online Agricultural Markets – My Produce, My Price - QCI

online Agricultural Markets – My Produce, My Price

RASHTRIyA E-MARKET SERvICES#16, 2nd Rajbhavan Road, Bangalore 560001 Karnataka, India

Keywords: Quality Management System, Process Control Methods, Waste reduction methods, Energy Conservation Methods, online integration, Paperless, Rashtriya e-market services, remsl Karnataka, remsl bangalore, www.apmc.net.in login, rems login, karnataka apmc online, e-mandi karnataka, etimber, Agri Market, APMC Karnataka Model

AbstrAct

The “Karnataka model” of agricultural reforms, with its advanced electronic platform provides efficient price discovery mechanisms, bringing transparency in market operations. Unified trader license enabling buyer anywhere in the state (or the country) to participate in all markets of the state. The wide reach of the electronic platform facilitates participation of buyers across the country and leads to price quotes that factor broader demand-supply information. Providing real time information to farmers, enabling them decide whether to sell and if so at what price. Creating assaying infrastructure in the markets and disseminating the assayed results on the platform, encourages quality based bidding.

the initial indicators of the reforms process have shown increased arrivals to markets, increased competition by participation outside the state, more bids per lot, higher price realization and better share in the end consumers’ rupee by farmers compared to pre-reform years. Karnataka’s path-breaking reform in agricultural marketing is acknowledged as the lead player in the country and Government of India is largely adopting the Karnataka model for its national Agricultural market program.

a diagrammatic representation can be seen in Picture 1 below:

Innovation – New Market Structure

CompetitionMultiple licences to Single Unified • licence to trade across the StateFrom Local to National Level• Small traders to institutional buyers• Uncertified to quality tested products•

TransparencyEnhanced in all Market operations• Equal opportunity for all bids• Price discovery• Electronic weighing• Farmer Billing and Payment• MTS Reports to market participants•

Alternate MarketsAPMCs Market yards• Warehouse as Sub Markets• Private Markets• Direct purchase centres• Contract farming• FPOs & Co-operatives•

Market AccessImprove Access• Physical–Warehouse as Sub • MarketsInformational–SMS & Call Centres• Financial–Commodity Funding to • Online Payment

Picture 1- New Market Structure

Online Agricultural Markets 11

Introduction

rashtriya e-market Services Private Limited (remS) a PPP initiative of the government to take the reforms agenda ahead. the company was set up as the first joint venture company in the country to implement the agricultural marketing Policy within the state; with Government of Karnataka and the NemL having shareholding of 50% each.

the purpose of the remS is to bring efficiency and transparency in the agricultural marketing system for benefitting farmers and other market participants with efficient price discovery and fair competition by “leveraging technology and creating a hassle-free market for agricultural produce to help Farmer’s obtain the best price for their produce.”

With this mandate, which requires working closely with market committees in the state and providing the highly versatile and powerful unified market Platform for all market operations. the logo of remS is of varying colors, symbolizes markets that are of varying sizes, complexity and location well integrated to form a unified market, be it in the state or the country. the name of the company in green color represents the focus of the company on agricultural marketing.

the company is ensuring competitive price for agricultural produce in a transparent way, increasing the demand for the produce by participation of more number of traders with unified license, online transfer of sale proceeds to the bank accounts of the farmers on the same day of sale and dissemination of information to the farmers at all stages of sale process, or the objectives of on-line market system.

Presentation/ Content

the first sale of the agricultural produce by the producer (farmer) to the trader is in the primary markets, and is the beginning of the long journey of the commodity from the farm to the plate. compulsion to sell only in regulated market yards having limited infrastructure, a market loaded against the producer, monopoly practices, restricted competition amongst buyers and a host of other unhealthy practices characterize the agricultural markets today. marketing of agricultural produce has two prerequisites, first getting the produce from the farm to the market and then buyers participating in the auction process.

Soon after the harvest, the farmer has to arrange for packing his produce, load the produce and make necessary transport arrangements to reach the market yard, which all entail an initial investment. even if a farmer can bear this cost of reaching the market, this movement results in some wastage, which reduces the realization. Farmers who do not have the wherewithal to meet this expenditure largely depend on agents who move from one village to other, aggregating the produce. the consequence of committing to sell at the farm gate is lower price realization. at the market, the producer faces an opaque auction process, where his lot gets very little time from buyers.

12 Rashtriya E-Market Services

With little or no knowledge about prevailing prices, he is compelled to sell the produce, as the alternative, namely, storing the produce and the extending his stay at the market place anticipating favorable prices is an additional financial burden on him.

commission agents and traders are licensed to function in the markets. We have around 17,000 commission agents and over 34,000 traders transacting in various agricultural markets in the state. commodities brought for sale by farmers are displayed in the godowns of the commission agents, and rates are quoted by traders in an open auction or in a tender system of sale. Fruits and vegetables are sold by fixing the price through mutual negotiation. the market committees declare the buyer for every lot displayed for sale and post auction process comprises weighing, bagging, etc. Payment is settled directly between the farmer and the commission agent.

the buyer in the regulated market has his own set of complaints against the producer. more often than not, the produce is non-uniform and mixed with extraneous matter and this from the buyer’s viewpoint is the justification for the lower price offered and availing discount in weight.

any reform has to address such conflicting conditions and perceptions and balance various interests. Low efficiency in the primary agricultural markets, low primary value addition at the farmers’ end, lack of use of information technology, poor dissemination of market price information to farmers and by limited competition lead to poor price realization to the farmer for his produce. the Primary markets have to increase transparency in all market operations and simplify the market processes and bring in financial linkages enabling farmer have a hassle free market and better price for the agriculture produce.

Scope

To Increase competition in agricultural marketing by • market integration and creation of online markets.Improved access to markets by • accrediting Warehouse as sub-market yards, and thus providing safe storage options and alternate market space. Providing access to market information by SmSs, call center, tV scrolls, radio, Information display at prominent places/ GPs and access to financial Institutions and simplified process of pledge loans and online payment to farmers account.Enable true price-discovery of the Agricultural produce by •increased competition, encouraging primary value addition of agricultural produce at villages, establishing grading and assaying.empowering Farmers by achieving all the above.•

Highlights of the initiative

reforming the current market system by bringing in necessary amendments• in acts & rules enabling the new market structure.


ushering the • “Agricultural Marketing Policy 2013” first of its kind in the country.Incorporating rashtriya e market Services on a PPP model•Introducing e marketing through unified marketing Platform for bringing •efficiency, transparency and simplification in the market process.augmenting adequate It infrastructure • in markets enabling online transactions.establishing assaying labs in the markets for certifying farmers produce •enabling quality based bidding.Installing automated cleaning grading and packing equipment for primary •value addition of the farmers produce to benefit the farmers.capacity building & awareness campaigns on the new market structure •at 11000 villages.establishing bankers court in markets, enabling financial integration &• online payments.creating warehouses as alternate markets.•effective price dissemination through SmSs and call centers.•establishing orientation centers at markets for training and awareness• creation among farmers and other market participants.centrally verifiable ‘anytime anywhere’ e-permits generation for •transporting agricultural produce.

Karnataka Path Taken in Agricultural Market Reforms

ReMS incorporated

(Jan 2014)

Implement-ation

(Feb 2014)

Amendments to Act & Rule

(Dec-Feb 2014)

AMRCReport

(Mar-May 2013)

Agri-Market Policy

(Sep 2013)

Picture 2. Karnataka Path Taken

Karnataka is serviced by a network of 509 wholesale markets and 771 rural primary markets. out of the 509 wholesale markets, 157 are major agricultural markets and 354 are sub market yards. commodities to be transacted in the markets are notified by the government from time to time. as on date, 92 commodities such as food crops, pulses, oil seeds, fruits, vegetables, forest produce, fibers, plantation crops, spices and animal husbandry are transacted in various markets in the state. the value of the commodities transacted during the financial year 2013-14 exceeded INr 320 Billion.


In the year 2013, the Government of Karnataka appointed agricultural marketing reform committee (amrc) to develop a comprehensive roadmap for reforms along with identification of necessary interventions in the agricultural marketing Sector. the amrc recommendations were accepted entirety by the Government and accordingly effected necessary amendments to KaPm(r&D) act and rules in 2013-14 enabling the reform process to start. Government with the aim to implement market reforms, incorporated a company under a PPP (Public Private Partnership) initiative namely rashtriya e-market Services Private Limited (remS), with NcDeX Spot exchange Limited as the private partner in january 2014.

Rashtriya e-Market Services

remS has been conceived to blend public interest with the initiative of a private enterprise for establishing, operating, managing a specialized electronic trading platform called unified market Platform (umP) for auctioning of farmer’s produce to implement the ambitious reform agenda envisaged in Karnataka state. the paid-up capital of the organization is 1.5 million uSD. Department of agricultural marketing,

remS and the markets, work in close coordination to implement the reforms agenda of the State. remS implements the umP in all markets, progressively bring in best practices to markets in the state, arrange and establish assaying facilities in markets, develop secondary markets to benefit primary market participants and capacity building for stakeholders.

Unified Market Platform (UMP)

umP enables automated price discovery mechanisms and post auction process (weighing, invoicing, market fee collection, accounting, payment of sale proceeds directly to farmers, e permits generation) in the agricultural markets. the platform also facilitates assaying, warehouse-based sale of produce and supports commodity funding to benefit all stakeholders. umP has brought in transparency in market operations by making available real time information of the produce to market participants and by providing equal chance for every lot for being bid by a wider participation of buyers.

umP technology seamlessly covers all operations of markets starting from goods entering the market till the goods exit the market and beyond. Platform uses state of the art technology and highly available data centers designed for more than 99% uptime. Systems are accessible from any web-enabled devices; mobile app and Desktop application offering best connectivity solutions for locations with low bandwidth.

umP has the following functional modules:•

trading Platform- providing multiple price discovery mechanisms•

material accounting- accounts for all transactions taking place in the •market


trade fulfilment- completes trade related and all post auction activities•

Fund management – clearing and settlement of funds•

Document management – Documentation and reports as required•

Market Process

till date remS has succeeded in integrating 157 major markets to use UMP for all market processes. all the components work in perfect tandem to bring operational efficiency and complete transparency in markets. the commission agent displays all lots available for sale on the platform. traders use this platform to submit bids for commodity procurement. “anytime-anywhere e-Permit” module offer best way to generate e-permit against available stocks giving complete flexibility for e-permit generation to transport commodity. efficient exception management system is vigilant enough not to allow the bids to vary beyond set limits ensuring fair trade practices. Settlement bills, primary sale bills etc. are generated as part of the process brining in high transparency and complete trust in the trade from all participants.

Picture 3– Market Process flow

Process Flow at Market Yard• 1. Farmer lot wise entry and lot ID crea5on

• 2. Unloading at commission agent

• 3. Commission agent Inventory update

• 4. Sampling/ Heap

• 5. E bidding based on unique Lot ID

• 6. Best price/ bidder and farmer communicated via SMS

• 7. Final E weighment of lot

• 8. Generation of Sale Receipt

• 9. Payment from Buyer/ Commission Agent

• 10. Generation of Farmer Receipt

• 11. Payment transferred to farmers account

• 12. Update Buyer Inventory

• 13. Exit process

Picture 3. Market Process flow

transactional SmS alerts would be sent to all participants of the trade helps them to take decisions instantaneously. Payment module enables online payment to bank accounts of the registered farmers after successful trade conclusion.


Problems and Solutions

as the Karnataka model is the pioneer agricultural reform general problems related to acceptance of change, hesitation for sift of paradigm from labour intensive to capital intensive techniques were there. However, the problems and solutions can be explained as follows:

Replicability and Adaptability1.

the New market structure was piloted in 3 markets in February 2014 and now extended to 157 major markets by march 2017. By march 2016 the agricultural commodities transacted on the umP in 103 markets were 19.2 million mt valued INr 194 billion from 4.1 million farmers’ lots that have been sold on this platform.

permit system has been introduced and a centralized permit verification system is in place for all 157 markets of the State. this facilitates market stake holders to generate e permits “anytime-anywhere” from the umP for transporting agricultural commodities they have bought from the markets.

Picture 4. UMP Penetration

unified market platform has also been extended to the agricultural markets of andhra Pradesh our neighboring state. today 10 major markets in andhra Pradesh are transacting on this platform. other states viz, orissa, rajasthan, tamil Nadu, Gujarat, uttar Pradesh have evinced keen interest in replicating the Karnataka model in their state.

3000

2500

2000

1500

1000

500

0

58

157

3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

331

48 52 5575

105 157 157

105

103

157

Q3 Q42015 2016

Q1

Agricultural Commodities Traded on UMP(Value in Million USD)

UMP PresenceNumber of APMC Markets

Number of MarketsUMP

Number of e-PermitsMarkets

Number of majorCommodities

e-Permit Implementation

Total MarketsUMP Markets

Number of Markets

2014 2015

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16Value 6 28 112 376 1085 1525 1884 2890


Knowledge Transfer2.

Karnataka model of agricultural marketing reforms has been presented and deliberated in various forums, some of them are as follows:

a. December 2013, 27th National conference on agricultural marketing, university of agricultural Sciences, Dharwad.

b. march 2014, additional Secretary marketing, Government of India along with State agriculture Secretaries from more than 10 states participated in a one-day workshop cum exposure visit to study the Karnataka model in Gulbarga, Karnataka.

c. june 2014, 3rd International convention conducted by commodity Participants association of India along with Forwards market commission “on commodity Futures market, India – the Next Global Hub”.

d. February 2015, a workshop on “e-marketing in Horticulture Produce” conducted by university of Horticultural Sciences, Bagalkot at Bijapur.

e. april 2015, the expert Group (eG) notified by Government of India and other members visited us to understand implementation of market reforms followed with a field visit to study the Karnataka model.

f. july 2015, aSSocHam organized a summit on “National agricultural market” for empowering Farmers & moderating Food Inflation in New Delhi.

g. august & December 2015, presentation on unified agriculture market- Karnataka model” in the Special training Program for Deputy commissioners of Bangladesh and the 23rd and 24th mctP for Bangladesh civil Servants was conducted by National centre for Good Governance, mussoorie.

h. During 2015, Delegates from various states like jammu & Kashmir, tamil Nadu, andhra Pradesh, jharkhand, odisha, Gujarat, uttrakhand, rajasthan and chhattisgarh have visited Karnataka to study the reforms process.

i. Feb 2015, Delegation of tanzania Government officials, economic advisor from World Bank have visited to understand the agricultural market reforms in Karnataka.

j. December 2015, Indian Institute of management Bangalore (IImB) and Hull university Business School (HuBS) conducted an International Conference on Trends and Challenges in Building Sustainable Agri-Food Supply Chains in India.

k. january 2016, Government of India organized a National conference on Sustainable agriculture and Farmers’ at Gangtok, Sikkim where Karnataka model was showcased as the best practice in agricultural market reforms.

l. February 2016, IIm B event on the Best Practices exchange meet for Supply chain management Professionals.

m. orientation & Information centers have been established at 48 aPmc’s. these are onsite training facilities, well equipped with audio and


video aids for effective stakeholder education and dissemination of information to stakeholders.

n. In house quarterly newsletter showcasing best practices and giving information to create awareness

Capacity Building3.

Imparting necessary skills to the producer is essential for taking informed decisions. Stakeholders in the market have been exposed to the characteristics and structure of the new marketing system. opportunities and facilities available in markets, duties and responsibilities of stakeholders, determinants of demand and supply, price discovery, accessing and using market information services, importance of assaying, contract farming and its provisions etc.

4. Effective awareness creation and information dissemination

a. Content Development

art forms were chosen to connect with stakeholders for easy & effective •dissemination of information.

Hand drawn eye catching illustrations were developed using •professional artists to display information in an interesting story form to grab attention.

a brochure was designed to answer all the Frequently asked •questions.

characters in illustrations were very carefully developed keeping •in mind diversity, ethnicity of our stakeholders to get connected with the characters.

awareness videos on reform process, role and responsibility of the •farmers, post-harvest methods and the new market structure using animated illustrations were made to disseminate “effective one message to all”.

b. Strategies for dissemination

Stakeholder education program- online market workshop to • educate and create awareness among stakeholders about the new market structure and the online trading system. a large campaign has been initiated to cover 11,000 villages and 2.5 million farmers on a cluster team concept. It’s a unique awareness program where 3 farmer volunteers along with the elected farmer representative will take lead to educate fellow farmers and playing the awareness video in the program.

tie up with Doordarshan (Government tV channel and widely •watched tV channel) and radio & Fm for publicity.

Dissemination of market information (Prices of commodities) daily •through free SmSs, scrolls in tV channels and newspapers.

at market classroom sessions for all market stakeholders and aPmc •staff.


Feedback from other Stakeholders

FEEDBACK FROM FARMERS

"Farmers are getting competitive price for their produce after introduction of the Online Trading Platform. The new system is extremely favorable to the farmers. It is a transparent way of trading and has led to significant increase in Copra prices in Tiptur and has given financial stability to the farmers “

Sri B S DevrajDistrict President of Rajya Raitha Sangha

“Onlinemarket has helped us to receive real worth of my produce, without any need to pay commission. Computerization of process, electronic weighing, online payment of sale proceedings has relieved farmersfrom marketingworries”

Sri ShivanandHubli

“Assaying facility, has helped in quality based bidding. Participation of remote traders has helped realize true worth of our produce”

Lakshman. PatilAPMC, Gadag

"Thedecision of the government to establish online market is a farmer-friendly measure. Never has the farmer seen better realization for his produce than with the introduction of the newsystem."

Sri Narasimhamurthy,APMC, Tumkur

“Since inception of Online markets in Chamrajnagar, we have stopped travelling to the neighboring state to sell turmeric, this has led to significant reduction in transportation cost with better prices”

RammaiahChamrajnagar

"After the implementation of the online platform,trading has become easy because of efficiency of theonline market and transparency in price discoverymechanism. Now before evening, I reach home happily with myproduce being traded in the APMCs”

Sri LokeshAPMC,Bellary

Trader

"I find Unified Market Platform, a unique tool using which, we can buy across APMCs in the entire State by accessing from our controlling office. What makes it unique is the quality test report from reputed assayers that can be seen on the net for major lots arrived in the APMC, the controls that are built in the software and the online payment option available, all these makes the entire market operations hassle free.”

TP ShenoyHead-Agri Operation, ADM

APMC Secretary

“Online system has helped in monitoring trade at APMCs. Especially during peak season when lakhs of lots need to be traded by noon with no chance for mistakes. UMP has been a savior and significantly enhanced our efficiency. It is happy to see smiles on farmer’s face when they receive better prices”

Rajanna APMC Secretary Tumkur

Trader“Unified license has removed barriers and has improved our market accessibility. ANYWHERE – ANYTIME e-permit has eased movement of goods post trade”

Manjunatha Traders, APMC,Tumkur

Trader “Remote bidding has helped me to trade in multiple markets selling at my own place”

Veerendrs, SV Traders Chitradurga.

Picture 6. Stakeholders Feedback

Results/ outcomes

the initial indicators of the reforms process have shown

Better price realization to farmers compared to the prices prevailing in •earlier years.

Increased arrivals in the markets and greater competition noticed by •outside traders’ participation with more bids per lot in the online bidding process.

Increased farmers share in the end consumers’ rupee post reform years.•


Quality & Price awareness among farmers has increased.•

unified trader license issued to traders to multiple states across the •country enabling them trade across any aPmc markets in the Karnataka.

enhanced transparency by a transparent price discovery mechanism •and farmers getting computerized bills.

Price comparison – Pre & Post UMO ImplementationTurmeric weighted average price

Market 2014 2015 % change

Gundlupet (Local) 6048 7793 29%

CR Nagar (Turmeric) 5752 7338 28%

Kollegal (Local) 5475 6608 21%

Bengaluru 7193 9003 25% (Turmeric stick)

Santhesargur (Local) 7073 8264 17%

Bengal gram weighted average price


Bidar 2655 3890 47%

Raichur 2785 3686 32%

Bhalki 2625 3833 46%

Bijapur 2479 3523 42%

Groundnut weighted average price


Yadgiri 32.30 4540 41%

Raichur 3133 4509 44%

Bengalkote 3520 5245 49%

Hubballi 3060 4361 43%

Challakere 3430 4254 24%

Gadag 3525 4266 21%

Chitradurga 3247 4512 20%

Bellary 3529 4323 27%

Arecanut weighted average price (Rashi variety)


Shimoga 23120 32634 41%

Sirsi 27590 31098 13%

Channagiri 28959 31996 10%

Tur weighted average price


Bidar 4138 5410 31%

Raichur 4194 5453 30%

Sedam 4315 5203 20%

Bhalki 4177 6112 46%

Dry chilli weighted average price


Bengaluru 5955 10987 58%

Sindhanur 4715 5722 21%

Mysuru 5994 7062 18%

Copra weighted average price


Tiptur 5401 12996 139%

Arsikere 5178 11169 116%

Kunigal 4816 12411 158%

Turuvekere (Copra) 5132 12725 148%

Guppi (Copra) 5991 12439 108%

Greengram weighted average price


Gadag 5029 7626 52%

Yadgir 4828 7337 529%

Bidar 4338 7586 75%

Bgalkote 5264 7832 49%

*Note: Markets for Copra and green gram were brought on UMP in 2014


Facts and Figures

Online markets

Only state in the country, where the 157 primary agricultural markets are transacting on an electronic platform. Unified Market Platform (UMP) has connected157 markets spread across 27 districts in Karnataka.

Transactions Agricultural commodities traded till date in 157 UMP markets:Number of Lots - 4.1 million • Volume - 19.2 million MT • Value - USD 2.89 billion•

Farmer registration

2 million number of farmer’s registered on this platform. They will receive transactional SMSs; Bank accounts have been integrated for online transfer of money to their accounts.

System Strength

Byadgi market on a single day witnessed 1,40,000 bids offered towards sale for 14,000 lots from 310 traders. The UMP delivered these transactions efficiently and hassle free.

Orientation Centres

Established in 48 APMC’s. These are onsite training facilities, well equipped with audio and video aids for effective stakeholder education and dissemination of information to stakeholders.

Quality ReMS has been certified as an ISO 9001:2008 Company, a testimony for its quality management system.

Picture 7. Facts and Figures

Evaluation

Government of India in its • “Economic Survey” 2014-15 “A national Market for Agricultural Commodities some issues and way forward” recognizes the Karnataka model of aPmc reforms for implementation of various initiatives in the agricultural marketing Sector.

Indian Institute of management (IImB) Bangalore, is carrying out a •concurrent evaluation on the reforms process and its impact in the agri marketing sector in Karnataka.

Secretary, additional Secretary and joint Secretaries from the Department •of agriculture, Government of India have visited Karnataka markets many times to study the reforms process and have done reality checks. Subsequently, a huge delegation of State Agricultural ministers and Senior officers from 26 states led by Hon’ble union agriculture minister Government of India had a 2 days’ workshop to study the Karnataka model during july 2015.

Karnataka is acknowledged as the • lead player in the country and in the “national Conference of Agriculture” chaired by Hon’ble Prime Minister held on january 2016, in Sikkim, was showcased as the model state in the field of agricultural marketing reforms.

In February 2016 in the • nITI Aayog’s Regional Consultation by task Force on agricultural Development, the Vice-chairman of NItI aayog has appreciated the reforms process and termed Karnataka as “truly a leader in Agri market reforms in the country” and said that Government of India is largely adopting the Karnataka model for its national Agricultural market program.


Way Forward

Online Fund Transfers to Farmers in all markets

Warehouses based sales & Commodity Funding

Encourage DPCs and Private Markets

Agri-technology Parks

Automated Assaying Labs

Logistics & Transportation for distant buyers

Market Automation – Cleaning, Grading, Packing & Handling

Mobile Apps & Analytics

Picture 8. Way forward

Conclusion

the Karnataka model, with its advanced electronic platform for an efficient price discovery mechanism, brings in transparency in market operations. Simplified licensing conditions to enable any buyer anywhere in the state (or the country) to participate in the bidding process. Participation of buyers from across the state (or country) leads to price quotes that factor broader demand supply information.

remS is applauded for revolutionizing the agricultural marketing scenario through unified market Platform ‘umP’, for setting up high standards and placing the new market structure in a highly competitive marketing environment for enhancing livelihoods of financially stressed agrarian sector.

the PPP initiative being first of its kind in the country, remS has well integrated the expertise of Private Sector in the form of Information technology ‘unified market Platform’ with Government setup and infrastructure providing adequate safeguards to ensure trust and confidence of large stakeholders of the sector.

the success of Karnataka model in a short span has inspired Government of India to establish National agricultural markets and andhra Pradesh and other states also have followed the model. the success story of remS has created ripples and will revolutionize the agricultural sector in the country greatly benefitting financially weak farmers and other stakeholders in agricultural markets.


Illustration of the new Market Structure

Unified Market Platform(Process Flow)

Harvesting

Drying

Cleaning & Grading

Packing Gate EntryWinner list display

SMS to farmers

Electronic weighing

Computerized Sale Bill

Online payment

Anywhere–Anytime e-Permit

Picture 9. Diagrammatic market process flow

Warehouse based sale

Harvesting Drying Cleaning & Grading Packing Farmer seeking price information

Farmer gets pledge loan forthe warehouse receipt

Farmer seeking price information.Farmer ok with price, informs warehouse-

officer to put produce for sale

Farmer depositing produce andgetting warehouse receipt

Farmer taking produce to warehouse

Low price due to harvest season, farmer deciding to store & sell later

Farmer intimated of the Bidprice acceptance

Payment through BankBidding

Picture 10. Ware House Based Sale


Advantages of Cleaning, Grading and Assaying

Picture 11. Primary Value Addition and Assaying steps

s

Cleaning, Grading & Assaying Advantages

Cleaning & GradingPacking

Shamanna & Ramanna'sproduce ready for sale

Drying

Ramanna harvesting Shamanna harvesting

Arrival at APMC Gate entry-Ramanna Lot-1Shamanna Lot 2

Ramanna agrees forassaying

Assaying & uploading details to UMP Ramanna encouraging fellow farmers

to dry, clean & grade their produce & get assayed for increased competition

& better price

Ramanna receives better price(Increased competition for Lot 1 due

to assaying & good quality)

Shamanna refuses for assaying

Physical inspection by traders

Bidding


online Agricultural Markets – My Produce, My Price - QCI

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