Why we want a central regulation to manipulate inter-state agri-commodities buying and selling

On this State of the Economic system episode, Subramani Ra Mancombu speaks to former Union Agriculture Secretary Siraj Hussain on the report of the skilled committee headed by him on the promotion of warehoused-based gross sales with a deal with e-Negotiable Warehouse Receipts. The report was submitted final week to assist enhance warehouse-based gross sales of agricultural produce.

The committee’s focus is on selling commerce in E-negotiable warehouse receipts (NWRs) via platforms just like the Digital Nationwide Agriculture Market (Enam) and different registered on-line buying and selling platforms.

Key suggestions embody the proposal to declare warehouses as deemed mandis in the event that they adhere to State APMC legal guidelines, with the broad goal of enhancing farmers’ returns.

The committee’s suggestions have been formulated via consultations with stakeholders representing State governments, small farmers, and agricultural companies.

One suggestion put forth by the committee is the designation of warehouses as sub-market yards, simplifying the method of buying and selling agricultural commodities saved inside them.

This suggestion builds upon present practices in States like Uttar Pradesh, the place chilly storages have already been declared as sub-market yards, facilitating direct buying and selling between farmers and personal entities.

One other side addressed within the report is the registration of warehouses with the Warehouse Improvement Regulatory Authority (WDRA). Hussain requires the necessity for elevated registration of warehouses to broaden the ecosystem of E-negotiable warehouse receipts.

Challenges like grading requirements and pledge financing in opposition to digital NWRs are additionally examined, highlighting the necessity for coverage interventions to deal with these points instantly. The dialogue underscored the significance of aligning grading norms with market realities and facilitating seamless financing mechanisms for farmers.

Hussain additionally stated for a central regulation was wanted to manipulate inter-State buying and selling in agricultural commodities, making certain transparency and accountability throughout State borders.

Pay attention in to know extra.