Seven years since the launch of the electronic National Agriculture Market (e-NAM), which digitally integrates wholesale markets, inter-state mandi trade via this facility is picking up. Also, e-NAM trade in several commodities including apples, saffron, ragi (finger millets), jeera (cumin seeds), chana (gram), soyabean, copra and silk cocoon, is gaining currency in many states.
The increase in e-NAM trade volume indicates that this platform, aimed at improving market access of farmers and creating a unified national market for agricultural produce, has reached a scale to make a meaningful difference in farmers’ income.
Inter-state trade using e-NAM platform on commodities has recently commenced with farmers from Kashmir, Maharashtra and Rajasthan selling commodities such as apples, mustard, ragi, silk cocoon, chana, soyabean and jeera, to buyers in Kerala, Odisha, Jharkhand and Madhya Pradesh, sources said. Trading amongst various markets within the states in commodities including copra (Tamil Nadu), dry fish (Odisha), betel leaf (Odisha), soyabean (Maharashtra), jeera (Rajasthan) has risen at a steeper pace in the current fiscal.
Overall turnover of the e-NAM trade stood at Rs 67,000 crore in April-February 2022-23 up 40% on year. The turnover is set to cross Rs 70,000 crore in FY23, compared with Rs 51,000 crore in FY22.
The annual trade in farm goods, excluding milk and marine products, is seen to be in excess of Rs 5 trillion. On e-NAM platform is being increasingly used by farmers and buyers for getting information on prices prevailing in various mandis.
“The start of inter-state trade with same-day digital payment to farmers bank accounts are showing a way forward,” Maninder Kaur Dwivedi, managing director, Small Farmers’ Agri-business Consortium, which operates e-NAM, told FE.
At present, 1,260 mandis in 22 states and Union Territories are integrated with the e-NAM platform, which was launched in April 2016. At present, 17.5 million farmers, 2433 FPOs, 0.24 million traders and around 0.1 million commission agents are registered with e-NAM. The Small Farmers’ Agri Business Consortium (SFAC), which implements the e-NAM, will add another 101 mandi in the e-NAM platform by the end of the month.
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In the first eleven months of current fiscal, 1.7 million tonne of agricultural and allied sector commodities were traded on e-NAM platform, which was47% more than 1.16 MT vtraded during same period last fiscal.
The e-NAM platform allows online trading in 203 agricultural, horticultural and other commodities notified by respective state governments.
SFAC has empanelled private banks such as Axis Bank, Kotak Mahindra Bank, HDFC Bank, Indusind Bank and ICICI Bank for provisioning of payment and settlement of funds to various e-NAM registered beneficiaries across the country. Bank of Maharashtra will be added for providing the facility for the financial transactions.
Last year, the government had allowed integration of trading, transportation, logistics, warehousing, assaying, packaging, weather forecast and fintech services provided by 60 odd private entities through Platform of Platform with e-NAM portal, a move that allows more farmers use the online platform to sell their produce to buyers of their choice.
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Entities whose digital platforms which have been integrated with eNAM include Star Agrobazaar Technology, Kisan Network, FPO Bazaar, Arya.ag, Aryadhan, Intello Lab, Bijak and Warehousing Development Regulatory Authority.
Officials said that the aim of this integration of platforms by private players under e-NAM is to make available end-to-end services to farmers along with providing a platform for price discovery.