National Agriculture Market (eNAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities. Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under the aegis of the Ministry of Agriculture and Farmers’ Welfare, Government of India.
It is an old diamond ignored by most of us in our industrialization spree but it raised its importance even during these dark days of the pandemic. Yes, you are correct in assessing it as agriculture which has been keeping the nation going with all the best efforts undertaken by our noble agriculturists.
Now eulogized as the resonant cure for our downward sloping economy, it has started using the modern tools like an electronic trading portal, now named as “eNAM” under the aegis of the most dynamic agricultural department of Government of India.
The following article is a humble submission to the heroic efforts being undertaken by our agriculturists all over India. I am ever thankful for the government of India for their innovative efforts, outstanding by world standards.
Let me proudly introduce you to its illustrious web site.
What is the Mission?
“Integration of APMCs across the country through a common online market platform to facilitate pan-India trade in agriculture commodities, providing better price discovery through transparent auction process based on the quality of products along with timely online payment.”
To achieve the Vision.
“To promote uniformity in agriculture marketing by streamlining of procedures across the integrated markets, removing information asymmetry between buyers and sellers and promoting real-time price discovery based on actual demand and supply.”
Let me introduce you to the growth of agriculture over the decades.
Indian agriculture gets mentioned even in the Sangam era, of Tamilian history, dated 2000 B.C. with a documentary mention in stones left in Tamil Nadu.
Similar information can trace it to all over India. Our independence came with the only performing sector, namely, agriculture. It gets a due mention even in first 5-year plans. As our earlier struggles indicate, we missed the great and giant strides made by others in agriculture.
In the 1960s under extreme pressure, we could not produce enough to meet our own demands of wheat. Huge imports from the U.S.A. used to meet our needs.
It was then the Indian government got the expertise of Norman Borlaug, a world-famous American agronomist to introduce his modern seeds which increased our production by nearly 400%.
But this growth did not help us to keep pace with modern developments in agriculture. Political pressure ensured government purchase of agricultural commodities at a pre-fixed price while agricultural products like vegetables/fruits or pulses were routed through agricultural mandis which were operated by middlemen. Stories of small and prestigious onions from South being sold at Rs 30 per Kg while the agriculturist got only Rs 2 per Kg are legion. The same can be told of many products.
Fortunately, agriculture raised its importance by contributing substantially to the Indian economy, and the present government brought agricultural reforms by enacting new laws/rules and regulations. Many state governments joined the revolution to get a better price for agricultural products and make the profession as a sunrise industry.
Questions & Answers
What is the difference between eNAM and normal mandis?
eNAM is not a parallel marketing structure but rather a device to create a national network of physical mandis which can be accessed online.
It seeks to leverage the physical infrastructure of the mandis through an online trading portal, enabling buyers situated even outside the Mandi/ State to participate in trading at the local level. Let me explain this. Suppose I live in a rural area producing organic agricultural products and my mandi nearer to me does not help in selling these items and what should I do? The portal may throw light where can I sell nearer to my place.
How does the portal operate?
The eNAM electronic trading platform has been created with an investment by the Government of India (through the Ministry of Agriculture & Farmers’ Welfare). It offers a “plug-in” to any market yard existing in a State (whether regulated or private). The special software developed for eNAM is available to each mandi which agrees to join the national network free of cost with necessary customization to conform to the regulations of each State Mandi Act.
What are the conditions for joining this portal?
States interested to integrate their mandis with eNAM are required to carry out following three reforms in their APMC Act:
a) Single trading license (Unified) to be valid across the state
b) Single point levy of market fee across the state; and
c) Provision for e-auction/ e-trading as a mode of price discovery
Will normal mandis lose out business due to this new portal? Is it its competitor?
Mandis do not lose any business. eNAM basically increases the choice of the farmer when he brings his produce to the mandi for sale. Local traders can bid for the product, as also traders on the electronic platform sitting in another State/ Mandi. The farmer may choose to accept either the local offer or the online offer. In either case, the transaction will be on the books of the local mandi and they will continue to earn the market fee. In fact, the volume of business will significantly increase as there will be greater competition for specific produce, resulting in higher market fees for the mandi.
Let me explain a bit. Previously, rich mandi merchants used to dictate the terms like “take it or leave it”. This caused untold miseries to the farmer who produced the products after investing in everything including the recluse nature which does not believe in any set procedure. The distance between U.P. and Delhi is not much but the value available for even onion is very different. Even the simple cell phone does the trick of telling the different price lists. The agriculturist gains.
Who will operate the portal?
Ministry of Agriculture & Farmers’ Welfare, Govt. of India has appointed Small Farmers’ Agribusiness Consortium (SFAC) as the Lead Implementing Agency of eNAM. SFAC will operate and maintain the eNAM platform with the help of a Strategic Partner, presently NFCL.
Let us know more details which are mind-boggling.
1. How to download and operate the app? Open Google play store and search for eNAM.
Link is as follows:
Download the app and install in the smartphone
2. It works on Android 4.4 and above platforms
3. Around 39 MB and 512 MB speed is sufficing the mobile space.
4. If it does not work after downloading, there is need to restart the device or else reinstall the app again.
Time to talk about various modules.
After downloading the app choose to register in the Home Page options and follow the steps to register as a farmer.
The farmer can view his lots of information in My Lots tab.
In My Lots, History Farmer can view the past 7 days of his lots of information.
To confirm the sale price, after the auction is completed and the winner is declared, the farmer can either choose to accept it or reject it.
The farmer can see how the lot progressed from gate entry to gate exit with step by step.
After downloading the app choose to register in the Home Page options and follow the steps to register as a trader.
How can the trader see the commodities open for bidding?
After successful registration, login credentials are sent to the registered email and mobile number
On logging in, trader view has the following options/ tabs namely
– Winner List,
– My Bid History
– Pending Invoices
– Gate Entry
Based on the quantum of arrivals, bid cut-off time varies from state to state and sometimes mandi to mandi. This call is taken by the APMC administration and there is a provision in the application to change the cutoff time.
The winner list is one of the views in the trader’s section of the mobile app.
And also, pending invoices is one of the options in the trader’s section of the mobile app.
Commission agent module
After downloading the app choose to register in the Home Page options and follow the steps to register as a commission agent.
To track the commission agent’s lots,
On logging in, the Commission Agent will have access to the following tabs:
– My Lots
– My Lots History
– Lot Progress
This information looks like the latest space module simplified in agriculture. With the simple smartphone and downloading of app, the procedure is simple for anyone.
Now that operational features have been cleared, let us look at various other facts.
Let me give you, the details of trading in various parts of India.
The price is in Rs. As of 20th Aug 2020.
1. Tamilnadu state: Anthiyur APMC: Cotton: Price 1279: Max. Price: 4649 Gingee APMC: Paddy: Min. Price 919: Max.Price: 2808
2. Andhra Pradesh state: Ananthapuram APMC: Mousambi: Min.Price 1000:Max.Price: 1800
3. P. State: Harda APMC: Moong Whole Dhall: Min Price; 1001: Max. Price in 6811.
Discussion: It is unbelievable that Moong whole Dhall can fetch a maximum price of Rs 6811 as against the minimum price of Rs. 1001.
The web site has given the details of 11 commodities as on 20th August 20, 2020, and it is the eye-opening score of prices varying in huge values.
What is the payment related incentives?
State Level: Annual cash Prize of One Lakh each to best1 farmer & best 1 trader
State Level: Fifty Thousand (Two Prizes – 2 farmers & 2 traders)
Division Level: Annual cash Prize of Fifty Thousand each to best1 farmer & best 1 trader
Division Level: Twenty Five Thousand (Two Prizes – 2 farmers & 2 traders )
APMC Level: Annual cash Prize of Thirty Thousand each to best1 farmer & best 1 trader
APMC Level: Fifteen Thousand(Two Prizes – 2 farmers & 2 traders)
For Farmers, Mandi Level: 25% of the market fee of the traded amount to the farmer for taking e payment one NAM For Female farmer 500 Rs on 50,000 to 1,00,000 Trade Amount 1000 Rs on & above 1,00,000 Trade Amount For Traders If there is any Bank Charges on e-payments, will waive off from market fee.
0.5% Rebate on Mandi Fee for the traders, participating in e-trade through e-NAM with effect 06 Oct 2018
In Sidhpur APMC, 33% Mandi fees OFF while e-payment through eNAM for Traders, 1.60 Paisa incentive instead of 1.50 Paisa incentive for CA, Attractive Gift for Farmer.
Commodity wise Annual Cash Prize for 1 Farmer and 1 Trader in each commodity category (Cereals, Pulses, Oilseeds, and others) for each Regulated Market, Cash Prize of Rs.25,000/- where arrival is greater than 5000MT and Cash Prize of Rs.15,000/- where arrival is less than 5000MT. Annual Cash prize incentive of Rs.1,00,000/- along with the best performance award will be given to the market committee based on the highest quantity of the transaction, digital transaction through e-National Agriculture Market Portal.
Let me give you a success story one experienced agriculturist due to the new developments.
A NEVER BEFORE TRADE EXPERIENCE
MuskuVidyasagar, Resident of the Bellator village, Balkonda Mandal, Aged 45 years old. He owns Seven (7) acres of land and is having 20 years of experience in agriculture and agriculture marketing. He cultivates Paddy, Maize, and Soybean crops.
Vidyasagar expressed his happiness and gratitude in delightfully stating that “it was a never before market experience walking away home with more money than they expected in a hassle-free transaction on the same day of selling, which I never even dared to dream of. He further expressed that he realized the importance of producing quality products and adopting better post-harvest practices for discovering higher prices per produce. Thanks to eNAM and District administration”.
It has been noted that e NAM has been integrated with 18 states, 3 UTs, and 1000 markets. An amazing feat!
Would you believe the following information about the stakeholders’ details?
Let me give you the commodities quality details.
Food grains – 25, Spices – 14, Oil seeds – 13, Fruits – 29, vegetables – 40 and miscellaneous – 29.
This new concept of selling through a reputed government-controlled portal and getting paid online has opened new vistas for agriculturists and their families. It was a question of a few decades ago that saw food revolution in India which has spread around the country. It is very interesting to see Rajasthan state/U.P. taking a leading role in these auctions. Not many of us from cities actually know any thing about these modern developments.
What do I foresee for the future?
Like the recent pandemic showed, it has been the agriculture that drew India from pessimism to optimism and among those few counties who can look at the future with bright performance. I expect agriculturists forced by modern developments and enormous income from the land to force their kids to concentrate on rural areas, convert their lands into huge profits, and Indian agriculture will usher in a new revolution. India will reach $2 Trillion in economies by agriculture alone.
As a long time, retired banker, I want modern bankers to look at agriculture as the new source of huge income and nil NPAs.
Disclaimer: Enormously encouraged by the huge success of above e portals, I have expressed my personal views for which neither taxguru.in nor governmental agencies is responsible. Kindly refer to official sources for guidance.