e-NAM (National Agriculture Market)

The Small Farmers Agribusiness Consortium (SFAC), overseen by the Ministry of Agriculture and Farmers Welfare, manages the National Agriculture Market (e-NAM). Launched on April 14, 2016, this pan-India electronic trading system connects existing Agricultural Produce Market Committee (APMC) mandis to create a unified national market for agricultural commodities. The Central Government fully supports e-NAM.

What is National Agriculture Market (e-NAM)?

The National Agriculture Market (e-NAM) is a pan-India electronic trading system that integrates current APMC mandis to build a unified national agricultural market. Small Farmers Agribusiness Consortium (SFAC) is the primary agency for e-NAM implementation under the Ministry of Agriculture and Farmers Welfare of the Government of India.

Vision of e-NAM: Imagine a world where buying and selling agricultural products is smooth and consistent. We aim to achieve this by simplifying processes in interconnected marketplaces, bridging the gap of information between buyers and sellers, and ensuring that real-time prices reflect the actual demand and supply.

Mission of e-NAM: We are on a mission to connect Agricultural Produce Market Committees (APMCs) all over the country through a shared online market platform. Our goal is to facilitate nationwide trade in agricultural commodities, ensuring fair pricing through a transparent auction process that considers the quality of produce. Additionally, we strive to ensure quick and secure online payments for a seamless experience.

Objectives of e-NAM

We want to simplify the processes involved in marketing and transactions, ensuring they are consistent across all markets. This way, we can enhance overall market efficiency.
Our goal is to give farmers and sellers better opportunities by connecting them with more buyers and markets online. By doing so, we eliminate the information gap between farmers and traders, allowing for real-time price discovery based on the actual demand and supply of agricultural commodities.
We’re working on creating reliable quality assurance methods to help buyers make informed bids. This ensures that the products meet the expected standards, promoting fair and transparent transactions.
Our aim is to empower people with access to high-quality products at reasonable prices. By implementing these changes, we hope to encourage a more efficient and inclusive agricultural market across the country.

Components of e-NAM

States/Union Territories (UTs) choose APMCs/RMCs based on mandatory reforms in their Acts and approval of Detailed Project Reports (DPR) by the Project Appraisal Committee (PAC).
The e-NAM software is offered to States/UTs at no cost, facilitating seamless integration into their agricultural markets.
Financial assistance, up to Rs. 30.00 lakhs per market, is provided for hardware, internet connections, assaying equipment, and related infrastructure to prepare markets for e-NAM integration. The remaining funds are covered by the State/UT.
Technical assistance is extended by the Small Farmers Agribusiness Consortium (SFAC) through a Strategic Partner (SP) NFCL. This includes the deployment of Mandi Analysts at APMCs/RMCs for a duration of one year.
Private markets can gain e-NAM access if recommended by the competent authority of the State/UT. However, they are required to bear the costs for Mandi Analysts, hardware, assaying facilities, and support services.
Capacity building initiatives encompass staff orientation and farmer awareness through various channels. Support in this regard is provided by the strategic partner to ensure effective implementation.

Major Benefits of e-NAM

Transparent internet trade with increased market accessibility. Real-time price discovery enables better and more consistent price realization for producers. Buyers transaction costs are reduced. Commodity pricing information is available on the e-Nam smartphone app. SMS is used to obtain information on the price and quantity of commodities sold. Improved supply chain efficiency and warehouse-based sales.

The following are the overall benefits of 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

Features of e-NAM

A National e-market platform for transparent sale transactions and price discovery in regulated markets, Kisan mandis, warehouses, and private markets. Willing States to accordingly enact provisions for e-trading in their APMC Act.

Traders and buyers can now obtain licenses more easily from State authorities, with no requirement for a physical presence or possession of a shop in the market yard. This means that a single license is valid for trading in all markets across the State.
This ensures that buyers can make informed decisions during the bidding process.
This change aims to streamline and focus the regulatory authority.
Market fees are now levied at a single point, specifically on the first wholesale purchase from the farmer. This simplifies the fee structure and reduces the burden on stakeholders in the agricultural marketing process.

Challenges faced by e-NAM

Farmers and traders are finding it hard to embrace the shift to an online platform, with little evidence of benefits like reduced fees or increased profits for farmers.
Energy, computer, and internet access issues, along with a shortage of workers and facilities for sorting and quality testing, are major hurdles in making this initiative successful.
State agricultural ministries are facing challenges in convincing all stakeholders, including farmers, merchants, and commission brokers, to make the transition to the online platform.
The absence of scientific sorting/grading facilities and quality testing devices is preventing the online platform from functioning effectively in any state.
Technical knowledge and internet access gaps at State Agricultural Departments are further impeding the establishment of grading/assaying facilities.