Question

Q20. Consider the following statements about NAM scheme:

1. Under the NAM scheme, the Small Farmers’ Agribusiness Consortium will be the lead agency responsible for the development of the national agricultural market under the ministry of agriculture

2. Under the scheme, private markets will not be allowed access to the e-platform thereby enhancing its outreach.

Which of the above statements are correct?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) Neither 1 nor 2

Answer 1

The correct option is A

a) 1 only

National Agricultural Market (NAM)

• The scheme for setting up of a NAM through an Agri-Tech Infrastructure Fund (ATIF) with a budget of Rs. 200 crore.
• Under the NAM scheme, the Small Farmers’ Agribusiness Consortium will be the lead agency responsible for the development of the national agricultural market under the ministry of agriculture.
• The scheme seeks to integrate 585 regulated markets in the country through a common e-platform. It will also allow access for private markets.
• For integration with the national e-platform and eligibility for assistance under the scheme for promotion of National Agricultural Market, the states and Union territories will need to undertake three reforms. These include a single license valid across the state, a single-point levy of market fee, and provision for electronic auction as a mode for price discovery.
• The Scheme is applicable on All-India basis. There is no State wise allocation under the Scheme.

How this scheme would help?

• It provides farmers and traders access to opportunities for purchase/ sale of agri-commodities at optimal prices in a transparent manner across the country.
• Under the scheme, private markets will also be allowed access to the e-platform thereby enhancing its outreach.
• It promotes free flow of agri commodities across the country and hence will result in greater farmer satisfaction as prospects for marketing of his produce would be significantly enhanced.
• It also provide farmers improved access to market related information and better price discovery through a more efficient, transparent and competitive marketing platform, which gives them access to a greater number of buyers within the State and from outside, through transparent auction processes.
• It would also increase farmers’ access to markets through warehouse based sales and thus obviate the need to transport his produce to the mandi.
• Improve supply chain and Reduce wastages.

Benefits

• improvement in competitiveness and efficiency in agricultural markets,
• elimination of traders’ cartels and price manipulations by local trading groups, and
• Lower price spread between producers and consumers as well as surplus and deficit states.
• Increase operational efficiency and transparency in the mandi operations

Producers will get better price realisation, while consumers can expect benefit from the lower price spread