ROLE OF e- NAM , e-PASHUHAAT & APLM ACT IN DOUBLING LIVESTOCK FARMER’S INCOME
by-DR RAJESH KUMAR SINGH ,JAMSHEDPUR,JHARKHAND, INDIA,
9431309542,rajeshsinghvet@gmail.com
National Agriculture Market (NAM) is an electronic trading portal that networks the existing APMC mandis all over India in order to create a unified national market for agricultural commodities. National Agriculture Market (NAM) through Agri-Tech Infrastructure Fund (ATIF) also known as e-NAM scheme was approved in July 2015 and was launched
on April 14 2016 as a portal. It is the objective to usher in reform of the agri marketing system and to provide farmers / producers with access to markets across the country. The scheme envisages implementation of the NAM by setting up of an appropriate common e-market platform that would be deployable in selected 585 regulated wholesale markets in States / UTs desirous of joining the e-platform.
NAM portal extends a single window service for all APMC related information and services. This includes buy & sell trade offers, provision to respond to trade offers, and commodity arrivals & prices. While online market reduces transaction costs and information asymmetry, the flow of agricultural produce will continue to happen through mandis.
How does eNAM work?
Administration of agriculture marketing is carried on by the respective states as per their agri-marketing regulations. Every State is further divided into several market areas. These separate areas formed will be administered by a separate Agricultural Produce Marketing Committee (APMC) which imposes its own marketing regulation.
This fragmentation of markets even within the State level, hinders free flow of agri-commodities between different markets.
What Challenges does eNAM Address?
Multiple handling of agri-produce and multiple levels of mandi charges result in escalated prices for the consumers without equivalent benefit to the farmer
These challenges are addressed by NAM by creating a unified market through online trading platform both for State and National level. This approach,
Promotes uniformity and streamlining of procedures across the integrated markets
Promotes real time price discovery based on actual demand and supply
Removes information asymmetry between buyers and sellers
Promotes transparency in auction process
Promotes access to a nationwide market for the farmer along with prices commensurate with quality of his produce
Promotes online payment and availability of better quality produce at reasonable prices to the consumer.
What are the Objectives of eNAM?
• To establish a national e-market platform for transparent sale transactions and price discovery initially in regulated markets. To make sure that willing States enact suitable provisions in their APMC Act for promotion of e-trading by their State Agricultural Marketing Board/APMC.
• Liberal licensing of traders / buyers and commission agents by State authorities without any pre-condition of physical presence or possession of shop /premises in the market yard.
• To provide one license for a trader valid across all markets in the State.
• Harmonization of quality standards of agricultural produce and provision for assaying (quality testing) infrastructure in every market to enable informed bidding by buyers.
• Single point levy of market fees, i.e on the first wholesale purchase from the farmer.
• Extend provision of Soil Testing Laboratories near the selected mandi to facilitate visiting farmers to access this facility in the mandi itself.
eNAM Stakeholders
National Agriculture Market is beneficial to every stakeholder involved in the process.
Mandis———-
There are a lot of benefits to the Mandis in the National Agriculture Markets. They are,
• A reduction in book keeping and reporting system as they are now generated automatically.
• Better monitoring and regulation of traders and commission agents.
• Completely transparent system eliminating scope of intentional/un-intentional manipulation of tendering / auctioning process.
• By means of accounting all the transactions that are taking place in the market, market fee collection is improved.
• As tendering/auctioning process takes place through the system, manpower requirement is reduced.
• Analysis and forecasting of the arrivals and prices.
• Availability of the activities of each APMC on the government website directly.
Farmers
• NAM provides improved and increased options for selling produce and making competitive returns.
Traders
• NAM provides access to larger national markets for secondary trading.
Buyers, Processors & Exporters
• NAM will enable direct participation in the local mandi trade, reducing intermediate costs.
How can States Avail eNAM Facilities?
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
(iii) Provision for electronic auction as a mode for price discovery.
Only the States/Union Territories that have completed these 3 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 enable the promotion of the e-auction platform. The States will need to ensure that the mandis that are integrated with NAM makes provision for requisite online connectivity, hardware and assaying equipment.
How does NAM operate?
The NAM electronic trading platform has been created with an investment by the Government of India (through the Ministry of Agriculture & Farmers’ Welfare). It offers a “plug-in” to any market yard existing in a State (whether regulated or private). The special software developed for NAM is available to each mandi which agrees to join the national network free of cost with necessary customization to conform to the regulations of each State Mandi Act.
The national level platform has been developed by the Ministry of Agriculture & Farmers’ Welfare, which will also bear the maintenance costs. As stated above, the integration costs for local mandis and customization of software, training etc. will also be paid for by the Ministry of Agriculture & Farmers’ Welfare as a one-time grant at the time of accepting the mandi in the national network.
Thereafter, the running costs of the software at the local level, staff costs for quality check etc. will be met from the transaction fee to be generated through the sale of produce. The intention is to avoid any upfront investment by the mandi when it integrates into NAM, and also enable it to support the running cost through additional generation of revenue.
Ministry of Agriculture & Farmers’ Welfare, Govt. of India has appointed Small Farmers’ Agribusiness Consortium (SFAC) as the Lead Implementing Agency of NAM. SFAC will operate and maintain the NAM platform with the help of a Strategic partner selected for the purpose.
Benefits of Enam———
NAM is envisaged as a win-win solution for all stakeholders.
For the farmers, NAM promises more options for sale at his nearest mandi.
For the local trader in the mandi, NAM offers the opportunity to access a larger national market for secondary trading.
Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi level through the NAM platform, thereby reducing their inter-mediation costs.
The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licenses, levy of fee and movement of produce.
In the near future we can expect significant benefits through higher returns to farmers, lower transaction costs to buyers and stable prices and availability to consumers.
The NAM will also facilitate the emergence of integrated value chains in major agricultural commodities across the country and help to promote scientific storage and movement of agri-commodities.
The main Benefits of Trading on NAM
• Transparent Online Trading
• Real Time Price Discovery
• Better Price Realization For Producers
• Reduced Transaction Cost For Buyers
• Stable Price and Availability to Consumers
• Quality Certification, Warehousing, and Logistics
• More Efficient Supply Chain
• Payment and Delivery Guarantee
• Error Free Reporting of Transactions
• Enhanced Accessibility to the Market
APLM–Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017
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The model Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017 was presented in April 2017 and seeks to replace APMC act
Agricultural marketing is a state subject and the centre can only advise states to free up agricultural trade. Currently, agricultural marketing in states is governed by their respective Agricultural Produce Market Committee (APMC) Acts. But the acts has many flaws that are adversely affecting both producers and consumers. Some of the flaws are
• In most states, the existing acts do not allow unrestricted trade of farm produce, curtailing farmers’ freedom to sell.
• At Present farmers can sell their produce at regulated APMC mandis only. This creates monopoly in agriculture market which is loss to both farmers and consumers.
• Currently it is difficult for farmers to get trading license from the mandis which is managed by a board of traders
To control flaws in previous APMC acts, The Agriculture Ministry has come up with Agricultural Produce and Livestock Marketing (Promotion and Facilitating) Act (APLM), 2017. It has following provisions
• The act proposes single-point levy of market fee across a State and a united single trading licence for cost-effectiveness of transactions.
• Under the new model law, traders will be able to transact in all markets within a state by paying a single fee and sell fruits and vegetables outside existing wholesale markets.
• The new act seeks to end the monopoly of APMC and allow more players to set up markets and create competition so that farmers can discover prices and sell their produce accordingly.
• It allows Public Private Partnership in the ‘management and development’ of agricultural markets in the country.
• The new act caps market fee (including developmental and other charges) at not more than 1 per cent for fruit and vegetables, and 2 per cent for food grains. It caps commission agents’ fee at not more than 2 per cent for non-perishables and 4 per cent for perishables.
Further, the new act withdraws the power to issue trading licences from the mandis managed by a board of traders and vests it with the state’s director of agriculture marketing.
E-Pashu Haat
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E-Pashu Haat is a web portal launched by the Ministry of Agriculture and Farmers Welfare under the scheme “National Mission on Bovine Productivity.” Livestock resources and their productivity play an imperative role in India’s rural economy. India has the largest bovine population and dairying activities act as a subsidiary source of income for farmers who rear livestock in addition to farming.
E-Pashu Haat is an extensive portal, which provides information on pet cattle, trading of bovine animals that were not offered on any other platform in the country.
Objectives of E-Pashu Haat Portal:
• To facilitate E-Trading Market portal for livestock germplasm and additional related services.
• To enable farmers to connect directly with breeders – Central, State, Co-operative and private agencies.
• Minimize malpractices in animal trading by rendering authentic certified information on the availability of germplasm
• To act as a centralized information repository for Central and State Governments.
Aims and objectives
The portal aims to be a
1. E-Trading Market portal for livestock germplasm and additional related services.
2. Will connect farmers with breeders – Central, State, Co-operative and private agencies.
3. Real time authentic certified information on availability of germplasm.
4. Centralized repository of information for Central and State Governments.
Services offered
• Provides direct access to the farmers/ breeders to various organizations/sources wherein frozen semen, embryos and livestock certifications are available.
• Connects farmers to 56 semen stations ( 20 states), 4 Central Herd Registration Scheme (CHRS) ( 4 States) and 7 Central Cattle Breeding Farms (CCBFs) ( 6 states) in the country.
• Provides details like, animal / frozen semen ID, progeny particulars (sire directory), rates and other terms & conditions.
• Farmers can directly get the details like address, contact numbers, photo gallery etc . of individual Institutes / Agriculture universities in States.
Outcomes
Major outcomes of the scheme are:
• Propagation of quality controlled germplasm;
• Availability of disease free germplasm with known genetic merit
• Price evaluation available to buyer
• One stop portal for bovine breeders
• No involvement of middlemen in sale and purchase of animals
• Sale only of tagged animal with animal wellness card
• Propagation of indigenous bovine breeds in the country
• Increase in milk production and productivity
Help desk
To get more information, users can call the toll free number 1800-8437-100.
Farmer Producer Organisations—————
A group of farmers who are actually involved in agricultural production and have a common interest in pursuing agribusiness activities can form a group in a village or a cluster of villages and apply for a registration of a Farmer Producer Company under the relevant Companies Act.
Benefits to farmers by forming FPO—-
• As a cohesive group, farmers as members of the FPO will have better bargaining power which can be leveraged to buy or sell commodities at competitive prices.
• Aggregation of agricultural produce for better marketing opportunities. Trading in bulk saves farmers on associated expenditures like processing, storage, transportation etc.
• FPOs may take up activities for value addition like sorting/grading, packaging, basic processing etc. which fetch a higher price for the farmers’ produce.
• FPO formation facilitates utilization of pre and post harvest infrastructure like green houses, mechanized farming, cold storage, agri-processing etc.
• FPO can expand its business activities by opening of input stores, custom centres etc. through which its member farmers can get subsidised inputs and services.
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Contact defails for applying for FPOs
Generally, FPOs are promoted under various Central Sector Schemes operated in the States by the Departments of Agriculture, Cooperation & Farmers Welfare. Farmers interested in forming an FPO may contact the Director of the concerned Department/Small Farmer Agri-business Consortium.
Conclusion
There are several arguments that rise up complaining the working of eNAM. But I feel that this approach has the capability to bring in a revolution in the Indian market places provided the government takes prime care with the implementation.
Mandis have completely shifted to online auctions in Suryapet, Telangana. Not only in Telangana, farmers in Dausa district of Rajasthan, which shifted to online auction in February 2017, are benefiting from the eNAM service. So far, 72.12 lakh farmers, 53,130 commission agents and over 1 lakh traders are registered on the eNAM platform from 14 states.
The 14 states include Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand.
The Centre announced that 22,000 rural markets would be linked to the Electronic National Agriculture Market (e-NAM) by 2020 as part of its drive to double the income of farmers.
22,000 rural haats will be upgraded to Gramin Agricultural Markets and linked with the e-National Agriculture Market to enable farmers sale directly to potential buyers,
Given the resistance to the model APMC law of 2003, the Union government has introduced a model agricultural produce and livestock marketing (APLM) law, 2017 that is intended to replace the existing APMC Act, and allow a single market within a state, freeing farmers to trade at private wholesale markets, allowing them to sell directly to bulk buyers, and promoting trading on the electronic national agriculture market (eNAM).
It will be a great move in the direction of doubling farmers income by 2022.
