Unifying National Agricultural Market-The Need Of Change
Post on 27,November 2015   2:00 AM
By - Miss. Smita Tiwari
views 1505
Bookmark and Share

The Government realises the importance of agricultural sector for the growth and development of the nation’s economy.  With nearly 58 per cent of its people continuing to depend upon agriculture for their livelihood, the critical role of the sector cannot be gain said.  

Agriculture sector is also highly vulnerable to the vicissitudes of nature that impact the crop enterprise at its production stage.  Further, the sector is also exposed to the current weaknesses of the agricultural marketing system.

The annual income of a farmer depends upon both yield and the price that his produce fetches.  While the Government has rolled out large number of programmes to improve yield levels on a sustainable basis, it recognises the need for creating a competitive market structure in the country that will generate marketing efficiency.  

Only when the market is integrated over space and time, can market efficiency be real.

  • When the food inflation is high in the country, the government resorts to practices like export bans or raids on hoarders to ease the situation. But they have little impact over the long run. Indian agriculture needs meaningful structural reforms.
  • The need to unify the markets both at State and National level is, therefore, clearly the requirement of time, in order to provide better price to farmers, improve supply chain, reduce wastages and create a unified national market. 


  • The existing Agricultural Produce Market Committee (APMC) Acts force farmers to sell their produce only to government-designated mandis.
  • Agents in APMCs often harass farmers by deliberately restraining from higher bidding.Produce is bought at lower price and is sold at very higher price.
  •  Multiple levy of mandi fees, requirement for multiple license for trading in different APMCs.
  • Licensing barriers leading to conditions of monopoly, poor quality of infrastructure and low use of technology, information asymmetry, opaque process for price discovery, high level of market charges.
  • The economic freedom of farmers is restricted as they are captured by local political elites. Chairmen and the members of APMCs are usually elected by agents, who are least bothered about farmers.

It was in this situation that the model APMC Acts were circulated to the states in 2003. But the model has remained a mere blueprint in many states. Even the states, who have implemented this act, have created entry barriers by prescribing either prohibitive license fees for setting up such markets, or the minimum distance between private markets and APMC markets. Thus, even this act has been partially successful.

Karnataka model: In this respect, Karnataka stands out from the other states. Its Rashtriya e Market Services Pvt. Ltd (ReMS), a joint venture with NCDEX Spot Exchange Ltd, is a good working example of what the model APMC envisaged.

What has been done ?

  • To ensure ease of doing business, it integrated 51 of the 155 main market yards and 354 sub-yards into a single licensing system.
  • For improving efficiency and transparency, it introduced automated auction and post-auction facilities (weighing, invoicing, market fee collection and accounting).
  • To guarantee quality, assaying facilities were made available in the markets.
  • In collaboration with NCDEX, it linked all APMCs in the state electronically, and enabled the discovery of a single state price for every commodity on a single platform.

How has this model helped?

  • It gave the farmer the power to accept, reject and bid the prices for his commodity on the basis of a transparent system.
  • It increased the revenues of APMCs.
  • It helped in effective management of its funds and assets, and curbed corruption.
  • It improved efficiency and transparency, and also ensued ease of doing business.
  • The Karnataka model can help resolve the issues of all the stakeholders. The other states need to learn from this model.

Recent initiatives by the centre in this regard: 

  • The Department of Agriculture & Cooperation in the Union Government’s Ministry of Agriculture is keen to increase the net returns of the farmer.  Hence, its emphasis is on creating an unified market, that is well integrated across the nation.Following successive Budget announcements of 2014 and 2015 on setting up an “Agri-Tech Infrastructure Fund” and on ‘Unified National Agriculture Market’ respectively, the Department of Agriculture & Cooperation has formulated the Central Sector scheme for Promotion of National Agriculture Market through Agri-Tech Infrastructure Fund (ATIF) through provision of the common e-platform. A budgetary provision of Rs.200 crores has been made to be spent over the next three years (2015-16 to 2017-18). 
  • Under the scheme, the Small Farmers’ Agribusiness Consortium will be the lead agency responsible for the development of the national agricultural market under the ministry of agriculture.
  • The scheme seeks to integrate 585 regulated markets in the country through a common e-platform. It will also allow access for private markets.
  • For integration with the national e-platform and eligibility for assistance under the scheme for promotion of National Agricultural Market, the states and Union territories will need to undertake three reforms. These include a single licence valid across the state, a single-point levy of market fee, and provision for electronic auction as a mode for price discovery.
  • Provisions are also being made for establishing soil testing laboratories in the Mandis. Big private mandis will also be allowed access to the e-platform for purposes of price discovery.  However they will not be supported with any funds for equipment / infrastructure.
  • The Scheme is applicable on All-India basis. There is no State wise allocation under the Scheme.

How this scheme would helpful ?

  • It provides farmers and traders access to opportunities for purchase/ sale of agri-commodities at optimal prices in a transparent manner across the country.  
  • Under the scheme, private markets will also be allowed access to the e-platform thereby enhancing its outreach.
  • It promotes free flow of agri commodities across the country and hence will result in greater farmer satisfaction as prospects for marketing of his produce would be significantly enhanced.
  • e-marketing platform should promote reform of the agricultural marketing sector and apart from promoting free flow of agri commodities across the country should result in greater farmer satisfaction as the prospects for marketing of his produce would be significantly enhanced.
  • It also provide farmers improved access to market related information and better price discovery through a more efficient, transparent and competitive marketing platform, which gives them access to a greater number of buyers within the State and from outside, through transparent auction processes.
  • It would also increase farmers’ access to markets through warehouse based sales and thus obviate the need to transport his produce to the mandi.

ConclusionAgriculture is in the state list of the Constitution, and the unified agricultural market can be executed only in collaboration with the states. The states have already taken the lead in policy innovation, be it labour laws in Rajasthan, land acquisition reforms in Tamil Nadu or land pooling for urbanization in Andhra Pradesh. The Karnataka model of agricultural markets reforms should be seen as a similar case—a state innovation that can guide the whole country.

Comments ( 0 )
Add a comment
Your name: *
The content of this field is kept private and will not be shown publicly.

Related Articles

Prelims Online Test Series
UPSC 2018 Prelims Test Series Registration Link

JPSC 2017-18 PRELIMS Test Series

Most Recent Comments
loans with bad credit loans for bad credit loans for bad credit personal loan for
by Payday Loan
redeem casascius bitcoin bitcoin ico the bitcoin blockchain explained how safe is bitcoin trading bitcoin compared to gold market cap bus service wellington airport to city best way to sell bitcoins dogecoin bitcoin litecoin pay by bitcoin uk bitcoins online shop bitcoin investment calculator india current market capitalization of bitcoin how to buy ethereum coin blockchain and bitcoins what is the value of one bitcoin in us dollars convert bitcoin back to cash bitcoin lompakko osoite i want to set up a bitcoin account bitcoin wallet import format bitcoin founders pool bitcoin exchange rate real time bitcoin facebook twins bitcoin tax forms bitcoin datadir mac bitcoin create wallet address bitcoin revenue share bitcoin send money fee win bitcoin online bitcoin inventor paper bitcoin to bitcoin cash exchange casascius bitcoin utility backup bitcoin wallet android buy bitcoins instantly without verification android bitcoin wallet will bitcoin go down this week how to buy bitcoin stock symbol ways to get free bitcoin who's buying bitcoins bitcoin atm cash withdrawal send bitcoin without transaction fee blockchain explorer hyperledger bitcoins market xapo bitcoin fork where to buy with bitcoin in south africa bitcoin how do you buy bitcoin atm locations bitcoin hash power biggest bitcoin exchanges in china bitcoin regulation us proof of work bitcoin explained how does bitcoin earn money bitcoin price live update bitcoin mystery price of bitcoin falling nyse bitcoin index (nyxbt) bitcoin value graph all time bitcoin dice simulator cryptocurrencies prices api bitcoin income calculator bitcoin atm edmonton south eur to bitcoin rate bitcoins stock chart how to find bitcoin atm online bitcoin wallet best current price of bitcoin in indian rupees buy bitcoin online with debit card cash for bitcoins japan bitcoin cash out how to make easy money with bitcoin bitcoin value 1 year new bitcoin wallets per day bitcoin electrum cash bitcoin billionaire mini time machine bitcoin technical chart can i withdraw money from a bitcoin atm how do i add money to my bitcoin account bitcoin chip maker how to get bitcoins anonymously transfer bitcoins bitcoin volume cap bitcoin anonymity implementation using bitcoin to transfer money out of china buy bitcoin gold in usa i want to buy bitcoin in nigeria best ways to make bitcoin bitcoin source of funds bitcoin transaction graphic today bitcoin price in usd how to deposit bitcoins in cryptopia how many bitcoins are there reddit best place to buy bitcoin gold bitcoin what is it worth sites that take bitcoins buy bitcoins best price what changes the value of a bitcoin how to get bitcoin for free bitcoin sales volume best bitcoin wallets reddit can you buy clothes with bitcoins bitcoin source of funds blockchain ios bitcoin guide australia who owns bitcoin blockchain instant bitcoin with debit card 50 bitcoin bitcoin on ebay uk bitcoin future trezor bitcoin cash bitcoin rewards card bitcoin local wallet bitcoin advertising sites 2 way bitcoin atm nyc bitcoin kickstarter bitcoin 2th/s black arrow prospero z x-3 bitcoin ethereum litecoin news gbp bitcoin exchange how do i convert bitcoin to dollars las vegas rtc schedule bitcoin bet sites how to invest in cryptocurrency stocks gbp to bitcoin cash proof of work bitcoin explained jaxx bitcoin & ethereum wallet legit paying bitcoin sites transactions bitcoin cash online currencies like bitcoin best bitcoin investment plan best ways to get free bitcoins trade cryptocurrency in usa bitcoin casascius ebay bitcoin address vs wallet anonymous bitcoins australia best bitcoin calculator who's buying bitcoins what is bitcoin in hindi paypal us to bitcoin bitcoin earning mobile apps bitcoin ico block explorer bitcoin gold bitcoins hashrate chart bitcoin explanation silk road bitcoin seized bitcoin supply schedule bitcoin technical chart chinese stock market crash bitcoin buying bitcoins in india bitcoin profit calculation what's so great about bitcoins sell bitcoins for cash in person bitcoin fees reddit bitcoin market depth chart bitcoin exchanger malaysia can i get bitcoins for free how much does a bitcoin atm charge find bitcoin atm near me mike hearn bitcoin linkedin bitcoinj guide cryptocurrency app reddit bitcoin rates chart for the last 2 years best bitcoin market exchange bitcoins today news bitcoin new yorker the d las vegas bitcoin atm bitcoin conference nyc 25 bitcoin convert dogecoin bitcoin bitcoin price chart analysis altcoin news reddit where to earn bitcoins free blockchain stats org free bitcoin index bitcoin ticker api bitcoin how to get sender address pboc bitcoin ban bitcoin templates bitcoin beginners podcast bitcoin exchange marketplace how do i buy bitcoins in the uk bitcoin signals indicator how blockchain works under the hood how to add money to your bitcoin wallet fidelity bitcoin etf ripple vs bitcoin vs litecoin vs ethereum best bitcoin exchange uk how bitcoin address is generated china bitcoin exchange to stop trading how to convert bitcoins to cash bitcoin price rise again imperial monarch bitcoin bitcoin risc processor bitcoin rig buy apple products with bitcoin bitcoin chart live inr bitcoin event calendar bitcoin exchange marketplace bitcoin exchange in mexico buy bitcoin bank transfer bitcoin vancouver atm altcoin news reddit whats bitcoin fork are bitcoin and blockchain technology the future
by Ellen
loan cash loan cash online payday loans instant approval online payday advance loan loans online bad credit bad credit payday loans direct lenders online loans direct lenders direct lenders online loans live porn cams live porn cams bbw live cams cam live porn sex chat sex chat room live cams sex chat research paper titles write essay essay writing critical essay
by Jamesliamy

This is best Test Series. Last year I took it and helped me to score 120+ In BPSC . This year also enrolled and I'm sure it definitely give me edge. Highly recommended.

by Pranjali Sukla

Dear Student your login credentials is your registred phone number as password and your registred email id as under id.



by PolyEyes Help Desk

Hi...I have deposited registration fees for BPSC test series but till today not gate registration no.and payment confirmation. Plz send all details about BPSC test and procedure.

by Nurullah Khan

Answer to Question No. 149 is (a)203 kwh . Kindly go through economic survey of Bihar (2015-16).

by Ashish

ANy vacancy in cecreteriate? 

by Shahbaz Ahmad

I want to know that when the bpscexam will held likewise 60 62 exam


by Abhi
Get RSS Feeds
  • All Stories
  • Recently Published Stories
  • Most Viewed Stories
  • Just In Photos
  • Most Viewed Photos