e - National Agriculture Market ( e - NAM )

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National Agriculture Market (e-NAM) is a pan-India electronic trading portal which networks the existing Agricultural Produce Market Committee(APMC) mandis to create a unified national market for agricultural commodities. 

Launched by Prime Minister Narendra Modi on April 14, 2016, e-NAM is completely funded by the Central Governmentand is implemented by Small Farmers Agribusiness Consortium (SFAC), under the aegis of Ministry of Agriculture and Farmers’ Welfare. 

e-NAM platform promotes better marketing opportunities for the farmers to sell their produce through online competitive and transparent price discovery system and online payment facility.

The e-NAM portal provides single window services for all APMC related information and services. This includes commodity arrivals, quality & prices, buy & sell offers and e-payment settlement directly into farmers’ account, among other services.

It aims to promote uniformity in agriculture marketing by streamlining of procedures across the integrated markets, removing information asymmetry between buyers and sellers and promoting real-time price discovery based on actual demand and supply. 

Details

e-National Agriculture Market (e-NAM) is a pan-India electronic trading portal that networks the existing APMC/Mandis to create a unified national market for agricultural commodities.

  1. National Agriculture Market (e-NAM) is a pan-India electronic trading portal which networks the existing APMC/Mandis to create a unified national market for agricultural commodities.
  2. e-NAM a pan-India electronic trading portal was launched on 14th April 2016, by the Prime Minister of India, with the aim of networking the existing mandis on a common online market platform as “One Nation One Market” for agricultural commodities in India.
  3. Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing e-NAM under the aegis of Ministry of Agriculture and Farmers’ Welfare, Government of India.
  4. e-NAM portal enables farmers to trade their produce through their nearby e-NAM mandis and facilitate traders to bid online from any location. e-NAM provides single window services for all Agricultural Produce Market Committee (APMC) related services and information. This includes commodity arrivals, quality assaying by Artificial Intelligence based Machines/Equipments, e-Bidding, e-payment settlement directly into farmers account, among other services.
  5. Horticulture Planning & Marketing Department, J&K initiated e-NAM by integrating 2-Mandis – Narwal (Jammu) & Parimpora (Srinagar) on e-NAM in May-2020 in first phase, and 9 more mandis in 2nd phase. Total 11 mandis of UT 0f J&K are integrated with eNAM as of now. 

Objectives:

  1. To integrate markets first at the level of the States/UT and eventually across the Country through a common online market platform, to facilitate pan - India trade in agricultural commodities.
  2. To streamline marketing / transaction procedures and make them uniform across all markets to promote efficient functioning of the markets.
  3. To promote better marketing opportunities for farmers / sellers through online access to more buyers and markets, removal of information asymmetry between farmer and trader, better and real-time price discovery based on actual demand and supply of Agri commodities.
  4. To establish quality assaying systems for quality assurance, to promote informed bidding by buyers.
  5. To promote stable prices and availability of quality produce to consumers

Benefits

Benefits of trading on e-NAM:

  1. Transparent Online Trading.
  2. Real-Time Price Discovery.
  3. Better Price Realization For Farmers.
  4. Reduced Transaction Cost For Buyers.
  5. Stable Price and Availability to Consumers.
  6. Quality Certification, Warehousing and Logistics.
  7. More Efficient Supply Chain.
  8. Convenient e-Payment options.
  9. Error-Free Reporting of Transactions.
  10. Enhanced Accessibility to more APMCs.

Eligibility

Eligibility criteria for availing assistance under the scheme:

The scheme is linked to agricultural marketing reforms, the States / Union Territories (UTs) need to undertake mandatory reforms in their Agriculture Produce Market Committee ( APMC) Acts in respect of the following three areas to avail the assistance under it.

  1. Single trading license to be valid across the State.
  2. Single point levy of market fee across the State and
  3. Provision for e-auction/e-trading as a mode of price discovery to be facilitated by the State. Agriculture Marketing Department / Board / APMCs / Regulated Market Committees (RMCs), as the case may be.

In respect of 1 above, State/UT must provide, through appropriate legislation / executive order in consonance with the concerned APMC Act/regulation, for the issue of a single trade license to any eligible person from across India irrespective of one’s domicile to enable one to trade through e-NAM portal in the markets across the State / UT.  Further, the State / UT must provide for a liberal process of single trade license for wholesale traders / buyers for the entire State & ensure that there are no barriers like prohibitively high security deposits or stipulations regarding minimum quantities to be transacted or requirements of establishment of purchase center/premise’ etc

In respect of 2 above, State / UT must provide, through appropriate legislation / executive order in consonance with the concerned APMC Act/regulation single point levy of market fee for wholesale trading of the same produce across the State i.e., levy of market fee/cess at point of first transaction only in the State. No further market fee/cess/service charge, or by whatever name it is called, should be leviable on the subsequent wholesale transaction (s) of the same produce.

In respect of 3 above, State / UT must provide, through appropriate legislation / executive order in consonance with the concerned APMC Act/regulation, that State Agricultural Marketing Department / Directorate / Board, as the case may be, and concerned APMC / RMC shall provide necessary legal framework therefor and required infrastructure connected thereto to promote National Agriculture Market (e-NAM).

Proposals from such States / UTs meeting the above three pre-requisites received on prescribed proforma (Annexure-I) will be considered for sanction of a one-time grant for the purchase of hardware, internet connection, assaying equipment, and related infrastructure to make the market ready for a plug-in with e-NAM platform.

In addition, States / UTs must also undertake-

  1. To trade 100 % volume of selected agricultural commodities through e-trading / e-auction in the markets proposed to be covered under e-NAM; 
  2. To make provision** for Soil Testing Laboratories (STLs) or ensure that markets are linked to STLs located in close proximity.
  3. To meet the balance fund requirement towards implementation of e-NAM, if any, over and above that granted by the Project Appraisal Committee (PAC).
  4. To bear all future escalations, as may arise after 5 years upon expiry of service agreement with Strategic Partner;
  5. To bear annual maintenance provisions for the software as may arise after 5 years upon expiry of the service agreement with Strategic Partner.
  6. To register their implementing agency on the PFMS portal (https://pfms.nic.in) and intimate the same to the Department of Agriculture, Cooperation and Farmers’ Welfare (DAC&FW) (hereinafter called Department) along with the bank details, etc. to enable the transfer of funds. 

States / UTs, which either do not have marketing regulation or have one which is not in force, in order to integrate with e- NAM portal and avail grants under the scheme, must identify some institution/organization and frame appropriate legally enforceable guidelines. The entity so identified may develop the appropriate physical infrastructure required for e-trading on e-NAM at the back end and provide the required logistic support. Regulatory framework / legally backed guidelines may include all the required facilitatory provisions for trading on the e-NAM portal including enlisting / registration of traders/buyers, transaction fees, etc. 

The proposals of private markets for providing access to the e-NAM portal may also be considered by the Project Appraisal Committee (PAC) provided they are recommended by the competent authority of the concerned State / UT. However, in such cases they must provide for mandi analyst, related hardware, assaying facilities, and other support services at their own cost.

  1. PIB
  2. https://www.myscheme.gov.in/

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