e-National Agriculture Market (e-NAM) in India, Know More About It

e-National Agriculture Market

The e-National Agriculture Market (e-NAM) stands as a transformative electronic trading platform in India, aiming to connect existing Agricultural Produce Market Committee (APMC)/Mandis into a unified national marketplace for agricultural goods. Launched on April 14, 2016, by the Prime Minister of India, e-NAM strives to create a seamless market for agricultural commodities across the nation.

Overview table of e-National Agriculture Market

Aspect	Description
Launch Date	April 14, 2016
Initiator	Small Farmers Agribusiness Consortium (SFAC) under the Ministry of Agriculture and Farmers’ Welfare, Government of India
Objective	Integration of existing Agricultural Produce Market Committee (APMC)/Mandis into a unified national marketplace for agricultural goods
Initiatives	Integration of 11 mandis from Jammu and Kashmir
Key Objectives	– Integration of markets at the state/UT level – Standardization of marketing procedures – Facilitation of better marketing opportunities for farmers – Establishment of quality assaying systems
Benefits	– Transparent online trading platform – Real-time price discovery – Enhanced price realization for farmers – Reduced transaction costs for buyers – Ensured stable prices and availability for consumers – Provision of quality certification, warehousing, and logistics – Streamlined supply chain – Convenient e-payment options – Error-free reporting of transactions – Enhanced accessibility to more APMCs
Eligibility Criteria	– Reforms in APMC Acts – Infrastructure and Legal Framework – Registration on PFMS Portal
Application Process	– Preparation of Proposals – Submission of Proposals – Review and Approval – Grant Disbursement – Implementation and Compliance – Monitoring and Evaluation
Conclusion	e-NAM aims to revolutionize India’s agricultural landscape by integrating disparate markets into a cohesive, efficient, and transparent trading platform.

Details

e-NAM, spearheaded by the Small Farmers Agribusiness Consortium (SFAC) under the Ministry of Agriculture and Farmers’ Welfare, Government of India, allows farmers to trade their produce through nearby e-NAM mandis. Simultaneously, it empowers traders to participate in online bidding from any location. The portal provides comprehensive services, including commodity arrivals, quality assessment using Artificial Intelligence-based equipment, e-Bidding, and direct settlement of payments into farmers’ accounts.

J&K’s Initiative

The Horticulture Planning & Marketing Department in Jammu and Kashmir took a significant step by integrating two mandis – Narwal in Jammu and Parimpora in Srinagar – into e-NAM in May 2020. This was followed by the integration of nine more mandis in subsequent phases, totaling to 11 mandis from the Union Territory of J&K.

Objectives

The objectives of e-NAM are multifaceted:

• Integration of markets at the state/UT level to enable pan-India trade.
• Standardization of marketing procedures across all markets.
• Facilitation of better marketing opportunities for farmers through online access to more buyers, ensuring fair price discovery.
• Establishment of quality assaying systems to ensure informed bidding by buyers and stable prices for consumers.

Benefits

The benefits of trading on e-NAM are manifold:

• Transparent online trading platform.
• Real-time price discovery.
• Enhanced price realization for farmers.
• Reduced transaction costs for buyers.
• Ensured stable prices and availability for consumers.
• Provision of quality certification, warehousing, and logistics.
• Streamlined supply chain.
• Convenient e-payment options.
• Error-free reporting of transactions.
• Enhanced accessibility to more APMCs.

Eligibility Criteria

The eligibility criteria for availing assistance under the e-National Agriculture Market (e-NAM) scheme are designed to ensure that states and Union Territories (UTs) are committed to agricultural marketing reforms. These reforms are crucial for the successful implementation of e-NAM and its objectives. The key eligibility criteria include:

1. Reforms in APMC Acts: States/UTs must undertake mandatory reforms in their Agriculture Produce Market Committee (APMC) Acts. These reforms should address three critical areas:
   • Single Trading License: The state/UT must enact legislation or executive orders to issue a single trading license valid across the state. This license should enable traders to participate in trading through the e-NAM portal across various markets within the state/UT. Additionally, the process for obtaining a trading license should be liberalized to remove barriers such as high security deposits or stringent requirements.
   • Single Point Levy of Market Fee: Legislation or executive orders should ensure a single point levy of market fees for wholesale trading of agricultural produce across the state/UT. This implies that market fees should be levied only at the point of the first transaction within the state, without additional fees on subsequent transactions of the same produce.
   • Provision for e-Auction/e-Trading: The state/UT must facilitate e-auction or e-trading as a mode of price discovery. This involves incorporating provisions in the APMC Act or regulations to enable online trading through platforms like e-NAM.
2. Infrastructure and Legal Framework: States/UTs must provide the necessary infrastructure and legal framework to promote the integration of their markets with e-NAM. This includes establishing quality assaying systems, ensuring connectivity to Soil Testing Laboratories (STLs), and developing the physical infrastructure required for e-trading.
3. Registration on PFMS Portal: States/UTs must register their implementing agency on the Public Financial Management System (PFMS) portal. This registration enables the transfer of funds for the implementation of e-NAM infrastructure and related activities.

e-National Agriculture Market Application Process

The application process for states/UTs to participate in the e-NAM scheme involves several steps:

1. Preparation of Proposals: States/UTs that meet the eligibility criteria outlined above are required to prepare proposals for integration with e-NAM. These proposals should detail the reforms undertaken in the APMC Acts, infrastructure readiness, and other relevant information.
2. Submission of Proposals: The proposals, prepared in accordance with the guidelines provided by the Department of Agriculture, Cooperation and Farmers’ Welfare (DAC&FW), are submitted by the respective states/UTs. The proposals must be submitted on the prescribed proforma, including Annexure-I, which outlines the prerequisites for availing assistance under the scheme.
3. Review and Approval: The proposals are reviewed by the concerned authorities, including the Project Appraisal Committee (PAC) appointed by the DAC&FW. The committee evaluates the proposals based on the fulfillment of eligibility criteria and the feasibility of implementation.
4. Grant Disbursement: Upon approval of the proposals, states/UTs are sanctioned a one-time grant for the purchase of hardware, internet connection, assaying equipment, and other infrastructure required for integration with e-NAM. The funds are disbursed through the PFMS portal to the registered implementing agency.
5. Implementation and Compliance: States/UTs are responsible for implementing the necessary reforms and infrastructure development as per the approved proposals. They must also ensure compliance with the conditions laid down in the scheme guidelines, including trading a specified volume of agricultural commodities through e-trading/e-auction.
6. Monitoring and Evaluation: The progress of implementation is monitored by the DAC&FW and other relevant authorities. Regular evaluations are conducted to assess the impact of e-NAM integration and identify areas for improvement.

Conclusion: e-National Agriculture Market

The e-National Agriculture Market (e-NAM) represents a revolutionary stride in India’s agricultural landscape, aiming to integrate disparate markets into a cohesive, efficient, and transparent trading platform. By leveraging technology, e-NAM endeavors to empower farmers, streamline trading processes, and ensure fair prices and quality produce for consumers nationwide.

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