DOMAIN - IV: CREDIT, COOPERATION & MARKETING
11. REFORMS IN AGRICULTURAL MARKETING–
11.3 Critical issues
11.3.1 In order to facilitate both unification of market and online trading, it is necessary for the States to undertake reforms prior to seeking assistance under the scheme in respect of (i) a single license to be valid across the State, (ii) single point levy of market fee and (iii) provision for electronic auction as a mode for price discovery. Only those States/UTs that have completed these three pre-requisites will be eligible for assistance under the scheme. The States must ensure that the reforms are carried out both in letter and spirit through appropriate and unambiguous provisions in the APMC Acts and rules. Besides the State Marketing Boards, APMCs must be enabled to promote the e-auction platform. The reform status in respect of these three reform provisions as provided in the respective States‟ APMC Acts is at Annexure-II.
11.3.2 The States will also need to ensure that the mandis that are integrated with NAM provide for 100% online trading of the selected agri-produce. They will also make provision for requisite online connectivity, hardware and assaying equipments.
11.3.3 Benefits of NAM
11.3.3.1 Once this system is implemented, it will provide a number of benefits to various stakeholders of the system.
For farmers NAM promises more options for selling their produce and competitive returns.
For local traders, NAM will provide access to larger national market for secondary trading.
For bulk buyers, processer, exporters, NAM will enable direct participation in the local mandi trade reducing intermediation cost.
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Stable prices and availability to consumer.
For mandis, the benefits will be in terms of Reduction in book keeping and reporting system, which would be generated automatically; Better monitoring and regulation of traders and commission agents; completely transparent system which will not provide any scope of intentional/un-intentional manipulation of tendering / auctioning process; improvement in the market fee collection by means of accounting all the transactions that are taking place in the market; Reduction in manpower requirements as tendering / auctioning process takes place through the system; This system will help to declare the tenders for the LOTs within few seconds even for thousands of LOTs in the market; Analysis and forecasting of the arrivals and prices; post the activities of each APMC on the web-site directly
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ANNEXURE-I LIST OF COMMODITIES TO BE TRADED ON NAM FOR WHICH TREADABLE
PARAMETERS HAVE BEEN PREPARED
S.No. COMMODITY
1. WHEAT
2. MAIZE
3. CHANA
4. CASTOR SEED
5. JWAR
6. BAJRA
7. BARLEY
8. GROUNDNUT
9. SOYABEAN
10. MUSTARD SEED
11. PADDY
12 ARHAR
13. URAD
14. MASOOR
15. MOONG
16. REDCHILLI
17. CUMIN
18 COTTON
19. POTATO
20. ONION
21. APPLE
22. TURMERIC
23. Shelling peas
24. Tamarind
25. Mahua
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ANNEXURE-II PROVISION IN STATE APMC ACTS IN RESPECT OF:
(a) a single license to be valid across the State, (b) single point levy of market fee and
(c) provision for electronic auction as a mode for price discovery.
State E-
trading
Single Point Levy (SPL) of market fee
Unified Single License (USL)
Remarks
1 Andhra Pradesh Yes Yes Yes --
2 Arunachal Pradesh
No No No --
3 Assam No No No --
4 Chhattisgarh Only e- auction is provide d
Yes Yes Under Section 36(3) (ii) only e- auction is provided, which is sufficient for NAM State has not yet notified detailed rules there under.
5 Delhi No No No --
6 Goa Yes Yes Yes --
7 Gujarat Yes Yes Yes --
8 Haryana Yes No Yes State needs to notify the rules for e-trading and USL and also make for provision for SPL in the APMC Act and simultaneously notify rules.
9 Himachal Pradesh
Yes Yes Yes While under Section 39 (3)(iii)- Powers and Functions of APMC, e-trading is provided , however there is a need for detailed rules 10 Jharkhand Yes Yes No Rule No. 146 clearly provides for Private e-trading referring Section-5 (Private market) of the APMC Act, while e-trading has not appeared in the Act.
However, provision is sufficient.
Provisions for USL are not provided.
11 Karnataka Yes Yes Yes --
12 Madhya Pradesh
Yes Yes Yes Under Section 32 (A) read with Section 79 , detailed rules are notified in 2009 for issue of Special License to traders desiring to trade in more than one market area by establishing
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purchase centres and commodity exchanges for e- trading
13 Maharashtra No No Yes Though no specific provision for e-trading exists, however, State has issued licenses to commodity exchanges under direct marketing clause. Further, SPL for general trading does not exist while for specific purposes (export & processing), it exists.
14 Meghalaya No No No `-
15 Mizoram Yes Yes Yes Since under Section 26 (5) - Powers and Functions of APMC, e-trading is provided, therefore, there is a need for detailed rules.
Further, rules for all amended provisions need to be notified.
16 Nagaland No Yes Yes Rules for all amended provisions need to be notified.
17 Odisha No No No Licenses to commodity
exchanges have been issued under private market clause.
State needs to make detailed rules for e-trading. Further, State needs to make provision for SPL and USL also.
18 Punjab No Yes No --
19 Rajasthan Yes Yes Yes --
20 Tamil Nadu No No No Provisions for e-trading, SPL and USL need to be made and simultaneously rules be notified.
21 Telangana Yes Yes Yes --
22 Tripura No No No Provisions for e-trading, SPL and USL need to be made and simultaneously rules be notified.
23 Uttarakhand Yes Yes NO While e-trading is provided under Section 26 (2) (ix) - Powers and Functions of APMC, however, detailed rules need to be notified. Further, rules for all amended provisions need to be notified. Provision for USL in the APMC Act does not exist.
24 Uttar Pradesh Yes (?) Yes Yes (?) E- Trading is mentioned in
“Definition” of the Act only but has not appeared in body of the Act. Single unified license is for primary trade not for secondary trade. Rules are also not
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notified.
25 West Bengal No No No --
26 Chandigarh (UT)
No Yes No --
27 Andaman & Nicobar Islands No AMPC Act 28 Dadar &Nagar Haveli NO APMC Act
29 Daman and Diu NO APMC Act
30 Lakshdweep NO APMC Act
31 Puducherry APMC Act not implemented
32 Bihar APMC Act repealed in 2006.
33 Jammu & Kashmir APMC Act not implemented.
34 Kerala No APMC Act.
35 Manipur No APMC Act.
36 Sikkim APMC Act not implemented
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12. IMPROVING ACCESS OF FARMERS TO INSTITUTIONAL