E-NAM: Must Know Concept for NABARD Grade A Exam

By Amrit Gouda|Updated : July 29th, 2022

Today we will be discussing an important topic that names e-NAM. It stands for National Agriculture Market. This is an important ARD topic for your NABARD Grade A and Grade B exam.

You can expect questions from this scheme in the upcoming NABARD Grade A exam as a part of the ARD section. Kindly go through the complete article and understand the key facts.

Table of Content

What is National Agriculture Market (E-NAM)?

A unified national market for agricultural commodities created by connecting the current APMC Mandis through the pan-Indian electronic trading system known as e-NAM. This acts as an online marketplace for the direct purchase and sale of agricultural products. This was launched in April 2016.

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What is the Working Mechanism of e-NAM?

  • As part of e-NAM, willing States are required to adopt adequate provisions in their APMC Act for the State Agricultural Marketing Board/APMC to promote e-trading. States are required to implement reforms before applying for funding under the program.
  1. A single license will be valid across the whole state.
  2. Single point levy of a market fee (i.e. on the first wholesale purchase from the farmer will be charged).
  3. The price must be discovered via electronic mode.
  • Only States/UTs that have finished these three requirements will be qualified for aid under the program.
  • The promotion of the e-auction platform must be made possible in addition by the State Marketing Boards/APMCs.
  • The States must make sure that the mandis that are integrated with NAM have the necessary hardware, online connectivity, and assaying tools.
  • State APMCs would use DBT to send payments to farmers who have active licenses that are connected to Aadhaar.

Key Highlights

  • National Agriculture Market or E-NAM scheme was approved on 1st July 2015 with an initial investment of Rs. 200 crores to link 585 wholesale APMC mandis across the country through a common e-platform.
  • To facilitate the assaying of commodities for trading on e-NAM, common tradable parameters have been developed for 69 commodities.
  • The portal is available in English, Hindi, Gujarati, Marathi, Telugu, and Bengali.
  • By 15th May 2017, 83.57 lakh tonnes of agricultural produce worth Rs. 19,802.98 crores have been transacted: 4545850 farmers 89,934 traders, and 46,411 commission agents are registered on the e-NAM platform.

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About E-NAM

  • National Agriculture Market (NAM) is a pan-India electronic trading portal that networks the existing Agricultural Produce Marketing Committee (APMC) mandis to create a unified national market for agricultural commodities.
  • The NAM Portal provides a single-window service for all APMC-related information and services like commodity arrivals & prices, buy & sell trade offers, provision to respond to trade offers, etc.
  • The material flow (agriculture produce) happens through mandis, but an online market reduces transaction costs and information asymmetry.
  • The administration of agriculture marketing takes place through the States as per their agri-marketing regulations.

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  • Every state is divided into several market areas, each of which is administered by a separate APMC that imposes its own marketing regulation.
  • This fragmentation of markets, even within the State, hinders the free flow of Agri commodities from one market area to another and multiple handling of agri-produce and multiple levels of mandi charges end up escalating the prices for the consumers without commensurate benefit to the farmer.
  • NAM addresses these challenges by creating a unified market through an online trading platform, both, at State and National levels, and promotes uniformity, streamlining procedures across the integrated markets, removing information asymmetry between buyers and sellers, and promoting real-time price discovery, based on actual demand and supply, promotes transparency in the auction process, and access to a nationwide market for the farmer, with prices commensurate with the quality of his produce and online payment and availability of better quality products and at more reasonable prices to the consumer.

How e-NAM is Helping Farmers?

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Objectives of NAM

  • A national e-market platform for transparent sale transactions and price discovery initially in regulated markets. 
  • Liberal licensing of traders/buyers and commission agents by State authorities without any pre-condition of physical presence or possession of shop /premises in the market yard.
  • One license for a trader is valid across all markets in the State.
  • Harmonization of quality standards of agricultural produce and provision for assaying (quality testing) infrastructure in every market to enable informed bidding by buyers. Common tradable parameters have so far been developed for 69 commodities.
  • Single point levy of market fees, i.e on the first wholesale purchase from the farmer.

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FAQs

  • A unified national market for agricultural commodities was created by connecting the current APMC Mandis through the pan-Indian electronic trading system known as e-NAM. This acts as an online marketplace for the direct purchase and sale of agricultural products. This was launched in April 2016.

  • In this article, our team has consolidated all the important and relevant facts about the e-NAM scheme from the NABADRD Grade A exam point of view. You are suggested to go through the article properly.

  • Following are some key benefits of e-NAM:

    1. to integrate markets nationwide via a single online trading platform to promote the trade of agricultural commodities throughout India;
    2. To promote the effective operation of the markets, marketing/transaction processes should be streamlined and made uniform across all markets;
  • The nation's procedures are standardized and streamlined thanks to e-NAM. Offering real-time pricing predictions eliminates information gaps between buyers and sellers. based on supply and demand. It allows for open bidding at an auction.

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