1 Linking farmers with market integrating APMCs – sharing experiencesDibakar Mukhopadhyay, IAS. Chief Executive Officer, West Bengal State Agricultural Board and Additional Secretary to the Govt. of West Bengal, Dept. of Agricultural Marketing
2 WEST BENGAL AT A GLANCE West Bengal is situated in eastern India and shares its borders with Sikkim, Assam, Bihar Jharkhand, and Odisha. Geographical area (sq km): 88,752 Administrative districts (No): 19 Population density (persons per sq km): 1,028 Total population (million): 91.3 Literacy rate (%) 77.1
3 WEST BENGAL–AGRICULTURE AND ALLIED SECTORAgriculture contributes 18.8 per cent to the state’s GSDP in Rice, potato, jute, sugarcane and wheat are the top five crops of the state. The state is the largest producer of rice, jute, fish & shrimp and second largest producer of potato, Litchi & Tea in India. (WBIDC site) The state produces around 18.2% vegetables of India with 15.9% share in area. The vegetable production in the state has increased sharply from 4.68 M.Tons in to 18.1 M.Tons in and further increased to M.Tons during (NHB Database 2015) Area coverage in vegetable has increased from 4.6 L.Ha to L.Ha and further to 13.8 L. Ha during this time. (NHB Database 2015) During the same time, vegetable productivity has been increased from T/Ha to 15.9 T/Ha and further to 16.7 T/Ha. (NHB Database 2015) The State ranks first in Production Share as well as Area share among the leading vegetables producing states of India in the FY The State accounts for 30% of potatoes, 27% of pineapples, 12% of bananas and 16% of India’s rice production (WBIDC site)
4 WEST BENGAL–AGRICULTURE AND ALLIED SECTOR CONTD...West Bengal is the country’s leading exporter of flowers, floricultural items, Potato, Fruits & vegetable seeds and non-basmati rice. The state ranked 1st in production of cut flowers and 3rd in area of flower production in India in the F.Y There is good potential for exporting flowers like, tuberose and rose, gladiolus and gerbera to Holland, Middle East, the UK and Japan. state has the country’s largest brackish-water resources for shrimp farming and has been a leading exporter of shrimps from India. West Bengal is the second-largest tea growing state in India Darjeeling tea has a Geographical Indication (GI) status that is recognised globally West Bengal ranks 1st in total meat production (including poultry) in the country. (WBIDC site)
5 WEST BENGAL PRODUCTION STATUSSurplus Paddy Rice Potato Jute Vegetables Cut Flowers Deficit Pulses & Oilseed (~75%) Maize (~95%) Seed (~95%) Fish (~45%)
6 WEST BENGAL–AGRICULTURAL MARKETINGMarketing system of Agricultural produces in West Bengal is pyramidal in structure with four tires. Village markets / Farm Gates are in the bottom most tire, primary /feeder sub- markets are at second phase, secondary wholesale markets are at third phase while terminal markets are at the apex. (Annex 2) Most of the hats/markets are smaller in nature There is no clear-cut demarcation of the Primary and Secondary wholesale markets in Bengal. Rather it is commodity specific. For some commodity, the same primary market becomes secondary market.
7 WEST BENGAL–AGRICULTURAL MARKETING CONTD...Land distribution is very less due to huge Land Reforms: almost 92-95% small and marginal farmers--- leads to lesser bargaining power for individual farmers. Small cultivators with their lesser produce also do not consider it economic to travel along distance to go to Hat for selling their produces by incurring a sizable amount of transportation cost. More than 50% of the farmers sell their produces at their village / farm gate level Higher the land holding size, higher the share of farmers selling their produces at 2/more different places. 41 Regulated Market Committees (RMC) have been dissolved and 18 Zillla RMCs have been formed on and from Presently there are 18 Zilla RMCs plus 2 RMC (Siliguri and Kalimpong). Presently the Zilla RMCs are functioning under the Chairmanship of Dist. Magistrates of respective districts. Krishak Bazars have been declared as SMY of Zilla RMC
8 Krishak Bazars in West Bengal : Public Investment InitiativeWest Bengal: steps by govt. for linking farmers with market contd… Krishak Bazars in West Bengal : Public Investment Initiative Total 186 Numbers of KB- Construction by WBSAMB Source of Fund: RKVY, RIDF 164 no of KBs have been handed over to respective Zilla RMCS Construction of total 165 KBs have been completed Approved Cost Involvement: 1016 Cr. Activity started In 164 KBs
9 COMPONENTS OF KRISHAK BAZARAdministrative Block Kishan Rest Centre Auction Bay Retail Bazar
10 KRISHAK BAZARS IN OPERATIONDaily Haat at Falakata KB Daily Haat at Sitalkuchi KB Paddy Procurement at Nalhati KB Structure of Gaighata Krishak Bazar
11 PRODUCERS' SHARE IN CONSUMER PRICEVaries from 26-44% for Brinjal, Vindi and Tomato in 3 major vegetable producing districts of the State Around 66% of Marketing cost for Brinjal and 68% for Vindi is distributed between trader and wholesaler of the produce. (Operational area: 24 Parganas (N), 24 Parganas (S) and East Midnapur districts) (Annex 3) Item Brinjal Vindi Tomato Producers’ Price (P.P) [Rs/Q] 900 600 500 Net Producers’ Price (N.P.P) [Rs/Q] 820 530 410 Consumers’ price (C.P)[Rs/Q] 1855 1450 1555 producers’ share in consumers price (%) [N.P.P/C.P*100] 44 37 26
12 MARKETING CHANNELS Intermediary dominated channels: almost 90%Market Channels for Brinjal & Vindi Presence in the Market (%) Producer – Middleman(Assembler) – Wholesaler – Retailer - Consumer 55 Producer –Middleman(Assembler) –Retailer – Consumer 20 Producer –Retailer – Consumer 10 Producer – commission agents – supermarket - consumer 3 Producer – Middleman(Assembler) – Wholesaler – Middleman – Retailer - Consumer 12 Market Channels for Tomato Presence in the Market (%) Producer - Middleman- Wholesale market - Commission agent- Retailer – Consumer 13 (increases >80% in winter) Outside state market-Wholesale market - Commission agent – Middleman- Retailer – Consumer 79* (Summer) Outside state market -Wholesale market – Commission agent – Retailer – Consumer 7 Producer – Consumer 1 Intermediary dominated channels: almost 90% Direct marketing channel: maximum 13%
13 DISTRIBUTION OF MARKETING COST
14 VIEW OF THE STATE Eliminate the middlemen by shortening the intermediary rich marketing channel – reversing the existing scenario. Arrange facilities for the farmers to sell their produce directly to the consumers at reasonable rates fixed every day. Increasing Marketing Efficiency of agricultural produce thereby enhancing producers’ share in consumer price. Exemption of Market Fee for the perishables agricultural commodities including potato and poultry feed. Introduction of Direct Marketing concept for benefit of the producers as well as consumers – e.g. Sufal Bangla
15 West Bengal: steps by govt. for linking farmers with market contd…Sufal Bangla Direct Marketing initiative by the State Govt. Govt. is providing infrastructures in the form of building, ventilated/refrigerated vehicles Integrating 3 major Agri & Agri-allied departments viz: Agril. Marketing, Animal Resources Development and Fisheries Dept. into one umbrella Operationalization by involving FPOs/FPCs (supported by SFAC) selected through EOI Daily procurement price & retail selling prices of agril commodities is announced for the next day in the Website FPOs/FPCs are providing manpower, fund for procurement Submitting a percentage of daily sale proceed to Sufal Bangla 11 no. of Static Stalls and 19 no of Mobile stalls are now in place
16 WEST BENGAL: STEPS BY GOVT. FOR LINKING FARMERS WITH MARKETSchemes: Amar Fasal Amar Gari: Providing one time financial assistance (OTA) to the small and marginal farmers, Farmers’ Interest groups, Self-Help-Groups etc for purchasing a combination of one Van Rickshaw or Vending Cart and 6 nos perforated poly crates with a view to minimizing post harvest losses and facilitating transportation of agricultural produces from Farm to Market. The amount of OTA is Rs 10,000/-. The OTA amount is being disbursed directly in the Bank A/c of selected Beneficiaries. Total 3000 beneficiaries have been benefited through this scheme in last F,Y year and around 4000 has been planned for this F.Y Source of fund: State Budget & RKVY
17 WEST BENGAL: STEPS BY GOVT. FOR LINKING FARMERS WITH MARKET CONTD…Schemes Amar Fasal Amar Gola Through this scheme, one time financial assistance (OTA) has been provided to the small and marginal farmers, Farmers’ Interest groups, Self-Help-Groups etc. to help them preserve their produces for a longer period and avoid distress sale. At present, subsidies are being extended for construction of traditional, Improved and onion Storage Structures. Subsidy amount for 3 types of storages are Rs /- (For Traditional Storage), Rs 12000/- (For Community Storage) and Rs 25000/- (For Onion Storage) respectively. The OTA amount has been disbursed directly in the Bank A/c of selected Beneficiaries Total 9228 beneficiaries have been benefited through this scheme in last F.Y year and beneficiaries has been targeted for this F.Y Source of fund: State Budget & RKVY Traditional Storage Community Storage Onion Storage
18 WEST BENGAL: STEPS BY GOVT. FOR LINKING FARMERS WITH MARKET CONTD…Schemes Amar Dhan Amar Chatal Distribution of Household Level Paddy Processing Unit (HPPU) to selected beneficiaries. Comp 1: Farm level Paddy Processing yards for sun drying of Parboiled paddy. OTA Rs /- per unit. Comp 2: Manually operated Grain Dryer with paddy husk and other bio mass as fuel, OTA Rs. 8000/- per unit. Comp 3: Improved low cost paddy and grain storage structures with concrete brick base. OTA Rs. 5000/- per unit. The OTA amount has been disbursed directly in the Bank A/c of selected Beneficiaries More than benefits have been provided through this scheme in last F.Y and another benefits has been planned for this Financial Year. Source of fund: BGREI Component 3 Component 1 Component 2
19 WEST BENGAL: STEPS BY GOVT. FOR LINKING FARMERS WITH MARKET CONTD…Schemes: Marketing Infrastructure Development: a. Development of Farm to Market link roads b. Development of Rural and Primary Markets c. Development of Regulated Markets Total 400 no. of schemes have been implemented in the F.Y Executed by Zilla RMCs Fund source: RKVY, State Budget, own fund etc
20 West Bengal: steps by govt. for linking farmers with market contd…Formation of FPO/FPC More than 50 FPCs have been formed by the Dept. of Agril. Marketing in association with SFAC. Trainings are being conducted for the FPO/FPCs by WBSAMB at its Training Institute (NSTIAM, Baidyabati) on “Post Harvest Management” throughout the year. Total 102 participants from 6 FPCs has been trained so far in this F.Y. FPCs are being engaged by the Dept. of Agril Marketing for several market oriented activities like: Monitoring implementation of several departmental schemes Participating different agri-fairs throughout the State and representing the Dept. Operation of Sufal Bangla Stalls etc.
21 APPLICATION FOR E-NAM INTEGRATIONPresent Status Electronic Trading of Agri-produces and Direct Marketing: Modification / amendment of WBAPM (regulation) Act, 1972 – already done in the amended act-2014. Proposals for three reforms, namely: (i) a single licence to be valid across the state, (ii) single point levy of market fee, and (iii) provision for electronic auction as a mode for price discovery--- already been under active consideration of the W.B Legislative Assembly. Development of a State level / National level e-marketing platform either by the state or by NAM respectively. 17 nos. markets from 14 nos. districts of the State have already applied to be integrated with e-NAM Major crop coverage: Paddy, Jute and Vegetables.
22 APPLICATION FOR E-NAM INTEGRATIONFuture Scope Integration of more markets dealing with: Flowers, Meat, Fish, Tea, Betlevine Assaying and Grading units in all Krishak Bazars Development of Organic Hat with required certification laboratory under one umbrella
23 Thank you West Bengal State Agricultural Marketing BoardKamal Guha Krishi Bipanan Bhavan 729, Anandapur, P.S: Tiljala Kolkata Phone: (033) / / / Fax (033)