National Agricultural Market CCC National Institute of Agricultural Marketing, Jaipur

Agricultural marketing system

Market Policies 1960s Regulations 2003 Reforms -with in market 2003 Reforms -Private Participation -Efficiency -within state 2015 National Agricultural Market -Competitive at global level -at national level

Status of reforms Source: DMI (2012) States/UTs Private Direct Marketing Contract Farming Farmers Market e-trading Single levy Single License Status Gujarat 7 Goa Himachal Pradesh Karnataka Mizoram Rajasthan Sikkim Jharkhand Andhra Pradesh 6 Maharashtra Nagaland Uttarakhand Madhya Pradesh 5 Arunachal Pradesh 4 Assam Chhattisgarh Tripura Punjab Haryana 3 Chandigarh Orissa 2 West Bengal Uttar Pradesh 1 Source: DMI (2012)

Private F&V Market in Kanyakumari Impact of Reforms States/UTs Reform Status Farmer Consu-mer Trader 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, Assam Chhattisgarh, Tripura and Punjab 4-5 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 Market Just 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 Market information Almost absent Real time System Fragmented Integrated Risk Moderate 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 Structure 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 Model Phases/ Components Phase I (0-2 years) Phase II Phase III (7-12 years) Operation E-portal Services Institutions Establishing national level agencies Identification 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

State/ Socio-economic Benefits Farmer Consumer Trader State/ Socio-economic Competitiveness and transparent price Direct Money transfer Platform for gender parity through FPOs Cartelization Market access Employment creation Alternatives MIS Incentive to quality Integrated system Price stabilization Quality produce Reasonable price Business expansion in terms of linking to processors/ export market, etc Large volume of business Supplementary impact Social impact Investment Cooperation Efficiency Check evasion of market fee Employment Value addition Facilitator Transaction cost

states readiness (reforms, tele-density, investment, output and FPOs)

Thanking You Irina Garg N S Ranawat Ramesh Mittal Hema Yadav Team Irina Garg N S Ranawat Ramesh Mittal Hema Yadav Sattram Singh Suchi Mathur Shalendra CCS NATIONAL INSTITUTE OF AGRICULTURAL MARKETING Bambala, Kota Road,  Jaipur-302033 (Rajasthan) Phone : 0141-2770027.  Fax : 0141-2771938, 2770027 Email: dgniam@hotmail.com