Agri Ministry requested to arrange committee for sooner declaration of warehouses as mandis

The Siraj Hussain-led panel on the promotion of warehouse-based sale of agricultural produce has advisable that each one warehouses, whether or not registered with WDRA or not, needs to be declared as deemed market-yards (mandis) in the event that they adjust to the prescribed norms of State’s APMC Act/Guidelines. It has additionally urged that the Agriculture Ministry type a steering committee with main States for easy and sooner implementation.

The Professional Committee, headed by the previous agriculture secretary, was arrange in April 2023, is claimed to have submitted its report in December, and it was uploaded on the Ministry web site Monday. It has advisable a bunch of measures to advertise warehouse-based gross sales, with a give attention to e-Negotiable Warehouse Receipts (eNWRs) buying and selling by way of eNAM and different registered e-trading platforms.

One of many key suggestions is the obligatory registration of all warehouses with a capability of 1,000 tonnes or extra with the Warehousing Growth and Regulatory Authority (WDRA). It has additionally requested the federal government to supply credit score at a subsidised rate of interest when farmers avail it utilizing eNWRs by extending the Kisan Credit score Card (KCC) scheme for this goal.

• Additionally learn: Inter-mandi commerce on e-NAM greater than doubled throughout April-December

“All these warehouses, whether or not registered with WDRA or not however complying with the prescribed norms for markets set out within the respective State’s APMC Act/Guidelines, could also be declared as deemed market-yards,” the panel additionally stated. Additional, it has urged State governments give choice to WDRA-registered warehouses for declaring these as deemed market-yards, as solely such godowns are mandated to concern eNWRs.

“This may not require an excessive amount of formalities on the stage of APMCs/State Agricultural Advertising Boards and the State governments as WDRA has already accomplished in depth bodily inspection of such warehouses earlier than registration,” the panel stated.

Suggesting the Division of Agriculture and Farmers’ Welfare to type a “Steering Committee” with main States to push the declaration of warehouses as deemed market-yards, the panel stated there’s a want for applicable authorized provisioning in State’s APMC Acts, together with the pressing notification of Guidelines “The Steering Committee can also monitor and assessment the progress of the particular declaration or notification of deemed market-yards on the bottom by holding common conferences,” it stated.

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As it’s necessary for all warehouses below the Meals Company of India (FCI), each its personal and those leased out by non-public sector, to be registered with WDRA, the panel has stated that States ought to intensively promote registration of co-operative and personal warehouses and undertake consciousness programme amongst warehouse homeowners to encourage them to register with WDRA.

The committee additionally recommends making it necessary that the second instalment of subsidy below any authorities scheme of Centre and States for warehouse development be launched solely after registration with WDRA.

Within the first section, focus needs to be on selling warehouse-based main commerce by way of eNWRs by way of eNAM and different registered e-trading platforms, for the success of such commerce on a big scale. Subsequently, a mechanism will be established to advertise secondary commerce, principally occurring from warehouses, by way of eNWRs by way of eNAM and different registered e -trading platforms, the panel stated.

Nevertheless, many agri-marketing specialists differ on permitting secondary commerce on e-NAM, as it can dilute the give attention to serving to farmers since there are a number of non-public sector on-line platforms already obtainable for facilitating transactions between dealer to dealer (B2B).

The panel stated that permitting secondary commerce by way of eNAM and different registered e-trading platforms would necessitate the formulation of market guidelines protecting buying and selling process, fee, transaction expenses, dispute settlements, and so on.

The panel said that permitting secondary commerce by way of eNAM and different registered e-trading platforms would necessitate the formulation of market guidelines protecting buying and selling procedures, funds, transaction expenses, dispute settlements, and so on.