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Agricultural Board Trade Licence

India lives in agriculture. Agriculture and allied activities contribute 20.19% of the GDP of the country. India is the world’s second-largest producer of vegetables and fruits. India is also the largest exporter of wheat, sugar, spices, millet, pulses, and milk. Agriculture has been considered predominantly as an unorganised sector due to the quantum of production and the vast spread of the rural population working on it. The government has introduced various licences to regulate, and bring transparency and equality in pricing for agricultural products.

Read through the article to understand a few important agricultural board trade licences.

Agricultural Board Trade Licences In India

Following are the agricultural licences popularly operated in India.

  • Agricultural Produce Market Committee licence (APMC licence) by
  • Registration and trading through the electronic National Agricultural Market (eNAM)
  • Registration and trading through electronic Rashtriya Kisan Agri Mandi (eRaKAM)
  • Agricultural And Processed Food Products Export Development Authority (APEDA licence)
  • Agricultural Mark (AGMARK)

Apart from the above, there are also state-specific licences like licence to market functionaries under the State of Assam, e-licence for Agri inputs under the State of Odisha, etc.

Also Read: What are the eligibility criteria for Agriculture Loans in India?

How to trade through the electronic National Agricultural Market (eNAM)?

Electronic National Agricultural Market (eNAM)) is an online marketplace where farmers can freely sell their produce directly to buyers, exporters, processors, and retailers. All these are without any fee in the trading area. While the existing mandi system continues, the farmers can make use of this transparent and integrated marketplace managed by the Government of India.

Registering in eNAM means you get a unified state licence. Now the farmers can trade across the state borders without having to worry about high transportation costs.

Register in the eNAM portal through the following steps.

  • Visit the official eNAM website.
  • Find and click on “Registration” in the top right corner of the page.
  • Enter your active email id as a user id and a password will be sent to the same.
  • Login to the eNAM portal with the temporary credentials sent to your email.
  • Click on the flash message, “Register with APMC”
  • Enter the basic details, and upload proof of identity and proof of address.
  • The respective APMC approves the application. You can find the status as Submitted/In Progress/Approved/Rejected.
  • You will receive eNAM Farmer Permanent Login ID and platform. Now you are ready to use the entire range of services in the e-marketplace.

Registration and trading through electronic Rashtriya Kisan Agri Mandi (eRaKAM)

e-Rashtriya Kisan Agri Mandi is the pioneering step by the Government of India to provide a unified auction place for farmers to sell and purchase agricultural produce. The facility is governed by the National Agricultural Cooperative Marketing Federation of India Limited (NAFED). The farmers can register in the eRaKAM portal through the following steps.

  • Visit the official website of eRaKAM. Click on the green button “Registration” found in the left corner of the home page.
  • Select the beneficiary type which you want to get registered for. Buyer/seller/admin
  • Once you select you will be redirected to the instructions page. Read through the instructions and proceed with registration.
  • Enter the basic, residential, and commercial details on the application page and click submit.
  • You will be required to upload the photograph and supporting documents as required.
  • Once the registration is successful, you can upload your products, and participate in auctions notified by NAFED.

Agricultural And Processed Food Products Export Development Authority (APEDA licence)

The Agricultural and Processed Food Products Export Development Authority Act governs the Agricultural And Processed Food Products Export Development Authority. The main objective of APEDA is to encourage exports of scheduled agricultural products by including farmers all over the country. APEDA also assists with packaging, quality checks, and effective marketing. You can take your agricultural produce to the next level by trading across the country with an APEDA licence.

Read more to know how to register for an APEDA licence.

  • Visit the official APEDA website.
  • Click on “Register as Member” in the right corner of the home page.
  • Enter your name, mobile number, email, and Import Export (IE Code) and submit.
  • Submit the OTP received on your mobile number and email.
  • Fill in the required information in the application and upload the required supporting documents.
  • Review the application and proceed to the payment page.
  • You can pay the licence fees of Rs 5,900 through a credit card /debit card or demand a draft in favour of APEDA.
  • On successful payment, the application number, and login credentials are sent to the registered email of the beneficiary.
  • Once the application is approved, the exporter can log in and download the Registration Cum Membership Certificate.

Agricultural Mark (AGMARK)

The AGMARK licence is issued and managed by the Directorate of Marketing and Inspection under the Ministry of Agriculture and Farmers Welfare and is governed by the Agricultural Produce (Grading and Marking) Act, of 1937. AGMARK represents the authentication of the quality of the product. AGMARK certification is voluntary and is available for almost 222 agricultural products. AGMARK certification helps in easy trading in international markets.

  • Visit the official website of the Directorate of Marketing and Inspection (DMI).
  • Click on “Certificate of Authorisation”.
  • Click on “Sign Up” and enter the required basic, statutory, and business details.
  • Once the details are successfully saved, a link to set a password is sent to your registered email id.
  • You can log in with your email and password for viewing the status of your licence application.

Do you know? The e-NAM, e-RaKAM, APEDA, and AGMARK applications are available in the Google Play store. You can install and be an active user of this common marketplace.

Features Of Online Marketplaces For Agriculture

  • Transparency in pricing.
  • Removal of geographical restrictions by trading beyond borders.
  • Common platform for farmers, traders, middlemen, exporters, processors, Farmers' Producers organisations (FPO), Public Sector Undertakings (PSU), and civil supplies to enjoy seamless trading of agricultural produce.
  • Online payment options facilitate instant cash flows for farmers.
  • Real-time demand assessment.

Eligibility For Agricultural Board Trade Licence

  • Any farmer who is 18 years and above can register for an agricultural licence.
  • Any type of person who deals in agricultural produce can register for agricultural product licences. Landlords and tenants are also classified as farmers.
  • Documents Required For Agricultural Board Trade Licence
  • Proof of Identity - Aadhar card, Voter ID card, PAN card
  • Proof of Address - Aadhar card, latest utility bills, Ration card, Passport, NREGA card
  • Land ownership, lease deed, rental deed
  • Bank statements
  • Passport size photograph
  • Self-certified copy of Import Export code for APEDA licence
  • Registration under FSSAI, Horticulture, MSME, DIC, SIA, and NOC by Pollution Control Board for manufacturer exporters under APEDA licence.
  • Memorandum of Association for a company, Partnership/LLP deed for firms, Test report from independent AGMARK laboratory for AGMARK licence.

Conclusion

Agriculture sector helps the entire nation thrive by providing all the basic commodities for living and earning. The agricultural board trade licences help in making the trading organised, transparent and efficient. Farmers can trade their agricultural products freely without the fear of market rate fluctuations, transportation and storage costs.

FAQs of Agricultural Board Trade Licence

1. What is an APMC?

Agricultural Produce & Livestock Market Committee (APMC) is established under the provisions of the Agricultural Produce & Livestock Management Act. It is a notified entity established by the State Governments to regulate trading of agricultural products.

2. Which states have APMC constituted?

Uttarakhand, UT of Chandigarh, Uttar Pradesh, Rajasthan, Punjab, Mizoram, Maharashtra, Madhya Pradesh, Karnataka, Himachal Pradesh, Gujarat, Goa, Chhattisgarh, Andhra Pradesh have APMCs.

3. Can I trade through the physical mandis even If I register for online trading of my livestock?

The Government has not disposed of the concept of physical mandis. You can very well trade both through physical and online mandis.

4. What are the products that can be sold through eNAM?

All agricultural products, livestock, meat, and dairy products are freely tradeable through eNAM.

5. I want to export wheat. Is AGMARK mandatory for exporting?

No AGMARK is a voluntary certification. It adds value and brand image to your product. In the case of exports, products are accepted after rigorous quality testing. An AGMARK licence can help you ease through the process.

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