0. Unified National Agriculture Market Integrating the Agri Value Chain
Unified
National Agriculture Market
Integrating the Agri Value Chain
Preparedness of Financial &
Information Technology
24th Nov 2016, New Delhi
Manoj Rawat
Head, Agribusiness & Rural Banking
RBL Bank, Mumbai, India

1. Flow of presentation Unlocking Agribusiness potential
Types of Markets prevailing in India
Marketing Channels
Need for linking farmers to Markets
Unified National Agriculture Marketing Platform
Is our IT infrastructure prepared for National Market
Way forward
Markets
Marketing
NAM
IT Infrastructure
Way Forward

2. Unlocking Agribusiness Potential
Markets
Marketing
NAM
IT Infrastructure
Way Forward

3. RBL Bank-Financing Agri-Value Chain
Agribusiness
AGRI VALUE CHAIN
RETAIL AGRIBUSINESS
COMMODITY BUSINESS
Markets
Marketing
NAM
CORPORATE AGRIBUSINES
IT Infrastructure
Way Forward

4. Classification of markets based on
Types of Market
Agribusiness
Classification of markets based on
Location/Operation
Village Market
Primary Market
Secondary Market
Terminal Market
Volume of transaction
Wholesale Market
Retail Market
Nature of transaction
Spot Market
Future Market
Forward Market
Govt. intervention
Regulated Market
Unregulated Market
Stage
Producing Market
Consuming Market
No. of
commodities
General Market
Specialized Market
Markets
Marketing
NAM
IT Infrastructure
Way Forward

5. Current Scenario 6 National Commodity Exchanges in India
Agribusiness
6 National Commodity
Exchanges in India
7157 Regulated (Secondary)
Agricultural Markets
Markets
24 Regional Commodity
Exchanges in India
22,221 rural periodical markets
(Rural Haat)
Marketing
NAM
India, world’s largest producer of fruit and vegetables but inadequate
post- harvest storage and transportation cause losses of around 30%-40 %,
only 7 per cent value addition takes place, and only about 2 per cent
of production is processed commercially
IT Infrastructure
Way Forward

6. Traditional Agriculture Value Chain in India
Agribusiness
Farmers
30%-40%
APMC/ Mandi
Markets
Primary Market
20%-30%
Marketing
Wholesale Market
NAM
20%-30%
IT Infrastructure
Retail Market
15%-20%
Way Forward

7. Traditional Agriculture Value Chain in India
Producer/farmer
30%-40%
Primary Market
20%-30%
Govt.
Procurement
FCI, NHB
Wholesale Market
20%-30%
Sub-Wholesale
15%-20%
Wholesale market
10%-15%
PDS Shops
Consumer

8. Why we need efficient supply chain
Agribusiness
Markets
Marketing
NAM
IT Infrastructure
Farmers realize only 30-40% of value paid by consumer.
Distress sales due to pressure of immediate cash needs
Lack of infrastructure for primary processing
Lack of appropriate technology for value addition
Way Forward

9. Modern Market Concept Infrastructure Pack house, Quality Testing,
Palletization
Services
Transport (Incl. Cold Chain),
Settlement of Payments,
Banking, Marketing information
Banking
Institution
TERMINAL MARKET
Electronic
Auction
Processor
Exporter
Wholesaler
Trader
Retailer
Cold Storage,
Chamber etc.
Ripening
Direct Selling
Unified National Agriculture Market
Infrastructure
Washing, Grading, Sorting, Weighing and
Transport to TM
Services
Collection & Aggregation of produce, Settlement
of payments, advisory on inputs, Price quality
and multimodal transport
Producers / farmers &
Associations

10. NAM-Introduction
Agribusiness
Markets
NAM is a “virtual” market backed by physical market (mandi).
NAM-electronic trading portal to create a unified national market for agricultural commodities.
Buyers/ sellers situated within and outside the State can participate in trading.
Provides end-to-end solutions to all sellers and buyers.
It will reduce the transaction costs.
Marketing
NAM
IT Infrastructure
Way Forward

11. Process Flow Farmer Buyers Disbursement e-Pledge Payment
Agribusiness
Farmer
Buyers
Disbursement
Markets
National Agriculture Market (NAM)
(electronic trading platform)
e-Pledge
Payment
Transaction
Fee
Marketing
APMC-Godown
APMC and other market yard in States
Customized State
electronic platform
of NAM
NAM
Plug in to NAM
(Central)
IT Infrastructure
Existing channels
Way Forward
Payment

12. Benefits related with the direct marketing-NAM
Agribusiness
Makes the marketing channel shorter.
It minimizes the marketing cost, transportation cost.
Markets
Helps in eliminating the intermediaries.
Reduce post-harvest losses.
Marketing
Monetary
benefits to
the farmers:
Farmers get higher share in consumer rupee
Marketing cost will be minimized
NAM
Lower transaction cost
Farmers directly come in contact with the consumers and
come to know the consumers requirement.
IT Infrastructure
Non-Monetary
benefits to
the farmers:
Reduces the post-harvest losses of the produce.
Way Forward
Farmers increase their efficiency by access to better technologies

13. Is our IT infrastructure prepared for NAM?
Agribusiness
Markets
Information kiosks needs to be located in rural markets and serve as sources of reliable and timely market information for farmers
Uses voice mail for information delivery, where a user dials a toll free number to access the information through simple menu steps
Use mobile phones for information delivery to farmers
To disseminate price info of selected commodities & markets daily in vernacular language.
Facilitate market linkages for farmers and SMEs through an interactive radio programs
Marketing
NAM
IT Infrastructure
Way Forward

14. A comprehensive Agri-Value Chain approach is required
Way Forward
Agribusiness
A comprehensive Agri-Value Chain approach is required
Markets
Adopt realistic & collaborative approach to integrate the markets
Dovetail various Government Schemes for Unified Markets
Marketing
Setting up basic minimum marketing infrastructure in villages and clusters
Emphasis on bringing all the stakeholders on platform
NAM
Governments need to create enabling environment on field (APMC act)
IT Infrastructure
Unified Markets should help in better price discovery for farmer
Empowerment through Literacy, training, capacity building & awareness
Way Forward

15. Thank You One India bulls Centre, Tower 2B
Senapati Bapat Marg, Lower Parel (W), Mumbai India.
Tel: (022) ,
Website:
A presentation by Agribusiness team