eNAM-OBJECTIVES, ELIGIBILITY & ADVANTAGES

eNAM-OBJECTIVES, ELIGIBILITY & ADVANTAGES

INTRODUCTION

National Agriculture Market or eNAM is an online trading platform which facilitates farmers, traders and buyers with online trading of agricultural commodities.

• The market helps in better price discovery and provides facilities for smooth marketing of their produce. About 175 agricultural commodities are currently listed and available for trade.
• Farmers can opt to trade directly on their own through the mobile app or through registered commission agents.
• The market is helping traders and exporters in procuring quality products in bulk at one place and ensures transparent financial transactions.
• The trading is done online, with trading computers or through the mobile app in all e-nam markets.
• An eNAM mobile application is also available for farmers and traders to bid and complete a transaction on the app, available in 8 languages.

HISTORY

Government approved a Central Sector Scheme for “Promotion of National Agriculture Market (NAM) through Agri-Tech Infrastructure Fund (ATIF) on 01st July, 2015 with a budget allocation of Rs. 200 crore. The common e-market portal is called e-NAM.

Objectives:

The main objectives of the Scheme were:

• To integrate markets across the country through a common online market platform to facilitate pan-India trade in agricultural commodities;
• To streamline marketing/transaction procedures and make them uniform across all markets to promote efficient functioning of the markets;
• To promote better marketing opportunities for farmers/sellers through online access to more buyers/markets, removal of information asymmetry between farmer and trader, better and real-time price discovery based on actual demand and supply of agri-commodities, transparency in auction process, prices valued with quality of produce, online payment that contribute to marketing efficiency;
• To promote informed bidding by buyers; and to promote stable prices and availability of quality produce to consumers.

Scheme Design

NAM is developed as a pan-India electronic trading portal; manage centrally by Small Farmers’ Agribusiness Consortium (SFAC), which networks all the selected markets to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market at the back end.

 

 

Eligibility criteria for availing assistance

The States/Union Territories (UTs) need to undertake mandatory reforms in their Agriculture Produce Market Committee (APMC) Acts in respect of following three areas to avail the assistance under it.

• Single trading license to be valid across the State;
• Single point levy of market fee across the State; and
• Provision for e-auction/e-trading as a mode of price discovery to be facilitated by the State Agriculture Marketing Department/APMCs/Regulated Market Committees (RMCs).

eNAM Portal gives access to

1. NAM Common Helpline Number for Support
2. Users Registration & Login
3. Language Selection
4. AGMARKNET Max & Min Prices of all commodities
5. Previous day Trading details
6. NAM related videos
7. Latest Updates
8. Commodity Arrival Graph
9. Commodity Price Graph
10. Live Mandi Status
11. Registered Users
12. Commodity Information along with Assaying Parameters
13. Quick Links & Useful Links

Advantages for various stakeholders

• Farmers: They can sell products without the interference of any brokers or middlemen and thus gets better returns of their investment.
• Traders: Traders will be able to do secondary trading from one APMC to another one anywhere in India.
• Buyers, Processers & Exporters: Buyers, processors or exporters will be able to source commodities from any mandi in India thereby reducing the inter-mediation cost. Their physical presence and dependence on intermediaries will not be needed.
• Consumers: NAM will increase the number of traders which increases competition among them. This facilitates stable prices and availability to the consumers.
• Mandis: Electronic system will reduce burden of bookkeeping and reporting system as reports are generated automatically. Tendering/auctioning process is carried out electronically, hence reduces requirements of manpower. Monitoring and regulation of traders and commission agents become easy. Transparency in the process eliminates the scope of manipulation of tendering/auctioning process. Market allocation fee will increase due to accounting of all transactions taking place in the market.
• With one license for the entire state and single point levy, an entire state becomes a market, so market fragmentation within the same state gets abolished. It improves the supply chain of commodities and reduces wastages.

Frequently Asked Question (FAQ)

What is the difference between eNAM and the existing mandi system?

eNAM is a platform to create a national network of physical mandis which can be accessed online.

It seeks to leverage the physical infrastructure of the mandis through an online trading portal, enabling buyers situated even outside the Mandi/ State to participate in trading at the local level.

How will eNAM operate?

It offers a “plug-in” to any market yard existing in a State (whether regulated or private). The special software developed for eNAM is available to each mandi which agrees to join the national network free of cost with necessary customization to conform to the regulations of each State Mandi Act.

Are there any conditions for joining eNAM?

States interested to integrate their mandis with eNAM are required to carry out following three reforms in their APMC Act.

1. a) Single trading license (Unified) to be valid across the state
2. b) Single point levy of market fee across the state; and
3. c) Provision for e-auction/ e-trading as a mode of price discovery

Will the APMC mandis lose out business due to eNAM?

Mandis do not lose any business. eNAM basically increases the choice of the farmer when he brings his produce to the mandi for sale. Local traders can bid for the produce, as also traders on the electronic platform sitting in other State/Mandi. The farmer may choose to accept either the local offer or the online offer. In either case the transaction will be on the books of the local mandi and they will continue to earn the market fee. In fact, the volume of business will significantly increase as there will be greater competition for specific produce, resulting in higher market fees for the mandi.

Who actually operate the eNAM platform?

Ministry of Agriculture & Farmers’ Welfare, Govt. of India has appointed Small Farmers’ Agribusiness Consortium (SFAC) as the Lead Implementing Agency of eNAM. SFAC will operate and maintain the eNAM platform with the help of a Strategic Partner, presently NFCL.

(Source- eNAM, Gov. of India)

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