AN OVERVIEW OF NATIONAL AGRICULTURE MARKET (NAM)

INTRODUCTION NAM is envisaged as a pan-India electronic trading portal which seeks to network the existing APMC and other market yards to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market (mandi) at the back end. SFAC, designated as Lead Agency, will roll out the NAM in partnership with a Strategic Partner (SP), which will be responsible for developing, running and maintaining the proposed e-marketing platform NAM will enter a State only on demand – provide one-time subsidy for hardware and software needs/training/integration

OBJECTIVE To create an online national trading platform Integration of the APMC regulated market yards across the States to the online platform for seamless trading To enable the buyers / sellers situated within and outside the State to participate in trading at the local level. To reduce the transaction costs on moving produce from one market area to another within the same State. Establish quality management system for quality assurance and grading Provide end-to-end solutions to all sellers and buyers: grading, price discovery, payment and transportation and delivery Rationalize transaction costs, reduction of wastages, provide higher return to farmers, better quality to consumers.

National Agriculture Market (NAM) (electronic trading platform) NAM Flow Chart Sellers Buyers APMC-Godown National Agriculture Market (NAM) (electronic trading platform) Payment Transaction Fee APMC and other market yard in States Customized State electronic platform of NAM Plug in to NAM (Central) Supported and maintained by Ministry of Agri. Existing channels Payment

CONCEPT The NAM offers a “plug-in” to any existing market yard in a State (whether regulated or private). Customization of software to be offered to each mandi as per the specific need The farmers/traders will have the choice to sale/buy through existing system of Mandis or through NAM. In either case the local mandi will earn the transaction fee. Ministry of Agriculture will bear the maintenance, integration, customization and training costs etc. as a one-time grant. The running cost of the software at the local level, staff cost for quality check etc. will be met from the transaction fee to be generated through the sale of produce. NAM is being set up as part of an administrative arrangement and requires no enabling legislation as an electronic platform.

CRITERIA FOR A STATE TO LINK WITH NAM There are three basic criteria for a State to propose mandis for “plug-in” to NAM: The State APMC Act must have a specific provision for electronic trading The State APMC Act must provide for issue of licenses to anyone in India to trade through the NAM in the local mandis. There must be one single license for each State to facilitate trading in all the mandis of that State and a single point levy of transaction fee.

Timelines for the roll out of NAM Activities Timeline Approval of NAM by Cabinet July 1, 2015 Nomination of SFAC as lead agency Appointment of TA for selection of Strategic Partner (SP) July 28, 2015 Preparation of Project Proposal by TA August 20, 2015 Issue of RFP for selection of SP September 21, 2015 Selection of SP October 22, 2015 Preparation of detailed guidelines and model by Strategic Partner November 20, 2015 Test launch of NAM December 31, 2015

OUTCOME Emergence of a common national market for agricultural commodities. Access to online platform for farmers, traders and other stakeholders across the States for buying and selling of agriculture commodities Enhanced transparency Error-less automatic reporting Uniform licensing system Reduced transaction cost and leakages Uniform grading system Assured quality and quantity to end users Enhanced comfort to bankers due to uniformity in the system

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