NEW DELHI: Nearly three years after repealing the reform-oriented farm laws due to farmers’ protest, Centre has now come out with a draft national policy framework on agriculture marketing suggesting states move towards a “unified national market for agriculture produce” through single licensing /registration system and single fee.
Allowing setting up of private wholesale markets; permitting wholesale direct purchase by processors, exporters, organised retailers, bulk buyers from farm-gate; declaring warehouses/silos/cold storages as deemed market; allowing establishment & operation of private e-trading platform; single time levy of market fees across the state; and rationalisation of market fee and commission charges are some of the other key suggestions of the government to reform the agriculture market.
The draft was released by the agriculture ministry last month seeking comments from stakeholders for wider consultations. It was prepared by a committee, set up under the chairmanship of Faiz Ahmed Kidwai, additional secretary (marketing) in the agriculture ministry.
Though states/UTs have started adopting one or the other such measures in limited or an uneven manner, the draft suggests uniformity across the country and pitches for constituting an “empowered agricultural marketing reform committee” of state ministers on the lines of such a committee on GST to push the states to adopt the reform provisions.
The draft notes that such a joint panel may help in building consensus among the states to move towards a unified national market, and suggests a “permanent secretariat” on the lines of the GST empowered committee.
It says the committee may consider proposing to bring a law for agricultural marketing, uniform market fee and such other issues for the benefit of farmers and barrier free agri-trade with an approach of “ease of doing trade”.
The draft emphasises that the key idea behind the proposal is to “build a vibrant marketing ecosystem in the country wherein farmers of all categories find a market of their choice to realise best price for their produce”.
Recognition of trading licenses of other state (reciprocity of trading license); de-regulation of perishables outside market yard; exemption of market fee on direct sale by farmers; & exemption of market fee on produce brought from other state for processing are some of the other suggestions of the draft policy.
Underlining importance of ongoing focus on creation of digital public infrastructure using block-chain technology, AI and machine learning for strengthening the supply chain processes right from farm to storage, the draft says that the mission of the proposal is to “put in place a mechanism to mitigate the uncertainties of market and price”.
As such, the draft proposal talks about development of an improvised version of e-NAM in form of Digital Marketing Portal as part of a larger market stack. It says in the changed marketing dynamics, there is a need for creation of end-to-end Value Chain Centric Infrastructure and digital infrastructure for “effective and transparent marketing delivery”. “VCCI will lead to integration of supply chains and reduction of transaction costs,” says the 39-page draft.
