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: dgniam@hotmail.com

TEAM

Irina GargN S RanawatRamesh MittalHema YadavSattram SinghSuchi MathurShalendra