REPORT OF THE INTER-MINISTERIAL TASK FORCE
ON AGRICULTURAL MARKETING REFORMS PRESENTED
The Inter-Ministerial Task Force on Agricultural
Marketing Reforms today presented its Report to the Union Agriculture
Minister, Shri Ajit Singh outlining several measures for strengthening
agricultural marketing system in the country.
The Task Force suggested that the marketing system
in the country needs to be revitalised to benefit the farming
community from the new global market access opportunities, to
foster true competition among the market players and to enhance
the share of farmers in the ultimate price of his agricultural
produce. It has recommended several legislative reforms in the
State Agriculture Produce Marketing Regulation Act (APMC Act)
and the Essential Commodities Act (EC Act), to remove restrictive
provisions impeding development of an efficient and competitive
marketing system, for promotion of direct marketing, for encouraging
contract farming and for rationalisation of market fee/tax structure.
It also suggested Deregulation of the marketing system to promote
investment in market infrastructure, motivating corporate sector
to undertake direct marketing and to facilitate a national integrated
market.
The Task Force has identified appropriate legal changes
for introduction of a negotiable warehousing receipt system for
agricultural commodities with a view to enhancing institutional
lending to the agricultural marketing sector. To help farmers
avoid distress sales immediately after the harvest, the Task Force
has recommended to substantially step up pledge financing to a
level of Rs.7,000 crore by the year 2007 from the present level
of Rs.1200 crores. In respect of high value crops, it recommended
raising the ceiling of pledge loan from the existing Rs.1 lakh
to Rs.5 lakh against pledge/hypothecation to a farmer.
The report has also recommended amendment to the
Forward Contract (Regulation) Act, 1952 to allow futures trading
in all agricultural commodities to improve price risk management
and facilitate price discovery to enable farmers to decide on
a profitable cropping pattern. Alongside development of competitive
trade in major agricultural commodities, the Task Force has also
recommended that an ‘Income Support Programme’ for the farmers
to protect their income.
The Task Force has recommended extensive promotion
of information technology in agricultural marketing sector to
provide market-led extension services to farmers and other market
functionaries and to create facility of electronic trading to
enable producers to directly transact business with distant buyers.
The Task Force has estimated an investment requirement
of Rs.12230 crores for the development of marketing, storage and
cold storage infrastructure in the country during the X Plan Period.
The Task Force has recommended setting up of a Committee to monitor
implementation of its recommendations in a time bound manner to
ensure that agricultural markets in the country achieve nationwide
integration in the shortest possible period.
Earlier, An Expert Committee in its report had suggested
a number of legislative reforms as well as reorientation of policies
and programmes handled by various Ministries and Departments of
the Central and State Governments for development and strengthening
of agricultural marketing in the country. As a follow up, the
Government decided to constitute the Inter-Ministerial Task Force
to examine the recommendations and suggest measures for implementing
them in an effective manner. The Task Force was constituted on
4th July, 2001 under the Chairmanship of Shri R.C.A.
Jain, Additional Secretary of the Central Department of Agriculture
and Cooperation. It had representatives from various Ministries
and Departments of the Government of India such as Consumer Affairs,
Legal Affairs, Animal Husbandry and Dairying, Food & Public
Distribution, Food Processing Industries, Planning Commission,
Finance and Commerce. Institutions like RBI, NABARD and NDDB were
also represented in the Task Force.
Receiving the report, Shri Ajit Singh said that as
per the latest estimate, Agriculture Sector has shown a growth
rate of over 6% during 2001-02. He said that India has not only
achieved spectacular growth in case of food grains but it has
also achieved good growth in case of horticultural produce. Terming
the submission of the report as timely, Shri Singh said that the
Centre would soon call a meeting of the Agriculture Ministers
of States/UTs to deliberate on these recommendations and for their
early implementation. He said that India has become an Agricultural
power and the developed countries at the World Food Summit recently
have acknowledged this fact. He said that Government will create
favourable conditions for easy marketing of agricultural produce
inside and outside the country.
