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e-NAM Initiative

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July 01, 2017

What is the issue?

The new initiative, e-NAM, is expected to solve the problems surrounding agrarian output market.

What are the existing problems in farmers market?

  • Competition in labour, input prices are increasing.
  • Market domination by organised traders.
  • Friction between inefficient markets for agri-output and efficient markets for their inputs.
  • Farmers must buy and sell only in the government-designated Agricultural Produce Marketing Committee (APMC) market-yards.

What is the e-NAM?

  • The electronic National Agriculture Market (e-NAM) platform seeks to create a common national market, for enhancing farmers’ access to buyers.
  • It will make price discovery and trading transparent.
  • So far, 417 mandis in 13 states have joined the e-NAM platform
  • There is a target of connecting 585 mandis with e-NAM by March 31, 2018.

What are the advantages of e-NAM?

  • Transparent and robust electronic physical markets.
  • Greater standardisation and quality awareness.
  • Easier access of buyers by the producers.
  • Reduced price of products due to reduced costs of intermediation.
  • Open market and competitive price fixing is possible.
  • Easier taxation of agricultural income.

How effectively e-NAM can be implemented?

  • With wide participation and perfect sync between markets and stakeholders e-NAM can be successful.
  • e-NAM authorities can work to encourage farmers to produce better quality crop and meeting exchange standards.
  • Price distribution alerts through mobile phones could serve as a reliable reference price for farmers.
  • Monitoring the warehouses for the incoming and outgoing stocks will make the initiative stronger.
  • The profiles of the farmers linked with e-NAM can be used for credibility reports by financial institutions.
  • Indian agriculture needs robust and transparent institutions for e-NAM to deliver long-term benefits.

 

Source: Financial Expres

1 comments
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Gaurav Tyagi 7 years

80% of farmers are small and marginal...very little available for market sale...

problem is there...migration of labor from farm to other sectors but employment opportunities not created and cost of living also raised..so there is crisis

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