Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

The need for unifying agricultural markets

  1. First, to ensure ease of doing business, it integrated 51 of the 155 main market yards and 354 sub-yards into a single licensing system.
  2. Second, for improving efficiency and transparency, it introduced automated auction and post-auction facilities.
  3. Third, to guarantee quality, assaying facilities were made available in the markets.
  4. Finally, It linked all APMCs in the state electronically, and enabled the discovery of a single state price for every commodity on a single platform.

A unified market will bring uniformity in prices across states

Lessons from Karnataka APMC model

  • First, to ensure ease of doing business, it integrated 51 of the 155 main market yards and 354 sub-yards into a single licensing system.
  • Second, for improving efficiency and transparency, it introduced automated auction and post-auction facilities (weighing, invoicing, market fee collection and accounting).
  • Third, to guarantee quality, assaying facilities were made available in the markets.
  • Finally, 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 does integration with the national e-platform is possible by reforms?

  • A single licence valid across the state,
  • A single-point levy of market fee
  • A provision for electronic auction as a mode for price discovery.

Way forward

  • As agriculture is a state subject, 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 New Delhi.

Will the unified national agricultural market help to rein in food inflation?

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