Mandi system in India

Mandis or physical, primary agricultural markets are old and ubiquitous institutions of economic life in many parts of India. Wherever they form, they are usually dense sites of economic, social and political activity, connecting and shaping the relations between town and countryside, and between local markets for commodities and larger, national and global circuits of capital and commerce.

According to available estimates, there are over 7500 regulated agricultural markets in India today, operating under different state level acts covering a huge variety of notified agricultural produce.

The three contentious ‘farmers’ Bills have grabbed eyeballs even in the middle of the novel coronavirus disease (COVID-19) pandemic.

The monopoly of mandi is being challenged, and people want direct marketing – buyers buying directly from the farmers to be allowed.

Key Highlights Mandi system in India:

• In amending the Essential Commodities Act, the Centre has finally acknowledged that India has transitioned from a food-scarce economy, to a net exporter of food

• Farmers are no longer compelled to sell their produce only to designated mandis

• Under the new framework, farmers will be able to agree fixed prices with wholesalers, processors, retailers, aggregators and exporters at the time of sowing                                                  

Benefits of Liberalising Mandis:

• The Act permitted the government to intervene in commodity markets, and set price ceilings with a view towards ensuring affordability. 
• farmers are no longer compelled to sell their produce only to designated mandi.
• Farmers will be able to agree fixed prices with wholesalers, processors, retailers, aggregators and exporters at the time of sowing. 
• As long as quality standards are met, buyers will be able to procure the produce upon harvest at a later date.
•  A “separate dispute resolution mechanism” has also been outlined which will allow farmers to take their grievances to a licensed district authority. 
• India’s farmers are the lifeblood of the nation’s food system and the latest measures to de-regulate the agricultural industry will only serve to alleviate their plight.

e- NAM:

• One thousand Mandis joining the e-NAM platform for marketing of Agricultural produce.
• The 200 markets integrated with the e-NAM platform today are as follows: Andhra Pradesh (11 mandis), Gujarat (25 mandis), Odisha (16 mandis), Rajasthan (94 mandis), Tamil Nadu (27 mandis), Uttar Pradesh (25 mandis) & Karnataka (02 mandis).  
• This will bring the total e-NAM mandis in the country to 785. This is the first milestone achieved in the path of integrating 415 new markets across the country. It is for the first time that Karnataka State has been added to the list of e-NAM States.
• The aim to reach the last mile farmer & transform the way they sell their agri produce, e-NAM has gained more strength today by reaching out to more farmers & traders of these new mandis. Already 585 mandis in 16 States and 02 Union Territories have been integrated and are working.
• e-NAM is also integrated from today with the Unified Market Platform (UMP) of Karnataka’s Rashtriya e-Market Services (ReMS), an e-trading platform promoted by the Karnataka State Agriculture Marketing Board. 
• This will facilitate traders across both the platforms to execute seamless trading in both the platforms by using Single Sign On framework.
• This is for the first time in India that two different  e-trading platforms for Agri commodities of this scale will be made interoperable. 

• This will help farmers of Karnataka to sell their produce to large number of traders registered with e-NAM and even farmers from e-NAM mandis in other States will be able to sell their produce to Karnataka traders who are enrolled with ReMS platform of Karnataka. 
• This will also promote inter-State trade between the States on-boarded on e-NAM platform & Karnataka.
• e-NAM has come a long way with 1.66 Crore Farmers & 1.28 lakh traders having been  registered on e-NAM platform. As of 30th April 2020, total trade volume of 3.41 Crore MT & 37 Lakh numbers (Bamboo & Coconut) collectively worth approximately Rs. 1.0 lakh crore have been recorded on e-NAM platform. 
• A path-breaking and revolutionary concept in Agri-sector, the e-NAM online platform has proven to be a giant leap in reforming the agriculture market in India.
• e-NAM facilitates trade beyond mandi/ state borders. A total of 233 mandis have participated in inter- mandi trade within  12 States, whereas 13 States/UTs have participated in the inter-state trading on e-NAM platform allowing farmers to interact directly with distantly located traders.
• At present, more than 1,000 FPOs have been on-boarded on e-NAM platform.
• In addition, Ministry launched two major modules in e-NAM last month to deal with the COVID-19 situation so that famers can sell their produce without bringing them to mandi. 
• These modules are: FPO module helping farmer members of FPO to trade from their collection center  and other being warehouse module whereby farmers can sell their stored produce in WDRA registered warehouses, declared as deemed mandi by States. 

• In addition, Ministry has launched recently the “Kisan Rath” mobile App which is helping farmers in finding a suitable transport vehicles/tractor to carry their produce to nearby  mandi and warehouse etc.