e-NAM - Definition, Scope & Implementation [UPSC Notes]

e-NAM or the e-trading platform (online trading portal) for the National Agriculture Market (NAM) was launched by the Prime Minister of India, on April 2016. This topic comes under the Agricultural section of the Indian Economy of UPSC Syllabus. Questions related to the topic may arise in the UPSC Prelims and can be asked to be analysed in the UPSC mains as well.  This article will provide you with relevant details about e-NAM for the upcoming exam.

Candidates can also get previous years’ Agriculture Questions of GS 3 in UPSC Mains in the linked article.

What is e-NAM?

e – National Agriculture Market (e-NAM) is a pan-India electronic trading portal that nets the prevailing Agricultural Produce Market Committees (APMC) Mandis for making a united national market for agricultural commodities.

The e-NAM project would operate via the online portal that is linked to the states’ mandis (Wholesale markets). All the participating states will be providing the software (Website and Mobile Application) for e-NAM at no cost.  For the IAS Exam, keep on reading about the topic below.

How Does e-NAM Operate?

A competent person will be appointed for one year in each sharing mandi in order to enable the seamless and smooth operation of the portal. Read about National Agriculture Market (NAM) in the linked article.

Some key points related to e-NAM are given below:

  • The GOI is offering a grant of Rs.30 lakhs to the participating agriculture mandis.
  • Farmers under this scheme will be given ‘farmer helpline services’ 24×7 to help them obtain information about the portal.
  • Small Farmers’ Agribusiness Consortium (SFAC) is the lead promoter of National Agricultural Market (eNAM). SFAC is formulated under the Department of Agriculture, Cooperation & Farmers’ Welfare (DAC&FW). SFAC through open tender selects a Partner to develop, operate, and maintain the NAM e-platform.

e-NAM logo

e-NAM & Its Role in the Agriculture Industry

The farmers can benefit if they were to find ways for aggregating produce on their own, bypassing the Arhatiya (business representative) and even the local mandi (Marketplace) in the process.

e-NAM - The role of e Nam in the agriculture sector of India

e-NAM & Its Constituents

e-NAM comprises of commodity onsets and prices, buy and sell trade offers, facility to respond to trade offers, among other services.

The focus areas, with regards to the implementation of e – National Agriculture Market, are given in the table below:

e-NAM Implementation
Informing and trading commodities on e-NAM Increasing the involvement of traders on e-NAM
Aggregate the quantity and value of supplies being traded on e-NAM Increasing the figures of bids cited by traders
Encouraging cashless transactions, e.g. online payments, to farmers Promoting inter-market trade between Mandis
Offering access to Soil Testing Laboratories to farmers Accompanying awareness and farmer orientation programs
Providing elementary amenities and facilities for cleaning, sorting and packing to farmers in the Mandi Creating logistics and infrastructure available to encourage inter-market trade on the e-NAM platform
Undertaking local initiatives and innovative systems to influence greater strength to e-NAM Safeguarding transparency and accountability in implementation.

In conclusion, we can say that this will turn out beneficial to the farmers when they’re receiving a higher price than before on their produce. The intermediaries that are responsible for the claiming charges that result in higher market prices can be put to trial. Larger retail stores can benefit from this and will be attracted to this due to higher profit margins since no intermediaries will be involved. When the local market prices are high, the state government has been seen blocking supplies in order to create an imbalance in Demand and Supply; hence it is critical to ensure that the software being used doesn’t have any loopholes.

To get NCERT Notes PDF for civil services preparation, aspirants can check the linked article.

e-NAM – UPSC Notes:-Download PDF Here

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