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

The need for unifying agricultural marketsop-ed snap

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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