NATIONAL AGRICULTURAL
MARKET
CCC National
Institute of Agricultural Marketing,
Jaipur
AGRICULTURAL MARKETING SYSTEM
MARKET POLICIES
1960s Regulations-with in market
2003 Reforms-Private Participation-Efficiency-within state
2015 National Agricultural Market -Competitive at global level-at national level
STATUS OF REFORMS States/UTs Private Direct
MarketingContract Farming
Farmers Market
e-trading Single levy
Single License
Status
Gujarat 7Goa 7Himachal Pradesh 7
Karnataka 7Mizoram 7Rajasthan 7Sikkim 7Jharkhand 7Andhra Pradesh 6Maharashtra 6Nagaland 6Uttarakhand 6Madhya Pradesh 5Arunachal Pradesh 4Assam 4Chhattisgarh 4Tripura 4Punjab 4Haryana 3Chandigarh 3Orissa 2West Bengal 2Uttar Pradesh 1
Source: DMI (2012)
IMPACT OF REFORMS States/UTs Reform
Status Farmer Consu-
merTrader State Outreach
Gujarat, Goa, Himachal Pradesh, Karnataka, Mizoram, Rajasthan, Sikkim, Jharkhand, Andhra Pradesh, Maharashtra,Nagaland, Tamil Nadu and Uttarakhand
≥6 Contract Farming,
Direct Marketing,
Retail chains
Direct Purchase
Investment Private F&V Market in
Kanyakumari
Contract farming - 29
Direct Marketing - 3
Pvt market - 2
Madhya Pradesh, Arunachal Pradesh, AssamChhattisgarh, Tripura and Punjab
4-5 Contract Farming,
Direct Marketing,
Direct Purchase
Investment Contract Farming – 12
Pvt Market - 1
Haryana, Chandigarh, Orissa, West Bengal and Uttar Pradesh
≤3 Contract Farming
Direct Marketing
Contract Farming – 2
Direct Marketing 3
NATIONAL AGRICULTURAL MARKETJUST THE BEGINNING
National agricultural market is a virtual market envisaged to operate on an electronic trading portal but supported by physical markets (APMCs and other yards)
A unified market Comprehensive system Will have its impact on
Institution and physical environment Balanced development across members states Competitiveness Farmers participation Better price
TRADITIONAL MARKET VIS-À-VIS NATIONAL AGRICULTURAL MARKET
Components Traditional Market
National Market
Scale of operation Small Large
Price discovery Physical Electronic
Transparency low High
Efficiency Low High
Market information Almost absent Real time
System Fragmented Integrated
Risk Moderate Low
Price signal Weak Sound
Legal framework Restrictive Harmonized
Functions Primary Secondary and tertiary
RIGHT TIME FOR NAM Change in trade environment System equipped to take care of changing
need of farmers, consumer and traders Shift in focus from regulation to facilitation Graduate from primary function to secondary
and tertiary Price transparence Reduction in number of intermediaries Creation of new markets High transaction cost Favourable prices Post harvest losses
COMPONENT OF NAM Market regulation
Uniform items of trade, legal, physical and statutory norms Harmonized structure of market fee, levies, etc Common license to facilitate operations at national level Abolishing all barrier to trade like entry gates, etc Provision for recognizing the unique situation of backward states and Northeastern region
Structure Establishing an organization at national level with participating states as its members Research and training to be an integral part of the institutional set-up
Physical movement of goods Service providers for movements of commodity under national market
Preservation of goods Integrating storage, warehousing, NWR and pledge finance services with the market
Facilitating functions Including financial institutions with the market for direct payment to farmers and
realization of market fee Dissemination of market information
Dispute redressal mechanism Revenue sharing
Small share Off set by better business
Fee/taxes Point of origin May be reduced with increase in the scale of operation
OPERATIONAL MODEL OF NATIONAL AGRICULTURAL MARKET
COMPREHENSIVE MODELPhases/Components
Phase I(0-2 years)
Phase II(3-6 years)
Phase III(7-12 years)
Operation E-portal Services
Institutions Establishing national level agenciesIdentification of SPV
Institute for functions like training, research, defining grades and international trade
Grades Selected commodity Comprehensive All commodities
Functions e-price discovery Bank settlement, NWR and logistics
MIS, promotion, demand creation
Farmers participations
Individual/groups Farmers groups/FPO Producers company
Promotion NAM Portal Product Branding
Finance and insurance
Direct payment Payment and credit Complete risk coverage
Input and extension
Information MIS Delivery of physical and technical inputs
Focus Regional National Global
BENEFITS Farmer Consumer Trader State/
Socio-economic
Competitiveness and transparent priceDirect Money transferPlatform for gender parity through FPOsCartelization Market access Employment creationAlternatives MISIncentive to quality Integrated system
Price stabilization Quality produceReasonable price
Business expansion in terms of linking to processors/ export market, etcLarge volume of businessIntegrated systemSupplementary impact
Social impact InvestmentCooperationEfficiencyLarge volume of businessCheck evasion of market feeEmploymentValue additionFacilitator Transaction cost
STATES READINESS (REFORMS, TELE-DENSITY, INVESTMENT, OUTPUT
AND FPOS)
THANKING YOU
CCS NATIONAL INSTITUTE OF AGRICULTURAL MARKETINGBambala, Kota Road,
Jaipur-302033 (Rajasthan)Phone : 0141-2770027.
Fax : 0141-2771938, 2770027Email: [email protected]
TEAM
Irina GargN S RanawatRamesh MittalHema YadavSattram SinghSuchi MathurShalendra