Department of Agriculture and Cooperation’s e-Platform

Department of Agriculture and Cooperation’s e-Platform

Question - Department of Agriculture and Cooperation is increasing net returns of farmers through the creation of a unified market. Discuss how the e-platform is being used to integrate agri-markets across the nation.

Department of Agriculture and Cooperation is increasing net returns for farmers through the creation of a unified singular agricultural market

- Agri Tech Infrastructure Fund and Unified National Agricultural Market have been followed by central sector schemes for promoting national agricultural market through ATIF and a common e-platform

- Integrating agri markets across the e-platform will overcome the following difficulties being faced by farmers

- Fragmentation of State into multiple market areas, each administered by separate APMC,

- 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, movement controls, etc.

- At both state and central level efforts are on to ensure the following:

- Better price to farmers,

- Improvement of supply chain,

- Reduced wastage

- Creation of a unified national market.

- Scheme also envisages establishment of a National Agriculture Market through the SFAC through creation of common electronic platform across markets in the nation which are regulated

- Budgetary allocation of INR 200 crores has been made for spending over the next 3 years

- An appropriate and common e-platform across 585 regulated wholesale markets in states and UTs will be formed

National e-platform will be implemented in three phases:

- 250 Mandis: 2015-2016

- 200 Mandis: 2016-2017

- 135 Mandis: 2017-2018

- The Department of Agricultural Cooperation will provide grant subject to ceiling of INR 30 lakhs per mandi for related equipment regarding installation of the e-platform across regulated markets

- Large private mandis will also access the e-platform for price discovery

- States must undertake the following reforms to be eligible under the scheme:

- Single license valid across the State

- Single point levy of market fee

- Provision of e-auction for price discovery

Facts and Stats

- e-Marketing platform will promote reform of the agricultural marketing sector and free flow of agri commodities across the nation

- It will also increase the access of the farmer to markets via warehouse based sales

- DAC has set up an expert group under former Chairman of CACP, Shri Ashok Gulati to oversee this

- SFAC has been tasked to lead the responsibility for appointment of a transaction consultant via a transparent selection process

- The e-auction platform of Karnataka is serving as a model for this scheme

- Greater wealth at micro level and higher income at farmer level is the aim of the e-platform