AGRI PRODUCE MARKETING IN INDIA

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 AGRI PRODUCE MARKETING IN INDIA

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• Mandis: India has over 28,000 small and large mandis across rural hinterland of which nearly 7,557 are regulated under the respective State APMC Acts. (principal – 2,428; sub-markets – 5,129) 
• APMC: It means the Agricultural Produce & Livestock Market Committee established under the provisions of APLM Act. 
• APMC Yard: Agricultural Produce Market Committee (APMC) Yard / Regulated Market Committees (RMC) Yard is any place in the market area managed by a Market Committee, for the purpose of regulation of marketing of notified agricultural produce and livestock in physical, electronic or other such mode. 
• FPO: A Farmer Producer Organization is a group of farmers (the producers of agricultural products). To facilitate this process, the Small Farmers’ Agribusiness Consortium (SFAC) helps the State Governments. FPOs act as aggregators for member farmers, including from inputs to output which will enhance the economy of scale and bargaining power. (There are more than 14 cr farmers in India, and 85% are small and marginal)
• SFAC: The Small Farmers’ Agribusiness Consortium is a financial consortium specialize in agri financing, agriculture loan, finance in agriculture, agricultural finance & agriculture bank loans in India.
• FPO and e-NAM: FPOs/ FPCs can act as an aggregator for its member and sell through e-trading as one/ multiple lot depending upon requirment. Payment will be done directly to the FPO/ FPCs bank account. In turn FPO/ FPCs can distribute among members.
• eNAM and Mandis: e-NAM is not a parallel marketing structure but a way to create a national network of physical mandis which can be accessed online. It enables buyers situated even outside the Mandi/ State to participate in trading at the local level.
• Reforms in APMC: To integrate APMCs or mandis with NAM, states have to reform their APMC Acts –

1. Single trading license (Unified) to be valid across the state
2. Single point levy of market fee across the state, and 
3. Provision for e-auction/ e-trading as a mode of price discovery.

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