Agricultural Marketing Reforms

on lines of Model Act in
The Maharashtra Agricultural Produce Marketing (Regulation) Act 1963

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Direct marketing. Private markets. Farmer-Consumer Markets. Contract farming. Special Commodity Markets Single License System APMC Secretary Panel
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Amendment - 2003
Provision for establishment of National Integrated Produce Market.

Amendments - 2005
License for Direct marketing, Establishment of Private Markets & Farmer Consumer Markets for
a) b) c) d) processing of Agriculture Produce trade of Agriculture Produce of particular specifications export of Agriculture Produce grading, packing and transaction in any other way by value addition of the Agriculture produce
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Notification 4th June 2007
Direct Marketing (Rule 4b)
• • • • • Application in Form A for obtaining license Details of collection centers in Form B License fee Rs.50,000/- for operating area of whole state License fee of Rs.10, 000/- for operating area of one division Application for license may be refused for the following reasons  the applicant is minor  the applicant is an insolvent  Any other sufficient reason to be specified in writing
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Private Markets (Rule 4c)
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Application in Form AA for obtaining license No permission for establishment of Private Markets in market area of APMC Mumbai No permission for establishment of Private Markets in the radius of 10 kms from the area of existing market committee in district place with Municipal Corporation and in the radius of 5 kms in case of any other place. Minimum requirement of 10 acres of land on ownership or leasehold basis (30 years) in case of district place & Municipal corporation & 5 acres in case of any other places. Minimum requirement of infrastructure investment, including land, of Rs.5 crores in case of district place with municipal corporation & Rs.2 crores for any 4 other place.

License fee of Rs.50,000/- for private markets in district place with Municipal Corporation & Rs.25,000/- for private markets in any other place. Bank Guarantee of Rs.20 lacs for private markets in district place with Municipal Corporation & Bank Guarantee of Rs.5 lacs for Private markets in any other place.

Commodity Exchange – Private Market
Application for license for establishment of Commodity Exchange Registration with Forward Market commission Necessary

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Farmer Consumer Market Rule (4d)
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Application in Form AA for obtaining license No permission for establishment of Farmer Consumer Market in the market area of APMC Mumbai. Minimum requirement of 1 acre land on ownership or lease hold basis (30 years) Minimum requirement of investment in infrastructure including land of rupees 10 lacs. License fee of rupees 10 thousand. Bank guarantee of rupees 1 lac. No permission for sale of more than 10 kg perishable agricultural produce & more than 50 kg of non perishable agricultural produce by one farmer

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Amendment 2006
Contract Farming

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Contract Farming Sponsor shall apply for registration in FORM G to DDR. Registration fee is rupees 500. DDR to dispose of application within 60 days. Prohibition for creation of right, title, interest or ownership in the land under Contract Farming Agreement. Prohibition for sale of land under contract farming agreement by sponsor.
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Contact Farming Agreement
- Agreement in FORM I - Liberty to mutually decide the terms & conditions of the agreement - Terms & Conditions shall not be contrary to the provisions of act & rules. - Minimum period of agreement shall be for one crop season & max period shall not be more than 3 years. - Agreement Shall be exclusively for the purchase of agricultural produce only - Sponsor to submit the original copy of agreement to DDR - Dispute arising out of agreement to be referred to DDR - DDR to give decision within 30 days - Appeal to DJR within 30 days - Agreement shall not be entitled to be called in question in8 any court of law.

Terms & Conditions of Model Agreement

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Name, Address & date of registration of sponsor should be maintained with DDR. Name, Address of producer along with details of Gat No. & area in Ha. Specifications regarding item, quality, quantity & price of produce should be laid down. The date of delivery of the produce should be laid down. Agri. Produce to be supplied as per agreed quality standards. Refusal to take delivery of the produce by sponsorer only on the ground that it is not as per agreed quality standards. Producer can mutually negotiate price & sell to same sponsorer OR sell the produce in open market & pay proportionally less amount to the sponsorer for his investment, if sold at less price OR sell in the market yard & pay proportionally less amount to the sponsorer for his investment. Producer to adopt all instructions & practices as suggested by the sponsor. Terms of purchase to be laid down i.e. date, delivery point & cost of 9 delivery.

Terms & Conditions of Model Agreement

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On failure to take delivery of produce by sponsor, producer may sell the produce in open market or market yard and pay proportionally less amount to the sponsorer for his investment Quality maintenance in transit is responsibility of sponsor. Terms of payment should be laid down i.e. date, Mode of payment, place of payment. Insurance clause must be laid down. Services given by sponsor should be laid down Specific mention that no rights whatsoever as to the title, ownership, position, alienation of the land nor mortgage, lease, sublease or transfer of land is allowed during continuation of agreement. Dissolution, termination or cancellation to be with consent of both parties & to be communicatd to DDR within 15 days. In event of any dispute, it is to be referred to DDR. 10 Appeal with Divisional Joint Registrar.