National Agriculture Market An overview 19 th Feb 2016

Page 2 Outline ► Project Context ► Broad Features of NAM Scheme ► Details of NAM ► Movement of produce (process flow) ► Scope of work of Strategic Partner ► Timelines ► Work done so far

Page 3 Project Context ► NAM is envisaged as a pan-India electronic trading portal ► Seeks to network the existing APMC and other market yards to create a unified national market for agricultural commodities. ► Not a parallel market but a network of physical mandis which can be accessed online – a virtual mandi of mandis ► Enable the buyers / sellers situated within and outside the State to participate in trading at the local mandis. ► Establish quality management system for quality assurance and grading. ► Provide end-to-end solutions to all sellers and buyers: grading, price discovery, payment, transportation and delivery. ► Rationalize transaction costs, reduction of wastages, provide higher return to farmers, better quality to consumers. ► Real time accurate information sharing with all stakeholders - win-win situation for all stakeholders. ► NAM is to be implemented by SFAC with the help of M/s Nagarjuna Fertilizers and Chemicals Limited in consortium with Techno Brain Global FZE, Selected as Strategic Partner through e-procurement Process.

Page 4 Broad Features of Scheme ► DAC & FW would be sharing the software free of cost with the state / mandi ► DAC & FW is providing one-time grant to mandis for purchase of hardware and assaying equipments up to an amount of INR 30 lakhs ► Strategic Partner (SP) would provide free training, handholding, and trouble shooting for one year to mandis (SP to be paid by SFAC as per milestones) ► SP to upgrade and maintain the platform for 5 years (as per the provisions of concession agreement) ► NAM will initially be rolled out in 585 selected mandis in States by ► NAM to be rolled out on demand in States who have fulfilled the following reforms in their APMC Act. ► Single license to be valid across the state ► Single point levy of market fee ► Provision for electronic auction as a mode for price discovery

Page 5 National Agriculture Market - Overview Traders in case of secondary sale Location of Produce

Page 6 Details of NAM: Process Flow $ Sorting and Grading may be carried out prior to assaying Produce from farmers’ field Entry into APMC Market ( Trading from Mandi) Farmer to provide unique ID (if registered) or registration on the spot pending verification to enable operation of the account Direct Sale by Farmer Parking of Produce at APMC warehouse /Shed E-trading of Produce on NAM Portal, post verification by APMC / CA Delivery and Settlement 1.Method of sale (closed bid / open auction / reverse auction /direct sale etc) to be finalized as per prevailing practices 2.Buyers can quote for any amount but while carrying out the settlement process the quotes would be considered (only winning) till the point his security deposit is sufficient Trading from a location outside Mandi Lot wise entry in NAM portal and lot identification by APMC designated persons Assaying of Produce by APMC Lab through approved sampling procedure and uploading of information on Portal $ Registered farmers to log into the NAM portal and make an entry about his/her produce Sale through CA Parking of Produce at CA warehouse /shed Assaying of Produce by APMC Lab or designated agencies on payment basis and uploading of information on Portal Unsold produce to be uploaded for transaction next day upon confirmation from the CA or farmer

Page 7 Details of NAM: Process Flow Delivery and Settlement Generate Exit Gate Pass and Delivery/Dispatch of Produce by CA / Seller Produce in Mandi Produce outside Mandi Weighing of produce and direct feeding of information on portal (through electronic weigh machine) / operator Generation of invoice and transfer of money to Settlement Account 1.NAM platform will generate primary invoice (including APMC transaction charges, commission agent fees, and loading / unloading charges) after sale confirmation from farmer 2.Convey information to winning bidder by sms / 3.Winning bidder to deposit the amount in NAM bank account Weighing of produce at designated places and feeding of information on portal May involve logistics providers for shipping of produce (approved logistics providers) Generation of invoice and transfer of money to NAM Delivery/Dispatch of Produce by Seller Funds to be transferred to seller, CA, logistics provider after delivery is accepted by the buyer (by APMC)

Page 8 Details of NAM: Scope of Work for Strategic Partner Strategic Partner Faults Handling Maintenance Data Requests Software Development Modifications and Enhancements Maintaining Application Performance Support in Operations including training / capacity building Marketing of portal among stakeholders

Page 9 Timeline ActivitiesTimeline Approval by Cabinet & Nomination of SFAC as lead agencyJuly 1, 2015 Appointment of TA for selection of Strategic Partner (SP)July 28, 2015 Preparation of Project Proposal by TAAugust 20, 2015 Issue of RFP for selection of SPOctober 06, 2015 Bid submission and opening dateNovember 23, 2015 Selection of SPDecember 15, 2015 Development, UAT & Approval of Software by Authority and installation at central location & select mandis for pilot April 1, 2016 Launch in 20 pilot mandis across 8 StatesApril 14, 2016 Roll out of NAM Software in first 200 MandisSeptember 30, 2016 Roll out of NAM Software in next 200 MandisMarch 31, 2017 Roll out of NAM Software in rest 185 MandisMarch 31, 2018

Page 10 Proposal (DPR) received from the States Sr.No.State/UT No. of Mandis Proposal Cost Max. Admisible Amount Sanctioned Amount Sanction Date Released Amount Release date 1Gujarat Telangana Jharkhand Rajasthan Chhattisgarh Madhya Pradesh Maharashtra Chandigarh Sub Total Andhra Pradesh Under scrutiny 10Haryana Under scrutiny 11Himachal Pradesh195.7 Under scrutiny 12UP Under scrutiny 13Odisha Under scrutiny sub total Total Rs/Crore

Page 11 - Thanks