The National Agriculture Market or e-NAM is an electronic trading portal that connects existing Agricultural Produce Market Committee (APMC) mandis across India. Launched by Prime Minister Narendra Modi in 2016, this platform aims to provide a unified national market for agricultural commodities.
- e-NAM, fully funded by the Central Government, was implemented by the Small Farmers Agribusiness Consortium (SFAC). SFAC operates under the Ministry of Agriculture and Farmers’ Welfare.
- The goal of this platform is to offer better marketing opportunities for farmers. It does this by providing an online, competitive, and transparent system for price discovery along with an online payment facility.
- e-NAM serves as a single window for all APMC related information and services. These services include information on commodity arrivals, quality and prices, buy and sell offers, and e-payment settlement directly into farmers’ accounts.
- The platform’s primary aim is to promote uniformity in agriculture marketing by standardising procedures across all integrated markets, removing information asymmetry between buyers and sellers, and promoting real-time price discovery based on actual demand and supply.
Objectives
- e-NAM’s goal is to enhance marketing opportunities for farmers and sellers. By providing online access to a wider market, it can eliminate information gaps between farmers and traders. This leads to improved price discovery, reflecting actual demand and agri-commodities supply.
- It aims for transparency in the auction process and fair pricing that matches the quality of produce, with the convenience of online payments contributing to marketing efficiency.
- It is also working to establish quality assaying systems. These systems will ensure quality assurance and promote informed bidding by buyers.
- Its mission includes promoting stable prices and ensuring consumers have access to quality produce.
eNAM–PoP
The eNAM–Platform of Platforms (PoP) is a mobile app, launched by India’s Ministry of Agriculture and Farmer Welfare on July 14, 2022. This app caters to users in 12 different languages.
It’s a comprehensive tool that offers several features. These include trading options, assessment services, transportation and storage facilities, and financial services. Additionally, it provides agricultural advice, market information, institutional buying, selling, and other agri-input services.
Concerns
- The national government is planning to unify agri-value chain players via eNAM-PoP, a one-stop shop for accessing bundled products and services.
- This plan raises several questions related to the political economy of agriculture, the corporatization of food systems, and the power dynamics involved in vertical integration.
- Crucial points to consider include:
- What benefits can eNAM-PoP provide to farmers and various agri-food value chain stakeholders?
- Is the cost-effectiveness of these services guaranteed?
- Can innovative disruptive technology transform the agricultural market into a unified structure that synchronises physical and digital elements (phygital), and align it with Global Value Chains (GVCs)?
- What strategies can the government implement to encourage access to, and utilisation of, the eNAM-PoP services?
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Key Takeaways And Suggestions For eNAM-PoP
- eNAM seems to have unlocked the potential of agricultural markets, but needs more time to prove its reliability.
- It’s important to consider the economics and sustainability of eNAM-PoP, along with the potential to encourage cross-border trade and integration into Global Value Chains (GVCs). If not, the transformation of the physical market into a hybrid (phygital) structure may not be achievable.
- Stakeholder incentives are crucial for maintaining and expanding eNAM-PoP. The governance needs to be robust and well-coordinated to reduce asymmetry of power among stakeholders.
- The Ministry of Agriculture and Farmer Welfare, Small Farmers’ Agri-business Consortium, and other strategic groups need to plan a scaling strategy for PoP. This includes considerations about network loops, data loops and capital loops.
- While there are challenges like increasing regulatory complexity and risks in agriculture, the success of PoP largely depends on the participation and willingness of various actors to pay for services. These services need to be competitive with what platform capitalists offer.