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The National Agricultural Market (eNAM) is an online trading platform for agricultural products in India. Through a competitive and open pricing discovery process and an online payment option for consumers, this platform intends to improve marketing options for farmers to sell their products. Under the Ministry of Agriculture and Farmer’s Welfare, the Small Farmers Agribusiness Consortium (SFAC) serves as the primary organization responsible for implementing e-Nam. In this post, we take a close look at the electronic National Agricultural Market (eNAM).
How Does e-NAM Operate?
In order to ensure the flawless and efficient functioning of the portal, a qualified individual will be appointed for a period of one year in each sharing mandi.
Below are some important e-NAM-related points:
- The participating agriculture mandis would receive a grant from the GOI of Rs. 30 lakhs.
- Farmers participating in this program will have access to “farmer helpline services” around-the-clock to assist them in learning more about the portal.
- The National Agricultural Market (NAM) is primarily promoted by Small Farmers’ Agribusiness Consortium (SFAC) (eNAM). The Department of Agriculture, Cooperation & Farmers’ Welfare created SFAC (DAC&FW). The Partner chosen by SFAC to create, run, and maintain the NAM e-platform is chosen through an open bidding process.
Features of eNAM Scheme
The National Agricultural Market (eNAM) has the following features.
- Farmers will be able to advertise their goods through local markets thanks to the eNAM platform, which also makes it easier for traders to provide price quotes from anywhere.
- All Agricultural Produce Market Committee (APMC)-related services and information are available through e-single NAM’s point of contact. This comprises, among other things, commodity arrivals, quality, and pricing, buy and sell offers, and e-payment settlement directly into farmers’ accounts.
- Without any need of physical presence or ownership of a store or premises in the market yard, licenses for traders, buyers, and commission agents may be requested from state-level authorities using the eNAM service.
- Infrastructure for quality testing has been made available in every market, and agricultural product quality requirements have been standardized. For 25 commodities, recently discovered common tradable criteria have been created.
- To make it easier for the farmers that attend the mandi, soil testing laboratories are offered for the chosen mandi (market).
Benefits of Trading on eNAM
The following is a list of advantages to trading on e-Nam:
- Transparent Online Trading
- Real-Time Price Discovery
- Better Price Realization For Producers
- Reduced Transaction Cost For Buyers
- Stable Price and Availability to Consumers
- Quality Certification, Warehousing, and Logistics
- More Efficient Supply Chain
- Payment and Delivery Guarantee
- Error Free Reporting of Transactions
- Enhanced Accessibility to the Market
To encourage uniformity in agriculture marketing through the integration of markets, the elimination of information asymmetry between buyers and sellers, and the promotion of real-time price discovery based on current supply and demand.
- Small Farmers’ Agribusiness Consortium (SFAC), the National Agricultural Market’s principal promoter (eNAM). The Department of Agriculture, Cooperation & Farmers’ Welfare created SFAC (DAC&FW). SFAC chooses a Partner to build, run, and maintain the NAM e-platform through an open bidding process.
- SFAC implements eNAM with the technical assistance of a partner and financial grant funding from the nodal department. For the one-time implementation of the e-Market platform, DAC&FW would offer up to Rs. 30 lakhs per Mandi (market). There are around 6500 Agricultural Produce Market Committees (APMCs) operating across the nation, and eNAM plans to connect 585 district level Mandis (markets) in States or Union Territories (UTs).
Selection of Beneficiaries
The beneficiaries who will take part in the eNAM will be chosen by the selection committee listed below.
|1.||Additional Secretary (Marketing), DAC&FW||Member|
|3.||Managing Director, SFAC||Member|
|4.||APC/Secretary, I/c Agriculture Marketing of concerned State||Member|
|5.||Joint Secretary (Marketing), DAC & FW||Member Secretary|
Allocation of Funds
A Scheme for Promotion of National National Agricultural Market through Agri-Tech Infrastructure Fund had been established by the Cabinet Committee on Economic Affairs (ATIF). The newly established ATIF has been given a budget of Rs. 200 crore by the government. With this money, SFAC would carry out NAM in the ensuing years.
Advantages for Various Stakeholders
Producing competitive returns on their investment allows farmers to offer their goods directly to consumers without the help of brokers or middlemen.
In India, traders would be able to conduct secondary trading from one marketing committee to another. For secondary trading, local dealers can gain access to the broader national market.
Buyers, Processors & Exporters
By reducing the cost of mediation, buyers like retailers, processors, or exporters will be able to source goods from any marketplaces in India. They are not necessary to be present physically or to rely on middlemen.
The number of traders on eNAM will rise, and so will their level of competition. As a result, consumers may expect constant prices and availability.
As the reporting system is generated automatically, it will be possible to monitor and regulate traders and commission agents. The scope of the auctioning/tendering process’s manipulation is limited by the proceedings’ transparency. Due to an accounting of all transactions that have occurred in the market, market allocation fees will increase. Due to the electronic nature of the auctioning or tendering process, it will require less labor overall. Due to the fact that the official website provides direct access to all of an APMC’s activities, it also lessens information asymmetry.
With a single license for the entire state and a single point levy, NAM seeks to strengthen the marketing side of the agricultural sector, transforming it into a market and eliminating market fragmentation within the same state. Additionally, it will eliminate waste and enhance the commodity supply chain.
eNAM Scheme Components
- Selection of the State’s or UT’s APMCs or RMCs is carried out following the mandatory amendments to their APMC or RMC Acts required by the Scheme and the Project Appraisal Committee’s approval of their Detailed Project Report (DPR) (PAC). In the plan guidelines, it is specified in detail how one qualifies to get assistance under the program.
- Provision of e-NAM software to States / UTs free of cost.
- Based on their DPR, the State or UT would receive financial support for the procurement of hardware, an internet connection, assaying equipment, and other necessary infrastructure to prepare the market for integration with the e-NAM platform, up to a maximum of Rs. 30.00 lakh per market. If there is a balance fund requirement, it would be met by the State Government, the UT, or one of their agencies in order to set up electronic trading in the proposed markets.
- Technical Assistance: For the implementation of e-NAM, SFAC, the Lead Implementing Agency (LIA), would depute at no cost at all APMCs and RMCs one Mandi Analyst at each market for a period of one year to give day-to-day hand-holding support to stakeholders for its successful implementation. If proposed by the relevant State / UT’s responsible authority, the Project Appraisal Committee (PAC) may take into consideration eNAM portal access to private markets. They must, however, pay for Mandi Analyst, associated gear, assaying facilities, and other support services in these circumstances.
- APMC/RMC line staff orientation, farmer awareness campaigns through Market Talk, Gram Sabha, print, and electronic media, and other capacity-building initiatives would be carried out with the assistance of a strategic partner.
Pre-requisites for e-NAM
Three fundamental requirements must be met before a state can suggest Mandis as a “Plug-In” to e-NAM:
- E-auctions and electronic trading as a method of price discovery must be specifically mentioned in the state APMC Act.
- One trade license must be used throughout the state of Utah and be in force.
- A single point of market taxation for the entire State/UT.
Online Registration Procedure for Farmers/Traders
The following actions should be followed in order for farmers to register on the eNAM portal:
- The farmer or trader must go to the eNAM official webpage.
- Choose “Registration Type” and “Farmer/Trader” as applicable, then choose the desired “APMC” on the registration page.
- Give your proper email address because that is how you will obtain your login information.
- You will receive a temporary Login ID and Password at the registered email after successfully registering.
- Click the login icon on the system to log in to the Dashboard.
- The user will then get a notification that reads, “Click here to register with APMC,” on the dashboard.
- Clicking on the link will take you to the registration page where you can fill out or update your information.
- The request will be sent to your chosen APMC for approval following the completion of KYC.
- All APMC address information will be visible to you once you have successfully logged into your dashboard.
- An email confirming the application’s submission to the relevant APMC and indicating whether it has been approved or rejected will be sent to the user following a successful submission.
- You will receive eNAM Farmer Permanent Login ID and Password for full access under the eNAM platform on the registered email address once APMC has accepted you.
Online Registration Procedure for FPCs/FPOs
The Farmer Producer Organizations (FPOs)/FPCs can register on the e-NAM Portal using the following information at the appropriate eNAM mandi, the same website, or a mobile app:
- FPO/FPC names
- Name, address, email address, and phone number of the designated individual (MD, CEO, Manager)
- Information about a bank account, including its name, branch, account number, and IFSC
Online Registration Procedure for Mandi Board
According to the APMC Act, the State Agriculture Marketing Boards (Mandi Board) must implement the following changes if they are interested in integrating their Mandis with eNAM.
- To be valid throughout the state, the unified trading license must be obtained.
- It is necessary to include e-auction or e-trading as a technique of price discovery.
- The state-wide single point levy of the market fee is applied.
Following are some of the major steps taken by the Government to strengthen the e-NAM platform to improve farmers’ income:
- Increased market access for farmers to sell their agricultural products is made possible by the integration of an additional 415 mandis with e-NAM, increasing the total number of mandis to 1000 throughout 18 states and 3 UTs.
- FPOs can now trade their produce from their collection center or premises without taking it to APMC thanks to the advent of the FPO trading module.
- To make trading from warehouses based on e-NWR easier, e-NAM offers a warehouse-based trading module.
- Additionally, the Rashtriya e Market Services Private Limited (ReMS) platform of the Government of Karnataka is made interoperable with the e-NAM platform. This will enable farmers of either platform to sell their produce on the other platform, hence expanding their market access.
Ultimately, the success of NAM will be determined by whether farmers receive a greater price for their goods and whether this decreases price volatility—in which case, establishing a system of market-makers should be tried at some point in time; bringing in huge retail chains would assist, but with the central government opposing FDI in retail, this appears difficult, though the new FDI window for pure food retail may attract big food retailers. It will be crucial to make sure that the states on the platform don’t fall back on their old methods in times of supply constraint because the majority of state governments have a history of restricting supplies when local prices rise.
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