 14
Raichur
16/08/14 32
Annigere
07/10/14 15
Kottur
21/08/14 33
Haliyal
11/10/14 16
Koppal
22/08/14 34
Hiriyur 17
Mundargi
26/08/14 35
Bhimasamudra
21/10/14 18
Yadgir
01/09/14 36
Manhalingpura

32. List of 74 UMP Markets SL Market Live On 37 Bidar 29/10/14 56 Tarikere
06/08/2015 38
Mysore
31/10/14 57
Bhalki 39
Thirthhalli
01/11/14 58
Kalaghatagi 40
Shimoga
05/11/14 59
Basavakalyan
08/08/2015 41
Yellapura
11/11/14 60
Humanabad
09/08/2015 42
Byadgi
14/11/14 61
Badami
07/08/2015 43
Ranebennur
18/11/14 62
Shiggon
10/08/2015 44
Sagar 63
Talikote
11/08/2015 45
Birur
20/11/14 64
Chintamani 46
Sirsi
25/11/14 65
Hagaribommanahalli 47
Surpur
20/12/14 66
Savanur
12/08/2015 48
Madhugiri
23/12/14 67
Kushtagi
13/08/2015 49
Kadur
08/01/15 68
Lingasugur
17/08/2015 50
Nargund 69
Sedam
21/08/2015 51
Pavgad
10/01/15 70
Shahapur
25/08/2015 52
Gajendragada
21/03/15 71
Santhesaragur
28/08/2015 53
Laxmeshwar
23/04/15 72
Gundlupet
29/08/2015 54
Hosanagar
20/06/2015 73
Kollegal
31/08/2015 55
Kunigal
30/06/2015 74
Belgaum

33. MONTH WISE DETAILS OF TRANSACTIONS IN ALL MARKETS
Number of Lots sold on UMP
Traded quantity in quintals
Value (Rs in Crores)
Feb
726
12048 10
March
1913
31606 27
April
4080
40409 43
May
3938
35918 42
June
2750
33998 44
July
9708
78695 79
Aug
44319
245298
149
Sep
90204
735870
278
Oct
107384
337
Nov
200679
566
Dec
293943
682
Jan
313998
1267
400309
1936
276877
1049
218142
877
140175
1135
91987
629
Total
9151

34. Thanking You