Lok Sabha Question No. 3525 (UNSTARRED), answered on 2015-08-11
Subject: Small Farmers Agri Business Consortium
Ministry: AGRICULTURE
Asked by: S. RAJENDRAN

GOVERNMENT OF INDIA

MINISTRY OF AGRICULTURE

DEPARTMENT OF AGRICULTURE & COOPERATION

**LOK  SABHA**

**UNSTARRED QUESTION NO. 3525**

TO BE ANSWERED ON THE 11 TH AUGUST, 2015

**SMALL FARMERS AGRI BUSINESS CONSORTIUM**

3525. 	SHRI S. RAJENDRAN:

Will the Minister of AGRICULTURE 	      कृषि मंत्री

be pleased to state:

(a) 	whether the Government has appointed Small Farmers Agri Business Consortium (SFAC) to set up a common e-platform;

(b) 	if so, the details thereof and the functions of the consortium;

(c) 	the details of the norms and eligibility criteria fixed by the Government to appoint the SFAC;

(d)	 the details of the number of mandis functioning at present, State-wise; and

(e)	 whether the Government is considering to waive off the mandi tax for farmers to provide them maximum benefit, if so, the details thereof?

### 1 ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE

कृषि मंत्रालय में राज्य मंत्री     (SHRI MOHANBHAI  KUNDARIA)

(a) & (b):	  Yes, Madam.  Department of Agriculture and Cooperation (DAC) have mandated Small Farmers’ Agri Business Consortium (SFAC), which is a registered society of DAC, to act as the Lead promoter of National Agriculture Market (NAM).  SFAC will select a Strategic Partner through open tender to develop, operate and maintain the NAM e-platform. SFAC will implement the NAM with budgetary grant support from DAC and technical support by the Strategic Partner.

NAM is envisaged as a pan-India electronic trading portal which seeks to primarily network 585 Agriculture Produce Market Committee (APMC) market yards to create a   national e-market for agricultural commodities. In addition, big private markets will also be allowed access to the software to enable better price discovery.  DAC will provide the software free of cost to the States for setting up of NAM and for its customization to State specific requirements.   In addition,  a one time grant of upto Rs.30 lakhs per mandi towards fixed costs of equipment/infrastructure will also be provided.

The functions of the consortium as mentioned in   Bye-Laws of SFAC are at **Annexure-I**

(c):	 The Government’s decision to appoint SFAC as the Lead promoter of NAM is based on its experience in similar activity of setting up of a Kisan Mandi at Alipore, Delhi.  The decision was approved by the Cabinet Committee on Economic Affairs (CCEA).

(d):	  Details of  mandis including rural Primary Markets as on 31.3.2014 are at **Annexure-II.**

(e):	 As per the States’ Agricultural Produce Market  (Regulation) Acts/Rules, market fee is not levied on farmers  but  levied  normally on buyers in terms of percentage of the value of the produce transacted.

***Annexure - I***

**Extract from the Bye-Laws of the Small Farmers’ Agribusiness Consortium (SFAC)**

**Functions & Activities**

In furtherance of the Aims & Objects of the Society indicated in the Memorandum of Association, the SFAC may undertake itself and/or cause to be undertaken by the concerned Departments/Agencies/Units one or more of the following task or activities in addition to any other tasks or activities as may be considered to be appropriate and necessary:

1. Organise, assist and help initiatives for improving the production; and productivity levels of identified agricultural produce.
2. Organise, assist and help establishment of appropriate link/integral arrangements between production and marketing.
3. Facilitate development of a sound marketing infrastructure covering inter-alia establishment of processing units, quality control arrangement, market intelligence and information, transportation and storage and such other arrangements as may be necessary.
4. Arrange/promote market studies and/or specific commodity surveys at the field levels, both at home and abroad, with a view to identify the agricultural products which have potential for exports and export development, quality standards and specifications, competitive price levels, trading channels, delivery schedules, promotional measure etc.
5. Arrange/facilitate the formulation of integrated commercial development programmes or projects preferably firm or unit-wise, setting out, inter alia, products for export targets, the import needs of raw materials, etc., processing arrangements between the producers and exporters, marketing etc.
6. Assist/organize mounting of Export Promotion Programmes including the sponsoring of marketing teams, participation in specialized fairs and exhibitions, holding of Department Stores promotions, exclusive India Show.
7. Facilitate identification and establishment of arrangements for undertaking production for exports and help in meeting the import needs, ensuring quality stands, reaching suitable marketing tie-ups.
8. Facilitate/monitor transport arrangement, under the specific programmes and projects that may be formulated.
9. Facilitate/monitor storage arrangement under the specific programmes and projects that may be formulated.
10. Facilitate/monitor the conclusion of contractual arrangements according to established commercial practices and norms.

| **Annexure-II**  **Statement Showing details of Markets in State/Union Territory (UT)**   |                   |                       |             |           |                                                                |               |           |
|-------------------------------------------------------------------------------------------|-------------------|-----------------------|-------------|-----------|----------------------------------------------------------------|---------------|-----------|
| **As on 31.03.2014**                                                                      |                   |                       |             |           |                                                                |               |           |
| **Sl.**                                                                                   | **Name of the**   | **NUMBER OF MARKETS** |             |           | **REGULATED MARKETS**                                          |               |           |
| **No.**                                                                                   | **States/UTs**    | **Whole**             | **Rural**   | **Total** | **Principal**                                                  | **Submarket** | **Total** |
|                                                                                           |                   | **Sale**              | **Primary** |           |                                                                | **Yards**     |           |
| 1                                                                                         | Andhra Pradesh    | 337                   | 568         | 905       | 337                                                            | 568           | 905       |
| 2                                                                                         | Arunachal Pradesh | 22                    | 63          | 85        | 16                                                             | 115           | 131       |
| 3                                                                                         | Assam             | 405                   | 735         | 1140      | 20                                                             | 206           | 226       |
| 4                                                                                         | Bihar             | 325                   | 1469        | 1794      | **Agriculture Produce Market Regulation (APMR)  ACT REPEALED** |               |           |
| 5                                                                                         | Jharkhand         | 201                   | 602         | 803       | 28                                                             | 173           | 201       |
| 6                                                                                         | Goa               | 4                     | 24          | 28        | 1                                                              | 7             | 8         |
| 7                                                                                         | Gujarat           | 205                   | 129         | 334       | 199                                                            | 201           | 400       |
| 8                                                                                         | Haryana           | 281                   | 194         | 475       | 107                                                            | 174           | 281       |
| 9                                                                                         | Himachal Pradesh  | 42                    | 35          | 77        | 10                                                             | 44            | 54        |
| 10                                                                                        | Jammu & Kashmir   | 23                    | 8           | 31        | 4                                                              | 8             | 12        |
| 11                                                                                        | Karnataka         | 210                   | 730         | 940       | 155                                                            | 357           | 512       |
| 12                                                                                        | Kerala            | 348                   | 1014        | 1362      | **APMR ACT NOT ENACTED**                                       |               |           |
| 13                                                                                        | Madhya Pradesh    | 0                     | 1321        | 1321      | 251                                                            | 285           | 536       |
| 14                                                                                        | Chhattisgarh      | 2                     | 1132        | 1134      | 68                                                             | 116           | 184       |
| 15                                                                                        | Maharashtra       | 881                   | 3500        | 4381      | 305                                                            | 576           | 881       |
| 16                                                                                        | Manipur           | 24                    | 94          | 118       | **APMR ACT NOT ENACTED**                                       |               |           |
| 17                                                                                        | Meghalaya         | 35                    | 89          | 124       | 2                                                              | 0             | 2         |
| 18                                                                                        | Mizoram           | 10                    | 105         | 115       | **APMR ACT NOT IMPLEMENTED**                                   |               |           |
| 19                                                                                        | Nagaland          | 19                    | 174         | 193       | 18                                                             | 0             | 18        |
| 20                                                                                        | Odisha            | 398                   | 1150        | 1548      | 54                                                             | 382           | 436       |
| 21                                                                                        | Punjab            | 424                   | 1375        | 1799      | 149                                                            | 275           | 424       |
| 22                                                                                        | Rajasthan         | 443                   | 312         | 755       | 131                                                            | 312           | 443       |
| 23                                                                                        | Sikkim            | 7                     | 12          | 19        | 1                                                              | 0             | 1         |
| 24                                                                                        | Tamil Nadu        | 300                   | 677         | 977       | 277                                                            | 6             | 283       |
| 25                                                                                        | Tripura           | 84                    | 470         | 554       | 21                                                             | 0             | 21        |
| 26                                                                                        | Uttar Pradesh     | 584                   | 3464        | 4048      | 250                                                            | 365           | 615       |
| 27                                                                                        | Uttarakhand       | 36                    | 30          | 66        | 25                                                             | 33            | 58        |
| 28                                                                                        | West Bengal       | 279                   | 3250        | 3529      | 42                                                             | 415           | 457       |
| 29                                                                                        | A & N Islands     | 0                     | 28          | 28        | NIL                                                            | NIL           | NIL       |
| 30                                                                                        | Chandigarh        | 1                     | 0           | 1         | 1                                                              | 0             | 1         |
| 31                                                                                        | D & N Haveli      | 0                     | 0           | 0         | **APMR  ACT NOT ENACTED**                                      |               |           |
| 32                                                                                        | Daman & Diu       | 0                     | 0           | 0         | **APMR  ACT NOT ENACTED**                                      |               |           |
| 33                                                                                        | Delhi             | 30                    | 0           | 30        | 7                                                              | 8             | 15        |
| 34                                                                                        | Lakshadweep       | 0                     | 0           | 0         | **APMR  ACT NOT ENACTED**                                      |               |           |
| 35                                                                                        | Puducherry        | 4                     | 5           | 9         | 4                                                              | 5             | 9         |
| **Total**                                                                                 |                   | **5964**              | **22759**   | **28723** | **2483**                                                       | **4631**      | **7114**  |
| **Note:- Based on Information received from various States/U Ts Authorities.**            |                   |                       |             |           |                                                                |               |           |

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