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.
- 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?