Enabling a national market in agriculture: Components of a national market and related legal issues





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Published on May 17, 2016

Speaker: Devesh Roy, International Food Policy Research Institute (IFPRI).
The proposed National Agricultural Market (NAM) in India is conceived as a nationwide electronic trading portal that would create a network of wholesale markets (mandis) and market yards. Structured as a virtual market place, to a large extent like existing models of ecommerce, identically it requires the back end support that takes the form of both infrastructure as well as institutions. NAM envisions one license for the entire state and a single point levy. Further, it envisages electronic auctions for price discovery. With these provisions, it is expected that seamless transfer of agriculture commodities within the state and beyond can take place thereby expanding the market for farmers and traders.

With this background the speaker addresses the following questions with regard to NAM. How far do indicators suggest a basis for NAM? Does the current state of market exhibit lack of effective integration and in which commodities? What are the elements of the NAM on the backend? To what extent are the attributes of the existing marketing infrastructure such as backend support suited for the NAM? What changes in the backend (infrastructure and institutions) would be needed to make NAM effective?


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