Modern Mandi

A modern mandi is not necessary a physical market yard. A modern mandi serves as a one stop shop for all agricultural marketing related needs and services.

In Karnataka, Rashtriya e-market Servies Ltd. (ReMS), a joint venture created by the State government and NCDEX e-Markets Ltd. (NeML) has modernized 170 mandis into a single market. These modern mandis offers automated auction and post auction facilities (weighting, invoicing, market fee collection, accounting), assaying facilities in the markets, facilitate warehouse-based sale of produce, facilitate commodity funding, price dissemination by leveraging technology.

As a precursor to establishing the modern mandi the States must amend the agricultural act governing the agricultural marketing in the State. In Karnataka, these changes were done over the course of 2 years. A reform committee was set up in March 2013 which submitted its report in May 2013. Based on the recommendation of the report the state APMC act was amended to allow for the creation of a modern mandi. The Karnataka government chose NCDEX e-Markets Limited (NeML) as its technology and implementation partner and incorporated ReMS in January 2014 with it to ease the implementation process. With this Karnataka became the first state to successfully implement the modern mandi.

The setting up of the 'modern mandi' stands to benefit all the stakeholders, namely, the farmers, consumers and the government machinery.

Farmers

  1. Guaranteed Payments
  2. Saves times & money
  3. No uncertainly to trade
  4. Increased income (most competitive rates for produce)

Government Machinery

  1. Compliant & transparent market
  2. Increased revenue
  3. Complete digitized trade records
  4. Registration of buyers made hassle free
  5. Increased efficiency in process
  6. auditable & verifiable market place

Consumers

  1. Ease of Payments
  2. Better quality produce
  3. Ease of participation
  4. Real time bidding
  5. Wider scope for participation (number of commodities & places)
  6. Complete tractability of funds.

PHASE II OF THE 'MODERN MANDI'

When the Phase first of the modern mandi was complete and matured, States then moved towards Second Phase.

E-Pledge
Facilitate pledge loans through the banks to farmers against goods stored in the warehouse. When the farmer wishes to sell his produce he can do so directly without having to withdraw the goods from the warehouse. The pledged amount will be deducted and given to the bank. The remaining will be given to the farmer. The entire process would happen seamlessly through the e-trading platform.

Trading Kiosks across the Nation
The farmers would be able to enter into forward contracts with any trader across the country. The farmer would be able to make an informed decision about selling if he knows the trends in the futures market. These trading can be located at the mandi, warehouse and/or private markets.

Perishables (Fruits and Vegetables)
Fruits and Vegetables can gradually be integrated into the 'modern mandi'.