“INCENTIVES PROPOSED FOR MODERNISING AGRICULTURAL MARKETING”

Why in the news?

  • The Economic Survey recommends financial incentives for states to modernise agricultural marketing.
  • 15th Finance Commission suggests providing ₹50,000 crore in incentives to states for modernising agricultural marketing.
  • Encourage adoption of agricultural reforms and improvement in infrastructure.
  • Implementing e-National Agriculture Market (e-NAM), supporting Farmer Producer Organizations (FPOs), and enhancing market infrastructure.
source:scribd

Government Initiatives for modernising agricultural marketing:

  • Urea Subsidy: Supports farmers with urea subsidies.
  • Agriculture Export Policy, 2018: Facilitates agricultural product exports.
  • PMFBY: Crop insurance for financial protection.
  • AGRI-UDAAN: Mentors agri-startups and investors.
  • PMKSY: ₹50,000 crore for irrigation development.
  • Food Processing Expansion: Tripling sector capacity, ₹6,000 crores committed.
  • 100% FDI: Allowed in food marketing and e-commerce.
  • e-RaKam: Platform for selling agricultural produce.
  • e-NAM: Unified national market for agricultural commodities.
  • PM-AASHA: Ensures remunerative prices for farmers.
  • PM-KISAN: Direct income support to farmers.
  • Farm Laws 2020: Reforms for market access and trade liberalisation.
About Farmer Producer Organizations (FPOs):

  • Definition: Voluntary groups controlled by farmer-members, with active participation in policy and decision-making.
  • Inclusivity: Open to all, without discrimination.
  • Training: Provides education for effective development.
  • Success: Notable achievements in Gujarat, Maharashtra, and Rajasthan, including higher produce returns.

About e-National Agriculture Market (e-NAM):

  • Launch: April 14, 2016, funded by the Indian Government.
  • Implementing Agency: SFAC under the Ministry of Agriculture.
  • Objective: Unify agricultural markets for transparent price discovery and online payments.

Features:

  • Showcases products and facilitates remote price quoting.
  • Single-window services for APMC-related information and e-payments.
  • Simplified licensing for traders and agents.
  • Harmonised quality standards and soil testing.

Benefits:

  • Transparent trading and real-time price discovery.
  • Reduced transaction costs and quality certification.
  • Efficient supply chain and direct online payments to farmers.