E-NAM: TRENDS, MEANING, ISSUES & WAY FORWARD

The National Agriculture Market (e-NAM) is a pan-India electronic trading platform that integrates existing APMC mandis to create a unified national market for agricultural commodities. Despite its benefits, challenges remain — including limited mandi coverage, poor digital infrastructure, low awareness, and varied APMC laws across states.

Description

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Picture Courtesy: PIB

Context:

The Department of Agriculture and Farmers’ Welfare, Government of India, has further strengthened the National Agriculture Market (e-NAM) by expanding its coverage with the inclusion of 09 additional commodities (Green Tea, Tea, Aswagandha Dry Roots, Mustard Oil, Lavender Oil, Mentha Oil, Virgin Olive Oil, Lavender Dried Flower, Broken Rice), taking the total number of tradable agricultural commodities on the platform to 247. 

What is National Agriculture Market (e-NAM)?

The National Agriculture Market (e-NAM) is a digital platform designed to unify Agricultural Produce Market Committee (APMC) mandis across India, creating a cohesive national market for agricultural commodities.

Objectives:

e-NAM aims to enhance farmers’ access to a broader market and a wider base of buyers through digital means. It promotes greater transparency in trade processes and transactions within the agricultural sector with;

  • Better Price Discovery
  • Quality-Linked Pricing
  • Unified Market Vision 

Features of e-NAM

  • e-NAM offers a digital space where farmers, traders, and buyers can conduct agricultural trade remotely. 
  • e-NAM creates a single, nationwide agricultural market. 
  • The platform promotes price transparency and informed decision-making
  • e-NAM facilitates quality assessment of agricultural produce
  • The Platform of Platforms (PoP) feature expands the digital reach of e-NAM. 
  • e-NAM ensures quick and direct payment for produce sold. 
  • To support seamless trade, e-NAM promotes improved market infrastructure. 

Key Achievements:

  • Wide User Base: As of March 31, 2023, the e-NAM platform has witnessed significant participation:
  • Over 75 crore farmers have registered
  • Around 43 lakh traders are active on the platform
  • A total of 2,575 Farmer Producer Organisations (FPOs) has joined the network 
  • The platform has recorded an overall trade value of ₹2.5 lakh crore, showcasing its growing importance in agricultural trade across the country. 
  • By March 16, 2023, 1,361 mandis had been connected to the e-NAM platform. 
  • The e-NAM initiative received the Platinum Award (1st Place) at the Digital India Awards 2022 

Challenges:

  • Connectivity and Infrastructure Gaps: Many rural mandis lack stable internet connections, hindering smooth adoption of the digital platform. As per TRAI (2021), rural tele-density stood at 92%, compared to 143.39% in urban areas — reflecting a significant digital divide. 
  • Inadequate Digital Infrastructure: Several mandis still operate without essential digital tools. 
  • Lack of Awareness and Digital Literacy: A large segment of farmers, especially in remote or underdeveloped regions, are unfamiliar with how e-NAM works or the benefits it offers. 
  • Variations in APMC Laws Across States: Since agriculture is a state subject, each state has its own APMC Act. 
  • Users have reported technical difficulties and usability issues on the platform 

Way Ahead:

  • A scientific and structured approach is needed to raise awareness about e-NAM across states and the country. 
  • Reliable internet connectivity in rural and remote areas is essential to ensure uninterrupted access to the platform. 
  • Launching regular training sessions and capacity-building initiatives. 
  • Uniform implementation of APMC reforms across all states is necessary for seamless mandi integration. 

Source: PIB 

Practice Question

Q. Examine the role of e-NAM in achieving this objective and highlight the policy reforms required to make it a reality. (250 words)

Frequently Asked Questions (FAQs)

e-NAM (National Agriculture Market) is an online trading platform developed to link existing Agricultural Produce Market Committee (APMC) mandis to create a unified national market for agricultural commodities.

  • To integrate APMC mandis across the country
  • To promote transparent price discovery
  • To reduce the role of intermediaries
  • To provide better market access to farmers
  • To ensure direct payment to farmers’ bank accounts

  • Online bidding and trading of produce
  • Real-time information on prices and arrivals
  • Quality assaying and grading facilities
  • Electronic payment settlement
  • Access to warehouse-based trading via e-NWR

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