Karnataka’s e-trading platform helps farmers earn 38 percent more this year

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Karnataka’s e-trading platform help farmers earn 38 percent more income in 2015-16 over 2013-14 from sale of agri-commodities through the e-trading platform as reported in NITI Aayog report.

This Karnataka’s e-trading platform (or UMP), is a joint venture between NCDEX e-Markets Limited and Karnataka government.

E-Trading platform was set up in set up in 2013-14 much before the Centre rolled out eNAM :

E-Trading platfrom was set up in 2013-14 much before the Centre rolled its own e-trading platform as eNAM. The report indicates that farmers are getting 38% more prices when compare the prices between 2013-14 and 2015-16. The average increase was 38 per cent in nominal terms and 13 per cent in real terms, after being deflated by WPI of the concerned commodity.

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“We remain committed to use the power of technology and markets to bring about a positive change in the lives of farmers by reforming the physical markets in the country and helping central and state governments in the nation’s food security and welfare priorities,” said Rajesh Sinha, MD and CEO, NeML.

Karnataka’s model is conceived as one of the successful model with over 14 lacs farmers on board.

Karnataka’s online trading in agricultural commodities is conceived as a successful model and farmers are reaping its benefits. Till date, more than 14 lakh farmers have registered on it with over 107 agricultural produce marketing committees (APMCs) across the State.

Prices witness a substantial increase of more than 50% over the previous year :

Karnataka model of e-trading contributed to the significant rise in prices of copra, groundnut, toor, turmeric, Bengal gram, arecanut, dry chilli, and green gram. Prices of some commodities increased by more than 50 per cent in 2015 compared with the previous year.

Advantages :

  • Barrier-free market for farmers. Now, wholesale dealers, including METRO Cash & Carry, and major traders in different parts of the State are participating in online trading and quoting competitive prices.
  • Best price for commodities. It helps producer-seller secure the best price for commodities at the APMCs.
  • Eliminated the role of middlemen and unfair trade practices.
  • Unified trader licence. Issued to traders from across the state and under the system, the market would correct itself to curb excess speculation of “rogue” traders/agents mal-practice.

Karnataka’s model was showcased in a National Conference chaired by the PM Modi :

Karnataka’s model was showcased at the ‘National conference on sustainable agriculture and farmers welfare’, chaired by Mr. Modi, in Gangtok in January. Delegates from Jammu and Kashmir, Tamil Nadu, Andhra Pradesh, Jharkhand, Odisha, Gujarat, Uttarakhand, Rajasthan and Chhattisgarh visited Karnataka last year to study the market reforms process.

You can read his detail interview here under Talking to – Mr. Manoj Rajan, Managing Director and CEO, Rashtriya e Market Services (ReMS)

Source & Photo Credit : EconomicTimes , TheHindu

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