Roundtable Meeting on Reforms in Mandi Act

&

Ease of Doing Business in Agri Marketing

in Uttar Pradesh

“Uttar Pradesh State Agricultural Produce Markets Board, U.P.”

Wednesday, 27 November 2019:

Fairfield by Marriott, Lucknow, Uttar Pradesh

04. Ease of Doing Business

in Agri Marketing in Uttar

Pradesh

01. U.P. in Numbers

03. Reforms in

Mandi Act

01

02

0304

0505. Road ahead

Flow of Presentation

02. Organization

introduction & Objective

U t t a r P r ad es h - K ey h i gh l i gh t s

State capital Lucknow

Geographical area 240,928 sq. km

Population (Census 2011) 199.8 mn

Gross state domestic product (GSDP) ₹ 15.80 lakh crore (US$230 billion) (2019–20 est.)

FDI inflows US$ 686 million (2000 to 2018)

Total National Highway length (kms) 11,737

Rail length (route kms) 9,077

Airports International – Lucknow, Varanasi

Domestic – Agra, Ghaziabad, Panki, Gorakhpur

GDP ₹15.80 lakh crore (US$230 billion)(2019–20 est.

GDP rank 3rd

GDP growth 7% (2018–19 est.)

GDP by sector Agriculture (27%) , Industry (26%) , Services (47%) (2016-17)

Main Industries Cement, Vegetable Oil, Textiles, Cotton Yarn, Sugar, Jute, Locks,

Carpet, Brassware, Glassware, Bangles and Marble Inlay etc.

Cold Storage Capacity 14500773 Metric Tonnes (1St

in Country)

Source: 1- "Uttar Pradesh Budget Analysis 2018-19“ PRS Legislative Research. Retrieved 28 March 2018.

2- Satatistical Department U.P. & Directorate Census, Lucknow

3- http://www.mospi.gov.in/statistical-year-book-india/2017/190

4- https://morth.nic.in/

UP has the longest network of rivers and canals

in India supporting a multitude of agricultural

activities . The state has the largest network of

railways and 2nd largest network of roads in India

Strategic location as Gateway to East India and

Nepal–well-connected through extensive rail/road

network

Uttar Pradesh has favourable agro-climatic

conditions with nine agro-climatic zones

favouring cultivation of a multitude of

agricultural crops, vegetables and fruits round the

year

S t a t e G eo - g r ap h i ca l i n t r od uc t io n ( A gr i cu l t u r e )

NEPAL

DELHI

RAJASTHAN

MADHAY PRADESH

UTTARA KHAND

BIHAR

HARIYANA

HIMANCHAL PRADESH

The state is surrounded by Bihar in the East; Madhya Pradesh in the South; Rajasthan, Delhi, Himachal

Pradesh and Haryana in the West; and Uttarakhand and Nepal in the North.

Uttar Pradesh has 177.21 lakh hectares of cultivable area.

P r o d u c t i on H i gh l i gh t s o f t h e s t a t e

Largest producer of food grains with total production of 51.25 million tonnes 2017-18. Rank 1 in

production of Wheat & Sugarcane; (21% share of total production of the country).

Largest producer of vegetables with a total production 283.16 Million Tonnes (15.4% share of total

production of country)

3rd Largest producer of fruits with total production 10539.77 thousand tonnes (10% share of total

production of country)

Largest producer of Sugarcane in India.

Uttar Pradesh is the largest milk producing state in India contributing around 17% to the total milk

production,

Uttar Pradesh has the largest livestock population (15% of india’s total livestock population) in

India leading to the state being the largest producer of milk in the country.

Uttar Pradesh has 7.35 percent (Quantity wise) share in National Agricultural Exports.

Uttar Pradesh has Largest Numbers of Cold Storages with the capacity of 1,45,00,773 Metric Tonnes.

Source:- 1- Horticultural Statistics at a Glance 2018, Horticulture Statistics Division Department of Agriculture, Cooperation &

Farmers Welfare Ministry of Agriculture & Farmers Welfare Government of India

2- Directorate of Economics and Statistics, Ministry of Agriculture

3- Directorate of Marketing and Inspection (DMI) upto 2009, National Horticulture Board (NHB)

4- UP Export Policy, 2019

The Organisation

UP Agricultural Produce Marketing Board (UPSAMB) Rajya Krishi Utpadan

Mandi Parishad was established in1973 to organize, control and guide various

activities related to Agricultural Marketing through APMCs spread over U P.

Presently there are 251 APMCs spread functioning through built up 220 Principal

Market Yards and 95 built up Sub-Market Yards, established under Uttar Pradesh

Krishi Utpadan Mandi Adhiniyam 1964

Principal Objective of UPSAMB (MANDI PARISHAD)

Offer a regulated platform for farmers and traders to trade in marketable

Agricultural Commodities in a fair and transparent manner.

Facilitate farmers and other stakeholders in handling of agri-produce from

farms to the Market Area.

Creating infrastructural facilities (e.g. pack houses, assaying labs etc.)

Physical Infrastructure

Total Regulated Markets & Sub-Markets 251 & 382

Constructed Market yards 220

Constructed Sub-Market yards 95

Constructed Fruits & Vegetable market yards 72

Constructed Fish market yards 05

Constructed Milk market yards 05

Rural hats 225

Rural Godowns 238

Rural Link Roads 19630 K.M

Farmers Service Center 87

Kisan Bazar 07

Agriculture market hub 1643

RIN (Rural infrastructure Nuclei ) 133

Unified License- To facilitate traders to trade in all APMS,s of U.P. through a single

license.

Online sale-purchase through eNAM

Support in establishment of processing units (backhand/upfront support)

Single point levy

Export Facilitation and promotion

Farmer Help Line-155241

Farme wellfare schemes like Barn fire accident help scheme, personal accident help

and other welfare schemes for all stakeholders.

E-Licence Pranali

Export Policy

We Offer

Total Arrivals & income has been increasing with the time

Arrival & Income

Agriculture Year Total Arrival

( Lac M.T.)

Total Income

( in Crores Rs)

1972-73 37.90 1.92

2018-19 620.75 1821.61

2019-20

(Till oct., 19)

362.19 1103.34

Reforms in Mandi Act

The Statutory Reforms in Agricultural Marketing

THE UTTAR PRADESH KRISHI UTPADAN MANDI ADHINIYAM, 1964 has been

amended in pursuance of the Draft Agricultural Produce and Livestock Marketing

(Promotion & Facilitation) Model Act, 2017 proposed by Government of India. In March,

2018, Uttar Pradesh became the first state in India to march ahead with the most

progressive reforms in the field of Agricultural marketing.

Key Reforms :-

– Provision of establishment of Private Mandis in the state.

– Cold Store / Silo / Warehouse / Other Locations etc. to be declared as Sub Market Yard.

– Freedom of Marketing to the Farmer / Producer .

– Direct marketing (Direct purchase from farmers in proximity of the production area).

– Greater Financial Autonomy to Mandi Samiti.

– Democratization of Mandis

Licensing authority- Director Agricultural Marketing.

For 17 listed cities ( Kanpur, Lucknow, Bareilly, Barabanki, Varanasi, Agra, Lalitpur,

Gorakhpur, Prayagraj, Shahjahanpur, Lakhimpur, Ghaziabad, Meerut, Gautam Buddh

Nagar, Aligarh, Moradabad, Saharanpur) rupees 10 crore investment for providing

infrastructure excluding the cost of land and minimum of 2 hectare of land.

For other district head quarter and other places rupees 5 crore investment and 4 hectare

of land.

License fee for grant or renewal of licence for 3 years

For 17 listed cities rupees 2lacs

For other places rupees 1 lac.

Establishment of Private mandi in the state

The private market yard licensee may collect user charge on the produce transacted

in the private market yard not exceeding as notified by the State Govt. and

contribute one-fourth of it to a separate fund maintained by Director Agriculture

Marketing.

Bank guarantee required ;

For listed 17 cities- 50 lacs.

For other places – 25 lacs.

Private market yard can not established ;

At any place within a radius of 5 km from the existing principal market yard.

And 3 km from the existing sub-market yard or market sub-yard.

Private mandi (Continued)

Now any structure, enclosure, open space, locality, street including

warehouse/silo/cold storage/ packhouse / cleaning, grading & processing unit

can be declared as market sub-yard, having not less than 5000 tons storage

capacity.

Fee for declaration

Rs. 2000 per annun for a minimum period for 3 years.

Rs. 20,000 for 20 years.

Bank guarantee/ security of 5 lacs.

Declaration of market sub-yard

Owner of such structure or places shall get Mandi license and pay mandi fee to

concern mandi samiti.

Apply before Director, Agricultural Marketing.

Benefits

Farmers can sell their produce according to their own selection.

The processor / merchants/ traders can buy the produce at their own premises

instead of Principal market yard or sub market-yard.

Only market fee is payable to mandi samiti.

Market sub-yard (Continued)

Establishment of Collection / aggregation centers in the proximity of the

production area to purchase directly from the farmers.

Licensing authority – Director Agriculture Marketing.

License fee

Rs. 1000 per annun for a minimum period for 3 years.

Rs. 10,000 for 20 years.

Bank guarantee/ security of 1 lacs.

Direct marketing License

No mandi license is required.

Applicant may apply for more than one direct purchase centers in one or

more market areas.

Mandi fee deposited in fund maintained by Board.

Benefits

Farmer’s Cooperatives, FPO, Exporters, processors can purchase directly from

the farmers.

Only mandi fee is payable and no cess.

Middle man may be eliminated thus reduceing the procurement cost.

Farmers can get payment within 72 hours.

Direct Marketing License (Continued)

Ease of Doing Business in

Agri Marketing in

Uttar Pradesh

MANDI PARISHAD towards EASE of DOING BUSINESS

Unified license fee to be Rs 10,000.00 instead of Rs 1,00,000.00

Vide amendments made in Section 9A, and by-laws thereof, the process has

been simplified

– Same license can be upgraded to unified licence and can also be

downgraded to single license.

– If guarantor is not available, the concerned entrepreneur can now submit

FDR equivalent to six months of estimated Mandi fees.

MANDI PARISHAD towards AGRI. INDUSTRIES

Promoting the establishment of industrial and agricultural processing

units

Promoting marketing of specified agricultural production and Under the

Uttar Pradesh Infrastructure and Industrial Investment Policy 2012.

New agro-processing unit , with a cost of plant and machinery of Rs.

five crore or more, will be exempted from the mandi fee (or reduction

therof) for a maximum period of five years, limited to the cost of plant

and machinery.

Uttar Pradesh Agriculture Export Policy 2019

To promote the export of agricultural produce, the Uttar Pradesh

Export Policy, 2019 has been implemented with a view to provide

new framework for promoting agriculture exports, to harness the

potential of exports of agricultural produce and products, and to

substantially augment the income of farmers and other stakeholders.

MANDI PARISHAD towards AGRI. EXPORT

Implementation Framework UPAEP 2019

Strengthening Institutional Mechanism:

State level Agriculture

Export Monitoring Committee

Nodal Agency Directorate of Agriculture

Marketing and Agriculture Foreign Trade,

UP

Divisional level Agriculture Export

Monitoring committee

District level Cluster

Facilitation Cell

Nodal Department

Department of Agriculture Marketing

and Agriculture Foreign Trade, UP State level Sectoral

Departments

Brand Promotion and Transportation Subsidy for Marketing and Export of

o Mangoes under the brand name of ‘Nawab’ (Nawab Brand Mango Export Promotion

Policy, 2018)

o Potatoes under the brand name of ‘Taj’ (Potato Export Promotion Policy, 2018).

MANDI PARISHAD towards AGRI. EXPORT & BUSINESS

Brand promotion Subsidy payable on mango

exports produced in U.P.

(Rs.Per kg)

Transport freight Subsidy payable on

mango exports produced in U.P.

(Rs. Per kg)

TO EXPORTER

TO PRODUCER TO EXPORTER BY AIR / SEA

ROUTE

BY ROAD

TRANSPORT

6.00 10.00 15.00 7.50

On the export of potato

produced in Uttar

Pradesh by road

In case of export of potato by water route

Road transport freight Rs.

1.00 per kg or 25% of the

actual fare whichever is less.

Rs 0.50 per kg as road transport freight subsidy to the nearest port or 25

per cent of the actual fare whichever is less and additional as water

transport freight assistance: -

1.Rs. 1.50 per kg for Asian or Middle East countries.

2. Rs. 2.50 per kg for Europe, America, Latin America, Africa, Australia.

Exemptions of Mandi fee and development cess levied on export of

o Mentha Export Policy 2018 (Exemption from 1% mandi fees and 0.5% development Cess)

o Rice Export Promotion Scheme 2017-22 (Exemption from 2% mandi fees and 0.5% development

Cess)

o U.P. Processed Sesame export policy, 2017-22 (Exemption from 2% mandi fees and 0.5%

development Cess)

Brand Promotion & Export Transportation Subsidy on

o Garlic (Subsidy of Rs. 1 per Kg for Foreign export & Rs. 0.25 per kg. for Marketing to other states)

o Potato Transportation Subsidy & promotion scheme (Subsidy of 50 Rs. Per Qt.)

o Kala Namak Rice (Subsidy of Rs. 0.50 per kg for Brand Promotion & Rs. 2.0 per kg for Export

Transportation )

Export Promotion Incentive Scheme, 2018 has been launched to promote new agricultural export

entrepreneurs.

Mandi Fees Compounding Schemes For GUDH & KHANDSARI Units

MANDI PARISHAD towards AGRI EXPORT & BUSINESS

MANDI towards

TRANSPARENT SYSTEM AND TRANSACTIONS

E-nam for unified national market for trading

In line with future of the technology, UPSAMB has integrated 100 of its biggest

Mandis in the Govt. of India’s sponsored National Agriculture Marketing Network popularly

known as e-NAM. Apart from this, 25 other APMCs are being linked with e-NAM.

E-mandi

Mandi Parishad Converts all 251 APMC in E-mandi under the concept of-

• Virtual Platform supported/linked by physical mandi

• Integrated online system for all business activities

• Web based /mobile app based system (daily rate registration)

• Linked with other online services like BANK through Secured and Robust

Gateway

In APMC’s For the convenience of farmer and traders registration E-licence

process has been implemented.

Under BGREI Scheme the Storage capacity has been augmented at 4 places and 7 more

projects have been initiated

Partnership is being done with State Ware Housing Corporation for development of 5000

MT to 10000 MT Godowns in about 40 APMC Market Yards

UPSAMPB has established Mango Pack Houses (Lucknow & Saharanpur) in which

series of activities from mango sorting to cleaning, washing, grading and packing after

processing with the help of computerised machines (Grading Line, Pre Cold Room, V.H.T.

Plant Hot Water Dip Immigration Treatment etc. of E.U. standard) (We invite interests of

private players in it)

There are various schemes aimed at providing critical support to Farmers in case of

accidents and emergencies and in case of damages to crops. Similarly, there are welfare

schemes for traders also in case of an accident.

MANDI PARISHAD Marching Ahead

1. Creation of

Private markets

Consumer-to-farmer

Markets of national importance (MNI)

Special commodity markets

Concept of market-sub yard at warehouse/cold storage/silos

Direct marketing (Direct interface between farmers & processors/exporters/ bulk

buyers/ end users)

2. Strengthening the Present act

One nation one market

Liberalisation

Emphasis to Promotion and Facilitation

Value addition in Agri produce

Creation of Marketing Infra Backbone

Local-Meet-Global & Global-Meet-Local

Road ahead

Thank You"State Agricultural Produce Markets Board, Uttar Pradesh"

Kisan Mandi Bhawan, Vibhuti Khand, Gomti Nagar, Lucknow - 226010

E-mail : dirmandi@gmail.com

hone : 0522 - 2720383, 2720384, 2720405

Fax : 0522 – 2720382

For Any Query ContactName Designation Contact Number

Amit Mohan Prasad

(IAS)

Principal Secretary,

Agriculture Marketing And Agriculture

foreign trade, Govt of UP

0522-2237617

Arvind Kumar Singh

(IAS)

Director,

Directorate of Agriculture Marketing &

Agriculture Foreign Trade U.P.

0522-2720326,

6306693068

Jitendra Pratap Singh

(IAS)

Director,

Mandi Parishad, Uttar Pradesh

0522-2720381,

9670998822,

8765957000

Kumar Vineet (PCS) Additional Director,

Mandi Parishad, Uttar Pradesh

0522-2720387,

9415074322,

8765956777