The recent data indicates a significant surge in the number of connected mandis, otherwise known as wholesale markets under e-NAM. The data shows that there has been an increase of up to 65%. This surge can be attributed to disruptions in transport and social distancing requirements which have made physical mandi trade more challenging in recent times.
The slow progress of e-NAM post-launch
After the launch of e-NAM in 2016, its progress was somewhat sluggish. There were several factors contributing to this, including: many states choosing not to amend their Agricultural Produce Market Committee (APMC) Acts; the majority of farmers not being part of the cooperatives that would assist in aggregating the large quantity of produce required to attract online buyers; and most mandis lacking the necessary infrastructure to make full use of the platform.
Central Government’s enhancements to e-NAM amidst lockdown
Recognising the potential of e-NAM to alleviate some of the challenges posed by the lockdown, the Central Government introduced several noteworthy new features in April 2020. These included: a trading module enabling Farmer Producer Organisations (FPOs) to trade produce straight from their collection centres without needing to take it to mandis; a warehouse-based trading module; and a logistics module giving users trackable transport facilities via aggregators with access to 11 lakh trucks.
Integration of additional e-NAM mandis
On 1st May 2020, the Agriculture Ministry unveiled the integration of 200 e-NAM mandis across seven States, with Karnataka being a new addition to the e-NAM system. As a result of this expansion, the total number of mandis under e-NAM reached around 950 across India, a substantial increase from the approximately 550 before lockdown.
Understanding e-NAM
The National Agricultural Market (e-NAM) is a pan-India electronic trading portal, inaugurated in April 2016. e-NAM’s objective is to amalgamate existing mandis into a “One Nation One Market” system for agricultural commodities in India. It aims to create a unified national market by networking the existing APMC mandis.
The vision of e-NAM
e-NAM envisions promoting uniformity in agriculture marketing by streamlining procedures across the integrated markets. The goal is to remove information asymmetry between buyers and sellers whilst promoting real-time price discovery based on actual demand and supply. It also facilitates contactless remote bidding and mobile-based payments at any time, negating the need for traders to visit mandis or banks.
Implementation of e-NAM
The lead agency for implementing e-NAM is the Small Farmers Agribusiness Consortium (SFAC). It operates under the Ministry of Agriculture and Farmers’ Welfare. Through the joint efforts of these organisations, e-NAM’s reach has expanded significantly, offering a more convenient and efficient way for farmers to trade their produce.
