National Agriculture Market System [e-NAM]

By : Neha Dhyani

Updated : May 10, 2022, 8:32

The e-NAM stands for the National Agriculture Market system. This refers to India's virtual e-commerce platform, which is run by the government of India aspiring for the betterment of the agricultural commodities trading system. This electronic system enables the current Agricultural Produce Market Committee (APMC) mandis and establishes a countrywide market for agricultural products. This online agricultural trading system came into action in India on April 14th, 2016.

The government of India has brought several practical and useful measures for farmers so that they can easily get comfortable with the modern-age online trading system. Government officials have organised numerous campaigns nationwide to encourage farmers and understand the benefits of getting enrolled in the online system. As per the current data, the e-NAM initiative has been successfully ventured in 18 states of India along with three federally administrated territories.

e-NAM Mechanism

In order to ensure the portal of the e-NAM's seamless and smooth operation, a competent professional will be recruited for a period of one year in each participating mandi. The government of India is providing the participating agriculture mandis with a subsidy of Rs.30 lakhs. The farmers will be given 'farmer helpline services' 24 hours a day and seven days a week to assist them in receiving information on the site under the ambit of the scheme. The National Agricultural Market (eNAM) is being promoted and advocated by the Small Farmers' Agribusiness Consortium (SFAC). The Department of Agriculture, Cooperation, and Farmers' Welfare are responsible for running the SFAC (DAC&FW).SFAC selects a Partner to design, run, and manage the e-NAM platform through an open procurement procedure.

e-NAM Advantage or Pros

There are several benefits that a farmer, as well as customers, can obtain through the e-NAM platform. As this electronic platform can anticipate the demand and supply ratio virtually, farmers get to sell their products with transparency without facing any loss. As the marketplace is widespread across the country, farmers can get access to a larger number of buyers.

The e-NAM is capable of eliminating informational ambiguity between sellers and buyers, activating the prospect of real-time price discovery. Customers can purchase products without having to deal with cash. The online payment process is secure too. The quality of agricultural goods is better here, and they are available at economical prices.

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e-NAM Disadvantages or Cons

  • Despite arranging awareness programmes and nationwide campaigns, the agricultural departments across the country are facing challenges to persuade farmers and customers to get enrolled in the e-NAM system. The majority of them do not feel safe trading online or buying edible things online.
  • The internet facilities are still not accessible in rural areas of India. So, the farmers can not get to use the e-NAM platform
  • The platform is yet to be implemented in many states and the farmers and customers belonging to those states do not get the opportunity to be a part of e-NAM.

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To conclude, it can be inferred that e-NAM is a promising initiative taken by the Government of India. The more prepared the government is, the stronger the network will become, assuring a prosperous agricultural trading system.

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FAQs on e-NAM

Q.1. What is the e-NAM system?

e-NAM is the abbreviation of the National Agriculture Market system. This refers to the digital trading platform of India, ventured by the government of India. This electronic platform links existing Agricultural Produce Market Committee (APMC) mandis and builds an integrated farming products market nationwide.

Q.2. When was e-NAM introduced in India?

The e-NAM was introduced in India on April 14th, 2016.

Q.3. What were the main motives for launching e-NAM?

The main objectives that fueled the idea of launching the e-NAM model include building up a common marketplace nationwide and helping the pan-India trade in the agricultural system flourish, facilitating better marketing prospects for farmers via the online platform, and making the business transaction model hassle-free.

Q.4. What are the beneficial aspects for farmers of selling on the e-NAM platform?

The advantageous aspects for farmers to sell on the e-NAM include transparent and clear economic activity, immediate facilities for price discovery and a better understanding of the market value of products.