Make National Agri Market inclusive for small farmers

The recently announced National Agricultural Market aims to bring about a unified market through networking of mandis to facilitate seamless flow of goods and information.

This may not alter the State- dominated existing agricultural marketing structure; but it calls for redefining their role and functions to make the concept more inclusive for farmers.

The networking of markets is expected to enhance access to the market by farmers.

However, the fear of rejection will be one of the greatest entry barriers for small and marginal farmers.

The national market has the potential to offer better price to the farmer subject to the product being properly graded, certified and packed.

Small farmers with low risk appetite may be apprehensive of rejection of their produce in in terms of quality, certification, packing, etc for participation. Hence, training and skill development has to be an integral part of the national market to make it inclusive for farmers.

Too much emphasis on technology and networking and a failure to adopt sufficient measures to integrate farmers with the system may actually lead to their exclusion as has been observed in case of introduction of e-auction of cardamom in Kerala.

The farmer operates in markets under a specific social milieu with linkages to traders and institution.

Small and marginal farmers with limited risk taking ability, lack of understanding of the system and poor access to formal credit may be vulnerable to alienation from the market.

Bringing the farmers out of this oppressive social matrix is going to be a challenge. This will require snapping ties with commission agents and building relationships with institutions like banks, warehouses, markets, etc.

The availability of information like prices and arrivals defines the decision making capabilities of the farmers.

Those with access to information will take better informed decisions.

The efficient delivery of the information generated by the e-platform run national market on real time basis may help improve the market access by farmers.

The markets have to understand their new role related to making available market information and intelligence. The success of the National Market to a great extent will depend on the ability of the existing Agricultural Produce Market Committees (APMCs), enjoying the complete control of the system, to accept the concept and manage the changes introduced by the system in role and functions of the market.

Firstly, it is important to understand that the National Market speaks about electronic price discovery based on the grades.

The introduction of the market is not about creating a parallel system but to make the existing system more competitive, transparent and balanced for all the participants mainly farmers.

The new market in its existing format does not alter the existing basic structure of the market. It is introduced only to facilitate inter-state cooperation, barrier free movement of agricultural commodities and enhance farmer’s participation.

Besides equipping the markets with e-infrastructure, the markets have to be service oriented to act as a facilitator for farmers to make the national market inclusive.

The writers are associated with CCS National Institute of Agricultural Marketing, Jaipur. Views are personal.