The project will be executed by National Dairy Development Board (NDDB) as part of its strategy to `replicate its success story in handling milk and dairy products to the farm sector'.

According to NDDB chairman Amrita Patel, the new terminal market is likely to throw a direct challenge to the existing network of `krishi mandis' or market yards run by Agriculutural Produce Marketing Committees (APMCs), governed by APMC Acts of respective state government.

This backward integration project, she said, could not have taken off without the bold initiative and pro-active role of the Government of Karnataka (GoK).

It was in pursuance of a memorandum of understanding (MoU) signed between the NDDB and GoK last year that an ordinance was promulgated recently, amending the state's APMC Act to pave the way for setting up parallel market yards by farmers' themselves.

According to a conservative estimate, the farm gate prices of agricultural products ranged between 20 and 30 per cent of the final retail prices. And in case of fresh vegetables and fruits it happened to be still less.Ms Patel pointed out that the APMCs have been throttling the farmers for long, but the Centre could not do much about it, since the existing laws could be amended by the respective states alone.

She hoped the new auction-based terminal market, aimed at linking the entire supply chain from procurement to marketing of the farm produces, would provide remunerative prices to the growers and affordable prices to the consumers.

When completed, it would have cold storages, modern grading, sorting, processing and packaging houses, besides auction rings.In fact, NDDB has initiated a study on the feasibility of setting up such terminal markets in all the metros and major cities to establish a link between the producers and consumers through wholesale and retail markets.In a slightly different mode, NDDB through its Fruit and Vegetable Project has been marketing fresh fruits and vegetables to Delhi and its surrounding areas through a chain of over 250 retail outlets. It procured farm produces from growers' organisations in Haryana, UP, Rajasthan, Maharashtra and Gujarat. In 1999-2000, it handled 68,000 tonnes of produce and clocked a turnover of Rs 87 crores.

In turn, the project helped the farmers with improved seeds, organic farming, extension support and post-harvest technology with a view to increasing yields, improve quality and standardise grades, drastically reducing the losses incurred during the post-harvest stage.

Talking about the Karnataka's pro-active role in the agricultural sector, Ms Patel said it was again the GoK which has initiated a project in collaboration with NDDB to cover major milksheds in the Bangalore-Kolar region as a `Disease Free Zone'.

However, she said, this project which required very strict vigil on the health of milch cattle. It could be effectively implemented only after the enactment of the Infectious Diseases in Animals Act.

It required a massive programme to detect and prevent infectious diseases like Foot and Mouth, Bovine Brucellosis, Hemmorrhagic Septicemia and Mastitis. The provisions of the Act demanded even removal of an animal suffering from infectious diseases.

Simple tests and remedies have been developed at the Hyderabad-based Indian Immunologicals, a wholly-owned subsidiary unit of NDDB, now converted into a separate company. Research is underway to develop diagnostic and prophylactic tools to further rduce the incidence of bacterial and viral infections, parasitic infestations and generic disorders. Referring to the draft National Policy on Co-operatives released on June 30 last, Ms Patel said the efficacy of the new policy should be in consonance with the amendments suggested in the Multi-State Co-operative Societies Act. It included less interference from the government, election of the boards, auditing and even the freedom to recruit chief executive officers and other professionals.

The reformist Act has been enacted in Andhra Pradesh, Bihar, MP and Jammu & Kashmir. Karnataka, Tamil Nadu, Punjab and Orissa have agreed in principle to enact similar acts. But, Gujarat and Maharashtra, which are known to have strongest co-operative institutions, are still away from taking any positive move for reforms in the co-operative sector.