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National Agriculture Market

Topics Covered: e-technology in the aid of farmers.

National Agriculture Market

What to study?

For Prelims: NAM- features.

For Mains: Need for and significance.

Context: Union Agriculture Minister launches new features of e-NAM platform.
They are important steps in our fight against COVID-19.

  • They will strengthen agriculture marketing & reduce the need for cultivators to physically come to the mandis to sell their produce.

The newly launched software modules are namely:

  • Warehouse based trading module in e-NAM software to facilitate trade from warehouses based on e-NWR.
  • FPO trading module in e-NAM whereby FPOs can trade their produce from their collection center without bringing the produce to APMC.
  • Enhanced version of logistic module has been released whereby aggregators of transport logistic platform have on boarded which helps users to avail trackable transport facilities for transporting their produce.

What is e-NAM?

E-NAM (National Agriculture Market) is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price by smooth marketing.

It was launched by the Centre in 2015 and the government had to extend it in a phased manner across the 585 mandis of the country by December 31, 2019.

Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under the aegis of Ministry of Agriculture and Farmers’ Welfare, Government of India.

Agriculture_market_portel

NAM has the following advantages:

For the farmers, NAM promises more options for sale. It would increase his access to markets through warehouse-based sales and thus obviate the need to transport his produce to the mandi.

For the local trader in the mandi / market, NAM offers the opportunity to access a larger national market for secondary trading.

Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi / market level through the NAM platform, thereby reducing their intermediation costs.

  • The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licences, levy of fee and movement of produce.
  • The NAM will also facilitate the emergence of value chains in major agricultural commodities across the country and help to promote scientific storage and movement of agri goods.

Need for:

  • Fragmentation of state into multiple market areas.
  • Poor quality of infrastructure and low use of technology.
  • In the traditional mandi system, farmers generally procured very less price for their crops as they had to pass through various intermediaries at the physical marketplace. This not only adds costs but also handling costs.
  • In addition, the farmer has to face obstacles in form of multiple tax levies and licenses and weak logistics and infrastructure in India.

Insta Links:

Prelims Link:

  1. Who implements eNAM?
  2. Composition of SFAC.
  3. Which states have not implemented eNAM?
  4. What are APMCs? How are they administered?

Mains Link:

Write a note the National Agriculture Market (eNAM).

Sources: pib.