Lok Sabha Question No. 1671 (UNSTARRED), answered on 2016-03-08
Subject: Sale of Farm Produce to Retailers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KINJARAPU RAM MOHAN NAIDU

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 1671

TO BE ANSWERED ON THE 8 TH   MARCH, 2016

## SALE OF FARM PRODUCE TO RETAILERS

1671.   SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether the Government has any policy that dictates the flow of produce from the farmer to the end;
- (b) if so, the details thereof;
- (c) whether  the  Government  is  planning  to  introduce  a  new  policy  to  restructure  the  way farmers can sell their produce directly to retailers; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (DR. SANJEEV KUMAR BALYAN)

- (a) & (b): Agriculture  marketing  sector  is  administered  by  the  Governments  of  States  and Union  Territories  (UTs)  as  per  their  respective  Agriculture  Produce  Marketing  Regulation (APMR) Acts/Rules.  The Government plays an advisory role and has continuously advocated States/UTs  for  amendments  in  their  marketing  laws  to  provide  suitable  legal  framework  and policy  atmosphere  in  order  to  facilitate  uninterrupted  and  cost  effective  flow  of  agricultural produce from the farmers to the end users in the food supply chain.  Towards this end,  the Government  in  its  reform  agenda  is,  inter  alia,  focused  on  promotion  of  alternate  market channels such as direct marketing, contract farming, setting up of private markets, e-trading, farmer consumer markets, deregulation of Fruits &  Vegetables outside the market yards and implementation of single point levy of market fee and unified single licence.
- (c) & (d): In order to usher reforms in the marketing sector and promote sale of produce by farmers directly  to  buyers/traders,  the  Government  has  approved a  scheme for  setting  up  of National  Agriculture  Market  (NAM)  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 the cost on software and its customization for the States.  DAC&FW also gives grant as one time fixed cost subject to the ceiling of Rs.30.00 lakhs per Mandi for related equipment/infrastructure.  State Governments/UTs  will  propose  names  of  regulated  markets  which  could  be  integrated  with NAM.  The NAM will  be launched on 14 th April  2016,  on  pilot  basis,  in  20  mandis  across  8 States.

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