Himachal Pradesh
MARKET INTERVENTION TO ENSURE
REMUNNERATIVE PRICES
National conference on Agriculture for Kharif
campaign 26-27th February, 2014.
INTRODUCTION
• Agriculture sector provides direct employment to about
69% of the main working population in the State.
Contribution from the Agriculture and allied sectors
account for nearly 20% of the total state domestic
product. Agriculture sector has experienced spectacular
development due to progressive policy of Government
and the adoption of improved/scientific production
technology by the farmers. There was a great increase
in the marketable surplus. Consequently the farmers
were not getting remunerative price for their produce.
For this purpose market intervention is essential to
ensure the remunerative prices.
•
Today, Himachal Pradesh has emerged as an
important fruit & vegetables growing State in the
country. The state is providing excellent quality of
temperate fruits like apple, pear, stone fruits, nuts,
etc. and sub-tropical fruits like mango, litchi,
guava, citrus fruits etc. new fruits crops like-kiwi,
strawberry, olive, hazelnuts etc. have been
introduced in recent years, Besides flowers,
vegetables, mushrooms, hops, honey, tea,
medicinal and aromatic plants etc. are also being
grown in the state.
•
The Agro climatically the state is divided
in to four zone.
AGRO CLIMATIC ZONE OF THE STATE
Name of zone
Elevation in %
meters above Geographically
Sea level
area
%
Major Crops grown
Cultivate
d area
SHIWALIK
350-650
HILL ZONE
(SubTropical,
Sub mountain
and low hills)
35%
40%
Wheat. Maize, Paddy,
Black,
Gram,
Sugarcane, Mustard,
Potato,
Vegetables,
Pulses etc.
MID HILL
ZONE (Sub
humid Mid
hills)
32%
37%
Wheat, Maize, Barley,
Black Gram, Beans
and Paddy Pulses and
Forages ,off season
vegetables,
Ginger,
seed production of
cauliflower & root
crops
651-1800
Name
zone
of Elevation
%
%
in meters Geographic Cultivated
above Sea ally area
area
level
HIGH HILL
ZONE (Wet
Temperate
High hills)
1801-2200
35%
COLD DRY
ZONE (Dry
Temperate
High Hills)
About 2200 8%
Major Crops grown
21%
Wheat,
Barley,
Lesser,
Millets,
Pseudo-cereals
(Buckwheat
and
Amaranthus), Maize, Rice
and Potato etc.
2%
Wheat, Barley, Rajmash,
Pseudo
cereals
like
Buckwheat and Amaranthus.
It is ideally suited to the
production of quality seed
potato,
temperate
and
European type of vegetables
and their seeds, seed potato
and peas seed.
• In zone, III & IV farmers are growing off
season vegetables which are marketed in the
within state and adjoining plains of the
country. The present status of area, production
of vegetables and fruits marketable surplus is
as under:
Vegetable production
• Vegetable production has increased form
25000 M tonnes during 1951-52 to 5,30,000
tonnes during 1966-67 & 12.68 lac tonnes
during 2010-11. It further increased during
2010-11-12 to 13,56,600 MT Major vegetables
include Peas, French bean, Cauliflower, Root
Crops, Potato, Cucurbits, Onion, Garlic,
Capsicum, Tomato, Cauliflower, Cabbage, etc.
Area and production of different vegetables in
the state is as under:
CROP-WISE VEGETABLE PRODUCTION:
Crop
2010-11
2011-12
2012-13
Area
(Hac.)
Production
(M.T)
Area
(Hac.)
Production
(M.T)
Area
(Hac.)
Production
(M.T)
Tomato
9944
388426
9870
392061
9930
413709
Peas
22823
254177
23672
274032
23668
280231
Cabbage
4513
144233
4349
141087
4387
149671
Cauliflower 3002
60701
4180
91640
4351
101710
Beans
3013
35789
3295
39157
3436
40879
Capsicum
2136
32092
2027
31670
2072
34132
Other
vegetables
19644
353479
20575
969647
21021
377716
Total
65075
1268897
67968
1356600
68865
1398048
FRUIT PRODUCTION .
• The agro-climatic conditions of Himachal Pradesh are
extremely suitable for growing different varieties of
fruits. Apple is the most important amongst all. The
peak marketing season for apple is August to
September year. During 2001, the apple production was
2, 75,036 MT alone out of total fruit production of
3.72823 MT Apart from this, there is vast potential of
growing other temperate fruits. The area under fruits
was 792 hac in 1950-51 with total production of 1200
tonnes which has increased drastically to 2.08 Lac hac.
With total fruit production of 10.27 lac M tonnes during
2010.
AREA AND PRODUCTION OF FRUIT
CROPS
Crop
2010-11
2011-12
2012-13
Area
(Hac.)
Productio
n (M.T)
Area
(Hac.)
Productio
n (M.T)
Area
(Hac.)
Productio
n (M.T)
Apple
101485
892112
103644
275036
106440
412395
Pears
7370
32075
7333
11760
7283
25212
Peach
5182
9527
5181
5101
5159
11276
Mango
39194
31463
39568
28972
39828
50001
Orange
8621
17849
8554
13889
8609
13214
Others
49443
44795
50294
38065
50984
Total
211295
1027821
214574
372823
218303
555708
THE MARKETABLE SURPLUS OF
VEGETABLES
Vegetable
Marketable surplus (%)
Annually
revenue
generated through export
Peas
93
600-800 Crores
Tomato
95
Beans
94
Cabbage
93
Cauliflower
95
Capsicum
93
THE MARKETABLE SURPLUS OF FRUIT
CROPS ( OUT OF STATE) (In boxes of 20 kg each)
Sr.No.
Name of the
Market
2011-12
2012-13
2013-14
1
Delhi
7401199
10745396
20211474
2
Chandigarh
3737729
5956535
9740069
3
Kalka
9901
14844
23270
4
Ludhiana
81865
122471
199455
5
Jalandhar
12377
18556
33243
6
Amritsar
9901
14845
26594
7
Luck now
34654
51957
93079
8
Ambala
12377
18556
33243
9
Moga
20421
30618
54850
10
Kolkata
49506
74225
132970
Sr.No.
Name of the
Market
2011-12
2012-13
2013-14
11
Mumbai
152232
228241
408883
12
Chennai
60645
90925
152916
13
Ahmadabad
43318
64947
116349
14
Agra
40843
61235
109700
15
Saharanpur
33417
50102
89755
16
Karnal
12377
18556
33243
17
Other markets
664003
963066
1725289
Total
1,23,76,587
1,85,57,549
3,32,42,556
THE MARKETABLE SURPLUS OF
COMMERCIAL CROPS
OTHER
.
Name of crop
Area
Production
Marketing
seasons
Major Distract Of
marketable
surplus
Maize
3 Lac hectare
7.6 lac
tonne
1st Spt. 15
Nov.
Mandi,
Bilaspur,
Kangra and Kullu
Potato
14000 hectare
1.55 lac
tonne
AprilOctober, JuneOctober Sept.
December
Shimla,
Kangra,
Kinnaur, Chamba,
Lahul Spiti and
Sirmour
Ginger
2270 hectare
25500
tonnes
Sept. December
Sirmour,
Solan,
Bilaspur and Shimla
Garlic
3339 hectare
44733
tonnes
April-June
Kullu, Mandi,
Sirmour and Kangra
MARKETING SEASON OF MAJOR CROPS
S.No.
Name of
the crop
Marketing Season
APMC
1
Wheat
1st April-15th June
Sirmaur, Kangra, Una
2
Paddy
1st Oct.-30th Nov.
Sirmour, Mandi, Solan, Kangra,
Chamba
3
Maize
1st Sept.-15th Nov.
Solan, Mandi, Kangra, Una, Hamirpur
4
Garlic
15th April-30th June
Solan, Kullu
5
Ginger
1st Oct.-15th January Sirmaur
6
Tomato
20th June-15th Oct.
Solan, Shimla & Kinnaur, Kullu &
Lahaul-Spiti, Mandi
S.N
o.
Name of the crop
Marketing Season
APMC
7
Apple
1st July-30th Oct.
Shimla & Kinnaur, Kullu &
lahaul-Spiti,
Mandi,
Chamba
8
Off-Season Vegetables 1st April-30th June
(Cabbage, Cauliflower,
Broccoli,
Beans,
Capsicum, etc.
9
Peas (Off-Season
1st April-30th June
Kullu & Lahaul-Spiti
10
Potato
1st Sept.-15th Nov.
Shimla & Kinnaur, Sirmaur,
Kangra, Chamba
11
Cabbage
1st Feb.-31st March
Mandi, Kangra
Shimla & Kinnaur, Kullu &
Lahaul-Spiti, Solan
ARRIVALs OF FRUITS AND VEGETABLES
IN APMCS
Year
Vegetables in Qtls
Fruits in Qtls.
2010-11
1787973
2005004
2011-12
2418056
1185784
2012-13
2332238
2144344
2013-14
---
Apples-1,29,75392 Boxes
(size 20/kg. Each)
(259507 M.T.)
PRESENT STATUES OF MARKETING
INFRASTRUCTURE
• The H.P. State Agriculture Marketing Board
has setup 54 market yards at various places in
the state it is plan to expand the mostly
infrastructure as per the requirement and
availability of sources.
APMC’S AND MARKET SUB YARDS
Sr.No.
|Name of the APMC
Principal Market
Yard
No. Of Sub-Market
Yards
1
Shimla & Kinnaur
Shimla
8
2
Hamirpur
Hamirpur (Dosarka)
2
3
Chamba
Chamba (Balupul)
--
4
Bilaspur
Bilaspur
1
5
Kullu & Lahaul Spiti
Kullu
6
6
Mandi
Mandi (Kangni)
5
7
Kangra
Kangra
7
8
Paonta-Sahib
Paonta Sahib
6
9
Solan
Solan
8
10
Una
Una
1
Total
10 Nos
44
MARKET INTERVENTION
•
In order to ensure remunerative price
for the major agricultural produce the market
intervention activities divided into three
categories.
• 1. Farmer level
• 2. APMCs level
• 3. Govt. level (State/Central sponsored
Scheme)
FARMER
LEVEL
• The producer is the main contributor of every situation.
His participation is expected to make up a whole
intervention. He has to keep all the factors in mind
before the production. The following steps may help
him.
• Focus on day to day market information.
• Short/long terms planning of produce as per demand.
• Adoption of Scientific Cultivation Technique helps to
reduce the cost of production.
• Use of post harvest technology .
• Focus on grading and value addition packing.
APMCs level
• The farmer along with the return some times faces the
problem of surplus production and he does not get
sufficient pay for work. APMC becomes involved in
that situation to improve or control it. . The points
which are given may be valuable as further remarks.
These factors may make the way easy. I these points are
considered seriously we can not only ensure the farmers
but can also gain his lost determination and confidence.
In future the following plans are designed to achieve a
long term aim or purpose. The mutual understanding
will pave the way for the farmer. Finally with this
collaboration and putting our full capacity in action will
provide way and the fruitful results may be found.
• Strengthening of marketing infrastructure
In production areas through involvement of
Agricultural Produce Market Committees, Cooperative, Small farmers groups in clusters and
Private Sector will not only help farmers to get
income through greater participation in a more
efficient rural market & inclusive growth but
provide further impact for diversification and
bring more employment and prosperity in rural
areas of Himachal Pradesh.
The availability of marketing infrastructure i.e.
Small markets/collection centres in the production
area will also solve the problems of marketing of
produce in distant markets and they will save in
term of cost of transportation, transit losses and
miscellaneous charges.
• Setting up more seasonal markets in production
area after proper
designing
planning
to
handle the arrivals in efficient manner providing
minimum facility of auction platform, storage,
structure,
grading and packing houses,
public facilities etc.
Alternative marketing channels:
 Direct
marketing
to
consumers/retail
chain/buyers i.e. Fair
price shops at APMC
level.
 Farmers Markets ie. Apni Mandi
Contract farming
Contract farming
involves agreement between
producer and sponsoring agency (Buyer) for Future
Trade .The price of the commodities is also decided by
the both party at the time of agreement.
Popularization of Grading at producers’ level, value
addition through primary processing and packaging





Modernization and expansion of existing yards
providing therein grading and packing lines, repining
chambers cold/CA stores, adequate auction platform
and other facilities.
Empowerment of farmers through market
information website, news paper, Doordarshan,
Ticker
Board,(agmarknet) SMS portal and
documentation of success stories.
Integration and strengthening of Marketing
network to curb malpractices and reduce paper work
through automation of market operations.
Marketing through e-trading
Setting up more agro- based small processing
units
Govt. level (State/Central sponsored Scheme)
• Government intervenes through Minimum
support Price (MSP). The MSP is ensured
through procurement by central, state and
cooperative agencies in the states. State
governments have been alerted from time to
time to make adequate arrangements to ensure
MSP to farmers.
• In addition, Government is implementing
Market Intervention Scheme (MIS) for
agricultural and horticultural commodities not
covered under the Price Support Scheme. The
MIS is implemented on the request of
State/UT Government in order to protect the
growers of these commodities from making
distress sale in the event of bumper crop when
the prices tend to fall below the cost of
production.
PRICE SUPPORT
INTERVENTION SCHEME
PRICE
(PSS) AND
(MIS), MINIMUM
SCHEME
MARKET
SUPPORT
(MSP)
• The Price Support Scheme (PSS) and Market
Intervention
Scheme
(MIS)
ensures
remunerative prices to the growers and in case
market prices fall below the MSP/MIS,
central/state agencies Start the purchase
operation by paying the MSP/MIS to the
farmers.
STATE WISE IMPLEMENTATION OF PRICE SPORT SCHEME &
MARKET INTERVENTION SCHEME (PSS AND MIS)
State
Commodities under PSS
Commodities under MIS
Andhra Pradesh
Milling copra, Cotton, Sunflower, Tur
Oil Palm, Chilly
Haryana
Sunflower, Mustard
Himachal Pradesh
Apple C Grade, Kinnow, Malta, Santra,
Galgal, Mango
Karnataka
Ball Copra, Sunflower, Safflower, Tur
Oil Palm, Arecanut
Kerala
Milling Copra, Ball Copra
Black Pepper
Madhya Pradesh
Urad, Mustard
Maharashtra
Tur, Sunflower, Safflower
Mizoram
Chillies, Ginger, Passion Fruit, Chowchow (Iskut)
Rajasthan
Gram, Mustard
Onion, Garlic
Uttar Pradesh
Groundnut, Mustard
Potato
Uttarakhand
West Bengal
Apple C Grade
Sesamum
Potato
• Minimum Support Price (MSP) Wheat and paddy
are two major agricultural commodities procured by
the National cooperative marketing federation
(NAFED), Food corporation of India (FCI) under
MSP in order to have sufficient buffer stock from
food security point of view and to feed the public
distribution system. Procurement through MSP is not
done in all the states like in case of wheat it is mostly
done form the states of Punjab and Haryana whereas
in other states it is almost negligible.
• In Punjab and Haryana farmers are able to sell
their surplus wheat and paddy at MSP but this
is not true in case of farmers of all other
stages. The reasons are difference in
procurement mechanism by the procurement
agencies like procurement through commission
agents in some states whereas provision of
direct procurement from farmers in other
states. In states where there is provision of
direct procurement from farmers, no
significant procurement actually takes place.
EFFICIENCY OF MARKET INTERVENTION
SCHEME (MIS)
• The MIS in the state of Himachal Pradesh is
being implemented through State agencies of
HPMC & HIMFED. The fruits like apple,
Kinnow, Malta and Santra were taken up under
the scheme during the year 1990-91. Later on
Galgal was included during the year 1995-96
and for mango MIS was implemented during
1998.
COVERAGE OF DISTRICTS UNDER MIS
FOR DIFFERENT FRUITS
Apple
Kinnow, Malta and
Santra
Mango
Shimla
Una
Una
Kullu
Solan
Solan
Mandi
Mandi
Mandi
Sirmour
Sirmour
Sirmour
Kangra
Kangra
Kangra
Kinnaur
Bilaspur
Bilaspur
Chamba
Hamirpur
Hamirpur
Lahul Spiti
Chamba
Chamba
Solan
PERIOD OF IMPLEMENTATION
• The scheme is not open throughout the year
and is open only during the harvesting and
marketing period of fruits covered under the
scheme. The duration of operation of scheme
has been presented in the table.
Name of Fruit
|Duration of MIS (Each year)
Apple
July 20 to October 31
Santra and Malta
November 21 to February 15
Kinnow, Galgal and Mango
July 1 to August 15
PRICE ANNOUNCEMENT OF MIS
• The procurement of fruit under the scheme is
strictly at the price announced and notified by
the state government beforehand. The
procurement cost is being born by the
administrative department i.e. Horticulture
department.
COST OF FRUIT PROCUREMENT UNDER
MIS
Name of fruit
Cost of procurement (Rs./Kg.) 2013-14
Apple
6.50/kg.
Kinnow, Malta and
Santra
B-6.50/kg.
C-6/kg.
Galgal
5.50/kg.
Mango
Seedling-5.50/kg.
Grafting-6.50/kg.
Details of procurement rate, quantity procured
and dispatch of apple under MIS
Year
Procurement Quantity
Rate (Rs. Per procured
kg.)
in M.T.
Procurement in No.
Of
bags
bags
dispatched
to
market/processing
2007-08
4.75
29427
490448
490448
2008-09
5.25
45741
762350
659650
2009-10
5.25
912
15200
15200
2010-11
5.25
111154
1852567
931260
2011-12
5.25
5664
94400
93367
2012-13
6.00
11822
197033
*
2013-14
6.50
34229
570483
*
DISTRICT WISE PROCUREMENT OF APPLES AND
VALUE OF PROCURED APPLES UNDER MIS
S.
No.
Name of
District
2011
2010.182
2013
Procurement price @
Rs.5.25 per kg
Procurement price @
Rs.6.00 per kg
Procurement price
@ Rs.6.00 per kg
Qty.Procured
(in M.T)
Value of
Qty.
Procured Procured
apples (in (in M.T.)
lakh Rs.)
Value of
Procured
apples (in
lakh Rs.)
Qty.
Procur3ed
(in M.T.)
Value of
Procured
apples (in
lakh Rs.)
1
Shimla
5398.920
283.44
11158.800
669.53
31622.208
2055.44
2
Kullu
173.400
9.10
362.280
21.74
1140.402
74.13
3
Mandi
72.120
3.79
211.380
12.68
1163.586
75.64
4
Kinnaur
15.840
0.83
85.800
5.15
236.280
15.36
5
Chamba
0.000
0.00
--
--
64.176
4.17
6
Sirmour
0.000
0.00
2.880
0.17
--
--
S.
Name of
No. District
2011
2012
2013
Procurement price @
Rs.5.25 per kg
Procurement price @
Rs.6.00 per kg
Procurement price @
Rs.6.00 per kg
Qty.
Procured
(in M.T)
Value of
Procured
apples (in
lakh Rs.)
Qty.
Procured
(in M.T.)
Value of Qty.
Procure Procur3ed
d apples (in M.T.)
(in lakh
Rs.)
Value of
Procured
apples
(in lakh
Rs.)
7
Lahaul & 3.360
Spiti
0.18
0.840
0.05
2.520
0.16
8
Kangra
0.000
0.00
--
--
--
--
9
Solan
0.000
0.00
--
--
--
--
297.34
11821.980
709.32
34229.172 2224.90
Grand Total 5663.64
ISSUES/PROBLEMS OF MIS IN THE STATE
• Payments are not always in cash, farmers are obliged to
accept inputs like fertilizers, packing materials and
insecticides etc as kind payment.
• During the years of high production, significant amount
of procured apples is wasted and destroyed. This is a
burden on state exchequer.
• The quantum of apple used for processing is low and
only apple procured b y HPMC is being used for
processing.
• Most importantly, this is a loss making preposition for
the state and as such has large scope for improvement
in management of the scheme.
SUGGESTIONS:
• The quality of MIS produce needed to be
improved so that problem of shortage of buyers is
eliminated to some extent.
• Arrangements of vehicles at the time to peak
season need to be improved so that produce can
be handled safely, with low cost and well in time.
• There is a need of finalizing the auction place for
selling of the produce and date and time of
auction well in advance. This information can be
passed on to interested traders through
advertisement.
• Handling charges need to area specific so that the
collection of produce especially in those areas
where collection centres are away from road head
is facilitated.
• Opening of new processing units is the immediate
need in the state. With opening of these units MIS
produce can be disposed off efficiently. If such
arrangement are not made urgently the time may
come when the scheme may become unviable.
• There should be equal distribution of collection
centres to both the agencies so that competition
between these does not arise.
THE POSITIVE EFFECTS OF MARKET
INTERVENTION
•
•
•
•
•
•
•
•
•
Assured returns
Avoid distress sale
Encourage farming
Ensure Food Security
Better agri-marketing through sorting, grading, packing
and levelling
Innovative marketing practices
Selling through APMC market yards, co-operatives,
direct marketing or through E-commerce
Ensure disposal of produce
Promote processing
Issue
• Monoculture practices
• Distort Competition
• Excessive use of Natural Resources.
CONCLUSION
• Market intervention is required for major surplus
commodities of respective states. Like in case of
HP major surplus of fruits and vegetables which
are highly perishable. State/central Govt. agencies
can procure surplus fruits and vegetables for
processing by the PSUs and processed products
can be sold through Fair Price shops, PDS etc.
Market intervention for perishable, semiperishable commodities like potato, Cauliflower,
tomato, ginger, garlic, paddy, wheat, pulses etc
should also be in place to prevent distress sale by
the farmers.
• Boon for farmer when excessive production.
• Focus on diversification and market
orientation
• Intrusion of private players
• More focus on perishables & semi-perishables
Thanks