1. BY SMALL FARMERS' AGRI-BUSINESS CONSORTIUM 2 nd July, 2015

2.  Small Farmers' Agribusiness Consortium (SFAC), a Society under the Department of Agriculture & Cooperation, Ministry of Agriculture, Government of India has been mandated as the lead promoter by DAC to set up the National Agriculture Market (NAM).  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 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

3.  To create an online platform for National Agriculture Market  Integration of the APMC regulated market yards across the States to the online platform to create a unified National Agriculture Market (NAM)  To enable the buyers / sellers situated even 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.  Unified licensing system  Establish quality management system for quality assurance and grading

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

5.  The NAM offers a “plug-in” to any existing market yard in a State (whether regulated or private).  Development of special software to be offered to each mandi  The farmers/traders will have the option to choose the 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 costs, integration costs, customization of software, training etc. as a one-time grant.  The running costs of the software at the local level, staff costs 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.

6. 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.

7.  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 OUTCOME