5 March 2016

Unified National Market for Agriculture Commodities

Unified National Market for Agriculture Commodities
The Government has approved a scheme for setting up of National Agriculture Market (NAM) through Agri-Tech Infrastructure Fund (ATIF) on 01.07.2015 with a budget of Rs.200 crore and to be implemented during 2015-16 to 2017-18.

The scheme envisages implementation of the National Agriculture Market (NAM) by setting up of an appropriate common e-market platform that would be deployable in regulated wholesale markets in States/UTs desirous of joining the e-platform. Small Farmers Agribusiness Consortium (SFAC) will implement the national e-platform in 585 selected regulated markets and will cover 400 mandis in 2016-17 and 185 mandis in 2017-18. Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) will meet expenses on software and its customization for the States and provide it free of cost to the States and Union Territories (UTs). DAC&FW will also give grant as one time fixed cost subject to the ceiling of Rs.30.00 lakhs per Mandi (other than to the private mandis) for related equipment / infrastructure in 585 regulated mandis, for installation of the e-market platform. State Governments will propose the regulated markets which are to be integrated with NAM .

Integration of regulated markets with NAM requires certain pre-requisites in the State Agricultural Produce Marketing Committee (APMC) Acts, namely- (i) a single license to be valid across the State, (ii) single point levy of market fee and (iii) provision for electronic auction as a mode for price discovery. Only those States/UTs that have provided for these three pre-requisites will be eligible for assistance under the scheme.

Presently the scheme envisages integration of only 585 regulated markets with NAM platform. The schedule for implementation is as follows:-

i. Launch of NAM platform on pilot basis: 14th April 2016.

ii. Integration of 200 regulated markets: By September, 2016.

iii. Integration of 200 regulated markets: By March, 2017.

iv. Integration of 185 regulated markets: By March 2018

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