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Elements of a National Agricultural Market in India

In: Financing Agriculture Value Chains in India

Author

Listed:
  • Devesh Roy

    (International Food Policy Research Institute (IFPRI))

  • P. K. Joshi

    (International Food Policy Research Institute (IFPRI))

  • Raj Chandra

    (Iowa State University)

Abstract

This paper addresses several research questions relating to the National Agricultural Market. How far do indicators suggest a basis for NAM? Does the current state of market exhibit lack of effective integration and in which commodities? What are the elements of the NAM on the back end? To what extent are the attributes of the existing marketing infrastructure such as backend support suited for the NAM? What changes in the back end (infrastructure and institutions) would be needed to make NAM effective? The existing lack of spatial integration makes a case for an institution like NAM. The analysis shows that barring some low-value cereals, markets for most commodities lack integration. However, subsequent analysis shows that the preparedness for a platform like NAM is quite low on the back end. The back end would require serious large-scale investment for the functioning of NAM comprising warehousing, cold storages, refrigerated vans, laboratories, grading facilities and certification mechanisms, among others. The existing marketing structure under APMC can be incorporated into NAM but significant modifications will be required. For effectiveness and sustainability of NAM, the government has to provide several public goods in the back end such as roads, banking and communication facilities, etc.

Suggested Citation

  • Devesh Roy & P. K. Joshi & Raj Chandra, 2017. "Elements of a National Agricultural Market in India," India Studies in Business and Economics, in: Gyanendra Mani & P.K. Joshi & M.V. Ashok (ed.), Financing Agriculture Value Chains in India, pages 211-238, Springer.
    • Handle: RePEc:spr:isbchp:978-981-10-5957-5_12
    DOI: 10.1007/978-981-10-5957-5_12
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    Cited by:

    1. Chandra Sekhara Rao Nuthalapati & Yogesh Bhatt & Susanto K Beero, 2020. "Is the Electronic Market the Way Forward to Overcome Market Failures?," IEG Working Papers 387, Institute of Economic Growth.
    2. Bisena, J & Kumar, R, 2018. "Agricultural marketing reforms and e-national agricultural market (e-NAM) in India: a review," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(2).

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