Centre allocates Rs 200 cr for online farm market

The Cabinet Committee on Economic Affairs had on Wednesday approved a Central Sector Scheme for Promotion of National Agricultural Market through Agri-Tech Infrastructure Fund. "An amount of Rs 200 crore has been earmarked for the scheme from 2015-16 to 2017-18," an official statement said. The Department of Agriculture will set it up by <g data-gr-id="44">creation</g> of a common electronic platform deployable in selected regulated markets across the country.

"Now there will be one licence for <g data-gr-id="46">entire</g> state, there will be <g data-gr-id="47">single</g> point levy. There will be electronic auctions for price discovery. The impact will be that the entire state will become a market and the fragmented markets within the states would be abolished," Indian Finance Minister Arun Jaitley told reporters.

Under the scheme, 585 selected regulated markets would be covered. The plan is to cover 250 mandis in current fiscal, 200 mandis in 2016-17 and 135 mandis in 2017-18. "Seamless transfer of agriculture commodities within the state can take place. The market size for farmers would increase as he won't be limited to a captive market," Jaitley said. The Rs 200 crore allocations includes provision for supplying software free of cost by agriculture department to the states and UTs and for cost of related hardware/ infrastructure to be subsidised by the Centre up to Rs 30 lakh per Mandi (other than for private mandis).

Agriculture Secretary Siraj Hussain informed that Madhya Pradesh, Chattisgarh, Orissa, Jharkhand and Gujarat have already agreed to join the Scheme, while west-Indian state Maharashtra and south-Indian state Andhra Pradesh are "very keen" to <g data-gr-id="43">particuipate</g>. Besides, the Centre is also in discussions with north-Indian state Uttar Pradesh. Unifying the markets both at <g data-gr-id="55">state</g> and the national level would provide <g data-gr-id="56">better</g> price to farmers, improve supply chain, reduce wastages and create a unified national market through <g data-gr-id="57">provision</g> of the common e-platform, the statement said. 

The statement said 585 regulated markets across the country will be integrated with the common e-platform to provide farmers and traders with access to opportunities for purchase/sale of <g data-gr-id="42">agri</g>-commodities at optimal prices in a transparent manner. Private markets will also be allowed access to the e-platform thereby enhancing its outreach. 

Jaitley said: "Agriculture market is a state subject. There are a lot of restrictions on <g data-gr-id="51">movement</g> of agriculture produce in the country. There are 585 regulated markets for the entire country. Those people who are in the business of agriculture market, today there is market specific licence".

The Scheme would be applicable on <g data-gr-id="49">all-India</g> basis. "There is no state-wise allocation under the Scheme. However, desirous states would be required to meet the pre-requisites in terms of carrying out necessary <g data-gr-id="39">agri</g>-marketing reforms," as per the official statement.