On 14th April 2016, Indian Prime Minister Shri Narendra Modi launched the National Agricultural Marketing Scheme in New Delhi. Other members, the Union Minister for Agriculture and Farmers Welfare, Shri Radha Madan Singh and the Union Minister for Communication and Information Technology, Shri Ravi Shankar Prasad were also present. This initiative will provide great benefit to the farmers and there will be transparency in the government system.
PM Modi addressed a gathering of farmers at the pilot launch of e-NAM (e-trading platform for the National Agriculture Market). The main objective of e-NAM is to create a large platform for the farmers so that they will come to know about the accuracy and transparency in buying and selling of Agri-commodities. Considering agriculture as an important sector, he mentioned that it will be turning point for increasing the income of farmers in the future years. Moreover, this will also reduce the wastages by improving the supply chain and creating a unified national market.
— MIB India (@MIB_India) April 14, 2016
According to Shri Narendra Modi, the integration of agriculture markets all over the nation through this e-platform will overcome all the challenges posed by the current market including- multiple levy of mandi fees, fragmentation of State into multiple market sectors (each administered by separate APMC), requirement for multiple license for trading in different Agriculture Product Market Committees (APMCs), information asymmetry, high level of market charges, movement controls, opaque process for price discovery, low use of technology, poor quality of infrastructure and licensing barriers leading to conditions of monopoly.
This new e-NAM Initiative will help to integrate more than 500 wholesale markets of the country under one biggest online platform. The features of this agriculture market initiative are as following:
- This e-NAM will be executed by the Ministry of Agriculture and Farmers’ Welfare and joined by the total of 21 mandis from eight states including: Haryana (2), Rajasthan (1), UP (6), Jharkhand (1), Gujarat (3), Himachal Pradesh (2), Telangana (5) and Madhya Pradesh (1).
- This scheme will provide a unified marketing platform to the farmers to sell their products.
- With e-market, farmers will come to know about how to tackle the volatility which they usually face while selling their products.
- This big platform will also help to raise farmers income as well as profit along with the moderating the prices.
- By September of this year, there will be integration of more than 200 mandis all over the country. Under this programme, the government has an aim to cover maximum 585 mandis by the end of March 2018.
- With the introduction of online markets, farmers will get an easy and reliable option to vend their products at the Agri-platform. They will get an amazing opportunity to choose the selling option by their own.
- This National Agriculture Marketing Scheme will bring transparency and ensure compatibility in the buying and selling process.
- This marketing process is a ray of hope for the farmers who were struggling for so long and had been facing hard times due to an inappropriate system. Moreover, they will get an easy access to their Agri-buyers.
- National Agriculture Marketing System will also help the government to improve the current state of the farmers.
- The platform will begin by trading in total of 25 crops, including spices, onions, wheat, pulses, maize, potatoes and oil seeds.
- With this online marketing, there will be real-time availability of crops which will also smoothen the movement of crops from the surplus areas to deficit sectors.
- Farmers can display their products online from the nearest market and traders can easily quote the prices from anywhere.
- It will increase the number of traders or marketers. Moreover, this will also create competition among the traders.
- This scheme will ensure better returns to the farmers by creating the open price discovery.
- There will be a single license for buying and selling the products and single point levy of market fee across the states.
- The quality of agro-products will be confirmed by testing process in the laboratories. On the basis of quality analysis, the products will be marked on the quality parameters which will be nationally certified.
- The Central as well State Government can also monitor the productivity on the online portals. This will also let the farmers know about the mandatory requirements like type of transportation system, global product requirement, cold storage, use of godowns, shifting process etc.
- Opting the online marketing process, the farmers need not to depend on others for selling their products at the best prices. Moreover, they can easily approach and determine the entire marketing process on the NAM portals.
PM Modi said that the Indian Government has taken an important decision for the 100% FDI (Foreign Direct Investment) in the Agro Processing System. He explained concept of “More Drop Per Crop” which will increase the water use efficiency along with restoring fertility of the soil. He had also mentioned about the sprinkler process which can increase the sugar content in the sugarcane. He also laid stress on the value addition of agriculture products, use of advanced technology modes and knowledge of agriculture science.
Contributor: Sunpreet Kaur