e-Mandi or National Agriculture Market


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

The Union Cabinet’s has decided to set up an unified “National Agriculture Market” or ‘e-Mandi’ on July1, 2015. This real-time electronic auctioning platform will offer online trading which enables farmers, traders, processors, exporters, importers to buy and sell agricultural commodities in a transparent manner.
Currently, a farmer can sell only to traders or commission agents licensed to operate in the area under an APMC. In most cases, multiple licences are issued for different mandis within the same state. But with NAM, farmers can offer their produce to buyers in any part of the country and trade electronically.
 NAM will induce transparency in the marketing system, leverage state of the art technology for a well-regulated market, and enable participation and benefits for the entire agri value chain, from farmer to consumer.
NAM  is envisaged as a pan-India electronic trading portal which seeks to network the existing Agricultural Produce Marketing Committees  (APMCs) and other market yards to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market (mandi) at the back end.
NAM was announced during the Union budget 2015-16 and is proposed to be achieved through the setting up of a common e-platform to which initially 585 APMCs selected by the states are linked. NAM will be implemented  through Agri-Tech Infrastructure Fund (ATIF).   
An amount of Rs. 200 crore has been earmarked for the scheme from 2015-16 to 2017-18. This includes provision for supplying software free of cost by DAC to the States and Union Territories (UTs) and for cost of related hardware/infrastructure to be subsidized by the Government of India up to Rs. 30 lakh per mandi (other than for private mandis). The target is to cover 585 selected regulated markets across the country.
The Scheme is applicable on All-India basis. There is no State wise allocation under the Scheme. However, desirous States would be required to meet the pre-requisites in terms of carrying out necessary agri-marketing reforms. For integration with the e-platform the States/UTs will need to undertake prior reforms in respect of a single license to be valid across the State; single point levy of market fee; and provision for electronic auction as a mode for price discovery.
Only those States/UTs that have completed these three pre-requisites will be eligible for assistance under the scheme.
Benefits of NAM
NAM is said to have the following advantages:
- For the farmers, NAM promises more options for sale. It would increase his access to markets through warehouse based sales and thus obviate the need to transport his produce to the mandi.
- For the local trader in the mandi / market, NAM offers the opportunity to access a larger national market for secondary trading.
- Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi / market level through the NAM platform, thereby reducing their intermediation costs.
- The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licences, levy of fee and movement of produce. In a period of 5-7 years Union Cabinet expects significant benefits through higher returns to farmers, lower transaction costs to buyers and stable prices and availability to consumers.
- The NAM will also facilitate the emergence of value chains in major agricultural commodities across the country and help to promote scientific storage and movement of agri-goods. 
Background
The concept of electronic agricultural markets is not new to India. National and regional players have tested the waters by setting up electronic cash and derivatives markets for trading in agricultural commodities.
Spot exchanges have been offering online trading in various commodities with standardised contracts wherein farmers, traders, processors, exporters, importers, can buy/sell in a transparent manner, with the exchanges providing counter-party guarantee for the trades.
This has been a marked departure from the traditional mandi system and has helped facilitate efficient price discovery and transaction functions of the marketplace.
Two national-level spot exchanges have achieved relatively better success in creating an electronic seamless spot market mechanism, largely by way of support of the exchange ecosystem of their derivatives exchange counterparts. Moving a step forward, Rashtriya e-Market Services Pvt Ltd (ReMS) was established as a JVC between Karnataka and the NCDEX Spot Exchange Limited. This single market platform currently integrates 51 markets and aims at covering all main 155 market yards and 354 subyards as well.
 


Friday, 11th Dec 2015, 10:22:08 AM

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Gautam
Thank you very much.... Sir.....
Apr 11, 2016 09:23 PM
Gautam
But please Provide "Print Option" Under Articles Sir
Apr 11, 2016 09:25 PM