e-NAM: A new paradigm for agri-trade

February 5, 2021 5:45 AM

e-NWR based trading on e-NAM can be extended to more warehouses to provide an option for direct sale of stored produce

“The FPOs will play a crucial role in organising small farmers and bring in the economy of scale while bargaining the selling price of farmers’ produce with a buyer,” an agriculture ministry official said.“The FPOs will play a crucial role in organising small farmers and bring in the economy of scale while bargaining the selling price of farmers’ produce with a buyer,” an agriculture ministry official said.

By Neelkamal Darbari

Launched on April 14, 2016, by PM Narendra Modi, e-NAM is catalysing the digital transformation of mandi operations to achieve “One Nation One Market”, for the trading of agricultural commodities in India. e-NAM started with the integration of 585 mandis across the country. During the lockdown, team e-NAM worked tirelessly and methodically to ensure the successful integration of additional 415 APMC mandis, taking the tally to a 1,000 e-NAM mandis, with a user base of 1.69 crore farmers, 1.55 lakh traders and 87,827 commission agents.

As on date, a total volume of 4.12 crore MT & 3.64 crore numbers (bamboo, lemon, etc), worth approximately Rs 1.22 lakh crore has been traded on the platform. The CAGR, in the last four years, has been 28% in value and 18% in volume. Digital transactions of nearly Rs 1,000 crore have been carried out, benefitting more than two lakh farmers.

The features available on e-NAM benefit various stakeholders. A robust mobile app & website is available in 12 languages and equipped with GPS-based mandi locator for searching mandis within 100 km radius. Farmers can track the progress of bids for their lot through mobile. They can also get real-time information about prevailing commodity prices in nearby mandis. It is also enabled with advanced gate entry, sampling and assaying reports. Weighbridges & electronic weighing scales have been integrated with e-NAM to ensure transparency and error-free weighing of commodities. Payment to farmers by traders can also be made electronically.

Traders can use advanced features like viewing quality certificate, push notification, bunching of invoices, shopping cart, etc. Also, a 360-degree image of the commodity lots via mobile is made available for better decision making. APMC officials, traders and other stakeholders have been trained to assist in this. Business intelligence dashboard is also available for better monitoring and decision making for the APMC officials.

During the lockdown, this transformational scheme helped decongest the APMC premises, through a transparent system of assaying, electronic bidding and online payment, and also ensured better remunerative prices to the farmers.

These initiatives have led to better price realisation; farmers received higher prices for soya (yellow) and masoor in Vidisha and Neemuch mandis (MP), respectively. Bandikui mandi (Rajasthan) also gave better prices for chana. Around 61% farmers secured higher-than-MSP prices for cotton (Rs 4,320) in Andhra Pradesh during 2017-18.

While noticeable strides have been made to benefit farmers through e-NAM, further developments to streamline logistics, quality assaying and same-day payment realisation are ongoing. Development of 10,000 FPOs would add impetus and enhance benefits. The FY22 Budget announcement, allowing APMCs to utilise Agriculture Infrastructure Fund, would accelerate the pace of post-harvest infrastructure development. The components that can be created in APMCs under agriculture infrastructure may include assaying, sorting & grading units, pack houses, cold storages, logistics facilities, primary processing centres etc. Further, strengthening the Warehousing Development and Regulatory Authority to set up commodity market ecosystem arrangement, including vaulting, assaying, logistics etc, will also streamline post-harvest management.

e-NWR based trading on e-NAM can be extended to more warehouses to provide an option for direct sale of stored produce on e-NAM. With this efficient post-harvest management, farmers would reap the benefits from commodity value addition and reduction in post-harvest losses.

With another 1,000 mandis announced in Budget FY22 for integration, nearly a third of the total mandis would be integrated, covering more than half of the trade-in APMC mandis. With the conceived benefits, there is no doubt that e-NAM shall be one of the most successful initiatives in recent times in the agriculture sector, and SFAC is proud to be a part of this journey.

The author is Managing director, SFAC

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Understanding the four Vs of operations management – volume, variety, variation and visibility
2Dealing with giant vessels: Fees on extremely large vessels can be exponentially hiked
3Towards better urban growth: 15th Finance Commission has duly recognised role of urbanisation in development