The 2015 proposal
A single-window, uniform tax at APMCs replacing multi-point market fees, with prices online 24×7.
Where it stands in 2026
Half of this is done and the remaining half is precisely diagnosed. GST (2017) folded a thicket of indirect taxes into one, and Agmarknet now publishes daily arrivals and prices for roughly 3,000 markets — the transparency the deck wanted. But the mandi fee itself is a state subject and remains a patchwork: a market fee plus rural-development cess and commission that historically reached around 8.5% in Punjab against 1–2% in many other states. Every percentage point of that wedge is a tax on moving grain across a state line, fragmenting what should be one national market.
The open gap
GST unified the tax; the patchwork of state mandi fees (~8.5% in Punjab vs ~1–2% elsewhere) that re-fragments the market has not.
The path to close it
GST unified the indirect tax; the wedge that remains is the patchwork of state mandi fees (historically ~8.5% in Punjab versus ~1–2% elsewhere), which quietly re-erects the inter-state barriers the deck set out to remove. Push a model fee cap and a single unified market charge that clears across states — the e-NAM unified-licence idea, where one registration lets a trader operate in any linked mandi — through the inter-state council and the centre’s model APLM Act, and rebate the fee transparently into the market infrastructure farmers actually use. Borrow the EU single-market principle already cited for the inter-state-barriers prerequisite: goods that have cleared once should move freely thereafter. The aim is one charge, charged once, visible to all — so a farmer’s choice of where to sell turns on the best price, not the lowest fee.
Specifications — what “built” requires
Illustrative — a proposed specification and sequence, not an official government roadmap.
Acceptance criteria
- A single unified market charge that clears across states — one charge, charged once.
- A model fee cap adopted through the inter-state council / model APLM Act.
- An e-NAM unified licence: one registration to trade in any linked mandi.
- Fees rebated transparently into market infrastructure.
- The EU single-market principle: goods cleared once move freely thereafter.
Technical spec
- Charge
- single unified market fee; capped; non-cascading
- Licence
- e-NAM unified trader licence (multi-mandi, multi-state)
- Mechanism
- inter-state council + model APLM Act adoption
- Rebate
- fee → market-infrastructure fund (audited)
- Interop
- e-way bill + ULIP one-step compliance
- Principle
- clear-once-move-freely (EU single market)
Roadmap to built — phase 1 → 2 → 3
Illustrative — a proposed specification and sequence, not an official government roadmap.
- 1Phase 1 · Now
Cap the wedge
Adopt a model market-fee cap through the inter-state council and model APLM Act.
A ceiling on the state-fee patchwork.
- 2Phase 2 · 6–12 months
One licence to trade
Roll out the e-NAM unified licence — one registration to trade in any linked mandi.
Traders move across mandis and states on one identity.
- 3Phase 3 · 12–24 months
One charge, charged once
Replace the patchwork with a single unified market charge that clears across states, rebated to infrastructure.
One charge, charged once — built.
Where it sits in the chain
See the full map →Enables
Nothing yet — this is a capstone of the chain.
Sources
- ↗ GST e-way bill system — Goods & Services Tax Network
- ↗ Agmarknet — daily mandi prices — Directorate of Marketing & Inspection, Govt. of India
- ↗ Agricultural Policies in India — OECD, 2018
- ↗ Agricultural Policy Monitoring and Evaluation 2023 — India — OECD, 2023
- ↗ Towards One Agricultural Market in India: Does the ICT Help? — Springer (peer-reviewed chapter), 2020
- ↓ Salient Features of the Model Act on Agricultural Marketing — Directorate of Marketing & Inspection, Government of India, 2003
