New Features Added To E-NAM

  • On 2nd April, 2020, the Centre launched new features on the electronic national agriculture market (e-NAM) platform to make it more convenient for farmers to sell their produce at warehouses and collection centres set up by farmer producer organisations (FPOs).

Need

  • The features have been launched at the time when there is a critical need to decongest mandis to effectively fight against COVID-19.
  • To strengthen agriculture marketing by farmers across the country.

New Features

Electronic-Negotiable Warehouse Receipt (e-NWRs) Module

  • Warehouse (Registered with WDRA) trading module with payment feature is to enable small & marginal famers to directly trade their stored produce from selected WDRA registered warehouses which are declared deemed market by the State.
  • Farmers will be able to place their produce in WDRA accredited warehouses.

Benefits of eNWRs integration with e-NAM

  • Depositor can save the Logistics expenses and will have better income.
  • Farmers can sell the produce across the Nation  to get better Price and at the same time  can save himself from hassle of mandi.
  • Farmers will be able to place their produce in WDRA accredited warehouses avail the benefit of pledge loan if required.
  • Price stabilization by matching supply and demand through time and place utility.

Farmers Producer Organisation (FPO) Trading Module

  • FPO trading module will help to enable FPOs to upload their produce from their premise/ collection centres for bidding.
  • FPOs have the option for delivery of produce either from their premises or by bringing to mandi premise after successful bidding.
  • Facility provided to FPO to upload assaying report / photo of their produce from their premise to enable traders to visualise the produce before bidding.

Benefits of FPO trading module

  • This will not only decongest the mandis but also reduce the hassle of FPOs to deal with mandis.
  • This will help FPOs by reducing transaction costs (Transportation) and enhancing their bargaining power.
  • Facilitates FPOs to avail online payment facility with ease of doing business.

Logistic Module

  • As s a quantum response to logistic need by traders, provision has been made for linking large logistic aggregator platforms, which will provide choices to users.
  • Traders would be able to use the link to navigate to the logistics provider’s website and select appropriate services.

Benefits of Logistic Module

  • Will help in seamless transportation of agri produce.
  • Will promote inter-State trade under e-NAM by providing online transport facilities for distant buyers.

National Agriculture Market (eNAM)

  • Launched in 2016, eNAM is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities.
  • Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under the aegis of Ministry of Agriculture and Farmer’s Welfare.
  • SFAC through open tender selected Nagarjuna Fertilizers and Chemicals Ltd / Ikisan Division as Strategic Partner (SP) to develop, operate and maintain the NAM e-platform.

Vision

  • 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.

Salient Features

  • It allows states to have their own agri-marketing platforms that can be linked with NAM.
  • The highlight of the scheme is the single point levy of market fees, i.e. on the first wholesale purchase from the farmer.
  • The provision lets farmers to showcase their produce in nearby markets and facilitate traders from anywhere to quote price.
  • Under the scheme, a provision of Soil Testing Laboratories in or near the selected mandi (market) has been set up. This will help visiting farmers access the facility in the mandi itself.

Benefits

Farmers

  • They can sell products without the interference of any brokers or middlemen thereby making competitive returns out of their investment.

Traders

  • Traders will be able to do secondary trading from one APMC to another one anywhere in India.
  • Local traders can get access to the larger national market for secondary trading.

Buyers, Processers & Exporters

  • Buyers like large retailers, processors or exporters will be able to source commodities from any mandi in India thereby reducing the inter-mediation cost.
  • Their physical presence and dependence on intermediaries will not be needed.

Consumers

  • NAM will increase the number of traders and the competition among them increases. This translates into stable prices and availability to the consumers.

Mandis

  • There will be a reduction in bookkeeping and reporting system as it will be generated automatically.
  • Monitoring and regulation of traders and commission agents become easy.
  • Transparency in the process eliminates the scope of manipulation of tendering/auctioning process.
  • Market allocation fee will increase due to an accounting of all transactions taking place in the market.
  • It will reduce the manpower requirements as the tendering/auctioning process is carried out electronically.

Others

  • With one license for the entire state and single point levy, an entire state becomes a market and the market fragmentation within the same state gets abolished.
  • It will improve the supply chain of commodities and reduces wastages.

Source : Civil Services Chronicle Online, April, 2020