National Conference for Agriculture for Rabi conference 2018 Group III: Develop and Upgrade rural haats as GrAMs- road ahead and implementation of National Agricultural Market (e-NAM)

Participating States Andhra Pradesh Chhattisgarh Haryana Himachal Pradesh Maharashtra Odisha Rajasthan Tamilnadu Telangana Uttar Pradesh Chairman Shri Abhilaksh Likhi , Joint secretary DAC & FW Co-Chairman Sh. Samuel Anand Kumar, Commissioner Dept. of Agriculture and Marketing Govt of Andhra Pradesh

Developing and Upgrading Rural HAATs as GrAMs Group deliberated and made following suggestions to develop & upgrade Rural Haats in sync with announcement in budget, 2018-19 MoRD suggested that states should identify the Gramin Haats based on following criteria- Only existing Haats be identified for development Location of Haats be feasible to develop Since “Bottom to Top Approach” is applied, therefore proposals for development be routed from GP Level . While selecting & shifting the Rural Haats, local consultations be held to avoid any conflict.

Developing and Upgrading Rural HAATs as GrAMs MoRD suggested that states should forward 5-6 models of GrAMs based on arrivals, farmers’ footfalls, functioning of GrAMs etc. to enable MoRD to finalize the drawings. States will take up the issues with concerned department (Revenue) related to the Land owner ship. States identify the Haats at the earliest and submit the proposal to MoRD for consideration under MGNREGS

Developing and Upgrading Rural HAATs as GrAMs States may prioritize the aspirational districts and tribal districts first for identifying the rural Haats to develop into the GrAMs. DAC & FW may formulate a comprehensive operational guidelines to include the issues relating the institutional arrangements, management of GrAMs, Levi of charges, etc. States should keep all types of GrAMs outside the ambit of APMC Regulation.

Developing and Upgrading Rural HAATs as GrAMs Collection centers in Haryana & Punjab located in rural area & behaving as periodic markets be treated as Rural Haats for the purpose of development and up gradation under MGNREGS Farmer- consumer markets located in rural areas may also be considered as rural Haats for development and up gradation under MGNREGS

e-NAM

e-NAM: SPV SPV needs to be formed to facilitate inter-State trade under “Trade & Commerce” in concurrent list To register inter-State traders to enable them to trade on e-NAM platform Facilitate payment to sellers Establish a dispute settlement mechanism Prescribe the quantum and mode of collection and payment of user charges between States Prescribe quality standards for commodities Enforcement mechanism for compliance Logistics arrangement

Quality Assaying Assaying has been found to give a better price to farmers. Centralized Quality Assaying Certification is required for inter-mandi and inter-state trade States should set up State level authority to prescribe certification process and modalities for certification State level authority to train the manpower required for assaying Assayers need to be accredited by the certifying agency DMI will finalise the Qualification Criteria for Quality Assayer

Quality Assaying (contd..) Lots for assaying may be determined by the lot size, value and potential for inter-mandi and inter-State trade. Hence assaying of 100% lots may not be required More number of cash crop lots may be assayed Simplified Quality parameters for major commodities.

e-NAM Bidding Process While making mobile based bid, instead of submission option for each lot, it may be submitted after entering the bids for all lots Mobile app may be developed for mandi staff for registration, weighment details etc. e-NAM mandis to have e-NAM Mitra Each mandi to have one platform for direct selling by farmers without the intervention of commission agents The Mandi to have its own weighing scales and supervisors to facilitate direct selling

E-payment Payments due by a buyer may be settled in a single transfer through online (Multi Invoices) e-wallet services may be provided to buyers mapped with their ID so that the payment process can be expedited Provision for payment through Commission Agent in e-NAM platform on the same day may be given Sale agreement should be auto generated on the same day (presently T+2 days) to facilitate same-day payment Mandi level Payment dispute Mechanism to be in place

E-payment (contd..) Resistance faced from the Stakeholders Farmers Not willing to receive payment in bank account due to fear of loan adjustment Provision for offsetting of e-NAM payments against loans by bankers should not be permitted Commission Agents Not willing to transfer through e-NAM payment gateway as they don’t want transparency in transactions Traders Traders are getting 15 days credit from the Commission Agents while CAs pay on the same day to the sellers Credit facilities through financial institutions using dynamic cash-credit limit, bill discounting and co-branded credit cards needs to be explored

e-NAM: Training Training & Awareness on Mobile Application Awareness on Traders Unified license SMS to farmers in Regional language Gram Panchayat level trainings NGOs to be involved to conduct training Each e-NAM mandi to have kiosk for self-registration & training Each mandi to have a training centre of its own for continuous training to various stakeholders

Thank you