e-NAM 2.0

The electronic National Agriculture Market (e-NAM) was launched in April 2016 to create a unified national market for agricultural goods. Despite its potential, inter-state and inter-mandi trade has seen decline. In FY25, inter-state trade dropped by 50%. This has raised concerns regarding the platform’s effectiveness in achieving its goals.

What is e-NAM?

e-NAM integrates over 1,400 wholesale markets across India. It aims to provide farmers with unfettered access to markets, regardless of their location. The platform allows farmers to sell their produce online and facilitates better price discovery.

Current Performance and Challenges

In FY25, e-NAM recorded an overall sales turnover of Rs 80,262 crore, a modest increase of 2% from FY24. However, inter-state trade plummeted to Rs 21 crore, showcasing a troubling trend. This decline hinders the platform’s growth and limits farmers’ market access.

Farm-Gate Model Adoption

Since 2022-23, farmers from various states have adopted the farm-gate model. This allows them to sell commodities without physically transporting them to mandis. Despite this, farmgate sales fell to Rs 63 crore in FY25 from Rs 94 crore in FY24.

Registered Users and Market Coverage

Currently, 1,473 mandis across 27 states and union territories are part of e-NAM. The platform has registered 17.89 million farmers, 4,404 Farmer Producer Organisations (FPOs), and 265,000 traders. Approximately 231 commodities are available for online e-auction.

Future Developments – e-NAM 2.0

To address logistical challenges, the government plans to upgrade e-NAM to e-NAM 2.0. This new version will integrate logistics service providers to enhance trade efficiency. Key features will include bank account validation and eKYC using Aadhaar. The goal is to facilitate quicker trade, reduce wastage, and improve farmer incomes.

Government Initiatives

The Ministry of Agriculture is actively working to enhance the e-NAM platform. These initiatives aim to create an open digital marketplace that connects various stakeholders in the agricultural value chain.

Questions for UPSC:

1. Estimate the impact of digital platforms on traditional agricultural markets in India.
2. Critically discuss the challenges faced by farmers in accessing national markets through e-NAM.
3. Examine the role of technology in enhancing agricultural productivity and market access.
4. Point out the significance of logistics in the agricultural supply chain and its effect on farmer incomes.

Answer Hints:

1. Estimate the impact of digital platforms on traditional agricultural markets in India.

1. Digital platforms like e-NAM provide broader market access for farmers, reducing geographical limitations.
2. They facilitate better price discovery by connecting farmers directly with buyers, minimizing middlemen.
3. Digital transactions can increase transparency and reduce corruption in traditional markets.
4. However, limited internet access and digital literacy among farmers can hinder full adoption.
5. Overall, digital platforms can transform agricultural markets but require supportive infrastructure and training.

2. Critically discuss the challenges faced by farmers in accessing national markets through e-NAM.

1. Inter-state trade via e-NAM has declined, indicating barriers in cross-border transactions.
2. Logistical challenges, such as transportation and storage, limit farmers’ ability to reach national markets.
3. Farmers often lack digital literacy, making it difficult to navigate online platforms effectively.
4. The farm-gate model adoption has not compensated for the decline in overall sales, indicating market inefficiencies.
5. Additionally, bureaucratic hurdles and inadequate infrastructure further complicate access to national markets.

3. Examine the role of technology in enhancing agricultural productivity and market access.

1. Technology enables real-time data access for farmers, aiding in informed decision-making regarding crop management.
2. Digital platforms facilitate quicker transactions and broader market reach, enhancing sales opportunities.
3. Technological advancements in logistics improve supply chain efficiency, reducing wastage and costs.
4. Mobile applications and digital tools can provide weather forecasts and market prices, empowering farmers.
5. However, disparities in technology access can create inequalities among farmers, affecting overall productivity gains.

4. Point out the significance of logistics in the agricultural supply chain and its effect on farmer incomes.

1. Efficient logistics reduce transportation costs and time, directly impacting farmers’ profitability.
2. Logistics challenges can lead to increased wastage of perishable goods, affecting income stability.
3. Improved logistics enable better access to markets, allowing farmers to sell products at competitive prices.
4. Integration of logistics providers in platforms like e-NAM can streamline operations and enhance trade efficiency.
5. Ultimately, effective logistics are crucial for maximizing farmer incomes and ensuring food security.