Government on Wednesday approved the setting up of an online national agriculture market that will provide more options to farmers for selling their produce.

A decision in this regard was taken at a meeting of the Union Cabinet, headed by Prime Minister Narendra Modi.

"The proposal on the creation of a National Agriculture Market has been approved by the Cabinet," sources said.

Currently, farmers are restricted to selling their produce at mandis or market committees that charge various taxes on producers.

Sources said an online platform would be set up wherein farmers will be able to sell and buy fruits, vegetables and other produce from across the country.

An agency would be set up to oversee online trading and to ensure that transactions take place smoothly, they said.

It will also focus on creating godowns and facilitating transportation of the farm produce after the online trade, sources added.

The move is expected to give choice to farmers to sell the farm produce both in physical mandis or online platform.

The freer access to sell via online trade is likely to boost their incomes and improve availability, moderating price rise.