“LINKING FARMERS WITH MARKET” “INTEGRATION OF APMCS: SHARING EXPERIENCES” MANOJ RAJAN Additional Secretary, Co-operation Department Government of Karnataka manoj.rajan@remsl.in

62 Million Population KARNATAKA AGRI MARKET ECOSYSTEM 01 7TH Largest State 05 35,000 Crore Annual Turnover 02 62 Million Population 06 32 thousand Traders 03 92 Notified Agri Commodities 07 17 thousand Commission Agents 04 157 Main Markets & 354 Sub-Markets 08 152 Main Markets Now Online

NATIONAL AGRI-MARKET ECOSYSTEM Primary markets- Where producer sells 2500 Main APMC market yards, 4500 Secondary market yards Goods more than Rs. 3 lakh Crore traded annually Secondary markets – resale, processed sale

PREVALING MARKET SCENARIO No Financial Linkages Opaque Bidding Process Information Asymmetry Indifference to Quality Fragmented Markets Low Transparency

Karnataka Agricultural Marketing Policy 2013 The policy aims at “Creating hassle free market for the agricultural produce to help the farmers to obtain best price for their produce.”

AGRICULTURE MARKET REFORMS Increase Competition Transparency AGRICULTURE MARKET REFORMS Farmer Empowerment Improved Market Access Market Automation Alternate markets .

NEW MARKET STRUCTURE- KARNATAKA MODEL COMPETITION TRANSPARENCY MARKET ACCESS ALTERNATE MARKETS Single unified license From Local to National Level Small traders to Institutional Buyers Online Markets- Bidding to e permit Enhanced in all Market operations Price discovery Electronic weighing Farmer Billing MIS reports Improved Access. Physical- Warehouses as Sub Markets. Informational- SMS to Call centers. Financial- Pledge loans to Online payment APMCs Warehouses DPC & Private markets Contract Farming FPOS & Co-operatives

ReMS : SPECIAL PURPOSE VEHICLE “A Special Purpose Vehicle (SPV) with a mandate to operate with cutting edge technology in the agricultural markets in the state, to ensure market efficiency and competitiveness in the agricultural market system for the benefit of farmers and consumers, while making participation of all other market participants sustainable” 

ReMS Milestones ReMS Incorporated 2013-14 Number of online markets : E-permit markets : Trade value (crores ) : Traded lots : Number of commodities : Assaying in Markets : 2013-14 3 27 1913 - 2014-15 52 5645 17 9 3 2015-16 103 157 13,276 24 37 10

2016-17 Way forward….. All 157 markets online Establishing Cleaning & grading Units Awareness programs in 11,000 + 8000 villages. Assaying 40 markets Farmer’s registration programme target of 30 lakh Initiate Integrated Logistics Establish warehouse based sales Establish Online Payments

M P A C T I Increased Arrivals Better Prices Outside Trader Participation A More Bids per Lot C More Share in Consumer Rupee T Empowered Farmers

“Most things, except agriculture, can wait" - Jawaharlal Nehru THANK YOU!