OVERVIEW

• Odisha State Co-Operative Marketing Federation Ltd. (MARKFED) was previously known as Orissa State Co-op Marketing Society.
  
• Registered in the year 1949 under Bihar-Orissa Co-operative Societies Act,1935. It Started functioning since 11/06/1949.
  
• The The name of the society was amended to Orissa State Co-operative Marketing Federation (OSCMF) Ltd. since 11/05/1976 and mandated to provide qualitative service in the following fields like :-

1. Market/ Distribute chemical fertilizers, pesticides, Agricultural implements to the farmers of the State at the right time, right place & at the right price.
   
2. Procurement of Paddy as State Agency.
   
3. Procurement of Agricultural commodities under Price Support Scheme (PSS) & Price Stabilization Fund (PSF) to help farmers to get fair price of their produce.
   

MANPOWER STRENGTH

• The RCS(O), Bhubaneswar vide order No. 7934 dated 02/03/2009 has approved the staff strength of MARKFED limiting to 371. MARKFED has 126 units. But, the present staff strength is only 244 against sanctioned strength of 371 by RCS(O), Bhubaneswar and total vacany is 127.
  
  
• Approved Strength - 371
  
  
• Existing Position :-  244
        - Regular - 220
        - Deputation - 04
        - Consolidated Salary - 19

GOVERNANCE

• The activities of MARKFED are governed as per Bye-Laws of the Federation and provisions of OCS Acts and Rules. The service condition and the rules of the employees are regulated by the Staff Service Rules,1990 approved by the RCS, Odisha. The Paid up share Capital of MARKFED is Rs. 208.29 Cr. out of which, Govt. share is 205.39 Cr.(98.6%).
  
  
• Sales Turn Over
  
  

Year	Turnover (in Cr.)
2013-14	794.70
2014-15	682.07
2015-16	845.17
2016-17	619.20




• Financial Status of MARKFED
  
  

  Year	Working Profit(in Cr.)
  2013-14	5.53
  2014-15	6.68
  2015-16	3.20
  2016-17	4.81
  2017-18	6.10 (Budget Estimation)

AIMS & OBJECTIVES

• The Orissa State Co-operative Marketing Federation Ltd. otherwise known as MARKFED-Odisha, is the Apex Cooperative Institution was registered under Bihar-Orissa Cooperative Societies Act’1935 mandated to provide qualitative service in the following fields like Market / distribute chemical fertilizer, pesticides and agricultural implements to the farmers of the State, Procurement of paddy as State Agency & Procurement of Surplus Agricultural commodities under Price Support Scheme to help farmers get fair price of their produce.

BUSINESS SCENARIO

1. Fertilizer Business :-
   
   
   • Primary business of MARKFED is distribution of chemical fertilizer to the farmers through the Cooperative Societies under ‘B’ component and private dealers having valid fertilizer license. The total sale of fertilizer has been increased from 1.44 lakh MT during 2001-02 to 2.52 lakh MT during 2016-17.
   • Sale of fertiliser during kharif 2017-18 (up to 30.09.17) comes to 2.04 lakh MT. Out of which, sale to Cooperative Societies(1906) is almost 71% and contribution of MARKFED to total sale of the State (7.84 lakh MT) is about 27%. MARKFED is also supplying Fertilizer and Pesticides to the Government organizations against their requisitions.
   • The percentage of achievement in sale of fertilizers during last 3 years and as on 31.1.18 is given below:
     
     

     Year	Target Fixed (in MT.)	Total achievement (in MT)	Achievement (%)
     2014-15	4,75,000	2,89,991	61
     2015-16	3,54,000	2,95,664	66
     2016-17	3,86,000	2,52,380	65
     2017-18 ( As on 31.1.18)	3,86,000	2,19,439	57

     
     
   • The sale position of fertilizers (Kharif & Rabi wise) of last 3 years and as on 31.10.17 is given below:
     
     

     Year	Kharif (in MT)	Rabi (in MT)	Total (in MT)	‘B’ Comp. sale (%)	Turnover (in crore of Rs.)
     2014-15	2,37,699	52,292	2,89,991	51	354.70
     2015-16	2,60,099	36,565	2,95,664	57	359.90
     2016-17	2,22,949	29,431	2,52,380	61	283.47
     2017-18( As on 31.1.18)	2,03,919	15,520	2,19,439	68	245.40

     
     
   • Consumption of fertilizer by MARKFED during 2016-17 comes to 26 % of the State consumption.
   • Consumption of fertilizer during Kharif by MARKFED during 2017-18 as on 31.1.18 comes to 26 % of the State consumption. The detailed report regarding State consumption vrs achievement of MARKFED is as under :
     
     

     Year / State consp.	Kharif (in MT)	Rabi (in MT)	Total State Consumption (in MT)	MARKFED Achievement	% of Achievement
     2014-15	6,88,442	3,33,191	10,21,633	2,89,991	28
     2015-16	7,79,239	2,70,268	10,49,507	2,95,664	28
     2016-17	7,31,096	2,52,863	9,83,959	2,52,381	26
     2017-18 ( As on 31.1.18)	8,09,164	15,000	8,24,164	2,19,439	27

     
     
   • Target fixed for the year, 2017-18:-
     Target for Sale of fertilizer F.Y,17-18 is fixed at 3,86,000 MT, out of which Kharif target is 3,25,000 MT & Rabi target is 61,000 MT. The district wise target is given here under.
     
     
   • Bottlenecks in fertilizer operation:-
     
     
     1. During disbursement of Agriculture loan to farmers through PACS / LAMPS, a rider may be fixed regarding availing of inputs like fertilizer on ‘B’ Component from MARKFED or else sale of fertilizer will be hampered.
        
     2. As per decision of Govt. only prepositioning of Urea, which is a fast moving fertilizer having less cost in comparison to DAP, Complex & MOP is being made at PACS / LAMPS level. As a result of which, the sale of slow moving fertilizers like DAP, Complex & MOP are being hampered.
        
     3. MARKFED is playing a vital role in distribution of fertilizer to the remote areas of the state through PACS / LAMPS and dealing with 30 to 35 % of state fertilizer consumption. Whereas, private wholesaler and OAIC are dealing with about 50% and 20% respectively of the State fertilizer consumption.
        
     4. In order to boost up sale, all the societies may be asked to lift a particular percentage of fertilizer (min. 50%)
        
     5. The private retailers are not all interested to deal with MARKFED for which the fertilizer business of MARKFED is being affected during peak season.
        
        
2. Paddy Business :-
   
   
   • MARKFED acts as State Government agency to procure paddy from farmers at Minimum Support Price (MSP) since KMS 2004-05 through custom milling mode.
   • The MARKFED-Odisha is participating in paddy procurement operation since the KMS year 2004-05 to till date and successfully procuring paddy directly from the farmers in different Districts through the mandies selected by the District Administration limiting to the target allotted by Govt. in F.S. & C.W. Deptt. from time to time and delivering the resultant rice (CMR) to FCI / OSCSC by utilizing it’s man power & other available infrastructures.
     
   • However, from KMS 2016-17 MARKFED is procuring paddy through the help of PACS allotted by the District Administration, the MSP of paddy is being transferred to the farmers bank account directly from OSCB centrally.
     
   • MARKFED is continuing the Paddy Procurement operation by utilizing funds on borrowed capital from different commercial Banks.
   • The year-wise target allotted & achievement thereon is indicated below:
     
     

     KMS Years	Nos. of District allotted for procurement	Nos. of district attended	Target allotted		Achievement		Percentage (%) of Achievement	Nos. of beneficiaries	Nos. of Mandies	Nos. of Millers
     			In terms of rice (MT)	In terms of paddy (MT)	In terms of rice (MT)	In terms of paddy (MT)
     2004-05	4	4	45,000	68,182	35,540	53,849	79%	10,227	50	42
     2005-06	11	11	1,11,000	1,68,182	1,02,174	1,54,668	92%	18,685	143	90
     2006-07	15	152	2,48,000	3,75,758	1,94,000	2,90,905	78%	30,047	168	134
     2007-08	18	18	2,85,000	4,19,118	2,66,670	3,93,144	94%	33,176	282	215
     2008-09	20	20	4,50,000	6,64,410	3,95,924	5,84,342	88%	67,932	377	358
     2009-10	18	17	2,06,700	3,04,958	1,29,238	1,90,304	62%	24,767	364	187
     2010-11	9	9	4,00,000	5,88,235	1,58,910	2,33,830	40%	34,412	122	171
     2011-12	15	14	2,19,000	3,22,059	1,88,879	2,78,420	86%	39,313	128	242
     2012-13	12	10	1,86,100	2,73,896	1,75,653	2,58,732	94%	35,492	116	182
     2013-14	11	6	1,33,000	1,95,742	57,730	85,081	43%	14,565	98	94
     2014-15	8	7	94,762	1,39,512	94,624	1,39,374	100%	17,514	99	117
     2015-16	8	8	1,14,279	1,68,637	1,13,792	1,67,910	100%	17,341	90	174
     2016-17	4	4	80,845	1,19,624	1,19,623	80,845	100%	27,426	71	136
     2017-18	4	4	79,500	1,17,636	67,513	99,956	85%	26,584	61	155

     
     

MARKET INTERVENTION

Price Support Scheme (PSS) Operation :-

• The Government of India announces Minimum Support Prices (MSP) for various notified Oilseeds and Pulses for every crop season under its Price Support Scheme (PSS) for the purpose of protecting the interests of the farmers. The ministry of Agriculture, Government of India, has engaged NAFED as the nodal organization for the implementation of its PSS operations for Oilseeds and Pulses. NAFED is required to purchase any of the notified Oilseeds and Pulses of Fair Average Quality(FAQ) from any part of the country where its price falls below the MSP within the notified period.

• To protect the interest of the farmers, other agricultural produces like Greengram(Moong), Groundnut pods and Sunflower seeds etc. have been procured by MARKFED in the past under PSS. But the outcome of such procurement in the past is not encouraging for different reasons. It has not only affected the profit margin of the organisation, but also there was dislocation in management of the fertiliser business.
  
  

• As a part of its social obligation, MARKFED has undertaked procurement of Greengram (Moong), Sunflower seeds & Groundnut pods directly from farmers under Price Support Scheme (PSS) of GOI through NAFED to save from distress sale and exploitation of middleman. 
  
  

  Year	Commodity	MSP per Qtl	Quantity Procured		Amount(Rs. in Crores)	District
  			No. of Farmers	MT.
  2015	Sunflower	3750/-	167	76.019	0.29	Bhadrak
  2016	Sunflower	3800/-	234	164.506	0.68	Bhadrak
  2017	Greengram (Moong)	5225/-	2948	1405.880	7.35	Puri, Cuttack, J.S.Pur & Kendrapada
  2017	Sunflower	3950/-	235	177.000	0.70	Bhadrak
  2017	Groundnut	4220/-	595	947.765	3.99	Jajpur & Mayurbhanj
  2018 as on 17/06/18	Greengram(Moong)	5575/-	2614	1322.792	7.37	Cuttack, Jajpur, Kendrapada, Jagatsinghpur, Bhadrak, Malkangiri, Puri, Khurda, Mayurbhanj, Balasore, Dhenkanal, Angul
  	Sunflower	4100/-	38	30.679	0.12
  	Groundnut	4450/-	1063	1329.720	5.91
  	Blackgram	5400/-	3294	2701.872	14.59

  
  

INFRASTRUCTURE

• Cold Storages:

  
  MARKFED has 3 no. of multi-commodity Cold Storages at Bhubaneswar, Rayagada, and Jagatpur of 5000 MT, 5000MT & 4000 MT capacity respectively. As per resolution of the Committee of Management of dated 21.01.2012, the cold Storage at Bhubaneswar & Jagatpur has been leased out to private parties @ Rs. 50,000/- and 45,000/- per month respectively and the lease-holders are to reimburse the monthly salary of two nos. of staff respectively. Efforts have been made for leasing out of Rayagada Cold Storage after getting prospective bidders. However, steps are also being taken to make the Rayagada cold storage operational through TDCCOL.

• Warehouses:

  MARKFED has 1.00 lakh MT. capacity godowns of its own for conducting fertilizer & paddy business. At times we hire godowns from co-operatives & private bodies for business purposes as & when required.
  • Govt. has provided financial assistance of Rs.1.50 Crore under State Plan for repair and renovation of existing godowns, which were constructed during NCDC phase – I & III under World Bank storage project during the period 1980-81 to 1988-1989. The repairing work has been assigned to OSAM board during 2015-16. Repairing work of balance godowns will be taken up with an estimated expenditure of Rs. 1.50 Cr.
  • Accordingly MARKFED has taken up steps for creation of new warehouses of 52,500 MT capacity with grant of financial assistance to the tune of Rs.39.16 crore under RKVY. This will in turn give a boost to the sale of fertiliser of MARKFED as well as consumption of State in general. In 2016-17:- 20 numbers of godowns having capacity 17,500 MT have been constructed under RKVY and thus the total storage capacity have been increased to 1,30,000 MT ( own-1,17,500 MT+ hired from RCMS-12,500MT). During 2017-18:- 17 numbers of godowns having capacity 13,000 MT are being constructed by MARKFED and thus the total storage capacity will be increased to 1,43,000 MT.

  • Places for construction of Multi-complexes under PPP mode:-

    
    

    Sl.No	Place with Locality	Detailed Area	Remark
    1	Head Office Premises of MARKFED at Laxmisagar-1.	Ac.1.230, Plot No:-2991,Khata No: 1986/81, Tahasil: Bhubaneswar.	ROR available(Govt. lease plot)
    2	Sikharpur, Cuttack	Ac. 0.450, Plot No: 827/965, Khata No: 642, Tahasil: cuttackNo:239.	ROR available(Own land)
    3	Nayagada (Nayagada Buffer)	Ac. 0.500, Plot No: 1346/3960 & 179/ 3961, Tahasil: Nayagada	ROR available(Own land)
    4	Baragarh(Fertilizer plant area), Dang.	Ac. 4.805, Plot No: 1088,1089 ,1090/2065 & 1091, Tahasil: Baragarh.	ROR available(Own land )
    5	Jaganathpur (Chatrapur), Raghunathpur	Ac. 1.882, Plot No: 921/1936, 920/4130,910 & 912 Tahasil: Chatrapur.	ROR available(Own land)
    6	Jeypore (Souragarh)	Ac. 2.670, Plot No: 160/1,160/1                                   301      1189 Khata No: 75/700. Tahasil: Jeypore.	ROR available.