Lok Sabha Question No. 396 (UNSTARRED), answered on 2016-07-19
Subject: Online National Agricultural Market
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: C.S. PUTTARAJU, POONAMBEN HEMATBHAI MAADAM, A.T. (NANA) PATIL

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

## LOK  SABHA UNSTARRED QUESTION NO.396

TO BE ANSWERED ON THE 19 TH   JULY, 2016

## ONLINE NATIONAL AGRICULTURAL MARKET

396.   SHRI  C.S. PUTTA RAJU: SHRI  A. T. NANA PATIL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government proposes to set up an Online National Agricultural Market and amend  the  Agriculture  Produce  Market  Committees  (APMCs)  Act  to  break  the  monopoly  of middlemen/traders  and provide benefits to the farmers and consumers, if so, the details and the objectives  thereof;
- (b) whether the scheme is likely to be implemented in all the States of the country, if so, the details thereof;
- (c) the  details  of  the  benefits  likely  to  be  accrued  to  the  farmers  and  the  number  of agricultural markets linked with the e-portal at present in the various States of the country; and
- (d) the  steps  taken/being  taken  by  the  Government to  strengthen  the  existing  agricultural marketing infrastructure in the country?

## ANSWER

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

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  SUDARSHAN BHAGAT)

- (a) & (b): Yes, Madam.  Agriculture marketing is administered by State Governments and Union Territories (UTs) as per their respective Agriculture Produce Marketing (Regulation) Acts. Realising the need for reforms in the  agri-marketing sector, the Government has from time to time played an advocacy role.  To take the  agri-marketing reform agenda forward  and with the objectives to benefit farmers and provide quality produce at reduced cost to consumers,  the Government  approved  a  scheme  for  setting  up  of  National  Agriculture  Market  (e-NAM)  on 01.07.2015 with a budget of Rs.200 crore.  Under the scheme, a pan India electronic trading portal (e-NAM) is being deployed in selected regulated wholesale markets in States across the country and 585 markets are proposed to be integrated  with e-NAM by March, 2018.

In order to integrate with e-NAM, States are required to complete certain  pre-requisite reforms in their respective Agriculture Produce Marketing (Regulation) Acts to provide for (i) A single  licence  to  be  valid  across  the  State,    (ii)    Single  point  levy  of    market  fee,  and  (iii) Provision  for electronic auction as a mode of price discovery.  These reforms, it is expected, will facilitate  integration of markets at the State level to break the monopoly of middlemen/traders and provide benefits to the farmers and consumers.

The  scheme is demand based and applicable to all the States of the country.

(c): At present, 23 wholesale regulated agricultural markets of 08 States in the country have been linked with e-NAM portal.  e-NAM is expected to benefit the farmers through enhanced market  access  by  way  of  allowing  remote  online    bidding  for  their    produce,  removal  of information  asymmetry  between  buyers  and  sellers,  real-time  price  discovery  based  on  the actual demand-supply gap through transparent online auction, uniform marketing procedures, remuneration according to quality of produce and online  payment directly to farmer's account.

(d): In order to implement e-NAM, the Government is providing software free of cost to the the  States    and  grant  up    to  Rs.30  lakh  per  mandi  for  related    infrastructure/equipments including  for  assaying.    Apart  from  this  the  Government  implements  various  schemes  to strengthen  agricultural  marketing  infrastructure  viz.  Rashtriya  Krishi  Vikas  Yojna  (RKVY), Agricultural  Marketing  Infrastructure  (AMI)  sub-scheme   of  Integrated  Scheme for  Agricultural Marketing  (ISAM), Mission for Integrated Development of Horticulture (MIDH), etc.

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