5.0 RESULTS AND DISCUSSION - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/7859/10/10... · 2015-12-04 · located at Panchkula, Karnal, Hisar, Gurgaon and Rohtak at a cost

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5.0 RESULTS AND DISCUSSION

Commensurate with the objectives of the study, the results of the analysis of

data obtained during the course of present investigation have been presented in this

section. Since the study has five major objectives, the present chapter has been

divided into five major sections viz.

Examining the Relevance of HSAMB in the Changed Scenerio

Trends of Income and Expenditure of HSAMB

Weaknesses in the Present System in Haryana and suggest necessary

modifications

Analysis of various problems of HSAMB

Suggestions and Recommendations

5.1 RELEVANCE OF HSAMB

To critically examine the relevance of HSAMB in the present scenario, it is

very important and essential to dell deep in to the aims and objectives of the HSAMB

and analyse how far the organization has been able to achieve them and if it has

already achieved these, then whether there is any need to continue with this

organisation or have to change, modify or set the fresh aims and objectives. The

major aims and objectives fixed up by the HSAMB were as under:

Creation of wide marketing infrastructure comprising of various Marketing

Committees, Market Yards, Purchase Centre and Link Roads etc.

Profit maximisation for farmers by ensuring best possible prices for their

produce at the various market yards, sub yards and purchase centers.

Collection of market fees, sales tax and other levies from the purchasers on

various transactions taking place in the mandis.

Regulations and administration of various MCs all across the state as per the

Punjab Market Produce Act, 1961

Creation of Additional Facilities along with expansion and maintenance works

on behalf of various MCs.

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Facilitating the procurement activities of oranisations such as FCI,

Warehousing corporation, HAFED etc. in various markets/ mandis in the

state.

4.1.1 Creation of Marketing Infrastructure

Marketing infrastructure is required to ensure free flow of farm produce and

its efficient marketing. Since the technologies on the production front has changed the

supply scenario, adequate marketing infrastructure is required to handle the huge

quantity of farm produce and make the same available to all the consumers both

inside and outside the country. Marketing infrastructural facilities include the

facilities like i) Main trading facilities ii) Ancillary trading facilities, iii) Farmer’s

facilities, iv) Administrative facilities, v) Water supply and sewerage facilities and

other common facilities.

In India there is a vast and huge net work of regulated agriculture markets

which have been developed in almost all the states. Regulated markets have come up

not only at district headquarters, but even in small towns for the convenience of

farmers, where there is enough production. In Haryana most of thee regulated markets

are connected with production points by link roads. The regulated markets in Haryana

have been developed and maintained under the control of Haryana State Agriculture

Marketing Board.

The Haryana State Agriculture Marketing Board has been continuously

endeavoring to improve upon the marketing system in the state. New markets are

being developed to replace the old existing markets located in the congested areas and

better facilities are being provided in the existing markets, so that the sale and

purchase of agriculture produce may take place smoothly. In all reality, the Punjab

Agriculture Produce Act, 1961, laid the foundation for a state wide agricultural

marketing infrastructure with the roles, responsibilities and scopes of various entities

predefined and well regulated. HSAMB implements these administrative and

infrastructural arrangements through the various market committees (MCs).

At present, there are in all 106 market committees in the state, with 106

principal market yards (mandis), 182 sub yards and 178 purchase centers, 33 Fruit

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and vegetable mandis, 25 Fodder mandis and 106 Grain Markets. Haryana State

Agriculture Board ensures that the following facilities need to be provided at all the

regulated markets in the state.

Agri. Business Information Center

Boundary Wall

Check Posts and Gates

Common Auction Platforms

Covered Platforms

Individual Platforms

Kissan Rest House

Shops and Booths

Drinking Water facilities

Sulabh Shauchalyas

Light Arrangements

Parking Place

Canteen

Provision of water Supply and Sewerage System

Weigh Bridge

Internal and Service Roads

Approach and Link roads

Food Storage Godowns

Fire Fighting Station

Provision of Site for POST office and Banks

All the above works are being carried out on contractual basis from the

approved/enlisted contractors of the Board after giving wide publicity in leading

newspapers. The prospectus for enlistment is available in Circle offices, which are

located at Panchkula, Karnal, Hisar, Gurgaon and Rohtak at a cost of Rs.100/- each.

The persons who are interested to undertake the work up to Rs.5.00 lakhs can contact

the Executive Engineers, who are posted at District Headquarter and have the power to

grant enlistment up to Rs.5.00 lakhs. Superintending Engineer is competent and has the

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power to award the contract up to Rs.10 lakhs while the Chief Engineer, who is posted

at Panchkula, the headquarters is competent for the works over Rs.10 lakhs.

Similarly, for doing various types of business in mandis such as Commission

Agents, Miller, Processer, Weighmen etc. persons, who fulfill the conditions for these

business can get the requisite forms from the Market Committees concerned.

4.1.1.1 Agri. Business Center

Haryana State Agricultural Board endeavors to convert the mandis into

modern Agri. Business Hubs. It seeks to create additional opportunities of marketing

for the farmers to provide post harvest technology services and marketing advice. First

such centre at Sirsa was inaugurated by Shri Bhupinder Singh Hooda, Hon’ble Chief

Minister Haryana on 10th

Oct. 2005. Another centre was inaugurated at Hisar by Smt.

Asha Sharma, IAS, Financial commissioner and Secretary to Govt. of Haryana on 24th

Dec. 2005. These centers seek to provide integrated services of all the departments

connected with agriculture and attempt to cater all needs of farmers from inputs,

production, post harvest technology and marketing point of view. The centers are being

set up in all district headquarter mandis to provide information on market , agronomical

practices and organize seminars, workshops and buyer seller meets etc. These centers

also house the Agriculture Development Officers and provide regular training to

farmers and help in improving the quality of agricultural products. In the first phase, the

agri business and information centers have been opened where already building

infrastructure is available under the Technology Mission on Cotton Project. ABICs are

being set up in collaboration with agriculture and horticulture departments.

Representatives of the various departments are provided space in these centres, so that

they can render extension services to the farmers and operate as “Agri. Clinics”.

5.1.1.2. Development of Additional Facilities

The HSAMB has constructed 238 covered sheds up to 31st March, 2006 in

various grain and vegetable markets. The work regarding development of another 28

covered sheds in progress in 2006 too have been completed.

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The HSAMB is providing additional facilities like individual platforms,

common platforms, covered sheds, kiosks, kisan rest houses, drinking water/ water

cooler, tower lights, sulabh sauchalyas, water supply and sewerage,etc. in the various

mandis. The Board is also developing new purchase centers and extension of existing

purchase centers with a view to give facility for sale of agriculture produce within a

radius of 5 kms. From 1.4.1988 to 31.03.2006, an expenditure of Rs. 374.3 crores has

been incurred on this account. During the financial year 2006-07, additional

expenditure of 27.8 crores has been incurred for development and additional facilities

in the mandis.

Development and up gradation of various market yards and setting up of cold

storage facilities at 15 stations with facilities of pre-cool chambers and grading lines for

Fruits & Vegetables Markets. Besides construction of buildings of Plant Health Clinic

at 15 stations in the State viz., Ambala, Bhiwani, Faridabad, Fatehabad, Gurgaon,

Hisar, Jhajjar, Karnal, Nuh, Panchkula, Panipat , Rohtak, Sirsa, Sonepat and Yamuna

Nagar are also in progress with an estimated cost of Rs. 84.00 crores.

5.1.1.3 Development of New Mandis

The work of development of new grain/vegetable markets at Mullana, Charkhi

Dadri, Dabua Mandi-Faridabad, Jhajjar, Alewa, Ramthali, Babarpur (Phase- II), Nigdhu

(Phase-III), Raipur Rani, fish market at Faridabad, vegetable markets at Jakhal,

Bahadurgarh, Barwala-Panchkula, Nissing, Kosli and new grain & cotton market at

Uklana, extension of Sub-yard at Gorakhpur and additional mandi at Pehowa have been

taken up and are in the process of completion. Prestigious projects of ‘Modern Kisan

Mandi’ at Panchkula, modernization and up-gradation of grain/vegetable markets of

Rohtak and Karnal and Chara Mandi (Fodder Market) at Sonipat are also being

constructed. New cotton markets at Adampur, Barwala, Bhattu Kalan, Ratia, Jind,

Tohana and Jullana are also in progress with the financial assistance of Cotton

Corporation of India. A prestigious project of setting up of Terminal Market at Ganaur

at a cost of about Rs. 1500.00 crores is also in process. HSAMB proposes to set up a

world class Terminal Market of fruits and vegetables at Ganaur 30 Kms. of Delhi

boundary. This market will not only cater to the needs of Delhi, but to whole of

Northern India. It is also proposed to set up Flower Market catering to the whole of

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North India near Delhi at Gurgaon. It will also have export facility centre. A proposal

of setting up of a chain of Agro Malls is also on way and first such Agro Mall is going

to be set up at Panchkula at an approximate cost of Rs. 30.00 crores, which will be the

biggest Agro Mall in the country.

Under its important schemes, the Board is in the process of setting up a

Terminal Market at Ganaur, Flower Market at Gurgaon. Development of new

grain/vegetable markets have been sanctioned at an estimated cost of Rs. 740.00 crore.

Cost of 1st

Phase of construction of vegetable markets and cold storages has been

estimated to be about Rs. 72. crore. An expenditure of Rs. 35.78 crore has so far been

incurred. Out of 15 proposed development of hospital and medical facilities in the

financial year 2009-10 (upto 31.12.09), mandi works to the tune of Rs. 43485.00 lakh

have so far been sanctioned which are in progress. New mandis at Jullana, Mullana,

Nissing, Raipur Rani, Alewa, Seewan, Jakhal have also been proposed. Timber market

at Manakpur & vegetable market at Panipat are scheduled to be completed by the end

of this financial year. The Board is in the process of setting up Terminal market at

Ganaur, Apple Market at Panchkula and Agro Shopping Malls at Panchkula, Karnal,

Panipat, Rohtak & Gurgaon. Apple Market in Panchkula has been completed with an

expenditure of Rs. 300. lakh. The work of Agro Shopping Mall at Panchkula is in

advanced stage of completion and the works at Karnal, Panipat & Rohtak are in

progress.

5.1.1.4 Plant Health Clinic

Plant Health Clinic work at Panchkula, Karnal, Rohtak and Sirsa have been

completed and an expenditure of Rs. 1.47 crore so far has been incurred. Besides,

construction of buildings of Plant Health Clinic at 11 more stations in the State viz.,

Ambala, Bhiwani, Faridabad, Fatehabad, Gurgaon, Hisar, Jhajjar, Nuh, Panipat,

Sonepat and Yamuna Nagar is in progress with an estimated cost of Rs. 84.00 crore.

5.1.1.5 Storages Capacity in Haryana Mandis

Haryana state agricultural marketing board in Haryana is making all out efforts

to provide additional storage space. The agriculture commodities are procured by

various agencies and are strored at various places like the state owned stores, state

owned ware houses and the cold stores. State owned stores are managed by the various

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agencies like Food Corporation of India, which again manages the godowns by owning

them or owned by the Agriculture Refinance Development Corporation, Food and

Supplies Department, CONFED, HAFED, State Ware Housing Corporation, Central

Ware Housing corporation, A.R.D.C.(with HWC), Food and Supplies Bins, Haryana

Agro Industries and Others ( Marketing Board). The details of the Capacity in thousand

tonnes by all these agencies has been presented below in Table 5.1

TABLE 5.1 Capacity of State Owned Storages in Haryana ( ‘000 tonnes)

Name of the Agency 1995-

96

2000-

01

2005-06 2006-07 2007-08 2008-

09

Food Corp. of India

(a) Owned 7.30 7.43 10.85 10.85 10.85 10.85

(b) A.R.D.C. 3.55 2.67 - - - -

Food & Supplies

Deptt.

1.51 1.51 2.56 2.56 2.56 2.56

CONFED - - - - - -

HAFED 4.36 4.25 15.17 15.21 15.39 15.88

State Ware Housing

Corp.

5.86 7.06 11.24 10.97 11.04 11.04

Central Ware Housing

Corp.

1.41 1.71 3.66 3.66 3.66 3.66

A.R.D.C.(withHWC) 66 49 - - - -

Food & Supplies Bins - 20 - - - -

Haryana Agro

Industries

- - 1,45 1,45 1,45 1,45

Others( Marketing

Board

3,87 3,99 4,17 4,25 4,26 4,26

Total 28,52 29,31 49,10 48,95 49,21 49.70

It could be observed from the table that the storage capacity showed an

increasing trend, since 66-67, the day Haryana was formed. It showed an increase of

about 74 percent in 2008-09 over 1995-96. Though in 1995-96 maximum storage

capacity was available in owned food corporation of India godowns followed by state

ware housing corporation and the HAFED, but in 2008-09, the situation underwent a

change. In 2008-09, in between the agencies storing the grains, the maximum storage

capacity was found to be with HAFED followed by State Ware Housing Corporation

and the Food Corporation of India in owned godowns. In between different years, slight

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variations were observed. Though CONFED has been mentioned as one of the

agencies, but it did not have any storage capacity. In the Food and Supplies bins too,

nothing was stored during the course of study, except for the year 2000-01. HSAMB

started storing the grains from 1990-91 onwards and the storage capacity increased

from 3,78,000 tonnes in 1990-91 to 4,26,000 tonnes in 2008-09 showing an increase of

about 13 percent.

The above table and discussion is related to the overall capacity of godowns in

the state. It would be more realistic to study the district wise capacity of state owned

godowns and ware houses in Haryana. As such the district wise break up of the capacity

of the state owned godowns/ware houses has been presented in table 5.2

It could be observed from the table that the total capacity of godowns continued

to increase over years, which could be due to the increase in productivity, production

and the procurement by various agencies. It could be further observed from the table

that the capacity of godowns across various districts showed a varying trend. In Kaithal,

Karnal, Bhiwani, Fatehabad, Jhajjar and Sirsa, the trend was a rising trend, while in

other districts, the capacity of godowns increased in certain years, but after a few years

either it decreased marginally or it was more or less constant. This could be attributed

to the type of crops produced and the procurement in the respective districts. It could be

further observed that the maximum storage capacity was found to be in Karnal district,

followed by Sirsa, Kaithal and Kurukshetra in order. The minimum storage capacity

was found to be in Panchkula district, followed by, Jhajjar and Mahenragarh districts,

which could be due to the reasons cited above. Fatehabad, Hisar and Jind too were

placed at a comfortable position much above the average level.

5.1. 1.6 Number of cold Storages and their capacity

Some of the agriculture products, which have low shelf life and cannot be stored

under tropical conditions are to be kept in cold stores to make these available to the

consumers all the year round.. The prominent among these are the various vegetables,

fruits and the potatoes etc. These products are stored in the cold stores and are taken

out slowly and slowly depending upon their demand in the market. The data beyond

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1999-2000 could not be collected, because of its non availability due to the repeal of

cold storage order,1979 w.e.f. 18-5-1999. The details of the number of cold stores

Table 5.2 District wise Capacity of State Owned Ware Houses in Haryana (‘000Tonnes)

District 2000-01 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Ambala 115 205 205 98 103 102 102

Panchkula 30 30 05 05 5 5

Yamuna Nagar 117 212 212 149 163 163 163

Kurukshetra 352 520 520 589 588 588 588

Kaithal 356 478 478 589 557 565 595

Karnal 346 514 520 626 624 630 649

Panipat 182 207 207 201 201 202 202

Sonipat 100 100 100 159 159 155 155

Rohtak 67 75 77 111 111 110 110

Jhajjar - 9 9 13 13 15 15

Faridabad 137 189 189 243 230 235 235

Gurgaon 68 70 70 104 104 102 102

Rewari 23 53 53 57 57 58 58

Mahendagarh 41 40 40 46 46 47 47

Bhiwani 43 46 46 57 57 62 62

Jind 255 315 315 386 381 379 379

Hisar 133 219 219 403 407 404 404

Fatehabad - 389 389 471 481 491 491

Sirsa 282 453 453 603 608 608 608

Bins F.S.D. 20 20 20 - - - -

TOTAL 2931 4144 4152 4910 48965 4921 4970

Source: Food and Supply Department, Godowns, Haryana

along with their capacity from 1990-91 to 1998-99 has been presented in table 5.3 and

discussed below:

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It could be observed from the table that the percentage growth was quite high in

the initial years i.e. from 1985-86 to 1990-91 (10.2%), and further increased in 1995-96

by about 13 percent. Growth rate showed a decreasing trend in 1996-97 (6%), but again

increased in 1997-98 by about 12.5 percent. However in 1998-99, the percentage

growth was nominal.

TABLE 5.3 Number of Cold Storages, Capacity and Percentage Growth in Haryana

Year Number of Cold storages Capacity ( in 000 Tonnes) Percentage growth

1990-91 154 195 10.16 (over 1985-86)

1995-96 169 220 12.82

1996-97 176 233 5.91

1997-98 195 262 12.45

1998-99 198 267 0.38

Note: The information for the year 1999-2000 onward is not available due to the repeal

of cold storage order 1979 w.e.f. 18-5-1999

In between the districts, the capacity of the cold stores was analysed for the year

1998-1999. The data pertaining to all the districts has been presented in table 5.4 below:

It could be observed from the table that the development of cold store facility

for the public and the farmers was not evenly distributed among the various districts of

the state. So much so, that in some of the districts like Jhajjar, Rewari, Mahenragarh

and Bhiwani, the available cold store facility was either not available at all or was very

nrgligible since it was not required because of the type of crops grown and the cropping

pattern. The districts like Kurukshetra, Sonipat, Karnal, Yamuna Nagar and Ambala

were having pretty good number of cold stores, which varied from 22 in Ambala to 51

in Kurukshetra. Accordingly, the storage capacity too varied from 30,000 tonnes in

Ambala to 80000 tonnes in Kurukshetra. In percentage terms too, it could be revealed

that Kurukshetra district alone had 30 percent of the total capacity of the state followed

by Sonipat district (18%), and Ambala, Karnal and Yamuna Nagar about 11 percent

each. In the remaining districts, the number of cold stores varied from 3 to 10 and the

storage capacity varied from less than 0.8 percent in Panchkula to 3.8 percent in

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Fatehabad. The even distribution could be due to the cropping pattern in the area and

the need to store the crops in these cold stores.

TABLE 5.4 District Wise Number of Cold Storages and capacity in 1998-99

Name of the

District

Number of Cold

Stores

Capacity of the

cold Stores ( in 000

Tonnes)

Percentage

Capacity

Ambala 22 30 11.24

Panchkula 3 2 0.75

Yamuna Nagar 23 29 10.86

Kurukshetra 51 80 29.96

Kaithal 6 7 2.62

Karnal 27 29 10.86

Panipat 5 6 2.25

Sonipat 29 48 17.98

Rohtak 3 3 1.12

Jhajjar - - 0.00

Faridabad 3 3 1.12

Gurgaon 3 1 0.37

Rewari - - 0.00

Mahendragarh - - 0.00

Bhiwani - - 0.00

Jind 7 8 3.00

Hisar 6 9 3.37

Fatehabad 6 10 3.75

Sirsa 4 2 0.75

Total 198 267 100

Note: The information for the year 1999-2000 onward is not available due to the Repeal

of cold storage order 1979 w.e.f. 18-5-1999

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5.1.1.7 Development of Buildings and Road Infrastructure

As already discussed earlier, the marketing infrastructural includes the main

trading facilities in the regulated markets like the covered auction halls, retail shops,

common drying yards, auction halls and godowns and above all the open auction

platforms. These facilities are to be developed in the state of Haryana by HSAMB.

Since the production points in most of the markets is located at a distance of 5-6 kms.

for efficient transportation of the produce to the mandi, it is very essential to have a

good net work of main and link roads. The board has therefore made a huge investment

on these facilities. The details of the expenditure incurred on the deposit works

comprising of the construction of mandis, construction of link roads, the repair of link

roads and other development works of other departments from 2000-01 to 2009-10, has

been presented in Table 5.5 below:

It could be observed from the table that initially, the Haryana State Agri Market

Board through its engineering department was executing only its own deposit works

(Market committees). Only from the year 2006-07, to utilize the spare capacity of the

staff and infrastructure it started undertaking the work of other departments like

construction of Model Village, 3rd State Finance Commission Works, LADT Scheme,

Sports Stadiums, Mahatma Gandhi Basti Yojna Works etc. Deposit works have further

been categorized as construction of mandis-new mandis, additional facilities and repair

of mandis etc., construction of new link roads and repair of link roads. All the above

works were carried out on contractual basis from the approved/enlisted contractors of

the board after giving wide publicity in leading news papers. For the purpose, the

Executive Engineer has the authority to give the contract up to Rs. 5 lakhs. The

Superintending engineer was competent upto Rs. 10 Lakhs, while the Chief Engineer

had the authority to give contract beyond 10 lakhs. Regarding the expenditure on

different heads, the overall picture for the last 10 years revealed that of the total

expenditure on deposit works of HSAMB, about 44 percent was made on the

construction of link roads, while around 24 percent was made on the repair of link

roads. In other words, the expenditure on road infrastructure was more than 68 percent.

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The remaining about 32 percent was on the construction of new mandis, repairs in the

existing mandis and creation of additional facilities. The HSAMB undertook the work

of other departments on contract basis from 2006-07 onwards. The total amount spent

on the development work related to other departments was considered, which of course

is not related to the markeing aspects was observed to of aroud Rs. 50114 lakhs

Considering the total receipt for development works of HSAMB for development and

development works of other departments the total expenditure was of the order of Rs.

193074 lakhs. The total expenditure on the development works was of the order of Rs.

50114 lakha while the receipts were around Rs. 193074 lakhs. This leads to conclude

that the HSAMB has got a good job by taking and executing the work of other

organosations, since the money earned from other organizations is being used for the

development of facilities in the regulated markets.

The percentage expenditure on construction of mandis showed an increasing

trend from 2000-01 to 2007-08, except for the year 2004-05, from 17 percent in 2000-

01 to 45 percent in 2007-08, but after that it showed a decline and was 32 percent in

2009-10. The amount spent under this head was mainly on providing the additional

facilities in the mandis followed by repairs etc. The percentage expenditure made on

construction of link roads showed a decreasing trend and decreased from 76 percent in

2000-01 to 29 percent in 2006-07, but after that, it showed an increasing trend. This

could be due to the fact that the work started on the roads specified was completed with

the passage of time. Only in 2007 onwards, more new projects were undertaken. The

percentage expenditure on the repair of link roads showed an increasing trend till 2006-

07. It decreased in 2007-08, but again started increasing. There is no doubt that in

absolute figures the expenditure in general showed an increase.

Analysing the available data, it could be said that from 25.07.1999 to 2.3.2005,

36 mandi works with an expenditure of Rs. 1071.82 lakhs were completed. The mandi

works included development of new mandis, development of new purchase centers,

extension of existing purchase centers, providing additional facilities in existing mandis

with the assistance of Technology Mission of Cotton, Government of India. After

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3.3.2005, 9 mandi works at an estimated cost of Rs. 142.86 lakhs have been undertaken

and have either been completed or in the process of completion.

Regarding the construction of link roads, from 1969-1999 HSAMB has

constructed 83 rural link roads having a length of 290 kms with an expenditure of Rs.

1157.05 lakhs. Again between 25.07.1999 to 2.3.2005, 11 link roads having a length of

327.58 kms. making an expenditure of 2574.32 lakhs have been completed. Since

March 2005, as many as 52 roads of 107.35 kms. length in district Ambala, 87 roads of

268.80 kms in district Bhiwani, 8 roads of 17.15 kms in district Faridabad, 46 roads of

160.15 kms of length in district Fatehabad, 5 roads of 9.34 kms in district Gurgaon, 34

roads of 130.95 kms in district Hisar, 127 roads of 42.13 km in district Jhajjar, 48 roads

of 171.40 kms in district Jind, 65 roads of 217.38 kms in district Kaithal, 49 roads of

125.35 kms on Karnal district and 54 roads of 116.82 kms in Kurukshetra district 20

roads of 42.92 kms in district Mewat, 11 roads of 17.07 kms in district Mahendragarh,

28 roads of 62.63 kms in district Panipat, 6 roads of 6.74 kms in district Panchkula, 32

roads of 74.54 kms in district Rewari, 79 roads of 277.74 kms in district Rohtak, 70

roads of 199.37 kms in district Sirsa, 37 roads of 99.82 kms. in district Sonipat and 66

roads of 117.92 kms in Yamuna Nagar have been completed. In simple words, the

roads in almost all the districts have been completed though of varying lengths, which

could be due to production/catchment area around the mandis. In short, HSAMB has

constructed 2668.48 kms of link roads in Haryana after March 2005.

It could also be concluded that with the construction of these roads, 1687

villages comprising of 80 in Ambala, 132 of Bhiwani, 19 of Faridabad, 92 of

Fetehabad, 9 of Gurgaon, 55 of Hisar, 187 of Jhajjar,86 of Jind, 111 of Kaithal, 83 of

Karnal, 89 of Kurukshetra, 46 of Mewat, 18 of Mahendragarh, 28 of Palwal, 43 of

Panipat, 11 of Panchkula, 52 of Rewari, 278 of Rohtak, 91 of Sirsa, 64 of Sonipat and

113 of Gurgaon were connected with the nearest mandis.

A study of the repair of rural roads revealed that from 25.07.1999 to 2.03.2005,

17 number PWD link roads having a length of 65.29 kms were transferred to HSAMB

for one time maintenance purpose. All these roads were got repaired at an expenditure

of Rs. 341.65 lakhs. 65 more roads having a total length of 179.54 kms too were got

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repaired at an estimated cost of 546.56 lakhs. After march 2005, special repair of 17

roads at an estimated cost of Rs. 219 lakhs were also carried out.

As on 31.3.2010, construction of 382 number link roads, 381 number special

repair of roads 140 mandi works, 62 Public health works are in the process of

completion for which spill over expenditure is 559.02 crores.

Thus it could be generalized that HSAMB is doing a Yeomen service for the

development of Mandi and road infrastructure for the convenience of farmers to

transport their produce in all weathers, to the mearest mandis to get higher price and

better returns.

5.1.1.8 Development of Infrastructure across Various Circles

For smooth functioning of HSAMB and executing various development works

in the state, the HSAMB has a full-fledged Construction Wing headed by an Engineer-

in-Chief development works. There are 5 Circles headed by the Superintending

Engineers and two placed at the the head office. There are 22 Divisions, situated at each

district headquarter (except Mohindergarh). All the districts have been attached to

various circles. In addition to these five circles, there is an additional Division known as

Electrical division, which looks after the electricity needs of the board at the state level.

It would, therefore, be very appropriate to study the mode of expenditure in different

blocks during the period of study. The districts included in each circle have been given

below:

S.No. Circle Districts Covered

1. Panchkula Panchkula, Ambala, Kurukshetra and Yamuna Nagar

2. Karnal Karnal, Kaithal, Panipat and Jind

3. Gurgaon Gurgaon , Faridabad and Rewari

4. Rohtak Rohtak, Jhajjar, Sonipat

5. Hisar Hisar, Fatehabad, Sirsa and Bhiwani

6. Electrical Divisions Hisar and Sirsa

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The percentage of the total expenditure across various circles have been worked

out for various heads and presented in tables 5.6 to 5.13.

Table 5.6 Percentage to Total Expenditure across Various Circles

Circle 2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula 14.09 17.14 15.32 18.76 19.95 16.28 14.86 13.02 15.43

Karnal 21.74 23.86 24.24 25.14 22.77 29.45 28.82 26.17 25.01

Gurgaon 10.72 7.91 7.33 9.73 8.17 10,02 11.50 7.71 8.92

Rohtak 14.93 14.82 10.79 9.53 12.69 12.79 16.32 20.69 15.39

Hisar 36.53 34.21 40.45 33.71 34.15 28.67 28.50 30.18 33.24

Electrical

circle

Hisar and

Panckkula

2.00 2.06 1.87 3.13 2.27 2.78 0.00 2.23 2.01

It could be observed from the above table that in all, the percentage to total

expenditure on all the roads was observed to be the highest in Hisar circle followed by

Karnal circle inall the years under study except for 2005-06 and 2006-07, when it was

slightly lower than Karnal and was at the 2nd

plac during all the years and combined for

all the eight years as a whole for which the data was available. It was observed to be the

lowest in Gurgaon followed by Rohtak and panchkula circles, which were very close to

each other. The percentage expenditure by electrical circle Panchkula/Hisar was around

2 percent in almost all the years except 2006-07, when the expenditure was very low or

almost zero. Across the years, no definite trend was discernable in any of the circles.

However in general, in absolute terms, it showed an increasing trend.

5.1.1.9 Percentage Expenditure on Development Works

The development works comprising of the construction of new mandis and

repairs of old mandis etc. have been carried out by the HSAMB construction wing in all

the circles/ mandis in all the districts of Haryana. The percentage expenditure made

72

across various circles in Haryana for the years 1999-2000 to 2007-08 have been

presented in table 5.7

Table 5.7 Percentage to Total Expenditure across Various Circles on

Development Works

Circle 1999-

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula - 25.42 19.96 17.66 22.29 25.31 19.75 24.86 16.68 19.73

Karnal 21.25 12.56 28.05 24.58 15.36 27.79 37.96 38.43 43.68 28.57

Rohtak 35.22 4.94 6.37 0.94 2.16 2.23 3.98 0 15.63 6.59

Hisar 43.53 50.65 24.92 34.02 30.95 15.73 19.55 34.52 17.49 28.88

Gurgaon 0 6.43 8.28 10.02 10.46 9.49 18.76 2.19 5.38 7.89

Electrical-

Circle

0 0 12.42 12.78 18.78 19.45 0 0 1.14 8.34

It could be observed from the table that on an average, the maximum amount

was allocated to the development of Hisar circle closely followed by Karnal circle.

Percentage of amount spent in Rohtak circle was observed to be the minimum (6.6%),

closely followed by Gurgaon Circle (7.9%). No specific trend was observed in between

years in almost all the circles. However, it varied from 16.68 percent in 2007-08 to

25.42 percent in 2000-2001, the average being 19.73 percent in Panchkula. In Karnal it

varied from 12.56 percent in 2000-01 to 43.68 percent in 2007-08, the average being

28.57 percent. In Rohtak, the variation was comparatively more and varied from almost

nil in 2006-07 to 35.22 percent in 1999-2000, the average for the period being 6.59

percent. Gurgaon too had a similar position and the percentage of total expenditure in

the circle varied from 0 percent in 1999-2000, 2000-01, 2005-06 and 2006-07 to 10.46

in 2003-04. Hisar was placed on a better plateu, where the percentage expenditure was

highest and varied from 15.73 percent during 2004-05 to 50.65 percent in 2000-01, the

average for the circle being almost 29 percent. It could be generalized that Hisar and

Karnal circle competed for the resources in different years. In short, the expenditure,

wherever was required was made during one year or the other depending upon urgency

and the requirement. However the total expenditure on development works varied from

73

476.32 lakhs in 2000-01 to 1246.86 lakhs in 2008-09 registering a growth of about 162

percent.

5.1.1.10 Percentage Expenditure on Additional Facilities in Existing Mandis

Providing the additional facilities in the existing mandis is a continuous process.

Wear and tear due to the use of various facilities like the covered sheds, open platforms,

boundary walls, light arrangements, parking place, drinking water facilities, water

supply, sewerage, urinals and toilets, Kisan rest house and canteen etc. is taking place

in various market yards, sub yards and collection centres. Even with the increase in

business and the clientage additional facilities are required. Again with the technology

change, modernization is on the cards. On all this, the expenditure is incurred. The

percentage of amount spent of the total amount on providing these facilities from the

year 1999-2000 to the year 2007-08 and for all the years combined together across

various circles has been presented in table 5.8 below:

Table 5.8 Percentage to Total Expenditure across Various Circles on

Additional Facilities in Existing Markets

Circle 1999-

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula 41.72 20,69 44.20 27.65 64.94 69.41 45.28 12.97 15.31 23.08

Karnal 19.78 25.28 40.84 66.48 13.63 15.36 8.78 45.62 44.48 36.15

Rohtak 2.68 1.18 2.65 1.38 5.39 11.51 10.86 8.76 6.44 8.92

Hisar 26.32 26.48 3.12 4.49 15.96 3.62 25.26 15.02 19.06 20.23

Gurgaon - 1.99 8.06 0 0.08 0.10 9.82 17.63 13.12 5.12

Ekectrical-

Circle

9.50 24.38 1.13 0 0 0 0 0 1.59 6.50

It could be observed from the table that Karnal circle was at the top in the use of

funds (36%) under this head followed by Panchkula (23%) and Hisar (20%). This could

be due to the fact that to facilitate the farmers and to avoid congestion and daily traffic

jams, the new mandi was constructed at G.T.Road, Karnal. All the existing Arhtiyas

74

and commission agents were allotted the shops in the new mandi. Being new, all the

facilities were to be provided there hence the increased expenditure. Again in

Panchkula and Hisar also the additional facilities were to be provided. In the remaining

circles, the expenditure was of the order of only 5 to 9 percent. No definite trend could

be observed in the use of funds in various circles, but it could be said that the

proportionate use of funds in Panchkula in percentage terms, showed an increasing

trend from 1999-2000 to 2004-05 except for the year 2000-01 and 2002-03. Therefter,

it showed a decling trend, but in 2007-08, it slightly increased. In Karnal, these were

observed to be the highest in 2001-02 accounting for about 66 percent and 9 percent in

2005-06 of the total expenditure.However in most of the years Karnal could elicit about

45 percent of the total expenditure. In Hisar, however, these were found to be the

highest in 1999-2002 closely followed in 1999-2000 and 2005-06. In Rohtak and

Gurgaon, the proportionate expenditure in many yearswere in a single digit figure.

Total expenditure made on this head varied from Rs. 1492 lakhs in 1999-2000 to Rs.

3050 lakhs in 2007-08 registering an increase of over 104 percent.

5.1.1.11 Percentage Expenditure on Repair of Mandis:

As already stated above, the wear and tear in the mandis is taking place due to

the continuous use and its repair is necessary from time to time. The propotional

amount so allotted and spent in percentage terms on the repair works in the existing

mandis has been ascertained and presented in table 5.9

It could be observed from the table that on the repairs of mandis across various

circles on an average, the proportionate expenditure was observed to be the highest

(34%) in Panchkula circle followed by Hisar (25 %) and Karnal circle (14%). It was

observed to be the lowest in Gurgaon circle. In Rohtak circle and the electrical circle

(panchkula and Hisar), it was of the order of 10 and 12 percent respectively. In between

the years, in this case too, no definite trend could be descernable. However during the

year 2006-07 and 2007-08, in Panchkula circle alone, it was observed to be around 93

percent and 86 percent of the total expenditure of the state, which meant that in all other

75

Table 5.9 Percentage to Total Expenditure across Various Circles on Repair

of Mandis

Circle 1999-

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula 18.89 14.45 18.28 8.22 4.43 11.04 0 92.65 86.27 34.37

Karnal 25.86 8.41 30.32 40.32 14,93 0 0 1.73 0 14.05

Rohtak 15.96 6.83 25.78 38.45 7.36 2.39 77.50 4.06 0.14 10.28

Hisar 25.37 52.38 25.02 3.82 0.45 8.99 22.50 1.56 0 24.90

Gurgaon 0 1.34 0.60 9.19 72.83 77.58 0 0 1.25 4.65

Electrical-

Circle

13.92 16.59 0 0 0 0 0 0 12.34 11.75

circles, the expenditure was very little. In Karnal circle, it was highest in 2002-03

(40%), followed by 26 percent in 1999-2000. During the year 2005-06, 78 percent of

the total expenditure was incurred in Rohtak and the remaining 22 percent in Hisar

circle. However, in Hisar circle 52 percent of the total expenditure was incurred during

2000-01. Gurgaon was very fortunate during 2003-04 and 2004-05, when it bagged 73

and 78 percent of the total budget of the HSAMB leaving vey little for other circles.

Thus it could be generalized that the percentage expenditure depended upon the need of

the circle and the total budget and allocated among the circles in a phased manner. In

general, the funds on repairs of mandis increased in the initial years up to 2005-06,

showed a decreasing trend, but again increased in 2006-07 and 2007-08.

5.1.1.12 Percentage Expenditure on Board works

The expenditure incurred on Board works during the period 1999-2000 to 2007-

08 and the overall average for all the circles has been presented in Table 5.10

It could be observed from the table that on the Board works across various

circles on an average, the proportionate expenditure was observed to be the highest, 34

percent in Hisar circle followed by Karnal circle (26 %) and Panchkula (18%). It was

observed to be the lowest in electrical circle. In Rohtak circle and the Gurgaon circle, it

76

Table 5.10 Percentage to Total Expenditure across Various Circles On Board

Works

Circle 1999-

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula 37.62 33.68 16.55 15.96 18.48 22.03 16.56 20.24 22.39 18.43

Karnal 50.79 52.50 24.20 24.03 24.12 23.52 30.02 16.92 38.99 26.03

Rohtak 7.69 1.31 14.95 11.09 9.34 13.35 12.62 37.04 5.35 13.13

Hisar 1.15 3.20 34.52 39.62 35.33 29.93 28.63 16.43 26.08 34.13

Gurgaon 0 4.06 7.76 7.36 9.68 9.23 9.52 9.37 7.19 6.13

Ekectrical-

Circle

2.75 5.25 2.02 1.94 3.05 1.94 2.65 0 0 2.15

was of the order of 13 and 6 percent respectively. In between the years, in this

case too no definite trend could be descernable. However in Panchkula circle, it varied

from 38 percent and 34 percent in 1999-2000 to 17 percent in 2001-02 and 2005-06. In

Karnal circle, it was observed to be the highest in 2000-2001 (53%), followed by 51

percent in 1999-2000. It however, varied from 17 percent in 2006-07 to 53 percent in

2000-01, the average being 26 percent. In Hisar, the percentage expenditure varied

from 1 percent in 1999-2000 to about 40 percnet in 2002-03, the average for all the

years being 34 percent. In the remaining two circles, in Gurgaon, the percentage

expenditure varied from nil to 10 percent, while in electrical circle, the variation was

from 0 percent to 5 percent only.

5.1.1.13 Percentage Expenditure on Rural Roads

Roads are considered to be one of the most important infrastructures not only

for the development of rural economy, but also production and marketing of food grains

and other materials. Pucca and metalled roads help to a great extent in cheap

transportation of agriculture inputs and taking the produce to the mandis. Many

agriculture products like vegetables and milk have short shelf life and cannot be stored

for a long time. As such, these are to be transported to the market soon after these are

produced. In the absence of pucca and metalled roads, this is not possible, particularly

77

in the rainy season, when most of the roads are blocked. HSAMB is therefore, required

to pay serious attention on developing the link roads and repairing them periodically. A

part of the amount collected from the mandis as market fee needs to be allocated

towards this head. The proportion of the total amount allocated on the development of

rural roads among various circles across different years has been presented in table 5.11

Table 5.11 Percentage to Total Expenditure Accross Various Circles on Rural

Roads

Circle 1999-

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula 12.54

12.05 17.13 0 0 0 0 13.88 37.27 15.31

Karnal 26.89 24.03 23.86 0 0 0 0 29.29 37.80 25.24

Rohtak 16.52 11.27 14.81 0 0 0 0 6.14 14.07 13.02

Hisar 44.05 46.49 34.22 0 0 0 0 34.12 8.11 37.08

Gurgaon 0 6.16 7.90 0 0 0 0 16.57 2.75 8.21

Electrical-

Circle

0 0 2.08 0 0 0 0 0 0 1.11

It could be observed from the table above that though very important aspect, but

not much allocation of money has been made especially from 2002-03 to 2005-06,

rather this aspect has been completely neglected. As observed from the table above,

some work has been carried out from 1999-2000 to 2001-02 and again from 2006-07 to

2007-08. In the period 1999-2000 to 2001-02, priority was given to the development of

roads in Hisar circle (34 % to 46%), followed by Karnal circle 24 percent to 27 percent.

Rohtak circle and Panchkula circle were the next in order. Little amount was allocated

for the Gurgaon circle and electrical circle. In the 2006-07 and 2007-08 period, some

difference towards the amount allocation was observed. During this period Karnal

circle got the priority over Hisar circle followed by Panchkula and Rohtak circles.

However, the amount spent in electrical circle was practically nil. The foregoing

discussion leads to conclude that the proportion of expenditure incurred on the road

development was not sufficient and required more attention in the days to come.

However, the total amount allocated from 1999-2000 to 2001-02 varied from Rs 1629

lakhs to Rs. 18137 lakh showing an increase of 1014 percent. In 2006-07, the total

78

expenditure made was found to be Rs. 4214 lakhs, which decreased to only Rs. 52 lakhs

in 2007-08.

5.1.1.14 Percentage Expenditure on Urban Roads

It is not only rural roads, which are to be developed for efficient marketing, but

the urban roads too play a dominant road. To reach the mandis, the transporting

vehicles have to cross through the city, which pose a great problem because of heavy

vehicular traffic during the entire year, which is more trouble some during the peak

season, when large number of slow moving tractor-trollies and bullock carts add to the

traffic hazard. Though it is the prime responsibility of Municipal Committee or the

Improvement Trust for repairing and managing the urban roads, but since their funds

are very limited and the urban roads are also being used by the rural vehicles, so the

onus also lies on the District Board / HSAMB and the other bodies to look after this

aspect of infrastructure development. The proportionate expenditure across various

circles made during 1999-2000 to 2007-08 has been presented in table 5.12

Table 5.12 Percentage to Total Expenditure Across Various Circles On Urban

Roads

Circle 1999-

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

ALL

Panchkula 14.44 18.27 8.21 4.44 0 0 0 0 0 13.32

Karnal 8.42 30.31 40.32 14.93 0 0 0 0 0 14.82

Rohtak 1.34 0.61 38.45 72.84 0 0 0 0 0 7.79

Hisar 6.83 25.79 3.81 7.34 0 0 0 0 0 12.33

Gurgaon 52.38 25.02 9.21 0.45 0 0 0 0 0 40.02

Electrical-

Circle

16.60 0 0 0 0 0 0 0 0 11.52

It could be observed from the table that the HSAMB was spending on the urban

roads in early stages of development, but stopped spending on urban roads maintenance

from the year 2003-04 onwards rather in the electrical circle very little amount has been

spent from 2000-01 onwards. The overall picture of all the circles combined together

revealed that Gurgaon circle got the number one priority and 40 percent of the total

amount spent was used in this circle alone. The proportionate expenditure in Panchkula

circle, Karnal circle, Hisar circle and electrical circle has shown small variations from

79

12 percent in electrical circle to 15 percent in Karnal circle. Of the total amount, the

share of Rohtak circle was around 8 percent. This leads to conclude that HSAMB has

played little role in the development of market infrastructure particularly after the year

2003-04.

5.1.2 PROFIT MAXIMISATION FOR FARMERS

For the economic development of farming community, the nation is faced with

the problem of increasing the productivity on the one hand and giving the best price for

their produce on the other hand. For efficient marketing and providing the maximum

profit to the farmers at the various market yards, sub yards and purchase centers, a

multi pronged attack has been made. In addition to the creation of organized marketing

and providing them the various infrastructural facilities, many more development

schemes have been initiated. Some of the schemes started for the benefit of the farmers

have been given below:

5.1.2.1 Krishak Uphar Yojna

The HSAMB has launched a ‘Krishi Uphar Yojna’ from 2nd

Oct. 2000 on the

eve of Gandhi Jayanti in all the mandis of the state. Under this scheme, the secretary

market committee issues gift coupons to the seller farmers on production of ‘J’ form.

One gift coupon is given to the farmers for selling the agriculture produce worth

Rs. 5000. Number of gift coupons would increase with the amount of sale of produce in

the denomination of Rs. 5000/- each. This scheme has also helped to check evasion of

market fee on the one hand and eliminate the kacha arhtiya and village traders on the

other hand. Under this scheme, district wise lucky draws are being held on half yearly

basis. The money value of the prizes, which are being distributed in the shape of

agricultural implements on every six month basis in each district has been decided as

below:

1St

Prize ------- 2 Rs. 40000/- per prize

2nd

prize_______8 Rs. 25000/- per prize

80

3rd

. prize 12 Rs. 10000/- per prize

List of Agricultural implements/equipments

Sr.No. Name of Agricultural equipments/implements

1. Disc. Harrow 6x6 (bearing type)



4. Disc. Harrow 6x6 (Bush type)



7. 9 tyne Cultivators

8. 11 tyne Cultivators

9. Land leveller 6’

10. Land Lewveller 7'

11. Land Leveller 8'

12. Ridger- Two Row

13. Ridger- three Row

14. Bund Former (Furrow Type)

15. Bund Former (Disc. Type)

16. Disc. Plough

17. Harmba Threshers

18. Multi Crop threshers Capacity 5 Qtls

19. Multi Crop Threshers Capacity 6 Qtls




23. Harrow

24. Paddy Tilling Machine

81

25. Tractor Trolly

26. Fertilizer

27. Pesticides

Note: Regarding paper formalities, contact concerned E.O.-cum-Secretary Market

Committee.

5.1.2.2 Special assistance to Victims of Agricultural operations

The scheme providing special assistance to the victims of accidents during

agricultural operations/pursuits by the market committee came into existence from 24th

Feb., 1989. Under this scheme, financial assistance is being granted by market

committees to the victims of accidents due to agricultural operations in the state.

Compensation for the loss of limbs is given @ Rs. 5000/ to Rs. 40000 and in case of

death a compensation of Rs. 50000 is paid. As per the available data, the total amount

of financial assistance disbursed so far has been of the order of Rs. 2.6473 crore to 1199

persons from 1-02-2008 to 30-09-2009. The said scheme is operative in the age group

of 10 years to 65 years and the scope of this scheme is as under:

Death or disablement to any farmer or labourer arising out of working on

agriculture machine, implements, tools, equipments, appliances and all other

allied activities as specified earlier in the name of scheme in the state of

Haryana.

Death or disablement to any farmer arising out of digging of well or tubewell,

cane crusher, kohloos, chaff cutters, threshers, digging operations, poisonous

gas while digging and operating the tubewell during agriculture

operations/pursuits etc.

Death or disablement to any farmer or farm labourer arising out of accident with

animals or animal cart, trucks and any other vehicle during carrying of the

agricultural products, agricultural operations/pursuits in the state of Haryana.

Death or disablement to any farmer or farm labourer while using insecticides,

pesticides, weedicides, electric shocks during agricultural operations/pursuits in

the state of Haryana.

82

Death or disablement to any labourer employed or engaged in market yard

arising out of use of agricultural machinery, implements for handling

agricultural produce, other accidents with animals,carts, trucks, electric shock,

fire hazards and vehicles coming and going out of the market yards.

The scheme is applicable in the state of Haryana. The basic formality is to

complete the application to be submitted within 60 days from the date of

occurrence of the accident on a plain paper to the concerned E.O.cum secretary,

Market committee with the following documents

Medical certificate from at least a M.B.B.S. doctor

Three passport size photographs

An affidavit duly attested by the Tehsildar explaining the details of the

accident.

5.1.2.3 CONTRACT FARMING

The process of Contract Farming in Indian Rural Economy is a new concept.

The process of contract farming involves cultivating and harvesting for and on behalf of

big business establishments or Government agencies and forwarding the produce at a

pre-determined price. In return, the contracted farmers are offered high price against

their farm produce. The role of contract farming in Indian rural economy is becoming

more and more important, since organized farming practice has become the need of the

hour in the world of rapid industrialization. The rapid industrialization process in India

has created shortage of farmland, which in turn has necessitated organized farming

practice in India.

The process of contract farming involves scientific and optimum use of land

and farm resources for maximum output of agriculture produce. Small time farmers

practicing primitive agricultural methods for cultivation and harvesting of crops

dominate the Indian agriculture sector. But, with the liberalization of Indian economy,

there has been a sudden spurt in contract farming. Moreover, today more and more

established business houses are taking interest in the business of contract farming. This

83

has happened as a result of rapid growth of retail industry. The growth of retail industry

in India has propelled the growth of farm retail in India, which caters fresh vegetables

and fruits from the farms to the Indian masses. The role of Contract Farming in Indian

rural economy involves government and private participation along with the rural

workers.

Even though contract farming is proving to be a great success in Punjab,

corporates seem to be shying away from its neighbouring state of Haryana. At present,

there is only one corporate house in Haryana, which has so far partnered with HSAMB

for contract farming of malting barley in Haryana. SAB Miller, India, the Indian arm of

SAB Miller Pic, one of the world’s largest breweries with popular brands like Foster’s,

Castle Lager, Haywards, Royal challenge, etc. has roped in 400 farmers across 2500

acres in the state for contract farming of barley. The initiative is spread out in the arid

regions of the state that involves Gurgaon, Jhajjar and Sirsa regions. The main reason

why companies don’t evince much interest in contract farming here is that the farmers

have an assured income from wheat, for which the government is paying good price.

But for vegetables and fruits, corporates seem to be waiting for direct marketing

scheme to come into play so that they are not legally bound to the farmer. There is no

denying the fact that Reliance Retail and Subhiksha, ITC and Mother dairy are

procuring fruits and vegetables from farmers located in Sonepat, Kaithal, Karnal and

Rohtak, but are not ready to enter into contract farming. They too are waiting for the

Direct Marketing Scheme. The draft scheme for direct marketing is ready and gone to

the government for approval. Once the scheme is approved, the companies are expected

to enhance their presence in the state. To promote the contract farming in the state,

Haryana Government through its organ, the HSAMB has issued the notification which

is as under:

5.1.2.3.1 Haryana Government Agriculture Department Notification

To promote the contract farming amending rules, Haryana Goverenment has

issued the notification on 9th

August 2007 vide No.1140-AS-I-2007/14293. In exercise

of the powers conferred by sub section (1) read with sub section (2) of section 43 of the

84

Punjab Agricultural Produce Markets Act, 1961 (Punjab Act 23 of 1961), the Governor

of Haryana hereby makes the following rules further to amend the Punjab Agricultural

Produce Markets (General) Rules, 1962 in their application to the State of Haryana,

namely:-

1. (i) These rules may be called the Punjab Agricultural Produce Markets (General)

Haryana Amendment Rules, 2007.

(ii) They shall come into force with immediate effects.

2. In the Punjab Agricultural Produce Markets (General) Rules, 1962, (hereinafter

called the said rules), after rule 16, the following rule shall be inserted, namely,-

“ 16A. Registration of contract farming section 8 A.-

(i) Any contract farming sponsor intending to register himself under section 8A of the

Act shall apply in Form A-I to the Secretary of the concerned Market Committee. In

case the contract farming sponsor wants registration for more than one Market

Committee, he may apply to the Secretary of the Board.

(ii) Every such application shall be accompanied with a registration fee of Rs. 5000/-.

The amount shall be refundable only if the registration is denied for any reason. The

period of registration shall be three years.

(iii) The period of registration may be got renewed by applying to the Secretary of the

concerned market Committee or the Secretary of the Board as the case may be in Form

A-II accompanied with a renewal fee of Rs. 2,000/-. The amount shall be refundable

only if the renewal of registration is denied for any reason.

(iv) Application for registration/renewal shall also be accompanied with:-

(a) a detailed project report of the business intended;

(b) a statement showing the financial status of the applicant with the support of

Income tax returns for the previous two assessment years or permanenet assets with

valuation assessed by a Chartered Accountant;

(c) Balance sheet of last two years;

(d) Proof of registration under the Companies Act, 1956 (1 of 1956), the Indian

Partnership Act, 1932 (9 of 1932), the Haryana Cooperative Societies Act, 1984 (22 of

1984) or a Government agency, as the case may be.

85

(v) The Secretary of Market Committee or the Secretary of the Board as the case may

be shall evaluate the application for registration or renewal submitted by the applicant

and after evaluation shall issue the registration certificate to the applicant in Form B-I

or renew the registration as the case may be. In case contract farming sponsor violates

the provisions of Act, Rule & Bye Laws or conditions of contract agreement, the

Secretary of the Market Committee or the Secretary of the Board as the case may be,

shall have the power to cancle his registration.

(vi) The contract farming agreement between the contract farming sponsor and contract

farming producer shall be in Form C-I and it shall be got registered with the District

Marketing Enforcement Officer concerned in the presence of both the parties. The

agreed rate/contract rate shall not be less than Minimum Support Price (MSP)of the

proceeding years. The buyer shall deposit an amount up to 15% of the total price of the

agricultural produce as per agreed rate or Minimum Support Price (if the rate is not

agreed upon) or bank guarantee for the sum with the committee in which the land is

situated as security. Where there is no Minimum Support Price and no agreed rate, the

amount of security shall be calculated at the rate of 15% of the prevailing market rate at

the time of agreement. The security shall be released within a period of thirty days

after the date of satisfactory performance of the agreement.

(vii) In case both the parties want to change any of the terms and conditions of the

contract farming agreement, the same shall be affected by the District Marketing

Enforcement Officer concerned in the presence of both the parties form time to time as

per requirement.

(viii) The secretary of the concerned Market Committee or the Secretary of the Board,

as the case may be, shall maintain record of the contract farming sponsors in Form D-I..

(ix) The District Marketing Enforcement Officer concerned shall maintain a record of

the contract farming agreements in Form E-I.

(x) The District Marketing Enforcement Officer concerned either himself or on the

request of either party shall empower the officials of the Board/Committee or any other

Government agency being expert to enter the premises/fields of the parties to contract

farming agreement to inspect, supervise and monitor the farming practices adopted and

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the quality of the produce from time-to-time. A record, as may be necessary in this

regard in the form of Kisan Diary or otherwise may also be maintained.

(xi) A Contract farming sponsor shall submit annual accounts in Form F-I before 30th

June every year, to the concerned Market Committee in respect of all transactions

undertaken by him during the previous financial year.

(xii) If the contract farming sponsor has purchased the produce with an intention to

export or processing, then he shall inform to the concerned Market Committee, the

same in Form G-I. The contract farming sponsor shall submit a declaration that he is

exporting or processing the produce within a period of 90 days from the date of

purchse.

(xiii) If any dispute arises between the parties in respect of any provisions of contract

farming agreement, either of the party may submit an application to the Zonal

Administrator concerned to resolve the dispute. Every such application shall bear the

court fee stamp of ten rupees. The zonal Administrator shall resolve the dispute in a

summary manner within a period of thirty days after giving the parties a reasonable

opportunity of being heard.

(xiv) Any party aggrieved with the decision of the Zonal Administrator may prefer an

appeal to the chief Administrator within a period of thirty days from the date of such

decision. Such appeal shall bear the court fee stamp of fifty rupees. The appellate

authority shall dispose of the appeal after giving the parties a reasonable apportunity of

being heard and the decision of the appellate authority shall be final.

(xv) In the said rules, in rule 31, in sub rule (1), after the first proviso, the following

proviso shall be inserted, namely:-

“Provided further that every contract farming sponsor, who enters into the contract

farming agreement shall maintain a register in Form Q and furnish information in Form

R to the committee within a period of fifteen days of the purchase

(xvi) For the registration of application, renewal of the application, registration

certificate form of agreement etc. There are separate forms.

87

5.1.2.4 Setting up of Agri-Business Informaiton Centres

In the first phase these centers are being set up at all the district headquarter

mandis to provide information on market, agronomical practices, organization of

seminars, workshops and buyer seller meets etc. These centres will be equipped with

computers, television, touch screens, which would be linked to AGMRK, Net and other

information sources. The centres would also have films and literature on crops and

markets. These centers will also house the Agricultural Development officers and

organize regular training to farmers and help in improving the quality of agricultural

products. Two such centers at Sirsa and Hisar have already become operational and

many more are in the offing.

5.1.2.5 Setting up of Farmers Markets

In order to provide opportunity to the farmers for selling their produce directly

to the consumers and realize better prices for the farmers, two farmers markets at

Panchkula and Gurgaon are being set up. These markets would also be a nodal point for

dissemination of information and providing technical inputs and know how to the

farmers in collaboration with the experts in agriculture/horticulture. It will also help the

farmers to add value to their produce by introducing quality controls and certification

measures.

5.1.2.6 Setting up of New Modern Fruit and Vegetable Markets

New Fruit and Vegetable markets will be set up at all the district headquarters in

a phased manner, which will provide separate retail and wholesale sections. Such

markets will have modern facilities for the convenience of users and better systems for

information and quality up gradation of products of farmers. These markets will have

storage and cooling facility.

5.1.2.7 Setting up of A Modern Terminal Market at RAI

A major initiative has been taken to set up an Ultra Modern Terminal Market for

Fruits and Vegetable Markets at Rai with the help of Government of India at the

estimated cost of Rs. 65crores, which will have capacity of more than 1000 MT per

day. This market will cater to registered bulk buyers and exporters and will have

electronic grading-sorting lines, cooling chambers and electronic bidding systems. The

model also envisages setting up of collection centers in selected villages in a catchment

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area of 50 kms. in the first phase. These collection centers will provide all facilities of

grading and sorting, information, banks and insurance to the farmers.

5.1.2.8 Creation of Commercial, Research & Training and Quality Control

Divisions at the Headquarters

These divisions will provide training on marketing, post harvest management of

crops, organize buyer-seller meets and promote contact between bulk buyers and

farmers.

5.1.2.9 Farmers Development Scheme-Input Scheme

For the welfare of Farmers the various Input Schemes have been taken up

which are discussed below:

i)Subsidy for purchase of high/improved/Hybrid seeds and purchase of implement:

In order to introduce better seed and produce hybrid seeds, it is proposed to

help farmers by way of giving subsidy on certified seeds through Haryana Seeds

Development Corporation. A provision of funds to the tune of Rs. 112.50 lakhs for the

purchase of Specific Gravity Seperators and other machinery/equipment has been

made. The scheme would aim at encouraging organic agricultural produce in

consultation with agriculture department and H.D.S.C. Therefore, HSAMB has

provided a budget of Rs. 1.00 crore for providing assistance to the Haryana Seed

Corporation.

ii) Subsidy on Purchase of Gypsum Reclamation of Alkaline land

Gypsum is the important component of improving productivity of soil. Govt. of

India has declined to give subsidy, hence the use of Gypsum has reduced. Alkaline

land can be made fertile only if the Gypsum is used by the farmers. This expenditure is

now to be borne by the Haryana Government. Therefore HSAMB has provided a

budget of Rs. 1.00 crore, for grant to Haryana Land Reclamation Corporation as

subsidy for purchase of Gypsum.

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iii) Providing working capital to Haryana Seeds Development Corporation

Availability of quality seeds at affordable price is of utmost importance for

improving agriculture production. A proposal has been received from H.S.D.C for

financial support in shape of loan was considered to help HSDC in its endeavor to

provide farmers better quality seeds. HSAMB has provided working capital of Rs 5.00

Crore to HSDC on an interest @ 6% p.a. for the purpose as requested by the

Managing Director, HSDC.The amount was to be returned by HSDC to HSAMB after

sale of seeds and not later than 15th Dec of the same year.

5.1.2.10 Farmers Market Assistance Scheme

It is common knowledge that diversification of crops is a difficult process

unless the farmers are provided assured marketing. Although introduction of

Contract Farming is one of the measures, yet it will be beneficial if direct assistance

is provided to farmers for marketing. This assistance will be given to cluster of

farmers and will be introduced on pilot basis in selected districts and for selected

crops. The following specific measures are proposed to be taken:-

(i) Assistance in transportation

Preferably air cooled/refrigerated vans to enable farmers to transport

vegetables and fruits/flowers to the markets are proposed to be provided.

(ii) Assistance in packaging material

Assistance in packaging the produce in plastic bags/ crates etc so that the loss

in quality or quantity occurring due to repeated handling is reduced.

(iii)Publicity

The farmer's cooperatives, associations, Kisan clubs or self help groups, who

are keen to market their product, assistance can be given for publicity in shape of

printing of literatures, advertisement etc.

Therefore, a budget provision of Rs. 7.00 crores has been made \under sub

head "Farmers Input Scheme" and Rs. 2.00 Crore under sub head "Farmers Market

Assistance Scheme" under a newly created head "New Schemes" in Revenue

Payments.

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5.1.2.11 Other Development Schemes

The HSAMB has decided to provide value added facilities like sorting, grading-

lines and packaging etc. to the farmers by setting up community hubs in the state so that

the export possibilities of their produce could be enhanced. Community hubs for

potatoes have been set up at Shahabad, for tomato at Karnal, for onion at Jhajjar, for

mushroom at Sonepat and Kinnow at Sirsa. Under the scheme, assistance for

grading/sorting, packaging and transportation has been provided

to the farmers, besides imparting them the training in post harvest management

practices and better marketing techniques. Financial assistance too has been provided

for the purpose.

The HSAMB has also decided to set up Agro malls/Retail vegetable markets

with all modern facilities. One such agro mall has been set up in sector 20 of Panchkula

at a cost of 49.80 crores. In addition to this agro mall at Karnal with an estimated cost

of 22.27 crores is being set up. Sanction has also been accorded to set up such agro mall

at Gurgaon at an estimated cost of Rs. 44.85 crores. Another such mall is likely to come

up at Rohtak.

5.1.3 Collection of Market Fees, Sales Tax and other Levies

The income of the HSAMB/Market Committees is derived from the collection

of market fee on the sale and purchase of agricultural produce which is levied @ 2

percent advalorem basis except 21 items on which the rate of market fee is 1 percent

advalorem basis. The market committees contribute 30 percent of the total collection of

market fee to the board. The other sources of income of the Board/ Market committees

are from the sale of plots in the new mandis and licence fee etc. For the purpose, the

produce is divided into various categories as below:

CATEGORY “A”

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In addition to Wheat and Paddy, the other commodities include, Bajra, Mash,

Moong, Moth, Massar, Sarson, Toria, Taramira, Til, Methi, Sunehri, Oats, Gowar,

Maize, Gram (Kabli and Black), Barley, Jowar, Dry Peas, Arhar, Gur, Shakkar,

Khandsari, Ground-nut and Sun flower ( Suraj Mukhi) Seed etc.

CATEGORY “B”

The Commodities included in category “B” are Cotton, Wool, Ground Nut

(Unshelled) and Chillies (Dry).

Category “C”

Category “C” includes the non Perishable vegetables like Potatoes,

Shakarkandi, Onion, Arvi, Garlic and Ginger.

CATEGORY “D”

Category “D” comprise of all perishable Vegetables and Fruits.

CATEGORY “E”

CATEGORY “E” covers the Green and Dry Fodder and Babbar Grass.

Since the study has been conducted on the Grain Market only, as such, the

charges fixed for only Category “A” and “B” are being discussed here:

MARKET LICENCE FEE

As per the rules framed under the Act, all the market functionaries working in

the mandis are required to take a license. They are also charged security fee. Under

section 10 of the Act, there are three categories of license. Licence fee and the security

charged from the lincenses is as under:

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TABLE 5.13 Lincense fee and Security for various Catergories of Functionaries

(In Rs.)

. Category of License License Fee per Security

Annum Quarter

________________________________________________________________

Factory including ginning factory, 100.00 25.00 500.00

Flour mill, Oil Expeller, Dal mill,

cold storage or processing of Agri.

Produce.

Commission Agent, Kacha arhtiya, 60.00 15.00 300.00

wholesale dealer for sale, purchase or

storage of agri. Produce.

_____________________________________________________________________

5.1.3.1 Market Fee

As per the Act, the market fee comprises of two components- the Incidental

Charges and the Market Charges. The incidental charges include the unloading charges

and the cleaning charges at the time the farmer brings the produce to the mandi.

However, if the farmer has brought the produce after cleaning it, nothing is charged.

These charges are to be paid by the seller only if the services are rendered by the mandi

licencees. The market charges are the charges charged for various operations from the

buyer of the produce. The market charges include the charges for i) filling and placing

the unit on the platform/balance, ii) weighing iii) unloading from the balance, iv)

stitching the bags, which are done manually as well as by machines for which the

charges are different v) loading vi) Auction charges, vii) commission, and viii)

brokerage. Recently by special notification two more charges i) Marka (including cost

of colour) and temporary stacking have been added. All these rates were fixed, which

undergo a change occassionaly for which a special notification is issued. Here for this

study the rates for different operations have been considered, which have amnended by

the HSAMB vide Amendment in Bye-law 28 (1) of the Bye-law of market committees

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in the state vide notification No. ME-I/A-III/2010-30408-565 on 30-03-2010. The

various charges proposed earlier are given below in Table 5.14

Table 5.14 MARKET FEE AND CHARGES-INCIDENTAL CHARGES

CATEGORY-A ( COMMODITY-I,WHEAT)

Incidental charges Rates in rupees per unit

(Payable by seller) for 50 kgs

.S.No. PARTICULARS

1. Unloading 0.90

2. Cleaning & Dressing-Manually 0.85

By Machine 1.55

(For rendering actual services. Nothing will be charged, if produce is already cleaned)

Market Charges ( Payable by buyer)

These operations will be performed by Commission Agents/ Kacha Arhtias

1. Filling and Placing the Unit 0.86

On the Platform/balance

2. Weighing 0.82

3. Unloading from the balance 0.67

4. Stitching Manually 0.45

By Machine 0.60

5. Loading 1.00 per bag

6. Auction Charges 0.08 per hundred rupees

7. Commission 2.50 per hundred rupees

8. Brokerage 0.16 per hundred rupees

9. Marka ( including cost of colour) 0.10 per bag

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10. Temporary stacking 0.10 per bag

CATEGORY-A ( COMMODITY-II, PADDY)

Incidental charges (Payable by seller) Rates in rupees per unit

for 50Kgs 35 kgs

1. Unloading 1.20 0.90

2. Cleaning & Dressing( Manually) 1.05 0.83

3. Cleaning & Dressing( Machine) 2.00 1.53

(For rendering actual services. Nothing will be charged if produce is already cleaned)

Market Charges ( Payable By Buyer)

1. Filling and Placing the Unit 1.24 0.86

0n the Platform/balance

2. Weighing 0.95 0.82

3. Unloading from the balance 0.70 0.66


By Machine 0.60

5. Loading 1.00 per bag



8. Brokerage 0.16 per hundred rupees



CATEGORY-A COMMODITY NO. 3. Bajra, 4. Mash, 5.Moong, 6. Moth 7. Massar,

8. Sarson, 9. Toria, 10. Taramira, 11. Til, 12. Methi, 13. Sunehri, 14. Oats, 15. Gowar,

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16. Maize, 17. Gram ( Kabli and Black), 18. Barley, 19. Jowar, 20. Dry Peas, 21. Arhar,

22.Gur, 23. Shakkar, 24. Khandsari, 25. Ground nut, 26. Sun flower seed (Suraj

Mukhee Beej)

Incidental charges (Payable by seller) Rates in rupees Unit

50 Kgs..

1 Unloading 0.84

2. Cleaning and sanitation Manually 0.86

3 Cleaning and sanitation Machine 1.50

(For rendering actual services. Nothing will be charged if produce is already cleaned)

MARKET CHARGES ( Payable by Buyer)

1. Filling & placing on the Platform 0.90

2. Weighing 0.83

3. Unloading from balance 0.64


Stitching by Machine 0.60


6. Commission Rs. 2.50 per hundred rupees

7. Brokerage Rs. 0.16 per hundred rupees



CATEGORY “B”

COMMODITIES I Cotton (40 kg), Wool (40 kg), Ground Nut (unshelled) {30

Kg}and Chillies Dry (17 Kgs)

INCIDENTAL CHARGES Rates in rupees per unit

96

( PAYABLE BY SELLER) (For cotton and wool)

1. Unloading 0.60

2. Dressing (Except Ground Nut) 0.60

3. Cleaning & Dressing(Ground Nut 0.70 -

Only)

MARKET CHARGES ( PAYABLE BY BUYER)

1. Filling & placing on Balance 1.02

2. Weighing 0.90

3. Unloading from the balance 0.66


By Machine 0.60



2.50 per unit of Cotton only

7. Brokerage 0.16 per hundred rupees.

____________________________________________________________________

The rates are being revised from time to time by amending the Bye-law 28 (1)

of the Bye-law of Market Committees in the state. The latest amendment has been

made vide Memo. No. MM-I-A-III/2010/30408-565 pm 30-3-2010

5.1.3.2 Income from Market Fee

Based on the above, the income of HSAMB from Market Fee for the period

2000-01 to 2009-10 and the growth rates have been presented below:

It could be observed from the table that HSAMB had a significant amount of

contribution from the market fee collected by the various market committees of

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Haryana. During the years 2000-01 to 2009-10, the income of HSAMB from the market

fee has increased from 124.15 crores to 371.01 crores showing an increase of 199

percent or the simple growth rate per year is around 20 percent. The trend showed an

increasing trend except for the year 2006-07, when it showed a slight decrease, but

increased in the subsequent year. The growth analysis revealed that the growth rate in

2001-02 over 2000-01 was quiet high (15.60%). It showed a decreasing trend for two

years, but showed a spurt in 2005-06. The very next year, the growth rate was negative,

TABLE 5.15 Income from Market Fee and Charges by HSAMB during various

Years

Year Income in crores Growth rate (%)

2000-01 124.15 -

2001-02 143.54 15.60

2002-03 148.06 3.15

2003-04 149.55 1.01

2004-05 154.25 3.10

2005-06 171.82 11.39

2006-07 166.61 -3.03

2007-08 228.30 38.03

2008-09 300.33 31.55

2009-10 371.01 23.53

CGR (%) 11.27

but in 2007-08, it rose to 38 percent, a significant jump. The growth rate showed a

negative trend there after. This could be due to the change in the productivity and

production during different years due to which the procurement was low and hence the

low collection of market fee.

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5.1.4 Regulation and Administration of Various MCs

Regulation and administration of various MCs across the state of Haryana are

governed by the various Acts, Rules and Bye laws of The Punjab Agricultural Produce

Market Act, 1961. The Act comprises of 47 sections. Again some of the sections have

various sub sections. The HSAMB headquarter and all the Market Committees-

Principal yards, Sub yards and the Collection Centers are governed by these Rules and

Regulations formulated under The Punjab Agricultural Produce Markets Act, 1961. The

said Act extends to the state of Punjab, Haryana, Chandigarh & Himachal Pradesh

under section 5 of the Punjab Reorganisation Act, 1966. The various sections of the Act

are summarized below:

SECTION DESCRIPTION

1. Short Title, extent and commencement

2. Definition/ Construction of certain references in the Act

3. State Agricultural Marketing Board, Constitution, Powers and Duties

4. Execution of Contracts by Board

5. Notification of intention of exercising control over purchase, sale, storage and

processing of agricultural produce in specified area.

6. Declaration of notified market committee

6(a) Notification of intention to alter limits of or to amalgamate or to split up

market areas.

6(b) Procedure subsequent to notification under section 6-A

6(c) Power of state to issue consequential orders with respect to constitution, etc.

on committees alteration of limits, amalgamation or splitting up.

6(d) Effect of alteration of limits

6(e) Effect of amalgamation

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6(f) Effect of splitting up

6(g) Apportionment of assets and liabilities of Committees splitting up

6(h) Suits by or against new committee

6(i) Saving as to existing employees of committee or committees amalgamated or

split up.

7 Declaration of market Yards

8. Control of sale and purchase of agricultural produce

9 Authority to whom applications for grant of licences are to be made

10 Applications for licences fees to be paid and cancellation/suspension of licences.

11. Establishment of market committees

12 Constitution of Committees

13. Duties and Power of committees

14. Terms of office of members

15. Removal of members

16 Nomination and removal of Chairman and Vice Chairman

17. Filling of vacancies

18. Incorporation of committees

19. Appointment of sub/joint committees and delegation of powers

20 Constitution of marketing service / Appointment of class IV employees

21. Persons who are to be deemed public servants within the meaning of Section 21-

IPC of the Indian Penal Code

22 Execution of contracts

23. Levy of Fees 23(A) Passing on burden of fees

24. Octroi not payable on certain agricultural produce

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25 Marketing Development Fund

26. Purposes for which marketing funds may be expended

27. Market Committee funds

28. Purposes for which marketing committee funds may be expended

29. Liability of member or employee of committees or the Board

30. No Trade Allowance permissible except as prescribed

31. Bar of suit in absence of notice

32. Power to borrow

33. Power to call information, inspect, enforce attendance and to suspend actions etc.

of committees/ Power to order production of accounts / Power to stop vehicles./

Duties of Police officers

34. Acquisition of land for the Board and Committees

35. Supersession of committees

36. Emergency powers

37. Penalties

38. Power of state government to amend schedule

39. Trial of offences

40 Appeal

41. Recovery of sums due to state government from committees

42. Revision

43. Power to make rules

44. Bye-laws

45. Power to write off irrecoverable fees etc.

46. Power to compound offences/ Vesting of properties of mandi township etc.

101

47. Repeal and savings.

This is the arrangement of all the sections.it would however be difficult to study

and present sall the documents pertaining to the board, but at the same time it is very

important to study the Constitution, Powers and duties of the HSAMB

5.1.4.1 Constitution, Powers and Duties of HSAMB

The constitution of HSAMB, highlighting the poers and duties of the board in

respect to the Marketing committees, its employees and mode of getting the work done

from the contractors and dealing with the committees is given below:

(1) The State Government may, for exercising the powers conferred on and

performing the functions and duties assigned to the Board by or under this Act,

establish and constitute a State Agricultural Marketing Board, consisting of [a

Chairman (and a Chief Administrator, who shall be an officer of the rank of the Head of

the Department,) to be nominated by the State Government of [eleven other members of

whom four shall be officials and seven non-officials) to be nominated by the State

Government in the following manner:-

(a) Official members shall include the Director and three officials, one representing

the Agriculture Department, the second representing the Co-operative Department and

the third representing the Animal Husbandry Department;]

(b) Of the non-official members:-

(i) One shall be a producer member of a committees;

(ii) One shall be member of the other registered organizations of the farmers;

(iv) One shall be from among such persons licensed under section 10 as are

members of the committee;

(v) One representing Co-operative societies.

(vi) One shall be amongst the persons licensed under section-10; and

(vii) One representing Panchayat Samities

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(2) The Director shall be ex-officio Secretary of the Board

(3) The Board shall be a body corporate as well as a local authority by the name of

the State Agricultural Marketing Board having perpetual succession and a common

seal, and shall by the said name and sue and be sued, and hold property both movable

or immovable property which may have, become vested in or been acquired by it, and

to contract and to do all other things necessary for the purpose of this Act.

(4) The non-official members of the Board shall hold office during the pleasure of

the State Government; provided that their term of office shall not exceed three years.

(5) No person shall be eligible to become a member of the Board who:-

(a) Does not ordinarily reside within the [State of Haryana];

(b) Is below twenty-five years of age;

(c) [ * * * * * * * *]

(d) Is of unsound mind; or

(e) Has been declared as insolvent or sentenced by a criminal court, whether within

or outside the [State of Haryana]; for an offence involving moral turpitude;

[Provided that the disqualification incurred under:-

(i) [ * * * * * * * *]

(ii) Clause (e), on the ground of a sentence by a criminal court, shall not apply after

the expiry of four years from the date on which the sentence has expired.]

(6) Amember of the board may resign from the membership by tendering his

resignation to the state government through the chairman of the board and the seat of

such members shall become vacant on the date of acceptance of his resignation.

[Provided that the Chairman (and the Chief Administrator) of the Board may

resign by tendering his resignation to the State Government].

103

7-A Whenever any member of the Board dies, resigns, ceases to reside within the

State of Haryana or otherwise becomes incapable of acting as a member of the Board

(or any vacancy occurs otherwise) the State Government may appoint another member

in his place in the manner as provided in sub-section (1) to whichever category the

vacating member belongs :

Provided that the term of office of the member so appointed shall expire on the same

date as the term of office of the vacating member would have expired had the latter held

office for the full period allowed under sub-section (4).].

(8) The State Government shall exercise superintendence and control over the

Board and its officers and may call for such information as it may deem necessary and

in the event of its being satisfied that the Board is not functioning properly or is abusing

its powers or is guilty of corruption or mismanagement, it may suspend the Board and,

till such time as a new Board is constituted, make such arrangements for the exercise of

the functions of the Board as it may think fit; Provided that the Board shall be

constituted within six months from the date of its suspension.

(9) The Board shall exercise superintendence and control over the committees.

(10) The State Government, the Deputy Commissioner, Sub Divisional Officer

(Civil) (the Chairman, the Chief Administrator) or Secretary of the Board or any other

officer of the Board authorized in this behalf by the Board may call for any information

or return relating to agricultural produce from a committee or a godown keeper or other

functionaries and shall have the power to inspect the records and accounts of a

committee and stock and accounts of any godown-keeper or other functionaries for that

purpose.]

(11) [ * * * * * * * *]

(12) [ * * * * * * * *]

(13) Subject to rules made under this Act, an estimate of the annual income and

expenditure of the Board for the ensuing year shall be prepared and passed by the

Board and submitted every year for sanction of the State Government not later than the

104

prescribed date. The State Government shall sanction and return the budget within two

months from the date of the receipt thereof. If it is not received within two months it

shall be presumed to have been sanctioned.

(14) Subject to rules made under this Act, the Board may, with the approval of the

State Government, frame bye-laws for

(a) Regulating the transaction of business at its meetings;

(b) The assignment of duties and powers of the Board to its Chairman, Secretary or

persons employed by it; and

(c) Such other matters as may be prescribed.

(15) [Four] members shall constitute a quorum at a meeting of the Board:

Provided that if a meeting is adjourned for want of quorum, no quorum shall be

necessary at the next meeting called for transacting the same business.

(16) All questions before a meeting of the Board shall be determined by a majority of

votes the members present and voting and, in case of equality of votes, the Chairman

may exercise a casting vote.

(17) (i) The State Government may delegate to the Board or its Chairman or

Secretary any of the powers conferred on it by or under this Act; and

(ii) The Board may, under intimation to Government, delegate any of its powers

to its [Chairman, Chief Administrator] Secretary, or any of its officers.

(18) The Headquarter of the Board shall be located at a place to be determined by the

State Government.

(19) No act or proceeding of the Board shall be invalid by reason only of the

existence of any vacancy among its members or any defect in the constitution thereof.

105

Establishment of Market Committee.

The State Government shall by notification establish a market committee for

every notified market area and shall specify its headquarters.

Constitution of Committees.

(1) A committee shall consist of eleven or nineteen members as the State

Government may in each case determine out of whom one shall be an official appointed

by the State Government:

Provided that where in a notified market area, there is in existence a Co-

operative Society, the committee shall consist of twelve or twenty members as the case

may be:

(2) The remaining members shall be nominated by the State Government by

notification as follows :-

(a) if the committee is to consist of eleven members, there shall be nominated-

(i) seven members from amongst the producers of the notified market area:

(ii) two members from amongst the person licensed under section 10; and

(iii) one member from amongst the persons licensed under section-13 :

Provided that the members nominated under this clause shall include at least one

person belonging to Schedule Castes or Scheduled Tribes and one person belonging to

the Backward Classes, who are otherwise qualified to be nominated as members of the

Committee ;

(ii) two members from amongst the persons licensed under section 10; and

(iii) one member from amongst the persons licensed under section 13:

Provided that the members nominated under this clause shall include one

member belonging to Scheduled Castes or Backward Classes and one woman member,

106

who are members of Gram Panchayats or Panchayat Samitis of the concerned notified

market area and who are otherwise qualified to be nominated as members of the

Committee ;

(b) If the committee is to consist of twelve members, there shall be nominated, in

addition to the members specified in clause (a), one member representing the Co-

operative Societies:

(c) If the committee is to consist of eleven members, these shall be nominated-

(i) Twelve members from amongst producers of the notified market area:

(ii) Four members from amongst the persons licensed under section 10; and

(iii) Two members from amongst the person licensed under section 13;

Provided that the members nominated under this clause shall include two

members belonging to Scheduled Castes or Backward Classes and one woman member,

who are members of Gram Panchyats or Panchayat Samitis of the concerned notified

market area and who are otherwise qualified to be nominated as members of the

committee;

(d) If the committee is to consist of twenty members, these shall be nominated, in

addition to the members specified in sub-clause (c), one member representing the Co-

operative Societies.

Provided that where in the case of sub-clause (iii) of clause (a) or sub-clause

(iii) of clause (c), there are no persons licensed under section 13, or the member of such

persons is less than those required to be nominated, the deficiency shall be made up by

nominating members from amongst the persons licensed under section 10.

(3) No act, done or proceeding taken, under this Act, by the Committee, shall be

invalid merely on the ground-

(a) Of any vacancy or defect in the constitution of the Committee; or

107

(b) Of any defect or irregularity in such act or proceeding not affecting the merits of

the case.

(c) Of any defect or irregularity in such act or proceeding not affecting the merits of

the case.

(4) Subject to the rules made under this Act, the disqualifications specified in sub-

section (5) of section 3, shall also apply for purposes of becoming a member of a

committee.

(5) The State Government shall constitute Committees in accordance with the

provisions of this section:

Provided that the State Government may, until such Committees are constituted

and their Chairman and Vice-Chairman are [nominated] in accordance with the

provisions of this Act, appoint such person or persons, as may be considered suitable in

this behalf, to exercise the powers and perform the functions of such committees.

Explanation – For the purposes of the proviso to sub-section (5), any person or

persons appointed by the State Government before the commencement of the Punjab

Agricultural Produce Markets (Haryana Amendment) Act, 1980, to carryout the

functions of a Committee shall be deemed to be person or persons appointed by the

State Government to exercise the powers and perform the functions of those

committees for which they were appointed.]

Duties and Powers of Committee

(1) It shall be the duty of a Committee

(a) to enforce the provisions of this Act and the rules and bye laws made there

under in the notified market area and, when so required by the [***] Board, to establish

a market therein providing such facilities for person visiting in connection with the

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purchase, sale, storage, weighment and processing of agricultural produce concerned as

the [***] Board may from time to time direct.

(b) To control and regulate the admission to the market, to determine the

conditions for the use of the market and to prosecute or confiscate the agricultural

produce belonging to person trading without a valid license;

(c) To bring, prosecute or defend or aid in bringing, prosecuting or defending

any suit, action proceeding, application or arbitration, on behalf of the Committee or

otherwise when directed by the Board

[ * * * * * * * *].

(2) Every person licensed under section 10 or section 13 and every person

exempted under [section 8] from taking out license, shall on demand by the Committee

or any person authorized by it in this behalf furnish such information and return, as may

be necessary for proper enforcement of Act or the rules and bye-laws made there under.

(3) Subject to such rules as the State Government may make in this behalf, it shall

be duty of a Committee to issue licenses to brokers, weighmen, measures, surveyors,

godown keeper and other functionaries for carrying on their occupation in the notified

market area in respect of agricultural produce and to renew, suspend or cancel such

licenses.

(4) No broker, weighman, measurer, surveyor, godown-keeper or other functionary

shall, unless duly authorized by licence, carry on his occupation in a notified market

area in respect of agricultural produce:

Provided that nothing in sub-sections (3) and (4) shall apply to a person carrying

on the business of warehouse man who is licensed under the Punjab Warehouse Act,

1957 (Punjab Act No. 2 of 1958).

Term of office of members

Term of office of members – (1) Subject to the provisions of section 17, a

nominated member of a Committee shall hold office [during the pleasure of the State

109

Government; provided that term of office shall not exceed three years from the date of

his appointment]

(2) An outgoing member may, if otherwise qualified, be re-nominated for another

term of three years.]

(15) [ * * * * * * * *]

(16) (1) Every Committee shall have a Chairman and Vice-Chairman. The Chairman

shall be [nominated by the State Government] from amongst the members, who are

producers and Vice Chairman shall be [nominated by the State Government] from

amongst the members who are licensees under section 10 and 13.

[ Proviso * * * * * * * *]

(2) The Committee may be a majority of two-thirds of the total members, at a meeting

specially convened for the purpose, pass a resolution for the removal of Chairman or

Vice-Chairman and any resolution so passed shall be subject to the confirmation by the

Board. The office of the Chairman or Vice-Chairman, as the case may be, shall be

vacated from the date of such confirmation.]

(16-A) [ * * * * * * * *]

(17) (1) Whenever any member dies, resigns ceases to reside permanently in the

notified market area or becomes incapable to acting as a member of a Committee or any

vacancy occurs through transfer [ * * * *] or otherwise, the State

Government may appoint a member to fill in such vacancy in accordance with the

provisions of section 12 :

Provided that the term of office of the member so appointed shall expire on the same

date as the term of office of the vacating member would have expired had the latter held

office for the full period allowed under section 14. [ * * * * *

* * *]

110

(2) Should the State Government decide the raise the number of members of an existing

Committee [from eleven to nineteen] the additional vacancies shall be filled in

accordance with the provisions of sub-section (1) and the term of office of the

additional members appointed shall existing members of the Committee.

(3) If any vacancy occurs in the office of the Chairman or Vice-Chariman of the

Committee as a result of death, resignation [ ] or otherwise, the vacancy shall be filled

in the manner provided in sub-section (1) of section 16.

(4) The Chairman or Vice Chairman so [nominated by the State Government] shall hold

office only so long as the person in whose pace he is [nominated by the State

Government] would have held office if the vacancy had not occurred.]

Incorporation of Committeees

(18) Every Committee shall be body corporate as well as a local authority by such

name as the State Government may specify in the notification establishing it, shall have

perpetual succession and a common seal may sue and be used in its corporate name,

and shall subject to the provisions of section 32 be competent to acquire and hold

property, both movable and immovable, to lease, sell or otherwise transfer any movable

or immovable property which may have become vested in or been acquired by it, and to

contract and to do all other things necessary for the purposes for which it is established:

Provided that no Committee shall permanently transfer any immovable property

except in pursuance of a resolution passed at a meeting specially convened for the

purpose by a majority of not less than three fourth of the member of the committee and

prior approval of [the Chief Administrator].

Appointment of sub-committee and joint committees and delegation of powers

A Committee may appoint, one or more of its members or other to be a sub-

committee or to be a joint committee or to be an ad-hoc committee for the

administration of the sub-market yard, for the conduct of any work or for reporting on

111

any matter and may delegate to such committee or any one or more of its members such

of its powers or duties as it thinks fit:

Provided that when any such committee is to consist of, or the powers of the

Committee are delegated to one member the resolution shall operate only after it is duly

approved by the [* * * * *] Boad.

Constitution of Marketing Service

(1) These shall be a Marketing Service (hereinafter referred to as the Service).

It shall consist of the existing officials of the Board and the Committee and such other

officials as may hereafter be appointed by the Board on such terms and conditions as it

may deem fit, except class IV employees of the Committees. The members of the

Service shall be deemed to have been appointed by the Board.

Provided that the officials of the Committees employed after the 31st day of

March, 1973 shall not be the members of the Service.

(2) The members of the Service shall be governed by the same terms and conditions

on which they are serving under the Board or the Committees till their term and

conditions are prescribed.

(3) The integration of the officials in the Service shall be made in the manner

prescribed.

(4) The Board shall have the power:

(a) To determine the strength of the Service and cadres thereof;

(b) Tto determine the strength of the categories of the officials required by each

Committee.

(5) The Board shall have the power to suspend, remove, dismiss or otherwise

punish the officials in the Service:

Provided that the Committee shall have the power regarding the members of the

Service engaged in managing affairs of the Committee to impose minor punishment

like censure and stoppage of increment.

112

(6) The Board shall have the power to transfer any member of the Service anywhere

within the Stae of Haryana.

(7) The power conferred under this section on the Board and Committee shall be

exercised subject to such rules as may be made in this behalf by the State Government.

Appointment of Class-IV employees

Subject to the rules made under this Ac, every Committee shall appoint such

class IV employees as may be necessary for the management of the market and pay

them such salary and allowances as may be fixed by the Board and shall have the power

to control and punish them.

Person who are to be deemed Public Servants within the meaning of section-21 of

Indian Penal Code.

Every member and officer or servant of the Board or a Committee shall be

deemed to be a public servant within the meaning of section-21 of the Indian Penal

Code.

Execution of Contracts

(1) Every contract entered in to by a Committee shall be in writing and shall be

signed on behalf of the Committee by the Chariman or, if for any reason he is unable to

act, by the Vice Chairman, and two other members of the Committee and shall be

sealed with the common seal of the Committee.

(2) No contract other than a contract executed as provided in sub-section (1) shall

be binding on a Committee.

Levy of fees.

A committee shall subject to such rules as many be made by the State

Government in this behalf, levy on ad-valorem basis fees on the agricultural produce

[****] [bought or sold or brought for processing by dealers] in the notified area at a rate

not exceeding [three rupees] for every one hundred rupees :

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[Provided that, except in the case of agricultural produce brought for

processing]-

(a) no fee shall be leviable in respect of any transaction in which delivery of the

agricultural produce bought or sold is not actually made; and

(b) a fee shall be leviable only on the parties to a transaction in which delivery is

actually made.

Passing on burden of fee

(1) Notwithstanding anything contained in section 23, a dealer of license may

pass on the burden of fee paid by him under that section and the rules made there under

to the next purchaser or add the same towards the cost of agricultural produce or the

goods processed or manufactured out of it.

(2) Whenever a dispute arises as to the passing on the burden of fee or its

addition towards the cost of agricultural produce or the goods processed or

manufactured out of it, it shall always be presumed, unless proved otherwise, that the

burden of the fee has been passed on to the next purchaser or has been added towards

the cost of the agricultural produce or the goods processed or manufactured out of it.”

Marketing Development Fund

(1) All receipts of the Board shall be credited to a fund to be called the

Marketing Development Fund.

(2) All expenditure incurred by the Board shall be defrayed from such fund

which shall be jointly operated upon by the Chief Administrator] or the Secretary and

any officer of the Board authorized by the Board in this behalf.

Purposes for which the Marketing Development Fundmay be expended

The Marketing Development Fund shall be utilized for the following purposes :-

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(i) Better marketing of agricultural produce;

(ii) Marketing of agricultural produce on cooperative lines;

(iii) Collection and dissemination of market rates and news;

(iv) Grading and standardization of agricultural produce;

(v) General improvements in the markets or their respective notified market areas;

(vi) Maintenance of the office of the Board and construction and repair of its office

buildings, rest-house and staff quarters;

(vii) Giving aid to financially weak Committees in the shape of loans and grants;

(viii) Payment of salary, leave allowance, gratuity, compassionate allowance,

compensation for injuries or death resulting from accidents while on duty, medical aid,

pension or provident fund to the persons employed by the Board and leave and pension

contribution to Government servants on deputation;

(ix) Travelling and other allowances to the employees of the Board, its members and

members of Advisory committees;

(x) Propaganda, demonstration and publicity in favour of agricultural

improvements;

(xi) Production and betterment of agriculture produce;

(xii) Meeting any legal expenses incurred by the Board;

(xiv) Construction of godowns;

(xv) Loans and advances to the employees;

(xvi) Expenses incurred in auditing the accounts of the Board; and

(xvii) With the previous sanction of the State Government, any other purposes which

is calculated to promote the general interests of the Board and the Committees [or the

national or public interest] :

115

Provided that if the Board decides to give aid of more than five thousand rupees

to a financially weak Committee under clause (vii), the prior approval of the State

Government to such payment shall be obtained.

Market Committee Fund

(1) All moneys received by a Committee shall be paid into a fund to be called

the Market Committee Fund and all expenditure incurred by the Committee under or

for the purposes of this Act shall be defrayed out of such fund, and any surplus

remaining after such expenditure has been met shall be invested in such manner as may

be prescribed

(2) (a) Every Committee shall, out of its funds pay to the Board as contribution

such percentage of its income derived from license fee, market fee and fines levied by

the Courts as is specified below to defray expenses of the office establishment of the

Board and such other expenses incurred by it in the interest of the Committees

generally and also pay to the state Government the cost of any special or additional

staff employed by the State Government in consultation with the Committee for giving

effect to the provisions of this Act in the notified market are—

(i) If the annual income of a Committee does not exceed Rs. 10,000 [20 per

centum]

(ii) If the annual income of a committee exceeds Rs. 10,000

On the first of Rs. 10,000/- [20 per centum]

On the next Rs. 5,000/- [25 per centum and]

On the remaining income [30 per centum]

(b) The State Government shall determine the cost of such special or

additional staff and shall, where the staff is employed for the purposes of more

Committees than one, apportion such cost among the Committees concerned in such

116

manner as it thinks fit. The decision of the State Government determining the amount

payable by any committee shall be final.

Purposes for which the Market Committee Funds may be expended.

Subject to the provisions of section 27, the market Committee Funds shall be

utilised for the following purposes:-

(i) Acquisition of sites for the market;

(ii ) Maintenance and improvement of the market;

(iii) Construction and repair of buildings which are necessary for the purposes

of the market and for the health, convenience and safety of the persons using it;

(iv) Provision and maintenance of standard weights and measures;

(v) Pay, leave allowances, gratuities, compassionate allowances and

contributions towards leave allowances, compensation for injuries and death resulting

from accidents while on duty, medical aid, pension or provident fund of the persons

employed by the committee;

(vi) Payment of interest on loans that may be raised for purposes of the market

and the provisions of a sinking fund in respect of such loans;

(vii) Collection and dissemination of information regarding all matters relating

to crop statistics and marketing in respect of the agricultural produce concerned;

(viii) Providing comforts and facilities, such as shelter, shade, parking

accommodation and water for the persons, draught cattle, vehicles and pack animals

coming or being brought to the market or on construction or repair of approach roads

[Link Roads] culverts, bridges and other such purposes;

117

(ix) Expenses incurred in the maintenance of the offices and in auditing the

accounts of the Committees:

(x)\ Propaganda in favour of agricultural improvements and thrift ;

(xi) Production and betterment of agricultural produce ;

(xii) Imparting education in marketing or agriculture ;

(xiv) Payments of travelling and other allowances to the members and

employees of the Committee, as prescribed;

(xv) Expenses of and incidental to elections; and

(xvi) With the previous sanction of the Board, any other purpose which is

calculated to promote the general interest of the committee or the notified market area,

[or with the previous sanction of the State Government, any purpose calculated to

promote the national or public interest.]

In addition to this, notifications have been issued from time to time.

Some of the prominent notifications are as under:

Notification no. 1074-Agri. S(2)-2000/4444- dated 10-3-2000.

Notification No. 367-Agri. S(2)-2002/4961 dated 5-03-2002

Notification N0. 161-S(3)-2004/13212 dated 26-07-2004

Notification No. 2709-Agri (3) 2004/19372 dated 11-11-2004

5.1.5 Facilitating Procurement Activities

To facilitate the farmers in selling their produce, more particularly wheat and

paddy in the market at remunerative prices, the Government fixes the Minimum

Support Price on the one hand and on the other hand has involved various government

agencies to procure the produce at the fixed rate and should not allow the price to fall

down. The various government agencies purchasing and storing the wheat in Haryana

mandis are the State Government through the Department of Food and Civil supplies

(HF&S), Food Corporation of India (FCI), Haryana Agriculture Federation (HAFED),

118

Haryana Ware Housing Corporation (HWC), Haryana Agro Industries and CONFED.

In paddy too, all these agencies are actively engaged in the procurement process, but in

addition to this, the private rice millers are also procuring directly from the producers as

well as mandis. To study the role of each of these organisations in the procurement of

wheat and paddy, the data has been collected and processed. The percentage of wheat

procured from different mandis by the various agencies during (2008-09) has been

presented in table 5.16

TABLE 5.16 Percentage Procurement of Wheat by various Agencies across

Districts of Haryana (2008-09)

District State

Govt.

FCI HAFED H.W.C. AGRO CONFED TOTAL

Ambala 20.41 6.38 62.23 0 0 11.10 100

Panchkula 0 0 20.32 32.05 0 39.63 100

Yamuna

Nagar

11.55 4.36 55.05 2.12 3.71 23.27 100

Kurukshetra 28.14 18.24 32.00 2.14 11.74 7.74 100

Kaithal 31.73 18.22 28.76 4.11 8.39 9.79 100

Karnal 26.92 20.14 37.26 1.55 11.02 3.11 100

Panipat 12.44 13.25 30.19 22.73 0 21.39 100

Sonipat 20.59 13.94 54.10 3.56 0.49 7.29 100

Rohtak 26.78 15.84 40.23 17.15 0 0 100

Jhajjar 43.95 25.14 28.79 2.12 0 0 100

Faridabad 32.06 27.59 18.04 5.68 0 16.63 100

Palwal 32.73 28.82 16.82 14.93 0 6.65 100

Mewat 0 23.37 35.62 21.77 0 19.24 100

Gurgaon 20.48 55.09 0 24.43 0 0 100

Rewari 42.42 0 39.23 18.15 0 0 0

Mahendragarh 43.81 0 56.19 0 0 0 100

Bhiwani 27.99 10.98 61.03 0 0 0 100

Jind 25.74 4.85 33.55 20.32 7.23 8.37 100

Hisar 13.03 7.73 29.40 6.94 27.07 15.84 100

Fatehabad 13.69 9.73 28.68 12.75 28.77 6.98 100

Sirsa 14.19 8.03 43.34 13.98 9.75 10.71 100

ALL 21.85 13.47 35.74 9.78 10.05 9.11 100

Total

Procurment

(in 00 tonnes

15099 9312 24703 6763 6945 6296 69118

119

It could be observed from the table that the total procurement of wheat from Haryana

mandis by the various agencies during 2008-09 was 69118 hundred metric tonnes,

which is only next to Punjab. The percentage contribution was observed to be the

maximum of HAFED procuring around 36 percent of the total arrival in Haryana

mandis followed by the Haryana Food and Civil Supplies Corporation (22%). The share

of Food Corporation of India- administered by the Government of India was only

around 13.5 percent. Three other agencies, the H.W.C., Haryana Agro Industries and

CONFED were in the close race sharing between 9-10 percent each. The study across

various districts of Haryana revealed that the role and share of various agencies varied.

In Ambala, the share of HAFED in the total procurement in the district was more than

62 percent followed by followed by the Food and Civil Supplies Corporation and the

CONFED. HWC and Haryana Agro did not procure the wheat from the District. The

percentage procurement by the HAFED was found to be the highest from Yamuna

Nagar (55%), Kurukshetra (32%), Karnal (37%), Panipat (30%), Sonepat (54%) Rohtak

(40%), Mewat (36%), Mahendragarh (56%), Bhiwani (61%), Jind (34%), Hisar (29%),

Fatehabad (29%) and Sirsa districts (43%). State Government through Food and Civil

Supplies Corporation did the maximum procurement of wheat from Jhajjar (44%),

Rewari districts (42%), Palwal (33%), Kaithal (32%) and Faridabad (32%). The

percentage procurement from Panchkula was the highest (32%) by H.W.C. followed by

Gurgaon (24%). Haryana Agro Industries procured the maximum wheat (29%) from

Faridabad district. It could also be observed from the table that state Govt. did not enter

the districts of Panchkula and Mewat to procure the wheat. Similarly F.C.I. did not

procure any wheat from the mandis of Panchkula, Rewari and Mahendragarh districts.

HAFED was missing from the market of Gurgaon district while H.W.C. did not show

its presence in the districts of Ambala, Mahendragarh and Bhiwani. Haryana Agro

Industries and CONFED procured the wheat only from only nine and fifteen districts

respectively.

Paddy is another important crop being produced in Haryana. To procure the

paddy, 181 centres across the state were functional. All the government agencies like

State Government, F.C.I., HAFED, H.W.C., Haryana Agro Industries and the CONFED

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were engaged in the procurement of Paddy from the state. In the case of paddy, the rice

millers were also operative in the procurement process. To ensure that the farmers in

any way may not resort to distress sale and feel any difficulty, the various agencies

were engaged in the process of procuring paddy. Bringing of clean and dry paddy is a

necessary prerequisite and the Government fixed Minimum Support Price for “A”

grade paddy to Rs. 1030/-. In addition to this, the state government decided to give a

bonus of Rs. 70 taking thr price to Rs. 1100 per Qtl. As such the percentage

procurement of Paddy from various districts of Haryana has been presented in Table

5.17

It could be observed from the table that like wheat procurement in the case of

paddy too, most of the agencies were operative, though their purchase area varied. In

certain districts production of paddy was less, as such in those districts, the number of

agencies engaged in the procurement were limited to one or two. Of the total paddy

arrival in the respective districts, the State government procured the maximum paddy

from the districts of Kurukshetra (44%) followed by Sirsa districts and Ambala districts

(32% each). The procurement by F.C.I. was very nominal from the districts of

Kurukshetra, Kaithal, Karnal, Fatehabad and Sirsa districts, while no procurement was

made by FCI from 14 districts of Haryana. However, the procurement from Rohtak and

Faridabad by F.C.I. was 100 percent and 97 percent respectivley. HAFED made the

maximum procurement from thr various districts like Ambala (44%), Karnal (49%),

Jind (55%) and Fatehabad (57%). CONFED showed its presence by procuring 58

percent from Panchkula and 26 percent from Yamuna Nagar. The procurement made by

Haryana Agro Industries was fairly good from Sirsa, Yamuna Nagar, Jhajjar and

Fatehabad districts, while in Panchkula, Kurukshetra, it was medium, but low in

Ambala and Karnal districts. In short it could be generalized that the entry of various

agencies in the market depended to a large extent to the production of the commodity

and arrival in the market in the area. In general the total procurement of paddy from the

state was 22180 metric tones. The share of the purchase was the highest by HAFED

accounting for about 35 percent followed by state Govt. through HSDC (25%). It was

observed to be the minimum by FCI accounting for about 0.5 percent followed by

HWC (3%)

121

TABLE 5.17 Percentage Procurement of Paddy by various Agencies Across

Districts of Haryana (2008-09) District State

Govt.

F.C.I HAFED Rice

Miller

H.W.

C

AGRO CONFED TOTAL

Ambala 31.71 0 44.02 7.59 2.27 2.05 12.36 100

Panchkula 0 0 38.04 3.77 0 0 58.79 100

Yamuna

Nagar

15.85 0 23.97 14.02 2.44 17.46 26.26 100

Kurukshetra 44.48 0.56 22.48 7.07 0 8.26 17.51 100

Kaithal 5.88 0.21 5.67 74.18 1.09 7.98 4.99 100

Karnal 25.41 1.67 49.49 19.86 0.57 2.94 0.06 100

Panipat 0 0 23.79 64.47 0 0 13.74 100

Sonipat 0 0 100 0 0 0 0 100

Rohtak 0 100 0 0 0 0 0 100

Jhajjar 0 0 0 0 0 0 0 100

Faridabad 2.55 97.45 0 0 0 0 0 100

Palwal 0 0 0 0 0 0 0 100

Mewat 0 0 0 100 0 0 0 100

Gurgaon 0 0 0 100 0 0 0 100

Rewari 0 0 0 0 0 0 0 100

Mahendragarh 0 0 0 0 0 0 0 100

Bhiwani 0 0 0 0 0 0 0 100

Jind 23.48 0 54.99 4.36 2.38 14.79 0 100 0 0 0 0

Hisar 0 0 31.09 13.28 55.63 0 0 100

Fatehabad 11.63 0.09 56.74 1.54 11.06 13.60 5.34 100

Sirsa 32.49 0.62 26.21 13.59 3.06 24.03 0 100

ALL 24.66 0.48 34.62 17.85 3.04 8.46 10.89 100

Total

Procurment

(in 00 tonnes)

5471 101 7681 3959 673 1878 2417 22180

5.1.5.1 Total Procurement of Wheat and Paddy across Districts in Haryana

The sale price in genral depends upon mainly the demand and supply position.

Since wheat and paddy are the main products for which the Government of India fixes

the Minimum Sales Price (MSP), as such in normal circumstances, the Government

does not allow the sale price to fall below the price fixed by the Government. As per the

economics principal of denand and supply, in case of higher production/supply and

lower demand, the price is bound to fall, but these agencies enter the market and

procure at the MSP, thus stabilising the price. The procurement of wheat and paddy

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from various districts procured during the year 2008-09 has been presented in Table

5.18.

TABLE 5.18 Procurement of wheat and Paddy across districts during 2008-09

( In Tonnes)

District Wheat Total % to total Paddy % to total

Ambala 162098 3.09 318581 7.44

Panchkula 19484 0.37 48534 1.73

Yamuna Nagar 130662 2.49 217520 5.08

Kurukshetra 462142 8.83 722207 16.88

Kaithal 546412 10.45 539248 12.60

Karnal 601353 11.50 681277 15.92

Panipat 210061 4.02 231248 5.40

Sonipat 193587 3.70 193356 4.52

Rohtak 107979 2.06 23076 0.54

Jhajjar 28984 0.55 164114 3.83

Faridabad 276008 5.28 8923 0.25

Mewat 70027 1.34 4380 0.10

Gurgaon 40103 0.79 - -

Rewari 37957 0.72 - -

Mahendragarh 16335 0.31 - -

Bhiwani 80999 1.55 - -

Jind 531736 10.16 381000 8.90

Hisar 344161 6.58 57045 1.33

Fatehabad 589847 11.28 487901 11.40

Sirsa 780772 14.93 200326 4.68

Total 5230707 100 4278732 100

It could be observed from the table that in general, the wheat and paddy is

procured from all the districts of the state though in varying quantities, which again

depends upon the total production in the area. In the procurement of wheat Sirsa district

tops the list from where about 15 percent of the total procurement wheat by the state is

made, followed by Karnal (11.5%), Fatehabad (11.3%), Kaithal (10.5%) and Jind

(10.2%). Thus only five districts mentioned above contributed over 58 percent of the

total procurement of the state. The districts having the minimum procurement of less

than 1 percent of the total procurement were Mahendragarh (0.3%), Panchkula (0.4 %),

Jhajjar (0.6%), Rewari (0.7 %) and Gurgaon (0.8%). Thus it could be generalized that

the production/ procurement of wheat was un evenly distributed across various districts

of the state, which again depended upon several factors like the type of soil, irrigation

123

potential and the size of land holding etc, which again have the impact on cropping

production, production of wheat and its arrival in the market.

In case of paddy too almost similar observations were made. The maximum

paddy was procured from Kurukshetra district (17%), followed by Karnal (16%),

Kaithal (13%) and Fatehabad (11 %). In other words, the share of these four districts in

the total procurement of the state was around 57 percent. There was no procurement of

paddy from four districts viz. Gurgaon, Rewari, mahendragarh and Bhiwani, since these

formed the part of arid region having low irrigation potential resulting in little

production of paddy. In other five districts, the procurement was very low. The share of

paddy procurement was only 0.1 percent from Mewat district, 0.25 percent from

Faridabad, 0.54 percent from Rohtak, 1.13 percent from Panchkula and 1.33 percent

from Hisar. The remaining 40 percent procurement was from the remining 11 districts.

In addition to the leviable paddy, Haryana is a good market for Basmati paddy. The

Basmati paddy is being purchased mainly by the millers and Government agencies,

which are procuring it from the mandis, shelling, grading, processing and packing it and

are selling in the national as well as International markets. The total Basmati paddy

procured from the state of Haryana in the year 2008-09 was around 39 lakh metric

Tonnes. The share of millers alone accounted for about 53 percent of the total

procurement. Major share of procurement of paddy in the state was from Karnal and

Kurukshetra district.

5.1.5.2 Agency Wise Procurement of Wheat during 1998-99 to 2009-10

As already discussed above, various agencies are engaged in the procurement of

wheat for the last so many years. The total and percentage procurement during 1998-99

to 2009-2010 acoss various agencies and their growth rates over a period of time have

been presented in Table 5.19.

It could be observed from the table that HAFED was the major agency engaged in the

procurement of wheat from Haryana mandis during the period of study, followed by

Food and Civil Supplies Corporation and the F.C.I. in order. The remaining three

organizations viz. HWC, HAIC were in close race procuring between 9 to 14 percent of

124

total procurement. The procurement made by CONFED was a little less than 8 percent.

It was further observed that no definite trend could be descernable in the procurement

TABLE 5.19 Agency wise Purchase of wheat during various years (In lakh MT)

Year F&S FCI HAFED HWC HAIC Confed Total Growth

Rates%

1998-

99

7.08

(22.41)

4.73

(14.98)

11.67

(36.96)

8.10

(9.82)

2.40

(7.60)

2.60

(8.23)

31.58

(100) -

1999-

00

8.43

(21.78)

6.26

(16.18)

14.11

(26.46)

3.97

(10.26)

2.98

(7.70)

2.96

(7.62)

38.70

(100)

22.54

2000-

01

10.18

(22.58)

4.13

(9.16)

19.27

(42.76)

3.89

(8.63)

3.91

(8.68)

3.69

(8.19)

45.07

(100)

16.46

2001-

02

14.93

(23.29)

8.34

(13.01)

27.28

(42.55)

6.73

(10.50)

6.83

(10.65)

0 64.11

(100)

42.25

2002-

03

11.03

(18.74)

10.00

(16.99)

21.10

(35.84)

5.48

(9.31)

5.78

(9.81)

5.48

(9.31)

58.87

(100)

-8.17

2003-

04

9.90

(19.33)

8.18

(15.97)

18.04

(35.22)

5.66

(11.05)

4.87

(9.51)

4.57

(8.92)

51.22

(100)

-12.99

2004-

05

10.44

(20.41)

8.80

(17.20)

17.30

(33.83)

5.98

(11.69)

4.17

(8.15)

4.46

(8.72)

51.15

(100)

-0.14

2005-

06

9.58

(21.15)

6.17

(13.63)

16.75

(36.98)

4.36

(9.63)

4.30

(9.49)

4.13

(9.12)

45.29

(100)

-11.46

2006-

07

4.96

(22.24)

2.69

(12.06)

8.41

(43.72)

2.17

(9.73)

2.38

(10.67)

1.69

(7.58)

22.30

(100)

-50.76

2007-

08

8.16

(24.36)

3.50

(10.45)

12.90

(38.50)

2.94

(8.78)

3.34

(9.97)

2.66

(7.74)

33.50

(100)

50.22

2008-

09

10.87

(20.37)

7.85

(14.71)

19.32

(36.20)

4.88

(9.14)

4.64

(8.69)

4.81

(9.01)

53.37

(100)

59.31

2009-

10

15.13

(21.85)

9.31

(13.45)

24.74

(35.73)

6.78

(9.79)

6.96

(10.05)

6.32

(9.13)

69.24

(100)

29.74

ALL 120.69

(21.23)

79.96

(14.07)

210.89

(37.10)

60.94 (10.72)

52.56

(9.25)

43.36

(7.63)

568.40

(100)

Note: Figures in parentheses indicate percentage to total

of paddy by FSC across various years. The proceurement trend by the FSC in absolute

terms revealed that the procurement showed an increasing trend from 1998-99 to 2001-

02, showed a decreasing trend upto 2006-07 (except 2004-05) and again showed an

increasing trend. No definite trend in the percentage contribution of FSC to the total

procurement could be descernable, however it varied between 19 to 24 percent.

125

In case of Hafed too, the trend was almost the same, when total procurement as

well as percentage contribution to the total procurement was considered. However, the

percentage contribution to the total procurement varied from 34 percent in 2004-05 to

43 percent in 2000-01. The procurement by FCI also gave the similar observations.

However, the percentage contribution varied from 9 percent during 2000-01 to 15

percent in 1998-99.

The trend was almost the same for HWC, HAIC and CONFED with slight

variations here and there. The variation in the share of procurement by HWC varied

from 8.6 percent in 2000-01 to 11.7 percent in 2004-05. In case of HAIC, it varied from

7.6 percent in 1998-99 to 10.7 percent in 2001-02 by HAIC and zero in 2001-02 to

9.31 percent in 2002-03 in case of CONFED.. In short, it could be observed that the

variation could be attributed to the total production and arrival of produce in the mandi.

The trends of total procurement of wheat revealed the increasing trend from 1998-99 to

2001-02. Thereafter the procurement revealed a decreasing trend upto 2006-07, but

after it srated increasing and continued to increase upto 20009-10.

In general it could be said that in Haryana during all these years combined

together, Hafed was observed to be at the top procuring 37 percent of the total wheat

from the mandis followed by Food and supplies (21 %). FCI was at the third place

procuring 14 percent of the total procurement. The share of HWC, HAIC and CONFED

was found to be 11, 9 and 8 percent respectively.

The study regarding the growth rates of total production during the study period

revealed that the total procurement increased at a growth rate of 23 percent in 1999-

2000, which showed a decrease in 2000-01, increased in the subsequent year. The trend

was negative during the next five years and varied from -51 percent in 2006-07 to -0.14

percent in 2004-05. It increased at an increasing rate for two years, but showed a

decrease during the last year (2009-10).

5.1.5.3 Agency wise procurement of Paddy Across periods

The procurement of paddy according to agency over different years revealed

that leviable paddy was being procured by all those agencies, which were procuring

wheat, but basmati paddy was being procured by the millers directly from the mandis.

126

Even many of the millers by-passed the mandis and procured the basmati paddy

directly from the small and marginal farmers or the kaccha Arhtiyas operating on small

scale in the villages. Because of this practice, the farmers could save the transportation

costs for not taking the paddy to the mandis and the millers were saving the marketing

cost component, which they had to pay, thus incurring a loss to the mandi board and the

HSAMB. However in the present study, only the produce from the mandi has been

taken into account. The details of paddy, both leviable and basmati, paddy procured by

various agencies from 1997-98 to 2008-09 have been presented in Table 5.19 below:

TABLE 5.19(A) Agency wise Purchase of Paddy during various years

(In lakh MT)

Year F&S Hafed FCI HAIC HWC Confed Miller Total Growth

Rates%

1998-

99

0.15

(0.87)

0.34

(1.97)

0.49

(2.83)

0.03

(0.17)

0.09

(0.52)

0.02

(0.12)

16.17

(93.52)

17.29

(100)

-27.08

1999-

00

0.68

(3.31)

1.32

(6.42)

0.82

(3.99)

0.15

(0.73)

0.27

(1.31)

0.19

(0.92)

17.12

(83.31

20.55

(100)

18.85

200-

010

2.61

(9.93)

5.99

(22.78)

1.58

(6.01)

1.33

(5.06)

1.11

(4.22)

1.01

( 3.84)

12.66

(48.16)

26.29

(100)

27.93

2001-

02

3.58

(15.33)

5.69

(24.37)

1.94

(8.31)

1.40

(6.00)

1.70

(&.28)

1.43

(6.12)

7.61

(32.59)

23.35

(100)

-11.18

2002-

03

4.14

(19.34)

5.54

(25.88)

1.15

(5.37)

1.83

(8.55)

1.48

(6.91)

1.26

(5.89)

6.01

(28.07)

21.41

(100)

-8.31

2003-

04

2.38

(10.08)

4.33

(18.35)

0.41

(1.74)

0.77

(3.26)

1.26

(5.34)

1.0 6

(4.49)

13.39

(56.74)

23.60

(100)

10.23

2004-

05

3.74

(13.28)

6.72

(23.86)

1.00

(3.55)

1.02

(3.62)

1.72

(6.11)

0.97

(3.44)

13.00

(46.15)

28.17

(100)

19.36

2005-

06

6.54

(19.59)

10.12

(30.31)

0.94

(2.82)

2.20

(6.59)

2.02

(6.05)

1.74

(5.21)

9.83

(29.44)

33.39

(100)

18.53

2006-

07

6.07

(21.06)

9.04

(31.37)

0.11

(0.38)

2.44

(8.47)

1.04

(3.61)

1.77

(3.14)

8.35

(28.97)

28.82

(100)

-13.69

2007-

08

5.65

(21.53)

7.20

(7.44)

0.10

(0.38)

2.24

(0.54)

0.60

(2.29)

2.06

(7.85)

8.39

(31.97)

26.24

(100)

-8.95

2008-

09

5.47

(24.16)

7.63

(34.40)

0.10

(0.45)

1.86

(8.48)

0.67

(8.02)

2.42

(10.91)

3.96

(17.85)

22.18

(100)

-15.47

ALL 42.28

(24.33)

65.23

(22.11)

9.48

(3.21)

15.35

(5.21)

12.07

(4.09)

12.00

(4.07)

138.59

(46.98)

295.00

(100)

Note: Figures in parentheses indicate percentage to total

It could be observed from the table that no definite trend could be descernable in

the case of paddy too. The share of leviable paddy and basmati paddy was found to be

53 and 47 percent respectively.The leviable paddy was being procured by all the

127

agencies mentioned in case of wheat, but the basmati paddy was being procured by the

millers. In between the years, the trend analysis revealed that in case of F&S, HAFED,

CONFED and HAIC, it showed an increasing trend from 1997-98 to 2002-03,

decreased for two years and then increased. However in case of FCI, the decreasing

trend from 2004-05 to 2008-09 was observed. In case of Basmati procurement by the

millers, there were many ups and downs. The study of growth rates of paddy revealed

that it was negative in 1998, increased for two years, then again it was negative for two

years, The growth rate was positive from 2003-04 to 2005-06, but again was negative

upto 2008-09.

5.1.7 PERFORMANCE OF MANDI BOARD ACTIVITIES

The detailed analysis of the work done by the HSAMB has been given above.

To further analyse how far these facilities have reached the farmers. A survey of nine

mandis was conducted. In the survey all category of farmers, Arhtiyas/commission

agents and the official of the marketing board were interviewed on the specially

structured open ended schedules. The results thus obtained have been discussed in the

ensuing section.

5.1.7.1 Farmers Views

135 farmers selected for the study comprised of the various strata of land

holdings viz. marginal farmers, small farmers, medium farmers and large farmers. On

an average, the size of operational holding for all the mandis selected combined

together was 4.45 acres (1.75 hectares), which varied widely across the mandis. It was

observed to be highest in Ballabhgarh mandi area (8.07 acres) followed by Tohana

(7.03 acres.) and the lowest in Narnaul (2.00 acres) followed by Panipat (2.60 acres).

The results further revealed that on an average the ownership holding was 8.56 acres,

land rented in was 1.83 acres, while the land rented out was 5.94 acres. As compared to

this, the average size of operational holding in Haryana during the year 2000-01 was

5.80 acres. The data further revealed that the average size of holding as per the

available data for Sirsa/ Tohana was 8.45 acres and was the minimum for Panipat and

Mahendragarh area.. The results thus available from the study are almost in agreement

with the data of 2000-01 agricultural census.

128

The study further revealed that the average size of family in the area of the

selected mandis was 5.86, which is very close to the state average of 5.91 (As per 2000-

01 Census). It was further observed that there were 854 females per thousand males,

which again is very close to the state average of 863. Variations however were

observed in between the various mandi locations of Harayna. It was observed to be the

maximum in the catchment area of Taraori mandi followed by Ballabhgarh mandi. The

population per household was observed to be lowest in the adjoining villages of Panipat

and Fatehabad.

The education status of the household surveyed revealed that only asbout 23

percent of the total heads of household surveyed were illiterate. Another about 6

percent had their education up to primary level. The study revealed that farming is no

more an occupation of illiterate persons. 37 percent of the total households surveyed

were matriculate. Another 17 percent were either graduates/post graduates or technical

qualified persons. The remaining 17 percent were having studied up to middle level.

This could be taken as the major reason for the adoption of high yielding varieties of

seeds and latest technology, thus resulting in the increase in production and

productivity of various crops.

5.1.7.2. Storage of Produce

Production is one end of the economic problem, the other end being marketing

and distribution. Larger production does not necessarily mean larger marketed surplus.

Marketed surplus mainly depends upon the socio-economic status of the household,

level of production, family need for self consumption, consumption of animals and the

requirement of seed etc. and last of all the financial position to store or hold the product

for profit and the available market infrastructure. An attempt has been made here to

analyse and see how much produce is going to the market for sale after the harvest.

Consumption pattern too depends upon the habit of eating, size of family and the

economic condition of the producer. The production, consumption and sale/marketed

surplus among the selcted farmers in the vicinity of various mandis has bee presented in

table 5.20 below:

It could be observed from the table that on an average, production of wheat per

household in the vicinity of various selected mandis was found to be about 139 qtls.,

129

which varied from 72 qtls. in Narnaul area to 234 qtls. in Karnal area. This could be

mainly attributed to the size of land holding, the area under wheat and the productivity

in the area. It could be further observed fronm the table that 80 percent of the wheat

produced was sold in the mandi. The remaining 20 percent was retained at home for the

consumption of the family for self consumption, feeding to the animals as concentrate

ingredients and seed for the next sowing. This percentage, however, varied across

different mandis. In the wheat kept at home, the percentage consumed and stored was

TABLE 5.20 Production, Consumption and Sale of Wheat and Paddy (2009-10)

In Qtls.

S.No. Nearest

Mandi

Wheat Paddy

Total

producti

on

Consum

ed Stored Sold

Total

productio

n

Consu

med Stored Sold

1 Tohana 147.67 20.67 6.67 120.33 139.87 4.87 4.27 130.67

2 Panipat 159.33 16.67 6.67 136.00 177.27 4.73 4.54 168

3 Ballabgarh 111.73 17.67 7.73 86.33 122.38 4.8 4.38 113.2

4 Karnal 233.65 30.59 17.78 185.28 296.92 4.81 17.17 274.94

5 Taraori 177.27 18.36 10.27 148.64 198.18 5.27 5.09 187.82

6 Bhiwani 125.77 18.33 6.64 100.8 - - - -

7 Rohtak 104.70 15.00 6.36 83.33 47.47 4.4 3 40.07

8 Narnaul 72.33 17.33 5.00 50.00 31.67 3.67 - 28

9 Fatehbad 120.59 18.00 5.45 97.14 56.34 4.87 - 51.47

Total

1253.04

(100)

172.62

(13.78)

72.57

(5.79)

1007.86

(80.43)

1070.04

(100)

37.42

(3.50)

38.44

(3.59)

994.1

(92.91)

Average 139.23 19.19 8.06 111.98 118.89 4.16 4.27 110.46

Note Figures in parentheses indicate percentages to total production

found to be 14 and 6 percent respectively. In the case of paddy, average production was

found to be 119 qtls., which varied from 32 qts. in Narnaul to 297 qtls. in Karnal, which

could again be due to the higher irrigation potential and higher area under paddy during

the year. In Bhiwani area, none of the farmers interviewed was growing paddy. Unlike

wheat, the consumption of paddy per family was very low (3.5%) and another 3 percent

was stored as seed etc. for sowing the next crop. About 93 percent of the paddy

produced was thus sold in the mandi.

130

Bajra/Jowar and cotton were the other important crops sown in the state.

Bajra/jowar are the prominent crops in the villages around Tohana, Ballabhgarh,

Bhiwani, Narnaul and Fatehabad. Cotton though is grown in the vicinity of various

mandies but incidentally farmrmers contacted during the survey of Bhiwani mandi did

not mention the production and sale of these crops by them. The details of the

Bajra/Jowar produced and the percentage of the produce consumed, stored or sold has

been presented in table 5.21 below:

TABLE 5.21 Production, Consumption and Sale of Bajra/Jowar and cotton

(2009-10) In Qtls.

S.No. Nearest

Mandi

Bajra/Jawar Any Other

Total

produc

tion

Cons

umed

Stor

ed Sold

Name

Of the

Crop

Total

produ

ction

Cons

umed

Stor

ed Sold

1 Tohana 265.75 3.75 2 21 - - - - -

- Panipat - - - -- - - - - -

3

Ballabgar

h 16.67 3.33 - 13.33 - - - - -

4 Karnal - - - - - - - - -

5 Taraori - - - - - - - - -

6

Bhiwani 61.73 4.93 3 53.8 Cotton 10 10

7 Rohtak 33.46 5.77 - 27.69 - - - - -

8 Narnaul 28.10 4.87 - 23.2 - - - - -

9 Fatehbad 45.45 6.36 5 34.09 - - - -

Total 221.15 29.02 10.0 173.12 10 10

Avera

ge 33.90 4.84 3.33 28.85 10 10

% 100 13.66 4.71 81.63 100 0 0 100

It could be observed from the table that the average production of Bajra/Jowar

by the selected farmers in the six mandis was found to be around 34 qtls, which varied

from 17 qtls. in Ballabhgarh to 62 qtls. in Bhiwani mandi areas. However, the total

production of cotton per household surveyed was found to be around 10 qtls. 18 percent

of Bajra/Jowar produced was either consumed in the family or stored for seed or animal

131

feeding etc. About 82 percent of the total produce produced was sold in the mandis. As

far as the cotton was concerned, the entire produce was sold in the mandi. It could be

worth mentioning that the cotton produced is not ginned by most of the farmers and the

feeding of cotton seed/ cotton seed cake was either not being fed to the animals as a

concentrate ingredient or was being purchased from the market. As per the latest

practices the cotton seed oil is being refined and is being used for human consumption.

Regarding the mode of transportation of produce, the major transport system for

the transportation of produce from the village to the mandi used by the medium and

large farmers was through their own tractors and trollies (78 %). Some of the small and

marginal farmers were either hiring the tractor trolley from the big land lords, while the

others were transporting it though cart pulled by horse/ponnies. Bullock carts were

found to be very little /nil in the transportation of produce.

The produce brought to the mandi for sale again is not brought after cleaning,

but is directly brought from the field in the form it is available. The reason behind told

by the farmers is that it is cleaned in the mandi again even though they clean it at their

place. It is why, they avoid making the payment twice - one in the village and second

time in the mandi. The collected data shows that 98 percent of the farmers brought the

produce without cleaning it, while only 2 percent took the trouble of cleaning it.

Similarly the farmers donot pack the produce in bags, because it is opened again in the

mandi for the inspection of buyers. The farmers load their trolleys in the loose farm

without packing it in bags. The practice of bringing the produce to the mandi in the

loose form is being followed by almost 100 percent of the farmers.

The payment to the farmers is not a problem. They get the payment most of the

time they get the payment, whenever they require. For all the produce purchased by the

Government, the payment is made within a specified period of time.

The study further revealed that on an average the time taken by the farmers to

reach the mandi from their village was found to be about 45 minutes, whch varied from

35 minutes in case of Ballabhgarh to 57 minutes in Karnal mandi. This time does not

include the time taken for loading and unloading the tractor/trolley or cart. However

after reaching the mandi, it took around four days for the turn of auction. It could be

observed from the available data that on an average after the arrival of the produce in

132

the mandi, the turn of auction comes after about 98 hours, which varied across different

mandis from 80 hours in Taraori mandi to about 146 hours in Narnaul, which is quiet a

long period, because during this period, the farmer is always faced an unvisible threat

of natural calamities like hail storm, rainfall and dust storm and even theft etc. If it so

happens, the farmer is faced not only the various problems, but incurrs huge loss also

and just in a stroke, his hard work put during the season and the money invested on the

various inputs goes in the drain.

On the market information front, the farmers were of the view that there is not

always one source, but many a time, one comes to know about the market prices from

more than one source. 97 percent of the farmers reported that they were aware of the

prevalent/current market prices from the fellow farmers, when they meet each other in

the village or the mandi. Only 3 percent of the farmers were unfortunate and were

unaware of the current market prices of the agriculture produce. Regarding the source

of information of prices, 70 percent of the farmers reported as the fellow farmers as the

major source of market information. Only 10 percent of the farmers mentioned

commission agents/ arhtiya as the source of information, 7 percent reported having got

the knowledge of prices from other market functionaries. The farmers having got the

information from the electronic as also news paper and magazines were found to be

about 65 percent.

5.1.7.3 Incidental and Market Charges

As discussed earlier, according to the notification, two type of charges viz. the

incidental and market charges are charged. The rates have already been fixed for the

various operations/crops, which are updated usually every year and some times twice a

year. For this study, the rates fixed by the board on March 30,2010 circulated vide

notification no. ME-I-A-III/2010-30407 have been taken into account. The incidental

charges comprising of the unloading and cleaning charges of the produce brought in the

mandi by the producer are to be paid by him. In case of wheat crop, wheat after the

sale is finalised, is filled in 50 kg. bag in almost all the mandis of Haryana. The

incidental charges fixed by the HSAMB are Rs. 1.75 per unit. The survey of the farmers

revealed no discrepancy in terms of charging the incidental charges from the producers.

100 percent of the farmers reported having paid Rs. 1.75 per bag. The market charges

133

comprised of the filling and placing the produce on the platform, weighing the produce,

unloading it, auction Charges, commission and the brokerage. Market charges included,

the stiching charges also, which is being done both i) manually and ii) by machine.

Charges fixed are different for either of the operations. Market charges are paid by the

purchaser and not the seller. It could be further observed that the charges of filling the

bags, weighing, unloading from balance and stitching charges are being charged on per

unit basis i.e. 50 kg bag of wheat, but auction charges, commission and brokerage is

charged per hundred rupees. From the collected data, it could be observed that market

charges which are charged on per unit basis (50 Kgs) were observed to be Rs. 2.81.

However the auction charges, commission and brokerage charged from the

buyer/purchaser were found to be Rs. 2.74 pet 100 rupees. In simple words, incidental

charges and market charges per qtl. of wheat, costing about Rs. 1500 per qtl., were

found to be of the order of Rs. 50.22. Not much variation was observed across the

various mandis. The farmers were fully aware of the charges fixed by the board, which

were displayed in the mandi at all the enterances and other prominent places in the

mandi.The farmers were fully satisfied that they were neither being cheated nor

exploited on this account.

The study further revealed that paddy is being marketed in eight out of nine

mandis, in which the study has been conducted. The incidental charges comprising of

unloading and cleaning were found to be Rs.2.25 for a bag of 50 kg. of paddy. The

marketing charges of filling and placing on the platform, weighing, unloading from

balance and stitching were found to be Rs. 3.34 for a 50 kg bag. The commission and

the brokerage charges were found to be Rs. 2.74 per Rs. 100. In other words, total

charges comprising of the incidental and market charges of a qtl. of paddy costing Rs.

1100 per qtl. ammounted to Rs. 38.58. Little variation was observed in the response of

the respondents from different mandis in the state.

The farmers, however, reported that the rules were exploited by the procurement

agencies to the extent that they didn’t follow the procurement schedule. Immediately

after the harvest, the marginal and small farmers bring their produce to the mandi since

they need the money badly, but the procurement agencies follow the dilly dallying

policies with the result that the farmers many a times have to sell their produce below

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the MSP fixed by the Government. This year too similar problem was noticed in

Karnal, Kurukshetra, Gharaunda, Assandh, Pohewa and many other mandis of Haryana.

Though, the procurement was to start on 1st Oct, it could not be started even upto 3rd

October, with the result that the farmers had to resort to road blockage at several places

in the state. The survey of Karnal market revealed similar position. The problem some

times aggravates due to the arhtiyas and the rice millers who procure the paddy from

the mandis. This time too on enquiry the arhtiyas revealed that they were ready to work,

but there were no buyers in the mandi as the rice millers were on strike. District Food

and Supplies Controller, Karnal reported that paddy was to be purchased jointly with

rice sheller owners, who were on strike and not lifting the paddy. The DFSC did not

have the proper infrastructure to lift the entire paddy stock alone. He further reported

that the paddy with more than 17 percent moisture content was not purchased, whereas

the moisture at the moment was around 22 percent. At the same time, Haryana Pradesh

Rice Millers and Dealers Association blamed the wrong and faulty procurement

policies of the centre and the state government pushing the rice millers into crisis. The

millers wanted the government to raise the percentage of grain damaged due to the rains

to 4.5 percent and discoloured grain to 4 percent, besides decreasing yield of rice to 64

percent.

Selected farmers reported that the incidental charges for Bajra/Jowar crop being

procured in 6 out of the 9 mandis selected for the study were found to be Rs. 1.70 per

unit of 50 kgs. At the same time the market charges for 50 kg of bajra were found to be

Rs. 2.82, which were found to be the same as fixed by the HSAMB and hence no

discrepancy in the charges were observed Other market Charges charged as auction

charges, commission and brokerage etc. was found to be the same (Rs. 2.74) as for the

wheat and paddy crop. It could be added that the Government fixed the Minimam

Support Price of Bajra, Jowar and Maize at Rs. 880 per qtl. The procurement of Bajra

during the season has taken place from 48 mandis/purchase centres across the state. To

ensure that the farmers did not resort to distress sales, six procurement agencies,

namely Food and Supplies Department, HAFED, FCI, Haryana Ware Housing

Corporation, Haryana Agro Industries Corporation and CoNFER were in the field to

procure theses and ensure that the prices did not fall below the MSP.

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5.1.7.4 Satisfaction of Farmers for Various Amenties

The question of availability of various amenties provided by the HSAMB to the

farmers in the mandis was discussed with the farmers and they were specifically asked

the questions about this. 100 percent of the farmers were of the view that the loading

and unloading of the produce brought into the mandi is being done in a proper manner.

None of the farmer reported any malpractice or bungling in these operations. However

some of the farmers reported that many a times, it takes time for them to wait for a

suitable place under the shed, where they could stock their crop. Loading and unloading

too some times takes a long time and the farmers had to wait for their turn.Regarding

the filling and weighing of the produce 100 percent of the farmers had the positive

thinking and were satisfied with the process. Regarding the cleaning of the produce too,

100 percent of the farmers did not have any problem and were almost satisfied with the

staff engaged in these operations. Stitching too was being done in a proper manner and

none of the farmers faced any problem. The auction of the produce, though the waiting

time was lengthy, but was being done properly. Most of the times, the auctioneers were

in no hurry and were giving the proper time for each lot and almost around 90 percent

of the farmers from all the mandis reported that before the fall of hammer they were

consulted. Regarding the facilities available, aronr 89 percent of the total farmers

consulted reported that their produce was normally kept under the covered sheds.Some

times in the peak season, when there is more rush in the mandi and the time gap of the

auction is large, it was kept in open platforms. 99 percent of the farmers were of the

opinion that the covered area in the mandis and the pucca/raised platforms were

sufficint. They were of the opinion that in the peak season and on certain occasions, the

shortage of place is witnessed, but was within manageable limits.

On being asked about their views regarding the connectivity of their villages

with the mandi, almost all the farmers reported that their villages were connected with

pucca roads. The kaccha roads were no where to be seen in the vicinity of their mandis.

Within the villages, in 50 percent of the cases, the roads were the concrete roads, while

in 30 percent case, the brick lined roads exist. However the remaining 20 percent

mentioned a combination of all the three type of roads. However in the periphery of the

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village, the roads were mettaled roads. In general roads were reasonably good, but at

many places, patches of broken road did exist, especially at the entry and exit point of

villages. The farmers also reported that in the absence of proper drainage system,

wherever the water comes on the road, the road is damaged and this is more common

on the portion of roads near and in the village. The situation becomes worst during the

rainy season, when many a times, the vehicles have to cross the knee deep

waters.Though the HSAMB/ Panchayat carries out the repair work at intervals, but the

breakage and pot holes of varied dimensions at several places were witnessed. The

situation was worse on the roads, where traffic was very heavy and the trucks/heavy

vehicles plied in large numbers. The traffic barriers on the highways too have created

the problem in some villages, when the heavy duty vehicles to save the tax divert the

traffic and pass through these villages, which cannot bear the heavy load.

Regarding the stay facilities in the mandi (Rest House), 61 percent of the

farmers reported that the facilities were available, while the remaining 39 percent were

apprehensive about that. About the facility of toilet and bath rooms in the mandi, 87

percent of the respondents were of the view that the facilities did exist and they were

using these facilities in the mandis, while 13 percent gave the negative opinion, which

could be due to their ignorance or they were critical of the mandi administration

without proper reason. Moreover as per the practice followed by them in the villages,

they prefer to go into open for their daily needs.

90 percent of the farmers reported that the condition of the roads in the mandis

as also the approach road to their villages was satisfactory in all the mandis studied.

Though some problems did exist in the mandis, but these were within tolerable limits.

89 percent of the farmers reported that the roads were being repaired periodically, but

the rain and the water accumulated on the side of the village roads created regular

problem. They laid a stress on proper drainage of water from the houses located along

side the road. However in the mandis, the problem is much less. Some times, the

sewerage is not cleaned resulting in accumulation of water in the mandi area. 77

percent of the farmers reported the existence of pot holes on the village roads, but at the

same time reported the repair of these pot holes occassionaly.

137

Though the covered sheds were sufficient, but during the rain, the produce gets

wet resulting in the increase in moisture content and refusal by the procurement

agencies to lift the produce having more than specified percentage of moisture. It has

been claimed that under such circulstances, tarpaulins were available and were being

provided to the farmers. Around 80 percent of the farmers reported having availed such

facility, but 20 percent were of the different view. May be that they could not avail this

facility or they were not aware of it or they never required it or may not have asked

from the proper person.

For the animals used in pulling the carts for bringing the produce to the market,

only 12 percent of the farmers were of the opinion that the facilty existed in the mandis,

while the remaining 88 percent reported not having availed this facility in the mandis.

Similar position was witnessed regarding the parking of their tractor and trollies in the

mandis.

Regarding the availability of stores for the various inputs required for the

production process, 87 percent of the farmers reported that these were located in the

mandi area or its vicinity and didn’t face any problem in getting the fertilizers, seeds,

pumping sets, tubewell motors, submersible pumps and various other tools and

equipments or the other inputs required for the various operations on their farms.

However around 13 percent of the farmers were negative and said that many things

were not available and if available, the rates were higher than the market rates and they

were exploited on this account..

About the sewerage lines, 79 percent of the farmer’s opinion was satisfactory,

but the views of the remaining 21 percent were not positive and complained of

blockage of sewer line particularly in the rainy season resulting in the flooding of

mandi area. They were of the view that the cleaning of the sewerage could be done

periodically and more particularly before the offset of rainy season. The situation

becomes bad only in the rainy season.

100 percent farmers wee of the view that watch and ward staff were generally

there in the harvesting season, when the farmers need them more, but in the off/slack

season, the situation was not good and many a times watch and ward staff was not be

seen any where.

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Regarding the medical facilities for the farmers or their livestock, the farmers

were very apprehensive.The medical facilities both for the farmers and their animals

were not provided by the mandi board. This aspect was completely missing probably

due to the reason that the farmers come and go and did not have the time to stay in the

mandis. According to the farmers, this was one such area, where little attention has

been paid. Health being the basic fundamental requirement both for the human beings

as well as animals, the facility is a must in the present circumstances. This has become

more important as most of the mandis have shifted to more lucrative open areas.

Previously near the mandis many nursing homes and medical clinics and the chemist

shop had developed. May be that these could develop in the near future and this

problem could automatically be solved.

As a requirement, there should be good lighting arrangement in the mandi to

avoid thefts at night and proper care of the grains stock. Almost 93 percent of the

farmers were satisfied with the light poles and flood light provisions made in the mandi,

but many of the farmers complained about the failure of light and power cuts for hours

together resulting in the problems faced during unloading the produce at odd hours after

sun set. Many a times they has to depend upon their own source, the tractor light for the

purpose.

In short, it could be generalized that the HSAMB has attempted to provide the

basic facilities to the farmers, but there are always constraints.

5.1.7.5 Credit Facility

Farming is an unorganized profession and biological in nature. Its success and

failure to a large extent depends on climatic factors. The farmers go on investing on

farm inputs for about six months and not sure as to whether they would be able to

harvest a good crop or not. When the crop is ready, they harvest it and sell it to get the

money. Since the land holding of the farmers is very small and almost 65 percent of

them are marginal and small farmers, they don’t have enough money to invest in the

production of crops. As such they need the credit for the production of next crop. Three

types of loans viz. short term, medium term and long term loans are generally required

by the farmers. Short term loan is required by the farmer for a period of less than 15

139

months for the purchase of various inputs used in the production process. Medium term

loan is required for a period exceeding 15 months to five years. The purpose of such

loan is for the purchase of agricultural implements, animals or for land improvement.

The long term loan is required by the farmers for expensive agricultural implements etc.

These loans are usually available from both the institutional and non institutional

sources. Crop loan is generally taken from the village level Cooperative Societies for a

crop period. Considering its importance, the selected farmers were subjected to certain

questions. Only, 27 percent of the total farmers reported that there was no problem in

getting the loan. However the remaining 73 percent of the respondents exhibited

difficulty in getting the loan. On an average, most of the respondents were under debt

and they had taken a loan for one purpose or the other. The average loan to be repaid by

an average farmer was around Rs. 49000. Though, both the institutional and non

institutional sources of credit were available to the farmers from the institutional and

non institutional sources, but the farmers reported the preference for non institutional

credit, even though this was available at an interest rate varying fron 2 to 2.5 percent

depending upon various consideration like the purpose of loan, time period of loan and

the security or the commitment etc. mainly due to simple procedures and secrecy. The

prominent purpose reported by the farmers were the repair of house, leasing in and

reclaiming the land, agriculture purposes-purchase of tractor, implements, fertilizer and

seed etc., construction of farm house, marriage in the family and other personal

purposes. The study further revealed that the percentage of households taking loan for

the personal purpose in the family were found to be the highest (30%) followed by

marriages and social ceremonies in the family (22%) and repair of house etc. (20%).

The percentage of loan taken for agriculture purpose, construction of farm house and to

pay for the lease of land accounted for about 10, 10 and 8 percent respectively.

5.7.1.6 Views of Arhtiyas/Commision Agents

Agricultural marketing in India is very complex. Though, long chain of

intermediaries has been curtailed, but still in the trade there are mediators most

commonly known as Kacha and Pucca Arhtiyas operating in the villages and mandis

respectively. To elicit the views of the commission agents/ arhtias, 90 arhtias, 10 from

each mandi were selected randomly from all the 9 mandis included in the study. All the

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selected arhtiyas were interviewed and the information collected by the investigator

herself on the especially structured open ended schedules, which formed the subject

matter of discussion of this section. General particulars of the selected arhtias from all

the mandis has been presented in table 5.22 below:

It could be observed from the table that no definite trend could be descernable in the

case of paddy too. The share of leviable paddy and basmati paddy was found to be 53

and 47 percent respectively.The leviable paddy was being procured by all the agencies

mentioned in case of wheat, but the basmati paddy was being procured by the millers.

In between the years, the trend analysis revealed that in case of F&S, HAFED,

CONFED and HAIC, it showed an increasing trend from 1997-98 to 2002-03,

decreased for two years and then increased. However in case of FCI, the decreasing

trend from 2004-05 to 2008-09 was observed. In case of Basmati procurement by the

millers, there were many ups and downs. The study of growth rates of paddy revealed

that it was negative in 1998, increased for two years, then again it was negative for two

years, The growth rate was positive from 2003-04 to 2005-06, but again was negative

upto 2008-09.

Table 5.22 General Particulars of the selected Arhtiyas in the selected mandis

S.No. Market Committee

Type of Establishment

Individual Partnership Pvt. Ltd.

Any

Other

1 Karnal 7 3

2 Taraori 4 6

3 Panipat 6 4

4 Tohana 6 4

5 Bhiwani 8 2

6 Fatehabad 4 2 2 2

7 Rohtak 4 6

8 Ballabgarh 8 2

9 Narnaul 4 6

Total 51 35 2 2

% age 56.7 38.90 2.20 2.20

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It could be observed from the table that 57 percent of the total shops of arhtiyas

were individual/sole proprieptor ship concerns. Another 39 percent of the business

shops were the partnership firms (having 2-4 partners each). 2 percent of the total firms

each were either Pvt. Ltd or cooperative societies or any other type. In our study, these

were the cooperatve societies. It could also be concluded from the study that 96 percent

of the total shops were either owned by the commission agents themlelves or were

inherited from the family. In over ninety percent of the cases, this business was the

family business inherited from their fore fathers. Only 10 percent of the total

commission agents entered new in to the business. These persons were either the

employees with the arhtiyas or had some relations with the arhtiyas from whom the

training was taken to start the business or were from the farmer families having wide

contacts and dealing with allied trades. Only 4 percent of the shops of these arhtiyas

were on rent. These rented commission agents have entered into the business a few

years back either from the farmer’s family or having allied business. Operating the

business from the owned shop was essential since the nature of work demanded

sufficiently good amount of capital, immovable assets and above all the good will. If

the arhtiyas are not having their own shop, the farmers will not trust him, since the

farmers have to sell lot of produce through them and have to get payments at the time

of need.

5.1.7.7 Views of the Farmers about Packing

Regarding the packing of the produce, the arhtiyas reported that in the past,

three types of packings viz. 50 kg, 95 kg. and 100 kgs was prevalent, but at the moment

for all A and B category products i.e. wheat, paddy, Jowar, bajra and maize etc., mainly

50 kg. bags are filled and stitched for storing the produce. Only under special

circumstances, 35 kg packing is done. But for C category of products packing varies.

Cotton and Wool is packed in 40 kg. bags, Ground nut is packed in 30 kg packing while

dry chillies are packed in 17 kg bags. Almost all the arhtiyas reported that the

procurement is mainly being done by six government agencies viz. HAFED, Food and

Supplies Corp., FCI, Haryana Agro Industries, CONFED and Haryana ware Housing

Corp. and all of them prefer the grains to be filled in 50 kgs bag because of the

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convenience in stocking, loading, unloading and transportation from one place to the

other.

5.1.7.8 Views about Payments

Arhtiyas reported that they are not adhering to time schedule like weekly,

fortnightly, monthly payment to the farmers, but give the payments to them as and

when they require it. The arhtiyas also reported that most of the farmers get advance

payments from them for the purchase of various farm inputs like fertilizer, seeds,

insecticides and pesticides and even the costly equipments. Many times, even they get

consumption loan for personal purposes as well as for marriage and social ceremonies

at home. The loans are generally repaid only on the next crop. The arhtiyas oblige the

farmers even out of the way and advance the amount without any security. The only

guarantee and that too verbal is that the farmer will sell the produce through him. The

advances, if any are mostly deducted at that time and even sometimes these are adjusted

in the next to next crop. Some times, the arhtiyas don’t charge the interest, if the period

is very short, one or two months, but if the amount is large, the interest too is charged.

Since the farmer and arhtiyas develop personal relations with mutual trust, many a

times the arhtiyas use their money for some time in their business and make the

payment in parts. The arhtiyas reported that almost 100 percent of the farmers take

advance of varying amounts for different purposes. To avoid being exploited by the

farming community, who some times takes advance without any reason and don’t draw

the money from their own bank account, an interest varying from 12 to 16 percent per

annum, depending upon the amount and period of loan is charged.

The arhtias also reported that they too enter into trading, purchase the produce-

wheat, paddy, barley, gram, jowar, bajra etc. at the harvest time, stock/hoard it for some

time and when the price of the produce rises, sell it in the market and that way they earn

some money, but at the same time they pointed out that they are the law abiding

citizens and do the trading work within rules. They maintain the stock as per the licence

terms and conditions and never exceed the limits specified by the government. Only

around one percent of the arhtiyas reported that they don’t procure the food grains and

stock them, since they are short of money and don’t want to under go the risk.

143

Regarding the organizations dealing with, the arhtias reported that they are at

the same time dealing with the sellers and purchasers/ buyers. The sellers in the mandi

are various categories of farmers viz. the marginal, small, medium and large farmers,

the kacha arhtiyas and the village bania.The arhtiyas deal with both the government and

private agencies, who purchase the stock either for sale or convert it into value added

products after processing them. The government agencies include the state government

controlled Food and supplies controller, Haryana Agro industries, HAFED and Haryana

ware housing corporation and the centre owned Food Corporation of India and

CONFED. It could be addfed that these six are the prominent agencies engaged in the

procurement process. The private agencies engaged in the procurement process are the

Dal millers, Rice shellers/millers, Floor mills, Oil extractors, Cotton ginners and other

agro industries like bakeries, food processors and animal feed industries etc. The arhtias

stand as a link between the sellers and the purchasers.

5.1.7.9 Market Charges

To ascertain both the incidental and market charges being charged from the

producers/farmers and the purchasers, data collected from the producers, who bring the

produce to the market has already been reported earlier in the previous section. To

verify it, the views of the commission agents were also ascertained. The data so

collected has been analysed, interpreted and produced as under:

The arhtiyas too reported that the incidental charges, comprising of the

unloading and cleaning charges are to be charged from the producer. The charges so

collected amount to Rs. 1.75 per unit of produce. Unit of weight of wheat, paddy, gram,

jowar and bajra is 50 kgs. For wheat, the market charges to be paid by the purchaser

comprise of filling the bag and placing it on the platform, weighing the produce,

unloading from balance, stitching either by manual or machine too were charged on the

unit places. The total charges for wheat were observed to be Rs. 1.94. In addition to

these charges, the auction charges, commission and brokerage amount Rs. 2.74,

calculated on the basis of amount per hundred rupees of the sale value. No discerancy

was found from the arhtiyas across the different mandis. This showed that the system of

fixing the charges and charging them from the producer/seller and purchaser were very

transparent and there were no underhand charges.

144

In case of paddy, the incidental charges were Rs. 2.25 per unit of 50 kg. The

market charges per unit of paddy amounted to Rs. 3.34. However, the market charges

per Rs. 100 to be charged from the purchaser remained the same as in case of wheat. In

case of bajra, the incidental charges were lower both from paddy as well as wheat and

amounted to Rs. Rs. 1.70. Similarly the market charges for bajra/jowar/maize were

ascertained to be Rs. 2.82, which were lesser than paddy, but slightly higher than

wheat. The market charges, however were the same.

5.1.7.10 Views about the Facilities

The arhtiyas too were asked questions regarding the availability of various

amenities and facilities for their use and to increase the efficiency in their work. 100

percent of the arhtiyas contacted from all the nine selected mandis reported that there

were sufficient covered sheds for the produce, farmers brought to the mandi for sale.

Regarding the storage facilities of agricultural produce, 97 percent reported that the

space was adequate, while 3 percent reported that the space was inadequate.

The arhtiyas reported that all the mandis have poor facilities for health cover

both for human beings and the animals coming to the mandis. In case of need or

emergency, even the first aid is not available. Previously mandis were located in the

city and the hospitals were close by, but now most of the mandis have been shifted to

more lucrative and open locations away from the crowd of cities, with the result that

both civil hospitals and veterinary hospitals have become unapproachable, in

emergency. Even the private hospitals and nursing homes are located at distant places.

96 percent of arhtiyas reported that the watch and ward personnel were there in

the mandis and they performed their duties satisfactorily during the peak/crop season.

Only 4 percent of the total arhtiyas were critical about the watch and ward staff

availability at the gates of the mandis.

Though the light arrangement in the mandis was satisfactory according to

almost all the arhtiyas, but problem some times is there due to power cuts and

breakdowns.

Arhtiyas were of the view that tarpaulins were available in the rainy season, but

at the same time no space for the parking of trollies or bullock carts was there. Most of

145

the farmers were parking these on the road side or odd places resulting in traffic jams,

and difficulty to the farmers bringing the produce.

92 percent of the arhtiyas mentioned that raised platform for auction of the

agricultural produce were there. Only 44 percent mentioned the availability of stay

facilities in the mandis while 56 percent reported that these facilities were not adequate.

Only some commission agents arranged for the stay of their clients in their own shops.

Toilets and bathrooms have been constructed, roads have been prepared, sewer

lines are there, but there were several constraints. Farm input shops were there. 44

percent of the farmers were of the view that banking facilities were there in the mandi

area, but 56 percent of the arhtiyas reported that the facilities were in adequate. In short

HSAMB has been doing a lot for the farmers and the arhtiyas alike.

5.1.7.11 Role of Mandis

Arhtiyas facilitate the sale of agricultural produce through the various

functionaries and market committee helps in implementing the rules and regulations

framed by the HSAMB. As already discussed earlier that the procurement is done

through the various Government agencies and the dealers, which comprised of the

various categories, charaterised as Cateory –A (Floor Mills, Rice Shellers, Cotton

Ginners etc.), Category -B, (commission agents, wholesalers, stockists etc.) In the

category (C) the prominent dealers were mainly the retailers. Category (D) included the

various market functionaries like weightmen, Brokers, Auctioneers and palledar etc.

Number of dealers registered with the selected market committees have been presented

below in table 5.23

It could be observed from the table that in the selected mandis, on an average

there were 34 registered ‘A’ class dealers in a mandi. These dealers belonged to the

various agri industries like Dal mills, Floor mills, oil extractors, Rice shellers, Cotton

grinners etc. All the other type of dealers were clubbed together under any others).

The maximum dealers belonged to the category of rice shellers (53.7%), followed by

floor mills (15.2%) and cotton ginners (14.9%), 11 percent of the total dealers were

purchasing the oil seeds like mustard, groundnut, toria and taramira etc. and were

extracting the oil, where oil cakes were produced as a bye-product and were fed to the

animals. 3 percent of the dealers were purchasing cereals and preparing Dal out of it.

146

Table 5.23 Number of Dealers Registered with Different Market Committees

S.No.

Name Of

The

committee

Category A (No. Of Dealers)

Dal

millers

Floor

Millers Extractor

Rice

Sheller

Cotton

Grinners

Any

Other

Specify Total

1 Karnal 10 52 - 1 63

2 Taraori - - - 70 - - 70

3 Panipat - 15 6 6 23 50

4 Tohana - 2 6 27 2 37

5 Bhiwani 6 6 13 13 5 43

6 Fatehabad 1 8 7 16

7 Rohtak 2 2

8 Ballabgarh 2 11 5 1 19

9 Narnaul 1 2 5 1 9

Total 9 47 35 166 46 6 309

Avera

ge 1.00 5.22 3.89 18.44 5.11 0.67 34.33

The number of dealers depended upon the raw material produced in the

area.Taraori. though a small place was blessed with a huge market of for the sale and

purchase of basmati paddy. As such, number of dealers were observed to be the

maximum (70), followed by Karnal (52) and Tohna (27). In all other mandis the

number of rice dealers were 17 except Narnaul and Bhiwani mandis, where very little

paddy was produced. Cotton ginners and ‘Dal’ millers were found to be the maximum

in Bhiwani since due to the agro-climatic conditions, lot of area was under gram and oil

seeds (cotton and Mustard). Floor mills were found to be the maximum in Panipat (15)

followed by Ballabhgarh (11% ) and karnal (10%) in order..

‘B’ category of dealers, which included the (i) commission agents (ii) whole

salers (iii) stockists and other misc. category of dealers have been summarized and

presented in the table 5.24 below.

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It could be observed from the table that as per the available data with the market

committee the toal number of ‘B’ category of market functionaries viz. commission

agents, whole salers and stockists etc. were found to be around three thousand. It could

be further observed that 86 percent of the total ‘B’ category dealers, the percentage of

Table 5.24 No. Of Dealers Registered With Different Market Committees

S.No.

Name Of The

committee

Category B

Commision

Agent

Whole

Salers

Stockists and

others

Any other

Specify

1 Karnal 322 145 27 25

2 Taraori 369 33

3 Panipat 284 112

4 Tohana 370 2

5 Bhiwani 134 5

6 Fatehbad 413 46

7 Rohtak 245

8 Ballabgarh 90 40

9 Narnaul 320

Total 2547 381 27 2955

Average 283.0 42.33 3.0 328.33

commission agents were observed to be the maximum (86%), followed by whole salers

(13%). Only around 1 percent of the toal ‘B’ category was either stockists or any other

type of dealers. Across the various mandis, the commission agents were observed to be

the maximum (413) in Fatehabad mandi followed by 370 in Tohana 369 in Taraori and.

These were found to be the minimum in Ballabhgarh mandi followed by Bhiwani. On

an average number of Commission agents in the selected mandis were 283. It could be

further observed from the table that the total number of whole salers in the selected

mandis were 381, the average per mandi being 42. Number of whole salers however

varied from 5 in Bhiwani mandi to 145 in Karnal mandi. The stockists and other

dealers however were found to be 27. Thus in all, the total number of ‘B’ category

dealers in the selected mandis were ascertained to be around 2955, the average per

mandi being 328.

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In addition to the ‘A’ and ‘B’ category of dealers in each mandi, there were ‘C’

and ‘D’ grade market functionaries. As already discussed, ‘C’ category of market

functionaries were mainly the retailers, while in ‘D’ category, the weighmen, brokers,

auctioneers and palledars etc. were included. The data revealed that though the

registered number of ‘C’ and ‘D’ category of functionaries were much less, but the

actual number were quiet large. Generally these categories of functionaries were

migratory by nature and as such they didnot pay the license fee, which again is very

minor. The data revealed that in these selected mandis, the toal number of such

functionaries were 1252, the average per mandi being 132. Out of the total

functionaries, the percentage of ‘C’ category and ‘D’ functionaries were observed to be

14 and 86 percent respectively. The number of these functionaries too varied from

mandi to mandi depending up on the various factors like the total arrivals in the mandi,

number of whole sale shops/arhtiyas and the ‘A’ category dealers.

Table 5.25 Number Of ‘C’ and ‘D’ category of market functionaries With

Different Market Committees

5.1.8. Coverage of Area by a Maket Committee

S.N.

Name Of The

committee

Category C Category D

Retailers Weighmen Brokers auctione

ers Palledar

s Other

Specify

1 Karnal 12 28 30 12 70 159

2 Taraori 2 25 26 15 65 133

3 Panipat 20 20 15 12 200 267

4 Tohana 8 90 10 10 76 194

5 Bhiwani 34 6 8 8 20 76

6 Fatehbad 34 15 22 12 80 163

7 Rohtak 21 5 10 20 15 71

8 Ballabgarh 15 2 9 8 100 134

9 Narnaul 25 5 7 10 15 62

Total 171 196 137 107 641 1252

Average 19.0 21.78 15.22 11.89 71.22 139.11

149

As already discussed, at the time of the inception of HSAMB, there were only

58 market committees in the state with 58 principal yards and 60 sub yards. Even these

market committees were located in narrow, congested areas and lacked the basic

amenities and facilities for proper handling of the arrival. The farmers had to travel

long distances and in some cases 50-60 kms. to bring their produce to the market

through Kacha roads. Since about 40 years have passed, it is very important to see and

analyse, how far, we are able to cut the distances. For the purpose, the data collected

from the nine selected Committees was analysed and presented in table 5.26 below:

It could be observed from the table that the total villages connected with these 9

selected committees were 500, which varied from 22 in Karnal to around 105 villages

in Rohtak, the average for all the mandis being 55. It was operating within a radius of

12 kms. i.e. the villages connected to the committee in each direction covered a

distance of around 12 kms. Variations however were observed in between the

committees depending on the total production, productivity and the density of villages

per sq. km. For example Taraori market committee coveed a distance of 9 kms. in the

north side, 7 kms in the south side, 8 kms. in the east side and only 3 kms on west side.

Within such an area there were around 29 villages. At the same time. Bhiwani mandi

covered 50 villages and its limits in the north, south, east and west side were around 30,

8, 15 and 20 kms respectively. It is very interesting to observe that all the 100 percent

villages were connected with metalled roads.

Table 5.26 Coverage of area by a Market Committee

S.

No

Name of

the Market

Committee

Total

No. of

villages

attached

with the

market

Total area covered No. of Villages Connected by

North

side

South

side

East

side

West

side

Metalle

d road

Concrete

road

Brick

lined

road

Kacha

Road

1 Tohana 35 6 20 4 12 35 0 0 0

2 Karnal 22 13 8 6 12 22 0 0 0

3 Ballabgarh 60 12 11 13 13 60 0 0 0

4 Narnaul 85 15 10 20 12 85 0 0 0

5 Bhiwani 50 30 8 15 20 50 0 0 0

6 Rohtak 105 25 20 10 20 105 0 0 0

7 Taraori 29 9 7 8 3 29 0 0 0

8 Fatehbad 59 8 15 22 7 59 0 0 0

150

9 Panipat 55 10 8 12 8 55 0 0 0

Total 500 128 107 110 107 500 0 0 0

Average

55.56 14.22 11.89 12.2

2 11.89 89.78 0 0 0

The Kacha roads are no where seen in the area. As per the available data (2008-09),

out of 6764 villages of Haryana, 6757 villages (99.9%) are connected with

metalled/pucca roads and all the 6764 villages (100%) are connected with electric

power. The metalled (surfaced) road per 100 sq. km area has been ascertained to be 55

kms, which varied from 41 kms in sirsa to 79 kms in panipat. The total length of the

metalled roads in Haryana has been ascertained to be 24317 kms. It could also be added

that in the state, the number of regulated markets per one lakh hectares of net area sown

varied from 1 in Jhajjar to 13 in Panchkula followed by 6 in Yamunanagar and 5 each

in Ambala, Kurukshetra, Karnal, Panipat and Faridabad.

5.1.8.1 Investment on Infrastructural Facilities

During the year of Survey investment on Infrastructural facilities have been

made in Karnal and Balabhgarh mandi, the major share allocated to Karnal. In Karnal

mandi, the expenditure has been incurred on the development of new roads, repair of

roads, construction of new shed, repair of sheds and repairs of raised platforms, In

Ballabhgarh mandi however a paltry amount of Rs. 0.35 lakhs have been spent on

repair of roads, new sheds and the repair of raised platforms.

Table 5.27 Investment on Infrastructual Facility

S.N

o.

Market

committee

Investment on Infrasturctural Facilities during the year (in Lacs)

Develo

pment

of new

roads

Repair

of

roads

New

sheds

in the

market

Repair

of Sheds

Raised

Platform

New

Repairs

of

raised

platfor

ms

Other

investm

ent

(Specify

)

1 Tohana

2 Karnal 250 320 2000 35 0 2605

3 Ballabgarh 0.2 0.1 0.05 0.35

4 Narnaul

5 Bhiwani

6 Rohtak

7 Taraori

8 Fatehbad

151

9 Panipat

Total

250 320.2 2000.1 35 0 0.05 2605.35

Average

27.77 35.57 222.23 3.89 0 0.005 289.46

5.1.8.2 Staff Position in Various Market Committees

To supervise properly and enforce the various rules and regulation each market

committee is equipped with staff appointed by the board except class –IV staff, which

is appointed by the market committee. As per the records available, there were over all

388 employees in the selected 9 committees, the average being 43. The staff position

of the committees varied from 21 in Ballabhgarh to 63 in Rohtak depending upon the

load of work, market arrivals and other associated jobs. The staff in the committees

comprised of the administrative, clerical and supporting staff. The total strength of staff

in the selected committees was found to be around 387, the average per committee

being around 43, which varied across different committees depending upon the load of

work. The proportion of Administrative/technical and the clerical/supporting staff was

observed to be around 45 and 55 percent respectively.

The foregoing discussion in this section leads to conclude that the HSAMB is

doing a unique task for the development of agricultural markeing in the state. It has

ventured in all the six objectives fixed at the time of its start. It has created a wide

marketing infrastructure comprising of various Marketing Committees, Market Yards,

and Purchase centres. In the market committees, the various amenities and facilities

have been created for the benefit of the farmers. HSAMB has further attempted and

worked for thr profit maximization of farmers by ensuring the best prices for their

produce which they bring to the mandis for sale in the market. The market committees

at their end are collecting the market fee and the license and after keeping its sending

sending the money to the Board headquarter. The board is not only utilizing this

amount for the benefit of the farmers, but is creating more and more resources for the

benefit of the farmers. The Board is also helping to enforce the rules and regulation

152

framed by it though a team of persons under the District Enforcement Officer. The

Board has created a full wing of construction Division headed by a C

hief Engineer at the headquarters. The creation of additional facilities like

expansion and maintenance works, repair and maintenance of inner roads, toilets, new

roads and the maintenance of roads etc. is being executed by them through contractors

on minimum bid system. It has started various schemes like Krishak Uphar

yojna,Special assistance to victims during agriculture operations and contract farming

etc. It has also set up agri-Business Information centres, farmers markets, Modern

Terminal markets, Commercial, Research and Training and Quality Control Division

and arranged the inputs for farmers. All this is being done to help the farmers increase

their income.

It could be added that there is no end to the development. With the improvement

in technology and the development of agriculture, new and new innovation and

development techniques are coming up and the board has to see that they should also

employ the most modern techniques. It could therefore rightly be said that the HSAMB

is relevant, but its activities should change to adopt the new techniques and methods

and the new priorities should take the place of tradional systems and approach. No

doubt, the Board has taken the lead and has set up malls and super malls etc., which

could prove to be more helpful in the development marketing system in general and the

economy of farmers residiing in rural areas.

5.2 TRENDS OF INCOME AND EXPENDITURE OF HSAMB

The viability of an enterprise depends upon the income and expenditure and the

net returns of an enterprise. If the income of the organization is higher than the

expenditure, it is said to be a viable organization. In the case of service organizations

like HSAMB, which was set up in 1969 to develop an efficient marketing infrastructure

by setting up modern markets and evolving a feasible and efficient modern markets and

evolving a feasible and efficient marketing system in the state. The board was

entrusted the job of providing modern amenities and facilities in the existing markets

and construction of additional markets like principal yards, sub yards and purchase

centres. For all this finances were required.

153

The income of HSAMB/Market Committee is being derived from the collection

of market fee on the sale and purchase of agricultural produce, which is levied at the

rate of 2 percent advalorem basis except 21 items on which the rate of market fee is 1

percent advalorem basis. The market committees contribute 30 percent of the total

collection of market fee and the license fee collected from the various market

functionaries to the HSAMB. The other sources of income of the board/market

committees is from the sale of plots in the new mandis, rent of godowns, ware houses

and the interest on loans and investments etc. In addition, the board is accepting grants,

donations and even getting loans from the World Bank and other National and

International organizations. The income received is spent in developing the

infrastructure in mandis, its offices, meeting the salary of staff and making investment

in the development of mandis, creating facilities and amenities for the farmers and other

functionaries.

5.2.1 RECEIPTS AND PAYMENTS .

The receipt of income and payments/expenditure in brief during the study

period 1997-98 to 2007-08 has been presented in table 5.28.

It could be observed from the table that the income of the HSAMB varied across

different years. No specific trend however could be observed, however receipts during

the year 1997-98 wwere found to be around Rs. 10290 lakhs, which decreased to Rs.

10136 lakh showing a decrease of (-) 1.50 percent. It showed an increase in the

subsequent years from 1998-1999 to 2000-2001 showing an overall increase of 203

percemt or a growth rate of over 50 percent per year. It decreased in 2002-03 and

continued to decrease upto 2005-06, but again showed an increasing trend in the last

two years. Though the decrease from 2002-03 to 2005-06 was about 16 percent, but the

increase from 2005-06 to 2007-08 was very substantial and was observed to be 144

percent. This could be due to the varied production during different years. Since the

overall production decreased the arrival of the produce was less in mandies resulting in

the decrease in market fee in different mandis and consequent transfer to the board.

Regarding the expenditure part, the expenditure during the year 1997-98 to Rs.

31250 lakhs showed an increase of over 253 percent. However, it showed a decreasing

trend from 2002-03 to 2005-06 and the decrease too was quite high and found to be

154

about 115 percnt. Thereafter it again started increasing and increase in 2007-08 over

2005-06 was ascertained to be 199 percent. The overall compound growth rate was

found to be 3.56 percent per annum.

It could be further observed from the table that the proportion of payment to the

total receipt varied and was not dependent upon the total receipt. The results of the

analysis revealed that in 1997-98, the proportion of expenditure to the total receipt was

only 66 percent. It however decreased marginally in the subsequent year to 65 percent.

155

But in 1999-2000, it was over 108 percent. In 2000-01 it slightly increased and showed

a decrease in the subsequent years which varied from 102 percent in 2001-02 to about

93 percent in 2003-04. It increased in 2004-05 (104%) but decreased in 2005-06 and

2006-07 to 72 percent, but increased in 2007-08 to 88 percent. The variation in

percentage expenditure could be due to the demand from different mandis. The higher

expenditure than the receipts resulted in the lower closing balance at the end of

financial year.

5.2.2 Income of HSAMB According to Sources

The HSAMB has classified and presented the income in their audit report and

annual accounts for different years under three heads viz. the Revenue Head, Capital

Head and loans and advances. Under the revenue head, the major sources of income

were (i) contribution received from marketing committees under section 27 of the Act

and the Licence fee collected under Section 10 of the Act. (ii) rent received from Food

and supplies Godowns, staff quarters, rest house and shops and booths etc. (iii) interest

recovered/received from market committees for the loan and money advanced to them,

employees and bank deposits etc. and (iv) other miscellaneous receipts. In the initial

years viz. 1997-98 and 1998-99 another head in the name of suspense account was

created, which after words was merged. The Capital Head too was categoriesed under

various sub heads heads like (i) transfer of World Bank Project Mandis to market

committees-recovery of cost (ii) Subsidy/Grant in aid from Central Government and

other institutions (iii) other miscellaneous income i.e. charging of RR etc. (iv) market

committee deposit works (v) other expenditure including contractors. security and

earnest money. (vi) Interest on deposit works (vii)Miscellaneous Capital Income which

includes sale of tender forms and enlistment fee of contractors etc. and the (viii)

156

suspense account comprising of collection charges of HRDF fee and others and

suspense A/C (including GPF, Bal with Divn. etc. The Loans and advances head

Covers the loan recovered from (a) market Committees (b) employees, (c) Government

and (d) other institutions. The sum total of all these three heads is taken as the total

receipts. The total receipts from all these three heads is from 1997-98 to 2007-08 has

been presented in table 5.29

157

It could be observed from the table that in general the major income to the HSAMB

was from the capital head except for the year (1998-99) during which the income from

the revenue head was higher. The income from the loans and advances head was

observed to be the lowest. The details of the data revealed that the share of income

from revenue head varied widely from 16 precent in 2001-02 to about 43 precent in

1998-99. The trend analysis showed that even though no specific trend could be

descernable, but the results revealed that the percentage share increased from 39

percent in 1997-98 to 43 percent in 1998-99. In 1999-2000, there was a tremendous

decrease and the share decreased to around 18 percent. It was more or less constant in

2000-2001, but decreased in 2001-02. Thereafter, it showed an increasing trend, which

continued upto 2005-06, during which the share increased to 32 percent. It again

showed a decrease in the subsequent year viz. 2006-07 (24%).

Within the revenue head, the share of contribution from the market committees

in respect of market fee collected under section 27 of the act and licence fee collected

under section 10 of act was observed to be the maximum, which showed a wide

variation and ranged from 73 percent in 2006-07 to 96 percent in 2000-01. The trend

analysis revealed that the percentage contribution of the market fee decreased from 77

percent in 1997-98 to 74 percent in 1998-99. It showed a strategic change and

increased to 95 percent in 1999-2000 and 96 percnet in 2000-01. It showed a decline in

2001-02 (86%), but again showed an increase in 2002-03 (90%). Thereafter it showed

a continuous decline and decreased to 73 percent in 2006-07.

The percentage share of Misc. income, rent and suspense account was observed

to be highest in the initial year of the study period 1997-98, which showed a continuous

downward trend till 2007-08 except for the year 2000-01, when the decrease was

158

slightly higher than the preceeding period. The percentage share of interest on

investment was the lowest during the year 2000-01 (2.6%) and was the maximum

during the year 2006-07 (26.4%). The trend analysis revealed that the percentage share

increased upto 1998-99, but showed a decline in 1999-2000 and 2000-01 showed a

spurt in 2001-02 and was 12.6 percent. It again showed a decline in 2002-03 (8.3%),

but thereafter showed a continuous increasing trend.

The percentage share of capital head account revealed that the percentage share

decreased in 1998-99 to 36 percent from 55 percent in 1997-98. The share however

showed an increasing trend and continued to increase upto 2000-01 (80%). From 2002-

03 on words, it showed a declining trend and decreased to 55 percent level in 2005-06,

but again increased in 2006-07. Percnetage distribution of share within this head

revealed no definite trends. The share of various constituents under the head showed

changes in different years. The share of capital income though was found to be lower

in the initial years, but was observed to be 84 percent in 1999-2000. It showed a

decline and was found to be 43 percnet in 2001-02, but thereafter it should a continuous

increase in general and was found to be 98 percent in 2006-07. The share of suspense

account was found to be 36 percent in 1997-98, which increased to 82 percent in 1998-

99. It was found to be meager 6 percnet in 1999-2000 showed an increasing trend upto

2002-03 (36%), but a declining trend after words. Similar observations were observed

in case of recoveries and miscellaneous income with slight variations here and there.

The trends of loans and advances revealed that the percentage share in the total

receipts was 6 percent in 1997-98, which increased to 20 percent in 1998-99. It showed

a declining trend from 6.6 percent in 1999-2000 showed a continuous decrease upto

2003-04 (2.6%). However after that it showed an increase and increased to 7 percent in

2004-05 and 13 percent in 2005-06, but decreased to 12 percent in 2006-07.

5.2.3 Expenditure of HSAMB

The income so received from the various sources is spent on meeting the

expenditure at the head office. Apart from this, the expenditure is incurred on the

various development works initiated in various mandis and developing the

infrastructure at the Board headquarter for the benefit of employees. Like the receipts,

the payments too are made under the three broad heads viz. (1) Revenue head, (2)

159

Capital Head and (3) Loans and advances. The revenue head has further been sub

classified into Salary, Travelling Allowance, contingencies Recurring and

Miscellaneous Expendirue. It also indudes the payment made to GPF. (a) Salaries

comprising of the general establishment and works establishment. The general

management includes broadly the (i) honorarium to the chairman (ii) pay of

officers/establishment including allowances (iii) contribution to pension fund (iv)

contribution to provident fund (v) Ex-gratia grants (vi) Leave salary and pension

contribution. (v) Medical aid and (vi) staff welfare etc. Travelling Allowance

component includes the expenditure incurred on travelling of employees of general

establishment as also the works establishment for performing outstation jobs.

Contingencies recurring is an expenditure for meeting day to day expenditure on

various counts like (i) audit fee, (ii) pay to contingent paid staff (iii) Purchase of

newspapers, books and journals (iv) Rent, rates and taxes (v) Hot and cold water

charges (vi) Postage and stamps (vii) Telephone, electricity and water charges (viii)

Paper printing and binding including publication (viii) Unforeseen and miscellaneous

expenditure (ix) Stationary (x) Propaganda, publicity and demonstration (xi)

Maintenance and repair of vehicles (xii) Advertisement charges (xiii) Refreshment and

entertainment (xiv) Liveries to class-III employees (xv) Repair of machinery other than

vehicles (xi) Litigation charges (xii) Repair of furniture and fixtures and Repair of

office equipment etc. Miscellaneous Expenditure all the other expenditure not covered

under other heads for which the payments have been made. Under this head, the items

of expenditure are not fixed and varied from time to time, some of the broad heads

included under this head are training of official/officers, study tours and saminars,

incentive for detection of evasion of market fee, insurance against fire of cotton

produce brought in mandis, assistance to other institutions/Boards etc., Chief

Minister/Prime Minister Relief fund to meet national calamities. Market intelligence by

board, prizes to best growers, sport nursey/equipments, Krishak uphar yojya, repair of

godowns, inner roads and boundary wall, repair of boards property other than godowns,

purchase of consumable items, farmer market assistance, farmer inputax scheme,

subsidy grant in aid, other development works like roads, platforms etc, contribution to

Kisan Mela and other government & non government organizations aid to market

160

committees and interest paid for various purposes and other things/goods/services not

covered above. In addition to all above the payments made in respect of income tax

deducted at source by banks and advance tax (refund) etc. are included under this head.

The total payments made by HSAMB on various counts during the year 1997-98 to

2007-08 have been summarized and presented in table 5.30. below:

161

It could be observed from the table that the share of payments made by HSAMB varied

across different years. However, in general, the share of payments made under the

capital head was the maximum followed by revenue head. The data revealed that

payments made under the revenue head varied from 12.4 percnet in 2001-02 to 34.4

percent in 1998-99. Though no specific trend in terms of payments made from revenue

head could be available, but the data revealed that the share of revenue head to the total

payments made from revenue head could be revealed that the share of revenue head to

the total payments made increase in 1998-99 by 34.4 percent from 25.1 percent in

1997-98 showing an increase by about 37 percent. Therafter, it showed a decreasing

trend and decreased to only 12.4 percent in 2001-02 a decrease by about 64 percent.

From 2002-03, it showed an increasing trend and increased to 32.7 percent in 2005-06

showing an increase by about 164 percent. It showed an decreasing trend again and

decreased to 16 percent in 2007-08

Within the recurring head, study of the share of different components of

payments revealed that the share of salaries of the general establishments and works

establishments was observed to be the maximum and ranged between about 71 percent

in 2003-04 to about 91 in 1999-2000. The percentage share in respect of travelling

allowance combined together for both the general establishment and works

establishment was observed to be the minimum hovering around 1 percent. It however

ranged between 0.9 percent in 2007-08 to around 1.6 percent in 2000-01. No definite

trend in respect of salaries could be ascertained. However, the data revealed that these

increased from 86 percent in 1997-98 to 91 per percent in 1999-2000 showing an

increase of around 5.9 percent during the period. It showed a decreasing trend and

decreased to 70.9 percent in 2003-04. It increased during 2005-06, but again showed a

decreasing trend. The study of trend analysis again did not reveal any specific trend,

but followed a zig-zag path. The trend analysis of contingencies recurring expenditure

162

revealed that the percentage expenditure to the total expenditure showed a decreasing

trend from 1997-98 to 2005-06 and decreased from 9.3 percnet in 1997-98 to 3.7

percent in 2004-05 registering a decrease of about 49 percent during the period. It

however showed an increase in 2005-06 and 2006-07, but showed a decrease in 2007-

08. The share of miscellaneous expenditure was observed to be low and was observed

to be around 3 percent in 1997-98 and 1998-99. It touched the lowest ebb (0.03%) in

1999-2000 and again started rising and was found to be the maximum during 2003-04

ans 2004-05 touching the level of 23.9 and 24 percnet respectively. It decreased to 6.9

percent in 2005-06, but again started rising and touched the level of 11.2 percent.

Analysis of trends of Capital expenditure revealed that major share of payments

was made from the suspense account, where the payments were made on going works

of development in the mandis, creation of additional facilities in the mandis repair

works in existing mandis, construction of rural link roads, repairs and maintenance of

rural roads constructed by market committees, repair of urban municipal roads and

reserve stock etc. The trend of analysis on this head revealed that 70 percnet of the

total expenditure was made on this account in 1997-98, which increased to 93 percnet

in 1998-99. It showed a decreaeing trend and decreased to less than 1 percnet, during

which period 89 percent of the amount was deposited with PWD for repair of rural

roads. The percentage share of suspense account started increasing and increased to 93

percent in 2004-05. It decreased slightly in 2005-06, but again increased and then

decreased.

This was followed by the amount deposited with PWD for repair of rural road.

In this case too, no definite trend could be ascertained. However the data revealed that

it had a definite relation with the suspense account. The expenditure on this head

moved the other way. If the expenditure on the suspense account were high, these were

low on deposit with PWD. If the expenditure on both these heads is combined together,

then about 90 percnet to 95 percent of the total expenditure is made under this head

except for the year 2002-03, when 33 percent of the total expenditure was made on the

investments and other miscellaneous expenditure.

The trend analysis of the miscellaneous expenditure revealed that the

expenditure in most of the periods was very little. Only the main years in which the

163

payments were made on this account was 2002-03 (33%) followed by 1999-2000 (15%)

and 2001-02 (10%). In short, it could be generalized that 90-95 percent of the funds

during different years were spent on creating amenities either by the works

establishmeltn of the board or through the other state government organ the PWD. The

amount spent on the recurring and non-recurring was very little except for the year

1998-99 when it observed to be around 6 percent.

5.2.4 Schedule of Fixed Assets

For establishing any organization, investment is made on fixed capital assets for

the benefit of employees and to do the day to day work. Like other organizations, the

investment by HSAMB was also required on various assets like land, furniture and

fixtures, office equipments, vehicles, food storage godowns, plant and machinery, staff

quarters in field, construction of staff quarters, buildings other than godowns and staff

quarters, office building of board at Panchkula, mathematical and lab instruments,

purchase of comuters and software, books, air conditioners, coolers and other capital

goods etc. Some of these permanenet articles were purchased at the start of business,

whereas others were purchased whenever these were required. Some of the fixed

articles/equipments/furniture and fixture articles etc. are replaced, the moment these

become obsolete. All these goods have a certain life. As such the depreciation rate is

decided depending upon the life of the assets. The inventory of the goods is revised at

the end of every financial year after taking into account the depreciation on the

particular goods. It could be added here that except for the land every fixed asset has a

productive life varying from 1 year to 10 years and even more. Depending upon the

productive life, the depreciation is charged by following the straight line method of

charging the depreciation i.e. if the life is 1 year at the end of the year the value is

deprecialed by 100 percent or in case the life is 10 years, the depreciation will be

charged at the rate of 10 percent per annum. The depreciated values of the goods under

each head have been presented in table 5.31.

It could be observed from the table that the value of permanent assets have

increased in the earlier years upto 2000-01 since more and more investment has been

made on that account, but after that from 2000-01 to 2005-06, the value of assets have

decreased since the value of depreciation charged on the permanent assets was higher

164

than the value of new assets purchased or added to the inventory. However the value of

assets has shown an increasing trend in 2006-07 and 2007-08. In other words, the

growth rate of assets was 23 percent in 1998-99, which decreased to 5 percent in 1999-

2000 and 12 percent in 2000-01. However the growth rate showed a decreasing trend

165

and decreased from (-) 0.3 percent in 2001-02 to (-) 4.8 in 2004-05 and -3 percent in

2004-05. It increased by 8.6 percent in 2006-07 and 25 percent in 2007-08.

Regarding the share of investment on various assets, the investments on staff

quarters was observed to be the highest during all the years of the study period and

varied from 26 percent in 2007-08 to 39 percnet in 2004-05. Though the percentage

share of investment on staff quarters in the field decreased during 1998-99, but showed

an increasing trend upto 2005-06, showed a decreasing trend in the subsequent years.

On staff quarters the investment varied from 9 percent in 2007-08 to 18 percent in

1997-98. No. specific trand of investment in staff quarters could be ascertained.

However, the percentage declined in 1998-99, but increased in 1999-2000. It again

showed a decreasing trend upto 2007-08 except for the year 2004-05, when it slightly

increased. In other words, of the total expenditure, investment on quarters alone (staff

and field) varied from 34 percent in 2007-08 to over 51 percent from 2002-03 to 2005-

06 percent in 2004-05. Land was another important source of investment on which the

investment varied from 9 percent in 1997-98 to 23 percent in 1998-1999. However in

most of the years, it ranged between 20 to 22 percent. The trend analysis revealed an

increase in the first year (1997-98), but showed a declining trend upto 2001-02. It

showed an increasing trend and continued to increase upto 2005-06, but soon after it

decreased. Investment on vehicles was another important component of cost on which

investment was made sufficiently since these days we can supervise the mandis, and

construction works etc. The efficiency of the work will go down. The percentage share

of investment was observed to be 7.7 percent in 1997-98, which increased to 8 percent

in 1998-99, again decreased to 7.7 percent in 1999-2000, but increased to 13 percent in

2000-01. Thereafter it showed a decreasing trend upto 2004-05, since no new vehicles

were purchased, but again picked up and increased to 13 percent in 2006-07. However

it showed a decrease in 2007-08, showing that vehicles were purchased and replaced

periodically and even more vehicles were added to the fleet. The expenditure on other

components of assets like food storage and godowns, plant and machinery, office

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equipments, furniture and fixtures, Board buildings, mathematical and lab equipments

in general showed a decreasing and varying trends with exceptions in certain years.

However in other buildings, the trend was a mixed trend, but more on the increasing

side.

5.3 WEAKNESSES IN THE PRESENT MARKETING SYSTEM

On the basis of discussion in the last chapter, it could be generalized that

HSAMB is doing a lot for the development of market, its infrastructure, but still the

agricultural marketing is suffering with various weaknesses and problems. The

weaknesses in general in the marketing system in Haryana are as under:

5.3.1 Illiteracy and Under-developed People

Haryana state is basically a rural based economy with over 71 percent of its

population residing in villages, majority of the population depending on agriculture or

its allied enterprises. Like most other parts of the country, the man-land ratio in

Haryana too is very high, the average size of land holding being 2.32 hectares (2000-

2001), which has further decreased. It could be further added that out of the total land

holdings, 65 percnet of the holdings are marginal and small holdings cultivatling only

21 percent of the total area. The average size of land holding of these marginal and

small farmers has been observed to be 0.74 hectares (1.85 acres). Majority of these

small and marginal farmers are resource scarce and fall in the BPL category. Not only

this, these categories of persons are illiterate. In Haryana in general, the illiteracy rate

is 47 percent, which varied with the sex. The illiteracy rate among the females was

found to be 59 percent, while among the females it was 37 percent, which varied among

different districts of Haryana, because of the various reasons like the community

residing in the area, the availability of infrastructure like school and colleges etc. The

illiteracy rate across the districts among males varied from 27 percent in Rewari district

to about 55 percent in Mewat district. However, among females it varied from 48

percent in Ambala district to about 84 percent in Mewat. Combining together, the

illiteracy was the highest in Mewat district (69 percent) and was the minimum 38

percent in Rewari district. Because of the varying illiteracy rates in various districts,

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the adoption level of technology for production and marketing of agriculture produce

varied. In general, with almost half of the population being illiterate, the adoption of

modern marketing practices is difficult and stands as a hinderance in the efficient

marketing system.

5.3.2 Low Retaining/Bargaining Power

As per the studies conducted in the field and the statement made in the

parliament, most of our farmers are under debt. As per the EPW Research Foundation,

2008, among the total indebted rural households in the country, 80 percent belong to the

category of Marginal and small farmers. Chahal T.S. too in his study has revealed that

the average debt per household in Punjab was Rs. 41576, while for India as a whole, it

was observed to be Rs. 12585. Haryana is no exception to this scenario and the

conditions are more or less similar to Punjab. Because of the high level of debt, these

marginal and small farmers have the low bargaining/retaining power. It is because of

this reason, that the farmers to repay the debt bring the produce immediately to the

market after harvesting and many a times, the procurement agencies are not ready for

the procurement. Even at certain occasions, the delay in announcing the MSP adds to

the problems of these farmers. The sale of the produce, as such, many at times was at a

price lower than the MSP, resulting in a loss to the farmers. Many a times either the

procurement agencies are not lifting the produce or the arhtyas are on strike or the rice

shellers/rice mill owners their having their own problems.

5.3.3 Grading and Standardisation

Grading and Standardisation is a very important factor influencing the sale of

agriculture produce. Still our agricultural marketing is suffering with the problem of

grading. The produce after the harvest is brought to the mandi immediately after it has

been harvested. It is neither cleaned properly nor graded. If the grains are graded

properly and the small, medium and big grains are separated, the big grains will be the

best quality and will be sold at a higher price, while the small grains too will be sold at

MSP. Since all the farmers cannot have this facility at their place so this facility can be

made available at a centralized place i.e. at the mandi level, which is lacking.

5.3.4 Cleaning of Produce

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Cleaning of produce is an essential ingredient of post harvest management and

market activity. Clean produce always attract the buyers and thus help in getting

market price. Though the country is in advanced stage of mechanical cleaning, farmers

are not serious in this respect till date. Even the manual cleaning is not done properly,

though the farmers are charged on this account. Farmers on the other hand, do not have

the facility at farm level, so they do not bring the produce after cleaning, it is not

accepted and the farmers are being charged.

5.3.5 Market Linked Transportation

Proper market linked transportation system can attract large number of

producers to bring their produce to the market. The survey of the farmers coming to the

mandi revealed that the major source of transportation to the mandi was the tractor-

trolley owned by the farmers. Only a few farmers bring the produce to the mandi by

carts pulled by ponies/horses or the buffalo males bullocks. Since the tractor owners

are limited and are big farmers, they transport their own produce on priority. Since no

other system of transport from the farms is available to the mandi level, so many small

farmers transport the produce from the field to their house first and at convenience to

the mandi spending double the amount. More over since some of the mandis has been

shifted to the new places away from the city congestion in the open area and are still

not well connected with the transport system and thus create problem for them. The

hiring of tempos and trucks is not only difficult, but expensive and problematic. As

such the market link transportation system needs to be improved.

5.3.6 Assembling and Selling Facilities

Covered auction platforms protect the produce brought by the producers to the

mandi from the natural calamities and facilitate assembling and selling of produce. The

market functionaries can take part in auctioning freely without any fear from sun or

rainor muddy environment. It has been observed that some of the mandis are still

lacking the facilities of proper covered sheds. At certain places/mandis, either the on

the one hand and many a times, the produce is rejected on account of higher moisture

content more particularly in case of paddy.

EPW Res. Foundation, “The loan waiver Scheme” Economic & Petifical weekly vol XLIII(ii),

2008

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5.3.7 Lack of Storage Facilities

Storage of produce is the most important facility in agricualure development

infrastructure. The availability of such infrastructure in the production area and the

market yard will be of immense help to the farming community for scientific storage

and avoiding wastage, quality deterioration and rottening of produce. This facility in a

long way can help the farmers to retain the produce till the favourable price is available

in the market. This facility can help the farmer for meeting his cash requirements by

taking the loan against the stock he has kept in store/ware house by showing its receipt.

5.3.8 Low Price of the Produce

In general, most of the farmers are of the view that they are not getting the

remunerative price of their produce. The price of the produce should be linked with the

cost of production, which again depends upon the cost of various inputs used in the

production process. The market trends revealed that the cost of various inputs have

increased at a much faster rate as compared to the sale price of agricultural produce,

which is controlled by Government. The increase in MSP declared by the Governemnt

is always very nominal, with the result that the profits of the farmers are decreasing

making their living difficult. Many a times, the MSP is not declared at the proper time

in advance to enable the farmers to decide the cropping pattern in time.

5.3.9 Time Gap of Auction

During the immediate Post Harvesting, the farmers bring their produce to the

mandis since the retaining power of the farmers is low. Because of the glut of this

produce in the mandi, the farmers don’t get the place under the shed at the time it is

brought to the mandi and the produce remains lying in the trolley till the space is

available. After the grain is stocked and piled, many a times, they don’t get the turn for

auction and have to wait for a few days. (3-4 days). The farmers therefore are left with

no option except to stay in the mandi bearing the cold, hot and rainy weather and the

mosquitoes of the mandi area.

5.3.10 Unavailability of Boarding and Lodging

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The farmers yet face another difficulty, when they bring the produce to the

mandi and have to wait for 3-4 days for the auction to take place and the produce is

weighed. In most of the mandis, the boarding and lodging facility is not available and

if available, athe farmers are unable to get it. More-over the farmers too prefer to stay

either in the open near their produce or in the shop of commission agent/arhtiya to keep

an eye on the produce and safe guard it for all type of weather conditions and against

theft of the produce. The situation is again worst, when due to the non availability of

canteen facilitiy, they are unable to get the proper and hygienic food. They have to be

contented by taking the food from nearby dhabas and tea shops selling unstandard

sweets and namkeens with the result that many a times they suffer from various

diseases and abdomen infections.

5.3.11 Unavailabiltiy of Hospital Facilities.

One of the major problem faced by the farmers visiting the mandis is the non-

availability of medical aid for human beings as well as the animals used for

transportation of agricultural produce in the mandi. As already discussed above, the

farmers have to stay in the mandis, in the open or in the shop of Arhtiyas/commission

agents and have to survive on the unlygienic and sub standard food provided by the

local dhaba’s, there is every possilbity of their falling sick. In that event, medical aid is

a must, which is not available. Previously when the mandis were located in the city

area, the hospitals and the private nursing homes were located near by and many

doctors had started their own clinics. Now, because the mandis have shifted to the open

areas away from the congested and busy area, these facilities have become scarce. In

case of emergency, medical aid is out of reach. Even for the animals, the situation is

not much different

5.3.12 Non-availability of Sufficient Parking Place

Another problem faiced by the farmers is the non-availbility of plenty of space

for parking their tractors, trollies and the bullock carts. Even the sheds for the bullocks

bringing the produce to the market are not available and the animals have to bear the

waggeries of nature. In most of the mandi areas, the traffic jams are the order of the

day, particularly in the harvesting season on account of insufficient platforms,

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unloading the produce on the platforms, delay in payments and waiting period for the

auction to take place etc.

5.3.13 Delay in the Payment

Delay in the payment of the produce by the Arhtiyas/Procurement agencies is

another problem faced by the farmers. They have to visit the mandis again and again to

get their own money, wasting their time and resources. The payments are often delayed

citing one excuse or the other. Even the payments to be made by the Government

agencies are delayed making the farmers visit again and again. Many a times, the delay

in payments cause embarasseement to the farmer, for not making the repayment of their

loan to the banks/cooperative credit societies/banks, friends or relatives and even the

money lenders.

5.3.14 Sale in Villages

Many a times, the farm produce is not brought to the mandi and is sold in the

village itself to Kacha Arhtiyas or village banias. Moreover during the paddy season,

the sheller owners purchase their stock directly from the farmers in the villages. In

such a case both the sheller owner and the farmers are gainers. Farmers will save the

money to be incurred on transportation, while the mill owner the commission. The

major looser in this case could be the requlated market and the arhtiyas, who will loose

their commissions. At the same time since the sheller owner is paying cash on the spot,

will exploit the farmers by using fraudulant practices.

5.3.15 High Chargers in the Mandis

Almost all the farmers have expressed that the charges being charged in the

mandis are very high. On an average, Rs. 3.50 per qtl of wheat and Rs. 4.50 per qtl. of

paddy are charged as the charges for unloading and cleaning of produce for the auction.

In addition to this, the auction, commission and the brokerage amount to Rs. 2.74 per

Rs. 100. In other words if the sale price of wheat is Rs. 1500 per qtl., the total charges

per qtl of wheat will come to Rs. 43.60. Similarly for paddy assuming the sle price of

Rs. 1000 per qtl., these charges will amount to Rs. 45.60. In addition to this, the

charges to the charged from the purchaser have been ascertained to be Rs. 5.60 and 6.68

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for a qtl. of wheat and paddy respectively. Thus the total marketing charges to be paid

by the producer and the purchaser for a qtl. of wheat and paddy amount ot Rs. 49.20

and Rs. 52.28 respectively. These high charges reduce the share of producers in the

consumer rupee.

5.3.16 Marketing Information

The system of market information has continued to be far from satisfactory.

While the traders and processors/mill/sheller owmers use their own informal sources,

farmers depend on both, formal or informal sources. There is no denying the fact that

both market news and market intelligence are equally important, farmer’s are more

interested in market news, which is collected and compiled by APMC’s and SAMB’s,

state department of agricultural marketing, field staff of directorate economics, statistics

and management and department of food. This collected information is disseminated

through display boards in market yards, announcement during open auction, news

paper, radio broadcasts, and some TV Channels. The results of the study conducted in

Haryana mandis revealed that though there are various sources as mentioned above, but

the major source is the information received from the fellow farmers through personal

contacts and traders accounting for about 77 percent of the total sources. The price

information from the market yards and display boards is available to only a few, who

are literate and go on visiting the mandis occassionaly and are either big landlords or

progress farmers. Only about 22 percent of the progressive and large farmers are able

to get the news from the printed and electronic media. However the market news is

able to provide only a broad overview to the farmers due to several defects in the

system. The prices of the different commodities are not backed by the grades or quality

of the product and the information is available with considerable lag. This information

is not linked to local grade standards. Many a times, the price range is made available,

which is of little use to the farmers. There is also a serious misconception about the

buying and selling price, whole sale and retail price, which are distinctly different.

5.3.17 Lack of Credit Facilities

Lack of credit facilities at remunerative rates is another problem faced by the

farmers. Farmers being poor having low holdings need credit for day to day purchase

of various farm inputs. This credit is available from various sources like the non

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institutional and institutional agencies for various terms like the short loan, medium

term loan and long term loan. The small and marginal farmers being illiterate or having

low level of education are unable to get the loan from the institutional sources like

commercial banks, cooperative banks and other Government sources because of

cumbersome and complicated procedures, to opt for such loan means to them, taking

round of the banks wasting time, money, energy and other sources. Thus they are left

with no option except to take resource to the non institutional sources like money

lenders, landlords, big business men and the arhtiyas. Being under debt, the moment

the crop is harvested, they rush to the mandi for sale or even to the kacha Arhtiyas or

village banias for the sale of produce since they have low retaining power and as such

low bargaining power. Many a times, they sell their produce below the MSP under the

pressure of money lenders/arhtiyas, making losses and even at the time the procurement

agencies have not started procuring the produce.

5.4 SUGGESTIONS FOR MODIFICATION/IMPROVEMENT OF

MARKETING SYSTEM

The countryy as a whole and the state Governments are doing a lot through the

State Agricultural Marketing Boards to improve the agricultural marketing system.

Haryana is no exception to this phenomena, rather it is on the fore front in bringing the

revolution in the field of agricultural marketing in the state. But still the agricultural

marketing suffers from certain problems and the loop holes, which have been discussed

above. There is therefore a strong need to plug these and improve upon the system for

which certain improvements/modifications have been suggested/recommended.

One of the root cause observed is the illiteracy of the marginal and small

farmers and their families, who are unable to reap the fruit of modern

technology and awareness. Though they are getting the knowledge of

production of crops from the various agricultural extension agencies and the

NGO’s, but still their knowledge in marketing of agriculture produce is very

poor. So they need the double pronged attack to solve this problem. (a) At the

first place they should be provided with formal education, for which though the

Government is making all round efforts, but still adult education under the

domain of Panchayats be imparted to farmers so that they are able to read the

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news papers and other research bulletins provided by extension agencies.

Panchayat could at the same time be provided with some funds from the market

fees collected by the market committee. (b) No doubt farmers are able to

identify the various marketing problems, they are often poorly equipped to

identify the potential solutions. Efficient and successful marketing requires

learning new skills, new techniques and ways for getting information.

Extension officers working with agriculture department are mainly agriculture

graduates/post graduates having the knowledge of mainly the production

oriented techniques and are lacking the post harvesting and marketing

knowledge. They are to be trained for providing the training to the farmers for

which though the material is available from FAO and other agencies, but need

to be tailored as per local conditions.

Another prominent problem is of low retaining power/bargaining power of the

farmers, it is suggested that the farmers more particularly the marginal and

small farmers should be provided the loans at lower rates for which the

formalities should be reduced to the bare minimum. Provision of loan to the

farmers will make them free from the clutches of the money lenders, who

squeeze them badly. It is rightly said that farmers are born into debt, live in

debt and die in debt. Right from the beginning the farmers approach money

lenders for investing into cultivation, paying very high rate of interest to the

village money lenders, who pocket the maximum amount of share of consumer

from the produce. In the name of security too, the pledging of land should be

avoided and co-lateral security should be accepted. If the repayment of loan is

delayed due to some unforeseen circumstances, the farmers should not be

harassed. It has been pointed out that the majority of farmer’s suicides have

taken place on account of mounting loans and their unability to repay their loans

in time due to subsequent crop failures and harassment faced due to pressure for

repayment from money lenders. If the loan is available, the farmers will avoid

immediate post harvest sales since in the peak marketing season, the price of the

produce touch the lowest level. The farmers profit would increase.

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The tendency of the farmers to market their produe has been increasing. The

production process is complete only when the produce has been marketed at a

rumerative price. It is imperative that the marketing activity should be guided

by certain principles, which could help in increasing the income to the farmers.

o Impurities, stones or the straw particles present in the grains lower the

price offered by the traders-buyers in the mandis. Generally it is

observed that the fall in prices is more than the quantum of foreign

particles present in the produce. It is therefore suggested to always bring

the produce to the mandis for sale after duly cleaning it and removing

the foreign particles.

o It is again suggested that while selling the different varieties of the

produce, all the varieties should be sold separately. The farmers could

get a higher price because of the purchaser’s preferances for specific

varieties. This would help farmers getting the higher price if marketed

separately.

o Clean and graded produce is sold off quickly and at higher price. The

additional income generated by the adoption of grading and

standardization is more than the cost incurrd in the process of grading

and standardization, which could be taken up as an accentive for the

farmers to produce quality products for sale in the market.

Transportaion from the mandi to the production point is not available. Only the

prevalent practice is to bring the produce by tractor-trollies or bullock carts.

Bringing the produce through tempos/trucks is costlier since the produce is to be

filled in bags, stitched and then emptied in the mandi which involves additional

labour and cost. The transporteion system which may help the marginal and

small farmers could be improved or it could be market linked transportation

system. Efficient transport facilities need to be developed.

Storage facilities in the production area as well as in the mandis need to be

improved so that the farmers are not compelled to induldge in distress sale. For

the purpose the government should give loans/advances to farmers or private

entrepreneurs to construct stores/ware houses where the farmers could store

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their produce for a certain period on rent basis. The farmers too can avail the

credit, by showing the receipts of the produce stored in these godowns/ware

houses.

Though in the past there were number of cold stores, where the farmers were

storing their perishable farm produce like potatoes, vegetables and fruits, but

they are on the decrease. Action by the government should be taken to improve

this situation to help the farmers.

One of the prime problems faced by the farmers and more particularly the paddy

farmers is about the moisture content. As the procurement agencies/sheller

owners accept a particulars range of moisture content, so after bringing the

produce in the mandi many a times it is rejected. In the absence of sufficient

drying place, it becomes a serious problem for the farmer to take back and bring

the produce after drying, hence this problem of the farmer should be properly

redressed and the crop with more moisture content or defective/discoloured and

damaged grains be accepted. Strict limit on this account should be avoided.

The prices of the farm produce should be linked with the price index as also

with the inputs price cost so that the farmers could get the remunerative price of

their products. Moreover the MSP of the produce should be enhanced as per the

index of production inputs. To help farmers decrease the cost of production, it

is essential to provide free/subsidized power supply. The power supply should

be given to the farmers on priority and for longer periods.

The time gap between the arrival of the produce in the mandi and the time of

auction is very high and hence needs to be reduced.

The existing legislations are out-dated and are not in tune with the changing

trends and technological inventions and the same needed to be updated.

Elimination of the existing loop holes in the present legislation needs to be

plugged.

Various infrastructure facilities like parking facilities, medical aid/hospital/vetry

hospital needs to be improved in the mandi area.

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Action should be taken against hoarders, and black marketers who buy the

stocks direct from the farmers at cheap rates, create artificial scaracity and sell

their stocks at higher prices affecting the consumers and producers alike.

Conselling centers should be set up in the villages for awareness of the farmers

regarding the worth of their stocks that they can sell at better price. This could

be done by the Government at Panchayat level by holding periodical seminars,

discussion and lectures or by other formal and informal methods. The help of

non-governmetn organization could also be solicited in this context.

To get the fair, just and remunerative prices for farmers direct marketing is

another good option. Efforts could be made to lift the entire stock that the

farmers are prepared to sell at an incentive price. To generate a new distribution

work that connects the farmers directly to the consumers to get maximum

returns as the present channel of distribution involves multiple mediatory who

take away the major portion of profit which otherwise farmer is supposed to get.

Creating local outlets where the farmers sell their stock direct to the consumers

or authorized buyers at fixed prices would help to a great extent in the

marketing of agricultural produce.

Cooperative farming to some extent improved the system of agricultural

marketing in the country, but the major benefits have gone to the large farmers,

who have adequate marketable supplies. The small and marginal farmers

should therefore form their own cooperative marketing societies to obtain fair

prices of their produce since cooperative marketing can confer multifarious

advantages to the farmers which will help increase their bargaining strength,

develop direct contact with the buyers, can avail credit at cheap and low rates,

avail transport facilities at low cost, avail storage, grading and standaralisation

facilities, can have an access to market prices, influence the market prices, can

get farm inputs and other consumable at low prices and can undertake

processing activities. Above all the system will arouse self confidence.

The two institutions viz. regulated markets and cooperative marketing

developed together can help the farmers to a great extent and help in improving

the marketing system. The activities of the marketing societies should be

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further diversified. They should arrange for adequate storage facility means of

transport and graduing of goods etc. For this they should be provided necessary

and technical assistance by the State Government.

To help the farmers to have adequate knowledge of prices, the market

information system needs to be strengthened. In simple words, market

information system used in gathering analyzing and dissemination information

relevant to farmers. Modern communication technologies like SMS on cell

phones/mobiles and the FM radio stations, local cable network could be used to

disseminate the prices prevalent in the market to the farmers. When internet

facility has improved and has gone to villages should also be used for the

purpose. However the problems associated with the cost and accuracy of data

collection should be addressed properly and the time lag between the collection

of data and dissemination of data should be reduced to the minimum.

The concept of Apni Mandi, which is successful in perishable goods and

vegetables should also be replicated in grains etc.

Contract farming, where farmers cultivate for and on behalf of big business

establishment or Government agencies and selling the produce at a pre decided

rate, which is generally higher needs to be encouraged.

The root cause of most of the problems faced by the farmers is the farm credit,

which should be made available to the farmers at low rates. According to

NSSO report, the government’s efforts of financeial inclusion have so far not

met with significant success. The study showed that only 27 percent of the

cultivator households (mostly influentional farmers) get institutional credit.

Another 22 percent borrow from money lenders, while the remaining 1 percent

do not get loan at all, which means that over fifty percent of the rural

households lack access to the credit agencies or they do not have the capacity to

borrow. It could be further added that rural credit accounts for about 15 percent

of the total credit.

The overall environment prevailing in agriculture market needs to be improved.

Since agricultural marketing needs to be conducted within a supportive policy,

legal, institutional, macro economic, infrastructural and burenucratic

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environment, traders and others cannot make investments in a climate of

arbitrary policy changes such as restrictions in the movements of produce within

the country or on imports and exports, it affects not only business man trader,

but the farmers alike. Poor support institutions such as extension services,

municipalities, export promotion bodies should place a constructive role in

increasing the market efficiency. Above all the ever present problem of

corruption at various levels in the process, which seriously affects the impact on

agriultyural marketing efficiency, could be tackled on war footing.

5.5 PROBLEMS FACED BY HSAMB

The discussion in the foregoing section leads to conclude that HSAMB is doing

a lot of work to improve the condition of farmers by improving the agricultural

marketing structure, reduction of marketing costs, by lowering the margins of

intermediaries, improving the transportation system of constructing new roads,

development and repair of roads and creating the facilities in the mandis for the

farmers, shop keepers/arhtiyas/departmental officers etc. But till today the desired

results are not available and a lot of work still needs to be done. The discussions held

with the farmers, arhtiyas, marketing committee people and staff at the head quarter

revealed that lot of problems both organizational & operational are being faced at the

various ends. The solution to these problems can help in increasing the efficiency of

the board. Here in this section, the problems of the board are being taken up.

5.5.1. Administrative Problems

As already discussed the board started its operations only with 58 market

committees and 60 sub yards in 1969. But as on today, the board has to administer the

working of 106 market committees/principal yards, 178 sub yards and 182 purchase

centres totaling around 466 units, which is around 4 times the initial figures. Moreover,

due to the increase in production and more and more produce coming to the mandis, the

quantum of work has increased many folds. To organize the work in the state properly

and efficiently, the state has been divided into three zones viz., Karnal, Hissar and

Gurgaon zones covering 8 districts, 5 districts and 5 districts respectively. The board is

headed by a Chief Administrator/Chairman and Additional Chief Administrator at the

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head quarter. The Chairman/Additional Chief Administrator is an officer of the rank of

Head of Department and is nominated by the State Government. He is again assisted

by a team of eleven other members of whom, four are officials and seven non officials

nominated by the Government. These officers being the Haryana Governent officers

cannot remain in the post for a long time and being a work of technical nature, it takes

them pretty long time to understand its working The moment they equip themselves

and exert in the work, they are transferred, which creates problems in the working of

the board. The board cannot use the experience for the development of activities for a

long time.

As per the constitution of the Marketing Board, official members are usually the

Director and three Officials usually representing the Agricultural Department Co-

operative Department and Animal Husbandry Department. The remaining seven

members represent the (i) producers, member of a committee, (ii) registered

organization of the farmers (iii) progressive producers (iv) licensee under section 10 as

are members of the committee (v) co-operative societies (vi) Licensee under section 10

and (vii) from panchayat samitis. Since these members are mainly from the affluent

farmers group, the interests of small and marginal farmers are rarely cared for. Again in

the absence of technical members, which are very few, the policy made at the

headquarter end, some times lack practical application in the field.

The work of the enforcement of rules and regulations is entrusted with the Chief

Marketing Enforcement Officer, who is assisted by the Zonal and District Marketing

Enforcement Officers. But since in the district there are a large number of

mandis/collection centres, the proper supervision and proper enforcement of rules

during the flush/ harvesting periods, when there are plenty of arrivals in the market and

every farmer wants that his produce should be immediately sold and the payment made

within the stipulated period becomes very difficult. So at certain times, the rules are

not properly implemented. Lack of supervision due to rush of work is major problem

being faced.

As already mentioned that the Board is governed by the state Government rules,

as such the transfer of the officers on political and other flimsy grounds create

problems.

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Because of the large number of operations, monitoring of the work relating to

the various jobs becomes difficult. Sending of reports in the flush period, their

scrutinisation and decision making takes time. Due to the delay many problems arise.

5.5.2 Acquisition of Land

Since most of the mandis in the past were located in the interior of cities, the

transportation of the produce was a big problem in the urban area and the people were

faced with problems of daily traffic jams and accidents. To get rid of this problem, the

Board took up the case of shifting mandis to the open place away from the packed and

congested urban areas. To implement these, the Board faced and is still facing

innumerous problems.

5.5.2.1. Selection of new site

Selection of new site is a big problem being faced by the authorities, because of

the pulls and push of various members, producer groups and functionaries. Each of

them wants the mandi to be located near their village for getting the multifarious

advantages of (i) reducing the transportation cost and (ii) increase in the price of their

land being near to mandis. Many a times due to the extraneous searsons, the site of the

mandi is not selected properly resulting in the difficulty to the farmers to reach the

mandis. Because of this reason, the mandis/market committees incur losses, as many

small and marginal farmers donot bring the produce to the mandi and sell it in their own

village to Kacha Arhtiyas and the village banias. Many a times, the traders reach the

villages and contact/encourage the farmers for direct sale. The market committee loses

its share of market fee as also the various market functionaries, whose earnings are

reduced. Sale of paddy direct to sheller owners during the season is an example. Many

a times, the new mandi is inaugurated, while in the old mandi, the operations continue

resulting in the problems to the farmers and market functionaries.

5.5.3. Acquiring of Land

Once the site is selected and finalized, acquiring the land is a tedius and time

consuming process. Several notices under various sections of the Act are issued to the

farmers and or given in the press to aquire the land for which the representations are

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received to get their land free from the acquisition process siting several reasons

genuine or otherwise. Many a time due to political or personal influence the land of

certain persons is exempted creating chain reactions. The agitation by the farmers and

their unions has become the order of the day. Daily, we are wittnessing the traffic jams

on the National/State Highways and the railway tracks resulting in the difficulty to the

common people. The proceedings in the process of aquiring are stayed by the courts at

the district as well as high court level to get it vacated, takes its own time and the whole

process lingers on..

Fixation of land prices is another problem, which at many a times is arbitrary

and are much lesser than the market price, because the data available for the fixation of

land price is not realistic. The people purchase the land at a higher price and the

registratrion of the land is got executed at a lower price to save stamp duty, which

forms one of the basis of fixation of price in the area. The people go to courts to get the

prices increased. Due to such reasons, the projects are delayed. Since inflation is

bound to be there, the project cost increases resulting in double loss to the Board. At

the first place, the project cost doubles and triples and again due to the time gap returns

are not available for the gap period. The Board after acquiring the land, sells the shops

at a certain price, but the courts after many years gives the decision to increase the price

not at one stage, but in the local courts, district courts, high courts and even in the

supreme court. Since the Board has to pay the revised prices, many a times, it incurs

losses.

These days a new situation has arisen, while the land is being acquired, the

farmer bodies require their share of flesh. They always agitate and require that since

after the acquisition of land, they will be rendered jobless, so either they or their

dependents should be rehabilitated by giving them the jobs in the Board/Market

Committees. Even at certain times, they demand the allotment of shops/booths in the

mandis creating problems for the Board. These people get the shops/booths allotted at

the book value and sell these in black market pocketing huge profits.

In short, the problem of land acquisition is the major problem being feed by the

Board and is responsible for the delay in the projects on the one hand and the escalation

of cost of the project and the loss incurred due to the delay on the other hand.

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5.5.4 Litigation

Litigation is another booming problem of the board. The cases of litigation

pending in the courts pertain to the acquisition of land, employees and staff of the

board/marketing committees and selection /election of the board/committee members,

staff members and the various market functionaries. These cases in the court not only

divert the attention of the authorities, but many times, Board has to shell out lot of

money. The trade unions and the employees union too pose a threat to the organization.

5.5.5. Lack of Funds

The board though having a great desire to do the maximum work to benefit the

farmers, but many a times faces financial crunch, as a result, the development work

suffers. It is needless to say that the board does not have a fixed income. The income

of the board is highly dependent on the total production of agricultural produce, which

again is dependent on nature and the monsoon. If the monsoon is favorable and natural

calamities are not there, the crop would be plenty and the arrivals in the market too

would be high. In other words, higher production would lead to higher arrivals in the

mandis, collection of higher market fee and the higher income of the board leading to

higher expenditure. The board is faced with the problem of preparing the advanced

budget assuming the income of the market committees, which fluctuates widely. Not

only this, there is pilferage in the income of market committees as many a times, the

produce does not find its way to the market and is sold directly in the villages to kacha

Arhtiyas/banias and even the sheller owners/rice mills and floor mills benefitting both

the producers and the mill owners. The farmers/producers save the money on account

of transportation cost and various market charges like loading, unloading and cleaning

of produce in the mandi and the mill owner gets the produce at the rate decided by the

Government and saves the money on account of various market charges, but the market

committee is the loser on account of market fee etc.

5.5.6. Sub Standard Products

Many a times due to the rain or any other problem or due to the wagaries of

nature, the produce is not of the desired quality. Though this happens in most of the

crops, but it is more pronounced in case of paddy crop. If the moisture content is

higher in the paddy, the millers will face a problem in shelling of paddy as the broken

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rice will be more than the prescribed quantity. For the procurement of paddy the

specified moisture content is around 17 percent, but many a times it goes upto 22

percnet. Again the percentage of damaged and discoloured paddy has been fixed from

4-4.5 percent, but if the paddy is affected by rain after or before harvesting, both the

water content as well as the damaged and discoloured grains would be high resulting in

the rejection of produce both by the FCI and millers alike creating problems for the

marketing committee and the board. During the previous season too such a problem

was faced by the marketing committees/HSAMB and the Government alike, G.T. Road

was blocked at several places in the paddy producing area, FCI-Arhtiyas had a problem

to thrash out the payment problem and so-on. Farmers’ paddy was not purchased and

rejected because of more than 17 percent moisture content. Arhtiyas spokesman told

that they were willing to work, but there were no buyers as the millers were on strike.

DFSC complained that the paddy was to be purchased jointly with the millers/rice

sheller owners, who were on strike and they did not have the enough infrastructure for

making the entire purchase alone. Even though the matter was sorted out, the

procurement started late, but the farmer’s bodies complained that they were being paid

much less for their produce than announced by the government. The arhtiyas too had

their own point. They wanted the Government to abolish hoarding charges, raise the

percentage of damaged and discoloured paddy from 4 and 4.5 percent respectively and

decrease the quantum of rice per quintal of paddy to 64 kgs. There was a stalemate

between the FCI and Arhtiyas and for 4-5 days, the FCI did not purchase even a single

grain creating problems for the farmers. However the stalemate ended with the

intervention of Food and Agriculture Minister-Sharad Pawar on the lines to revert back

to the old system of payment to commission agents. The commission agents

maintained that as per the Punjab Agriculture Produce Markets (General) Rules, 1962,

in rule 24, for sub rules 11,12 and 13, the Kacha Arhtiya shall make payment to the

seller through an account payee cheque or by electronic transfer after weighment is

over. The buyer shall make the payment to the Arhtiya witin two days. The

modification in rules had caused problems in the grain maket of three states. (The

Tribune, Chandigars dated Oct. 1, 2, 3, 4, and 5, 2010). This year again in the base of

strike, the entire proceedyre was reverted and the payments were given to the farmers

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through the commission agents, who had advanced the loans to the farmer bodies

without interest charges. Making direct payments to the farme3rs meant the arhtiyas

were losing their ow money.

5.5.7 Problems faced in giving contracts.

Haryana State Agriculture Management Board has a separate construction wing

for development works headed by a chief engineer who is located at the head quarter.

There are 5 circles headed by a Superintending Engineer each and one Superintending

Engineer at the head quarter. To help them, there are Executive Engineers, Sub

Divisional Engineers and Junior Engineers located at the head quarter as also at the

various district headquarters. All the development work is carried through contract

work. For the purpose enlistment of contractors of varying classes depending upon the

value of contract is done at the board/circle/district level for which a certain fee is

charged. In each category, a certain number of contrectors are listed.Though the

contract is given by the authorities by calling quotations/tenders from amongst the

listed contractors, many a times, there is a chance of pooling by these registered

contractors and they quote a higher rate than desired resulting in a loss to the board

/market committee. It also happens that these contractors develop intimacy with these

officers and pick up loopholes and exploit resulting in a loss to the board. Though the

enlistment of contractors is renewed every two years and some more contractors enter

the fray by enlisting themselves, the old guards rarely allow them to undertake the

contracts.

5.5.8 Lacking Technical Persons

The Board is governed by the Government of Haryana and all the top officers

are nominated by the government. Most of the persons at the helm of affairs are either

IAS or HCS offices. Though there is representation of agriculture, animal husbandry,

cooperatives and panchayat samiti departments etc., the component of technically

trained persons is very low. As such, many a times policies framed at the higher level

are not practicable and create problems.

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One of the missing linking in the entire board is neither there is a trained

economist in the board nor there is a marketing person. It has been observed that the

accounts though being audited internally, the external audit takes a longtime and many

a times, the audit figures are revealed after a gap of three to four years after these are

approved by the governing body. To quote, the figures for 2007-08 financial year have

been approved only very recently. In the absence of an Agricultural Economist, we

cannot analyse the figures from economic point of view and cannot suggest the ways

and measures to reduce the cost and increase the efficiency of the board. In the event of

a trained marketing person, the marketing efficiency too cannot be improved.

5.5.9 Market Information and Market Intelligence

Market information and market intelligence is another factor the board is

lacking. The farmers want the latest information on market prices, demand and supply

to all the market committees. But till today the board is lacking the statistical wing and

in the absence of that it is very difficult to supply this information. The available

information from CSO and other organizations of state governments reach after a gap

of weeks and as such many a times, the information looses its importance and proper

utility.

5.5.10 Computerisation and net working

To monitor the different marketing committees and have a proper contact with

them, the system is still not very strong. All the data pertaining to the different

committees, collection centers must be available at the head quarter, which is not

possible in the absence of a strong computer net working facilities. In the present age

since the activities of the board have expanded, without computerization this is not

possible. Though an attempt has been made on this account and a system has been

developed at the headquarter in the name of “RFP for functional Information System”.

In this report the roles and responsibilities, functional requirements, technical

requirements, operational requirements, acceptance criteria, bid documents and bidding

process, technical/commercial bid evaluation, award of contracts and miscellaneous

terms and conditions have been taken into account. But for all this money is required,

which is a limitation.

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5.5.11 Hinderances and Road Blocks

As already discussed earlier that the board is represented by cooperative

societies representeative, Panchayat Samiti representative etc., so each of them have

their own interest. In the system every day new techniques are coming forth. Some day

it is the organic farming, the other day it is the cooperative farming and the contract

farming etc. No clear cut path is available with the Government. All these systems

when functional on a large scale will affect to a great extent the profitablitlity of the

board. In all these syetems, the produce will by–pass the mandis and will reach the

consumers from the producers through the intermediaries, who will make huge profits

making HSAMB incur losses on that count. HSAMB thus is helpless in the matter and

is problem faced because of the multifarious team of board.

5.5.12 Expenditure on HSAMB

Basically the board has been set up for the development of infrastructure in the

mandis and enhancing the profit of the farmers. But the analysis on expenditure

conducted for different years revealed that lot of emphasis is being given to the

development of buildings and infrastructure at the headquarters. Even the expenditure

on salaries, wages and purchase of various contingencies & non recurring amount to

about 22 percent of the total expenditure varying form 12.4 percnet in 2001-02 to 34.4

percnet in 1998-98, In addition to this the investment on addition of buildings etc. at

the headquarter have been taklen into account. By all counts the expenditure is on the

higher side, which needs to be curtailed.

5.5.13 Development of additional facilities.

Resources is said to be the main constraint in further developing not to talk of

the buyers/mill/sheller owners. Even the farmers complain that the charges being

charged from tehm are on the higher side and these need to be curtailed. If these are

cutailed, which is not possible, the resource crunch will increase and the facilities in the

mandi will not be provided at all. Even some times the repair of platforms, inner roads,

parking place is not repaired immediately.

5.5.14 Loop holes in various rules & regulations

Another problem facing the HSAMB is that the people dealing with HSAMB –

producers, Arhtiyas and consumers always try to find loop holes in the various rules

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and regulations framed by the organization. Due to this exploitation, the work of the

board suffers. The people siting the loop holes go to the court on various trifles and

thus waste the resources of the board.

Documents

5.0 RESULTS AND DISCUSSION - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/7859/10/10... · 2015-12-04 · located at Panchkula, Karnal, Hisar, Gurgaon and Rohtak at a cost