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National Agriculture Market (NAM):
National Agriculture Market (NAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities.
Single National Agriculture Market (NAM) in the country, with a view to enable farmers to get a better price and for consumers to pay a lower price for agri-produce, a win-win situation at both ends of agri-value chains.
Advantages of NAM Portal:
The NAM Portal provides a single window service for all APMC related information and services. This includes commodity arrivals & prices, buy & sell trade offers, provision to respond to trade offers, among other services. While material flow (agriculture produce) continue to happen through mandis, an online market reduces transaction costs and information asymmetry.
Agriculture marketing is administered by the States as per their agri-marketing regulations, under which, the State is divided into several market areas, each of which is administered by a separate Agricultural Produce Marketing Committee (APMC) which imposes its own marketing regulation.
NAM: A Game Changer for Market:
NAM addresses these challenges by creating a unified market through online trading platform, both, at State and National level.
It promotes uniformity, streamlining of procedures across the integrated markets, removes information asymmetry between buyers and sellers and promotes real time price discovery, based on actual demand and supply, promotes transparency in auction process, and access to a nationwide market for the farmer, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.
Agri-Market reforms in the Past:
Some reforms in domestic agri-markets were attempted, when a model Agricultural Produce Marketing (Regulation) Committees (APMC) Act 2003 was suggested to states. As many as 22 states have adopted it in some form, yet it failed to transform the agri-marketing structure in India. The system kept suffering from highly fragmented markets with insufficient infrastructure; levies and intermediation fees remained high and uneven across states; APMC licensees monopolized trade, leading to rent-seeking and lower share of farmers in the selling price.
Why market integration is important?
Recent Reforms:
Ashok Dalwai Committee Report:
Conclusion:
This clearly implies that the monopoly of the APMCs continues unabated even in the 18 states/UTs, and the aim of creating a truly unified NAM with an efficient price discovery mechanism is still a far-fetched dream.
Therefore, the following steps are taken in a concerted manner:
This would require significant investments, and changes in state APMC Acts. This is feasible, provided PM Modi takes a lead and presses for it, bringing uniformity in agri-marketing rules and infrastructure in all the states. Roping in the private sector for investments would create jobs and promote efficient agri-value chains.
Way Forward:
The real challenge is to change the nature of the market – a single unified pan-India market. We need to devise a set procurement model along with the States but we also need to link it to the public distribution system. With better prices, what is also important is better access to the market. States need to support some of the reforms and be a part of the e-NAM initiative.
e-NAM could help to break this logjam – it is a virtual market.
The Agriculture ministry will have to strengthen e-NAM platform with new and user-friendly features by rolling out MIS Dashboard for better analysis, BHIM payment facility by traders, mobile payment facility by traders, enhanced features on Mobile App such as gate entry and payment through mobile, integration of farmer’s database, eLearning module in e-NAM website etc.
To double farmers’ income by 2022 and that farmers should become part of mainstream development. The objective was to bring more transparency and competition and provide remunerative prices to farmers. Keeping in view the need of making marketing of commodities easier for farmers.
By: Arpit Gupta ProfileResourcesReport error
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