9.1. Introduction

Unit 9 - Laws relating to fish products and fish marketing
9.1. Introduction
In 1966, Karnataka enacted Agriculture Produce Market (Regulation) Act. Prior to that farmer used to sell the produce through commission agent/wholesalers without centralized marketing system.
Services provided by commission agent:
  • Credit
  • Gives advance to farmers (up to 80%)
  • Storing/marketing the produce
  • Take the risk of storing & marketing
  • Arrangement for sale
Also merchant do not pay all amount at same time so commission agent also give merchant time to pay. On behalf of these services commission agent would collect a portion of value of product as commission from farmer (not from merchants). Later in 1966 the market regulation legislation was passed. Some important provision of this Act is:
  • Centralization of agricultural produce marketing for better regulation
  • As per this act there is a provision of declaring a product as a notified commodity in official gazette to bring it under per view of this act
  • Maximum of 2% commission can be taken by commission agent (1% from farmer & 1% from merchant) but now only 1% from merchants
  • Establishment of sub-market yard as a part of agricultural produce market
  • Specialized market for a particular commodity
  • Establishment of agricultural produce marketing committee
  • Introduction of auction/tender/tender cum auction system
  • With the help of world bank agricultural produce markets are established in taluks.

Tender system: In tender form details like product code, merchant code and quoted price is filled & put in tender box & tender goes to person quoting maximum price. If two person quotes same price, the first merchant filling the tender is given the product.

Auction system: Here is price is quoted by merchants in auction hall and merchant quoting max. Price is given the product. Auctioning can be done either from minimum price to subsequent increase (followed in APC market) or starting from maximum price and subsequent decrease in price (some part of Orissa & West Bengal). Once a merchant quote a price he cannot deny buying the product at that price but the farmer still can refuse to sell the product at quoted price.
Several acts are enacted to ensure the welfare and safety of the consumers using agricultural products including fishery product. The main objectives of such acts and regulations are:
  • To prevent adulteration.
  • To regulate hygiene condition. Enacted
  • To ensure information to consumer
  • To provide product specification
  • To provide specification for exports
Last modified: Saturday, 7 January 2012, 7:47 AM