58.The Department of Agriculture & Cooperation formulated a Central Sector scheme for Promotion of National Agriculture Market through Agri-Tech Infrastructure Fund (ATIF) through provision of the common e-platform. Benefits of NAM are
i) Transparency
ii) Promotes financial literacy
iii( Price stability
Which of the following statement is/are true?
58.The Department of Agriculture & Cooperation formulated a Central Sector scheme for Promotion of National Agriculture Market through Agri-Tech Infrastructure Fund (ATIF) through provision of the common e-platform. Benefits of NAM are
i) Transparency
ii) Promotes financial literacy
iii( Price stability
Which of the following statement is/are true?
The correct option is D d) All the above
Ans 58.D
Explanation: E-NAM (National Agricultural Market) is a pan-India electronic trading portal launched by Ministry of Agriculture & Farmers’ Welfare, Gov. of India, to facilitate farmers, traders, buyers, exporters and processors with a common platform for trading commodities.
Implications/ Benefits for various stakeholders
• Farmers
They can sell produce without the interference of any brokers or middlemen thereby making competitive returns out of their investment.
• Traders
Traders will be able to do secondary trading from one APMC to another one anywhere in India.
Local traders can get access to larger national market for secondary trading.
• Buyers, Processers & Exporters
Buyers like large retailers, 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 and the competition among them increases. This translates in to stable prices and availability to the consumers.
• Mandis
There will be reduction in book keeping and reporting system as it will be generated automatically. Monitoring and regulation of traders and commission agents becomes 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. It will reduce the manpower requirements as the tendering/auctioning process is carried out electronically. For instance, the system declares the winner of lots within few seconds. It eliminates information asymmetry as all the activities of an APMC can be known directly from the website.
• Others
NAM aims to improve the marketing aspect of the agriculture sector. With one license for the entire state and single point levy, an entire state becomes a market and the market fragmentation within the same state gets abolished. It will improve the supply chain of commodities and reduces wastages
Ans 58.D
Explanation: E-NAM (National Agricultural Market) is a pan-India electronic trading portal launched by Ministry of Agriculture & Farmers’ Welfare, Gov. of India, to facilitate farmers, traders, buyers, exporters and processors with a common platform for trading commodities.
Implications/ Benefits for various stakeholders
• Farmers
They can sell produce without the interference of any brokers or middlemen thereby making competitive returns out of their investment.
• Traders
Traders will be able to do secondary trading from one APMC to another one anywhere in India.
Local traders can get access to larger national market for secondary trading.
• Buyers, Processers & Exporters
Buyers like large retailers, 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 and the competition among them increases. This translates in to stable prices and availability to the consumers.
• Mandis
There will be reduction in book keeping and reporting system as it will be generated automatically. Monitoring and regulation of traders and commission agents becomes 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. It will reduce the manpower requirements as the tendering/auctioning process is carried out electronically. For instance, the system declares the winner of lots within few seconds. It eliminates information asymmetry as all the activities of an APMC can be known directly from the website.
• Others
NAM aims to improve the marketing aspect of the agriculture sector. With one license for the entire state and single point levy, an entire state becomes a market and the market fragmentation within the same state gets abolished. It will improve the supply chain of commodities and reduces wastages
