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INTRODUCTION
To understand fully what the mandi system is we need to look back at the history of India’s agriculture
and follow it through to today while acknowledging the reforms it has faced over the last century.
The promise of regulated marketing has been enshrined in a range of legislation and different states'
Agricultural Produce Marketing Regulation (APMR) Act. State governments passed this act after
independence in the 1950s and 60s. The Agricultural Produce Market Committee, otherwise known
as APMCs, is a marketing board established by state governments in India to ensure farmers are
safeguarded from exploitation by large retailers, as well as ensuring the farm-to-retail price spread
does not reach excessively high levels. APMCs are committees regulated by states by adopting an
Agriculture Produce Marketing Regulation (APMR) Act.
Now, this is where the mandi system comes in. Unit 2020, the first sale of agricultural produce could
occur only at the market yards (mandis) of APMCs. However, after 2020 with the passing of the
Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, which allowed farmers to
sell outside APMC mandi’s and across different states of India, in turn, removing a safeguarded from
exploitation by large retailers.
History
The origin of India's Agricultural Produce Marketing Regulation dates back to the British colonial era,
with the establishment of the first regulated market, Karanja, in 1886. The foundational legislative
step occurred in 1887 through the enactment of the Berar Cotton and Grain Market Act under the
Hyderabad Residency Order. This legislation empowered British residents to declare any place within
the assigned district as a market for the sale and purchase of agricultural produce, with the provision
to constitute a committee overseeing these regulated markets. The act became a model for replication
in various parts of the country.
Initially addressing concerns related to the supply of pure cotton at reasonable prices to the textile
mills of Manchester (UK), the regulatory focus later expanded to cover diverse agricultural produce.
The concept of the mandi system, as we recognize it today, was first introduced in 1928 when the
Royal Commission on Agriculture advocated for regulated markets. The impetus for organized
agricultural marketing gained momentum in 1939 when Sir Chotu Ram, a prominent farmer leader
and the then Development Minister in the provisional government of Punjab, initiated the Punjab
Agricultural Produce Markets Act, establishing APMC in Punjab.
While the government circulated a Model Bill in 1938, significant progress in the implementation of
government-regulated agricultural markets, now commonly known as Agricultural Produce Market
Committees (APMC) Mandis, occurred after India's independence in 1947. The 1960s witnessed the
initiation of the Green Revolution, an era when India faced food shortages exacerbated by droughts.
To address this crisis, the government sought to modernize Indian agriculture, enlisting advisors from
the United States and introducing various reforms.
During this period, India experienced a food surplus. The government revisited the 1928 report and
developed a nationwide food marketing system to ensure fair prices, varying from state to state.
Farmers participate in wholesale markets, known as APMC Mandis, to sell their produce through open
auctions, characterized by transparent pricing. In the subsequent decades, particularly in the 1960s
and 1970s, most Indian states enacted and enforced APMR Acts, bringing primary wholesale
assembling markets under their regulatory ambit. This marked the institutionalization of organized
agricultural marketing through regulated markets, colloquially referred to as mandis.
Subsequently, farmers were left with no choice but to seek the help of middlemen. Due to poor market
infrastructure, more produce is sold outside markets than in APMC mandis. The net result was a
system of interlocked transactions that rob farmers of their choice to decide to whom and where to
sell, subjecting them to exploitation by middlemen. Over time, the function and concept of APMC
markets have been transformed from infrastructure services to a source of revenue generation for
the middlemen.
Things got worse, as the market committee had excessive powers to give out licenses to traders. The
licensed commission agents started forming cartels, in which they collectively decided the prices at
which they would or would not buy the produce from the farmers. This, therefore, meant that the
farmers were left with minimal options—leading to the creation of what supporters of the farm bill
today call “mandi mafia.”
However, In the year 2003, the government brought some reforms allowing for better liberalization
in the Model APMC Act. The Indian Economic Service described the reform as:
“The Model APMC Act, 2003 provided for the freedom of farmers to sell their produce. The farmers
could sell their produce directly to the contract sponsors or in the market set up by private individuals,
consumers, or producers. The Model Act also increases the competitiveness of the market of
agricultural produce by allowing common registration of market intermediaries.”
However, the biggest threat to the farmers is that markets outside APMC do not provide a safeguard/
Minimum Support (MSP)—they work on the principles of supply and demand—therefore if the prices
fall too low, the farmers lose money. The lack of safeguards/ support for farmers will highly likely allow
the rich traders to exploit economically vulnerable farmers.
Furthermore, the tax in the APMC Mandis is collected by the state government, if this system
collapses, the states won’t be receiving any taxes from the sale of agricultural produce. Moreover,
agriculture currently is on the state list, however, the new act gives the center the power to regulate
agriculture across India, putting the federal structure of the country in question.
Purpose of the visit
I had the privilege of undertaking a visit to [Name of the Mandi] as part of an internship opportunity,
providing an immersive experience of the multifaceted world of agricultural marketing. The purpose
of my visit was to gain first-hand insights into the operational mechanisms, market dynamics, and
regulatory framework that govern the Mandi system.
• The objective of the Visit: The primary objective of our visit was to understand the various
facets of agricultural marketing, with a particular focus on the following key areas:
• Auctioning Process: I aimed to comprehend the intricate auctioning process through which
farmers sell their produce. This involved observing the bidding dynamics, price discovery
mechanisms, and the role of intermediaries in facilitating transactions.
• Quality Standards Enforcement: I sought to gain insights into the quality control measures
implemented within the Mandi to ensure that agricultural produce meets specified standards.
This included examining the grading processes and understanding how quality assurance
contributes to fair trade practices.
• Role of APMC: As a central regulatory body, the Agricultural Produce Market Committee
(APMC) plays a crucial role in overseeing and facilitating transactions. My goal was to
comprehend the functions and responsibilities of the APMC in maintaining transparency and
fairness in market operations.
• Technological Integration: I was keen to explore the integration of technology within the
Mandi system. This encompassed understanding the use of digital platforms for transactions,
data management, and market analysis, with a focus on how technology contributes to the
efficiency of the overall process.
Significance of the Visit:
The visit to [Name of the Mandi] holds immense significance as it provided me with a unique
opportunity to bridge theoretical knowledge gained through academic studies with practical, real-
world applications. It allowed me to witness the challenges and opportunities faced by farmers,
traders, and regulatory bodies in the agricultural marketing ecosystem.
Conclusion:
In conclusion, my visit to [Name of the Mandi] was a valuable and enriching experience. The first-hand
exposure to the operational intricacies of the Mandi system has not only deepened my understanding
of agricultural marketing but has also inspired a keen interest in contributing to the advancements
within this sector. I look forward to applying the knowledge gained during this visit in my future
endeavors and am grateful for the opportunity to have been a part of this insightful experience.
2.REGULATORY FRAMEWORK
What is APMC?
The wholesaling of agricultural produce is regulated by the Agricultural Produce Marketing Acts of
various State Governments. The Agricultural Produce Marketing Committee (APMC) Act authorizes
the concerned State Governments to notify the commodities, designate markets and market areas
where regulated trade takes place, and provide for the establishment of APMCs that are accountable
for the functioning of the markets. An entire state is divided and declared as a market area, where
markets are governed by the Market Committees that are constituted by the State Governments
Objectives
The objectives of APMC are mentioned below:
1. As per the act, the State is divided into several market areas, each of which is
administered by a separate Agricultural Produce Market Committee (APMC) which
imposes its marketing regulations (including fees).
2. Apart from that, legal persons, growers, and local authorities are permitted to
apply for the establishment of new markets for agricultural produce in any area.
3. There will be no compulsion on the growers to sell their produce through existing
markets administered by the Agricultural Produce Market Committee (APMC).
4. Separate provision is made for notification of ‘Special Markets’ in any market area
for specified agricultural commodities.
5. Provision for Contract Farming, allowing direct sale of farm produce to contract
farming sponsors from farmer’s fields.
6. Single point levy of market fee on the sale of notified agricultural commodities in
any market area.
7. Provision made for resolving disputes arising between private market/ consumer
market and Market.
8. Provides for the creation of marketing infrastructure from the revenue earned by
the APMC.
Alternate Marketing Channels
a) Direct Marketing
The APMC model act in India promotes direct marketing, enabling farmers to sell
their produce directly to consumers outside APMC market yards. This eliminates
intermediaries, narrowing the gap between farmer and consumer prices. Successful
examples include Apni Mandi in Punjab, Rythu Bazar in Andhra Pradesh, Uzhavar
Sandhai in TN, Shetkari Bazaar in Maharashtra, Hadapsar Vegetable Market in Pune,
Krushak Bazaar in Odisha, and Kisan Mandi in Rajasthan. The Central government
sponsors the 'Agricultural Marketing Infrastructure, Grading & standardization
Scheme' to develop infrastructure for direct marketing.
b) Contract Farming
Under contract farming inputs material may be provided by the purchasing party for a
particular crop and there is a crop buyback agreement in advance Quality is specified
in advance. This is mainly entered into by big corporates who are in the business of
food processing. So far there have been mixed results. It removes the uncertainty of
Income for the farmer and he can fetch good prices.
c) Future contracts and ‘negotiable warehouse receipts’ in agriculture
Futures contracts facilitate agreements between two parties to buy or sell a specific
asset at a predetermined price on a future date. This trading serves risk management,
price discovery, and market analysis purposes. Farmers benefit by predicting trends
for production planning. Since 2003, agricultural commodities' futures trading was
allowed, and in 2007, the Warehousing (Development and Regulation) Act
established the 'Warehousing Development and Regulating Authority' (WDRA).
WDRA introduced 'Negotiable Warehouse Receipts' (NWR) in certified warehouses
across India. NWRs help farmers secure credit, make payments, and settle claims.
This system aims to enhance credit facilities, prevent distress sales, and mitigate risks
for financial institutions.
3. MARKET OPERATION
During my visit to the mandi, I observed a well-organized system facilitating the buying and
selling of agricultural produce. The operational process can be summarized as follows:
Overall, the mandi operates as a structured marketplace, fostering transparency, fair trade,
and efficient transactions between farmers and buyers. The combination of regulatory
oversight, quality checks, and infrastructure support contributes to a well-functioning
agricultural market.
Key stakeholders
1. Farmers:
• Role: Farmers are primary producers who cultivate and harvest agricultural products.
They bring their produce to the mandi for sale, seeking fair prices and a profitable
return for their efforts.
• Objective: Farmers aim to maximize their earnings by selling their crops at
competitive prices. Their success is tied to the market conditions and the demand for
their agricultural goods.
2. Traders:
• Role: Traders are individuals or entities that participate in the buying process at the
mandi. They can either engage in auctions or negotiate directly with farmers to
purchase agricultural produce.
• Objective: Traders seek to acquire quality agricultural goods at favorable prices. They
play a pivotal role in determining market prices through their bidding or negotiating
strategies.
3. Officials:
• Role: Officials, including representatives from market committees and regulatory
authorities, oversee the operations of the mandi. They ensure that the market
functions smoothly, adheres to regulations, and operates fairly for both farmers and
traders.
• Responsibilities:
➢ Market Regulation: Officials regulate the mandi to prevent malpractices and
maintain market integrity.
➢ Dispute Resolution: They address disputes that may arise between farmers
and traders, ensuring fair resolutions.
➢ Quality Control: Officials conduct inspections to assess the quality and
adherence to standards of agricultural products.
➢ Market Information: Officials may provide information on prevailing market
conditions and prices to assist stakeholders in making informed decisions.
4. Posts in mandi
1. secretary
1. Administrative Management:
• Documentation: Maintain and oversee the necessary documentation for the registration of
farmers and traders participating in the mandi.
• Record Keeping: Ensure accurate record-keeping of transactions, sales, and other relevant
data.
2. Coordination and Communication:
• Stakeholder Coordination: Facilitate communication and coordination among farmers,
traders, and other stakeholders to ensure smooth operations.
• Information Dissemination: Provide timely information to market participants about market
conditions, regulations, and any other relevant updates.
3. Regulatory Compliance:
• Regulation Adherence: Ensure that the mandi operates in compliance with government
regulations and guidelines.
• Inspection Support: Coordinate and assist regulatory authorities in quality inspections,
ensuring that agricultural products meet the required standards.
4. Dispute Resolution:
• Address Disputes: Act as a mediator in resolving disputes that may arise between farmers
and traders, ensuring fair and timely resolutions.
• Conflict Management: Implement effective conflict resolution mechanisms to maintain a
harmonious trading environment.
5. Market Infrastructure Management:
• Infrastructure Maintenance: Oversee the maintenance and functionality of market
infrastructure, including storage facilities, auction spaces, and other essential amenities.
• Logistics Support: Ensure that transportation and logistics are well-organized to facilitate the
movement of agricultural goods to and from the mandi.
6. Financial Management:
• Transaction Oversight: Monitor financial transactions, ensuring the proper and transparent
handling of payments for agricultural products.
• Budget Management: Work within budgetary constraints and allocate resources efficiently
for the mandi's day-to-day operations.
2. Market Inspector
1. Quality Control:
• Inspections: Conduct regular inspections of agricultural products to ensure they meet
specified quality standards and adhere to regulatory guidelines.
• Grading: Evaluate and grade the quality of produce based on factors such as size, freshness,
and overall condition.
2. Regulatory Compliance:
• Enforcement: Ensure that all activities within the mandi comply with government regulations
and market rules.
• Documentation: Verify and review necessary documentation related to the sale and purchase
of agricultural products, ensuring proper record-keeping.
3. Transaction Monitoring:
• Fair Practices: Monitor transactions to ensure fair and transparent trading practices among
farmers and traders.
• Pricing Verification: Verify that the pricing of agricultural products is determined in
accordance with market mechanisms and agreed-upon standards.
4. Dispute Resolution:
• Mediation: Act as a mediator in case of disputes between farmers and traders, facilitating fair
and timely resolutions.
• Conflict Management: Implement effective conflict resolution strategies to maintain a
harmonious trading environment.
5. Market Surveillance:
• Surveillance: Conduct surveillance to identify any malpractices, including price manipulation
or attempts to compromise the quality of agricultural products.
• Market Behavior: Observe market dynamics to ensure that it operates competitively and
ethically.
6. Collaboration with Authorities:
• Coordination: Collaborate with market officials, law enforcement, and other regulatory bodies
to maintain the integrity of the market.
• Information Sharing: Share pertinent information with relevant authorities to address any
legal or regulatory concerns.
3. Superintendent
The Superintendent in a district mandi holds a pivotal role that encompasses a range of administrative
and operational responsibilities. On the administrative front, they are tasked with maintaining
meticulous records of transactions, registrations, and other essential documentation, ensuring
compliance with regulatory requirements. Operational duties involve overseeing the functionality and
maintenance of market infrastructure, including storage facilities and auction spaces, as well as
coordinating logistics to facilitate the smooth movement of agricultural goods.
In terms of regulatory compliance, Superintendents ensure that the mandi operates in accordance
with local, state, and national regulations. They collaborate with market inspectors to facilitate quality
inspections of agricultural products, contributing to the overall adherence to standards.
Financial oversight involves monitoring transactions for transparency and adherence to payment
procedures, as well as managing financial resources within the mandi's budget constraints.
Additionally, Superintendents actively promote the mandi through strategic initiatives and
partnerships, aiming to attract diverse traders and enhance the market's visibility.
5. Accountant
The role of an accountant in a district mandi is integral to the financial management and accountability
of the agricultural marketplace. Accountants perform a variety of crucial tasks aimed at ensuring
transparency, accuracy, and compliance within the financial framework of the mandi. Their
responsibilities include maintaining detailed financial records of transactions, expenditures, and
revenue. This involves recording and reconciling financial data related to the sale and purchase of
agricultural products, registration fees, and other monetary transactions within the mandi.
Accountants play a key role in budgetary management, helping to allocate resources effectively to
meet the operational needs of the mandi while adhering to financial constraints. They also contribute
to the preparation of financial reports, providing insights into the economic health of the mandi to
higher authorities.
Additionally, accountants collaborate with regulatory bodies to ensure compliance with tax
regulations, financial reporting standards, and other fiscal requirements. They may also assist in
conducting financial audits, both internal and external, to verify the accuracy of financial records and
ensure that the mandi operates within legal and regulatory frameworks.
6. assistant accountant
The Assistant Accountant in a district mandi plays a supportive role, assisting the primary Accountant
in various financial tasks crucial for the effective functioning of the agricultural marketplace. They
collaborate closely with the Accountant in recording and documenting financial transactions related
to the sale and purchase of agricultural products, as well as registration fees. This collaborative effort
ensures meticulous bookkeeping, maintaining accurate and up-to-date financial records. Additionally,
the Assistant Accountant provides valuable assistance in budgetary planning, offering financial data
and insights to facilitate informed decision-making by higher authorities. Through their collaborative
efforts, the Assistant Accountant contributes significantly to the overall financial transparency,
compliance, and efficient resource allocation within the district mandi.
7. Assistant sub-inspector
The Assistant Sub-Inspector (ASI) serving as an invigilator in a district mandi assumes a supportive role
in maintaining order and security during various activities. Working in collaboration with higher-
ranking officials, the ASI contributes to the smooth conduct of examinations, inspections, or other
organized events within the agricultural marketplace. Their responsibilities may include overseeing
security measures, ensuring compliance with established guidelines, and assisting in crowd
management. By actively participating in these roles, the ASI helps create a secure environment for
all participants, fostering the successful execution of activities within the district mandi. Their
presence and assistance underscore the importance of a cooperative approach in ensuring the
integrity and safety of events in the agricultural market.
8. assistant grade 3
When the Secretary is absent in a district mandi, the Assistant Grade-3 assumes the responsibilities of
a Secretary, ensuring the continuity of administrative and operational functions within the agricultural
marketplace. In this capacity, the Assistant Grade 3 may engage in tasks such as maintaining records,
coordinating communication among stakeholders, and providing essential administrative support.
While their role may not involve high-level decision-making, the Assistant Grade-3 plays a vital role in
filling the void during the Secretary's absence, contributing to the seamless functioning of the district
mandi and ensuring that administrative processes are well-executed.
5. Commodity trading
Types of commodities traded in the mandi
Grains:
1. Rice
2. Wheat
3. Corn
Pulses:
1. Chana (Chickpeas)
2. Toor Dal (Pigeon Peas)
3. Moong Dal (Green Gram Dal)
4. Urad (Black Gram Dal)
5. Masoor Dal (Red Lentils)
6. Tivda
Oilseeds:
1. Soybean
2. Mustard
3. Flax Seed
4. Sesame
Specialized Crops:
1. Mahuya
2. Amaranth
3. Quinoa
Spices:
1. Ginger
Price mechanisms and fluctuations
The price mechanisms and fluctuations in a mandi (agricultural market) are influenced by various
factors and dynamics within the agricultural ecosystem. Understanding these mechanisms is essential
for farmers, traders, and other stakeholders involved in the buying and selling of agricultural produce.
Here are key factors contributing to price mechanisms and fluctuations in a mandi:
3. Seasonal Variations:
Agricultural commodities are often subject to seasonal variations in production. Prices may
fluctuate based on the timing of harvest planting seasons and weather conditions affecting crop
growth
4. Market Information:
Access to timely and accurate market information is crucial. Farmers and traders who are well-
informed about current market conditions can make more informed decisions, influencing
and optimizing their buying and selling strategies.
5. Transportation Costs:
The cost of transporting agricultural goods to and from the mandi can impact prices. High
transportation costs may contribute to higher selling prices for farmers to cover expenses.
9. Market Speculation:
Speculation by traders and investors can contribute to short-term price fluctuations. Market
sentiment, economic indicators, and geopolitical events may influence speculative trading.
In the mandi for December, rice dominates with substantial quantities, followed by wheat.
Some pulses like Chana and Soyabean show moderate presence, while others like Toor Dal,
Urad, and Masoor Dal have minimal or zero quantities. Corn stands out significantly. Flax Seed
and Tuvda display moderate quantities. Commodities like Mahuya, Amaranth, Sesame,
Ginger, and Quinoa have minimal or zero presence.
6. Technological integration
Use of technology in the mandi operation
Technology integration in mandi operations has revolutionized agricultural marketplaces, bringing
efficiency, transparency, and convenience to various processes. Here are several ways in which
technology is utilized in mandi operations:
2. Mobile Applications:
Mobile apps provide a convenient way for farmers to access market information, check
commodity prices, and receive real-time updates. This empowers them to seasonal variations
in production. Prices may fluctuate based on the timing of harvests, planting seasons, and
weather conditions affecting crop growth.
3. Electronic Auctions:
Mandis often employ electronic auction systems, allowing for transparent and competitive
bidding processes. This digital approach streamlines the auctioning of agricultural
commodities, making the process more efficient.
In India, Prime Minister Narendra Modi launched the electronic National Agriculture Market
(e-NAM) portal in 2016. It is an Indian electronic trading portal that networks the existing
APMC mandis to create a unified national market for agricultural products. It was launched
to network the existing mandis on a common online market platform as ‘One Nation, One
Market’ for agricultural products in the country.
Digital Mandi or Digitization in Indian Mandis means a digital market where farmers
and agricultural mandi traders can easily buy or sell their produce. Digitization has
started in the mandis in the last few years by agri startups to make agriculture mandi
business easy & convenient. To further improve the facet of agritech in India, Nukul
Upadhyay, Mahesh Jakhotia, Jitendra Bedwal, Daya Rai, and Nikhil Tripathi launched
Bijak agri trading app in 2019. With the advent of Bijak in the mandi business, new
possibilities have opened up for farmers and agricultural mandi traders.
2.. Better price for mandi commodities It is better to check the rates of commodities in
different mandis of India than to trade at a fixed rate in a single mandi. This helps traders
sell/buy their produce at the best prices. With the help of the Bijak app, traders can get
the latest rates of mandi commodities from 2,000+ mandis of India in one click.
3. Trade beyond geographical boundaries Earlier farmers and mandi traders used to trade
their agricultural mandi commodities in their villages, nearby areas, or within the state itself.
Now they can buy or sell their produce in any mandi in India where they get the best rates.
Using features like call or chat on Bijak app, buyers/suppliers can connect with any mandi
trader across India, increase their network and do business with them.
4. Ease of payment In most mandis, farmers and mandi suppliers don’t get their payments
on time. This creates enormous problems and forces them to sell their produce at low rates.
Digitizing the payment process makes it easier to make or receive payments and has a
beneficial effect on the income level of farmers. Bijak also provides a 100% secure payment
facility to quickly make/receive payments from counterparties. Traders can also generate E-
Bijak and keep a digital record of all their transactions.
E-NAM
National Agriculture Market (e-NAM) is a pan-India electronic trading portal which networks the
existing Agricultural Produce Market Committee(APMC) mandis to create a unified national market
for agricultural commodities. Launched by Prime Minister Narendra Modi on April 14, 2016, e-NAM is
completely funded by the Central Governmentand is implemented by Small Farmers Agribusiness
Consortium (SFAC), under the aegis of Ministry of Agriculture and Farmers’ Welfare. e-NAM platform
promotes better marketing opportunities for the farmers to sell their produce through online
competitive and transparent price discovery system and online payment facility.
The e-NAM portal provides single window services for all APMC related information and services. This
includes commodity arrivals, quality & prices, buy & sell offers and e-payment settlement directly into
farmers’ accounts, among other services. It aims to promote uniformity in agriculture marketing by
streamlining of procedures across the integrated markets, removing information asymmetry between
buyers and sellers, and promoting real-time price discovery based on actual demand and supply.
Objectives
• To integrate markets first at the level of the States and eventually across the country through a
common online market platform, to facilitate pan-India trade in agricultural commodities.
• To streamline marketing/transaction procedures and make them uniform across all markets to
promote efficient functioning of the markets.
• To promote better marketing opportunities for farmers/sellers through online access to more
buyers/markets, removal of information asymmetry between farmer and trader, better and real-time
price discovery based on actual demand and supply of agri-commodities, transparency in the auction
process, prices commensurate with the quality of produce, online payment, etc. that contribute to
marketing efficiency.
• To establish quality assaying systems for quality assurance to promote informed bidding by buyers.
• To promote stable prices and availability of quality produce to consumers.
Scheme Components
• Selection of State’s/UT’s APMCs/Regulated Market Committees (RMCs) is undertaken after
mandatory reforms in their APMC/RMC Acts as prescribed in the Scheme and approval of their
Detailed Project Report (DPR) by Project Appraisal Committee (PAC). Details of eligibility to avail
assistance under the scheme are outlined in the scheme guidelines.
• Provision of e-NAM software to States/UTs free of cost.
• Based on their Detailed Project Reports (DPR), financial assistance is provided to State/UT for
selected APMCs/RMCs up to a maximum of Rs.30.00 lakhs per market, for the purchase of hardware,
five internet connections, assaying equipment and related infrastructure to make the market ready
for integration with e-NAM platform. State Government/ UT/ their agencies would bear the balance
fund requirement, if any, for making arrangements for electronic trading in proposed markets.
• Technical Assistance: Small Farmers Agribusiness Consortium (SFAC), the Lead Implementing Agency
(LIA), through Strategic Partner (SP) Nagarjuna Fertilizers & Chemicals Ltd. 7 (NFCL) for
implementation of e-NAM, deputes at all APMCs/ RMCs free of cost one Mandi Analyst at each
market, for one year to provide day to- day hand-holding support to stakeholders for its successful
implementation. e-NAM portal access to private markets may be considered by the Project Appraisal
Committee (PAC) provided they are recommended by the competent authority of the concerned
State/UT. However, in such cases, they must provide for Mandi Analyst, related hardware, assaying
facilities, and other support services at their own cost.
• Capacity building: Orientation of APMC/RMC line staff, awareness to farmers through Market talk,
Gram Sabha, Print & Electronic media would be undertaken with the support of a strategic partner.
2. Sampling:
Samples are collected from the arriving batches for quality assessment. Sampling is done in a way that
provides a representative cross-section of the entire batch, considering factors like size, weight, and
appearance.
3. Visual Inspection:
A visual inspection is conducted to assess the overall appearance, color, size, and any visible defects
of the agricultural produce. This step helps in identifying any immediate quality issues.
4. Quality Parameters Assessment:
Quality parameters specific to each type of commodity are assessed. This may include factors such as
moisture content, weight, size, ripeness, and any other characteristics relevant to the particular
commodity.
5. Grading:
Grading involves categorizing the agricultural produce into different quality grades based on
predefined standards. Each grade represents a specific quality level, and the produce is sorted
accordingly.
6. Quality Testing:
For certain commodities, quality testing may involve laboratory analysis to measure factors like
nutritional content, pesticide residues, or other quality indicators. This is especially important for
export-oriented markets.
8. Documentation:
All assessment results, including grading details, quality parameters, and test results, are documented.
This documentation serves as a record for both the seller and the buyer and helps in traceability.
9. Quality Certification:
Based on the grading and quality assessment, a certification may be issued. This certification provides
information about the quality, grade, and conformity of the agricultural produce with established
standards.
By following these steps, mandis ensure that the agricultural produce entering the market meets
quality standards, providing confidence to buyers and maintaining the integrity of the marketplace.
The specific details of the quality control and grading process can vary based on the type of crop and
regional regulations.
Quality Impact on Market Prices:
• Grade-Based Pricing: Higher grades command higher prices.
• Export Markets: Adherence to quality standards opens access to premium export markets.
• Processing Industry Requirements: High-quality raw materials can negotiate higher prices.
• Market Reputation: Consistent quality enhances market reputation, leading to better prices.
• Supply Chain Efficiency: High-quality produce contributes to supply chain efficiency, reducing
losses.
• Discounts for Lower Quality: Lower quality may lead to discounted prices in the market.
• External Factors: Weather, pests, or diseases can impact quality and prices.
8. FARMERS EXPERIENCE
Challenges and benefits faced by farmers in the mandi
We engage with local farmers and gain insights into their experiences, challenges, and expectations
within the agricultural marketing system. The interviews conducted aimed to capture the perspectives
of farmers on existing facilities and identify areas that require attention and improvement.
5. Proposed Enhancements:
• Expanded Water Hubs: Farmers recommended the establishment of additional water hubs
across the Mandi to ensure convenient access to clean drinking water for all stakeholders.
• Improved Food Quality: Collaboration with vendors to enhance the quality and variety of food
offerings in the Mandi, creating a more diverse and nutritious range of options.
• Transparency in Bidding: Addressing concerns related to the bidding process, farmers
proposed measures such as introducing digital platforms for real-time tracking of bids and
results.
• Staying Facilities: The farmers advocated for the establishment of budget-friendly staying
facilities within or near the Mandi, acknowledging the need for accommodations during their
market visits.
Conclusion:
The feedback from the farmers highlights specific areas where enhancements and improvements are
crucial for creating a more supportive and farmer-friendly Mandi environment. Implementing these
recommendations, such as expanding water facilities, improving food quality, addressing concerns in
the bidding process, and providing staying facilities, can contribute significantly to the overall well-
being and satisfaction of the farmers.
9. Subsidy program
Role in implementing government policies
In the fiscal year 2023-24, the Mandi Samiti has demonstrated an enhanced financial performance
in comparison to the previous year, 2022-23. Notably, there has been a noticeable uptick in
income from various sources, accompanied by an increase in the volume of produce arrivals. The
overall data presented in the table indicates a positive trajectory for the Mandi Samiti in
Obaidullaganj, Raisen (M.P.). Both income and market fees have experienced upward trends, and
other income sources are showing positive growth. Moreover, the consistent arrival of produce
contributes to the overall stability and favorable performance of the Mandi Samiti.
1. Volume of Trade:
Higher Trade Volume: Increased quantities of agricultural produce being traded in the Mandi lead to
higher revenue through market charges. A vibrant marketplace with a substantial trade volume
contributes significantly to revenue.
2. Variety of Commodities:
Diverse Agricultural Produce: The presence of a wide variety of crops and commodities attracts a
larger pool of buyers and sellers. A diverse range of commodities leads to more transactions, resulting
in increased revenue.
3. Market Charges:
Fee Structure: The structure and rates of market charges imposed on transactions within the Mandi
directly impact revenue. Any adjustments or changes in the fee structure can influence the overall
income generated.
4. Efficiency in Operations:
Streamlined Processes: Efficient and well-managed operational processes within the Mandi
contribute to a smooth flow of transactions. Any improvements in operational efficiency can enhance
revenue generation by attracting more participants.
5. Transparency in Transactions:
Fair and Transparent Auctions: Transparency in auction processes and transactions builds trust
among participants. A transparent system encourages more farmers and traders to participate,
ultimately contributing to higher revenue.
6. Market Infrastructure:
Modern Facilities: Well-maintained and modern infrastructure, including market yards, auction
platforms, and storage facilities, attracts more stakeholders. Upgrading and maintaining infrastructure
can lead to increased revenue as it enhances the overall appeal of the Mandi.
7. Technology Adoption:
Digital Platforms: The adoption of technology, such as digital platforms for auctioning, real-time price
information, and transaction tracking, can improve efficiency and attract more participants.
Technology-driven initiatives often lead to increased revenue.
8. Quality Assurance:
Adherence to Standards: Ensuring and maintaining quality standards for agricultural produce in the
Mandi builds confidence among buyers. Higher-quality produce tends to command better prices,
contributing to increased revenue.
9. Market Reputation:
Positive Image: A Mandi with a positive reputation for fair practices, transparency, and efficient
operations is likely to attract more participants. A good market image can positively impact revenue
generation.
11 Infrastructure challenges
Infrastructure Challenges in the Mandi and Comprehensive Suggestions for Improvement:
Enhancing Mandi infrastructure by incorporating these comprehensive suggestions will not only
address existing challenges but also contribute to the overall efficiency and modernization of the
agricultural marketplace. This holistic approach aims to create a more inclusive, technologically
advanced, and farmer-friendly Mandi system.
12. Conclusion
My week-long internship in the accountant department at the Mandi provided a comprehensive
understanding of the intricacies of agricultural marketing. The experience allowed me to delve into
the financial aspects of the Mandi system and gain valuable insights into its operations. In summary,
the key findings from my internship can be encapsulated as follows:
2. Farmer Concerns:
Through interactions with farmers and the information gathered during my internship, it became
apparent that certain amenities and services at the Mandi require attention. Farmers emphasized the
need for expanded drinking water facilities, improved food quality, and addressed challenges in the
bidding process. Recognizing and addressing these concerns is crucial for creating a more farmer-
friendly and efficient marketplace.
3. Overall Assessment:
The Mandi, as a central hub for agricultural trade, plays a pivotal role in connecting farmers with
buyers. While it serves as a vital marketplace, there are opportunities for improvement. Strengthening
amenities, enhancing transparency in bidding processes, and addressing farmer concerns are essential
steps toward fostering a more supportive and efficient Mandi system.
In conclusion, my internship experience not only provided practical insights into the financial
operations of the Mandi but also shed light on areas that warrant attention for the overall betterment
of the marketplace. The dynamic nature of the agricultural sector presents avenues for growth and
improvement, and I am confident that addressing the identified areas will contribute to the continued
success of the Mandi in serving the needs of both farmers and stakeholders.
13. Recommendations
Recommendations for Improvement:
1.Enhanced Drinking Water Facilities:
Addressing the farmers' concern about limited drinking water facilities is crucial. Implementing
additional water hubs strategically located across the Mandi can ensure easy access to clean and
abundant drinking water for farmers and all stakeholders. This improvement will contribute to the
well-being and comfort of individuals spending extended hours at the Mandi.
14 References
Sources used in the report