How does eNAM will impact the Agro industry?

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Electronic National Agriculture Market was launched on 14th April 2016. Before going to eNAM, let’s share about the existing trade model.

The state governments were managing the Agri marketing under their own regulations. Each state had several market sources which is regulated & managed by Agriculture Produce Marketing Committee formed in each area. APMC imposes its own marketing regulation (including fees). This fragmentation of markets, even within the State, hinders free flow of agri commodities from one market area to another and multiple handling of agri-produce and multiple levels of mandi charges ends up escalating the prices for the consumers without commensurate benefit to the farmer.

NAM addresses these challenges by creating a unified market through online trading platform, both, at State and National level and promotes uniformity, streamlining of procedures across the integrated markets, removes information asymmetry between buyers and sellers and promotes real time price discovery, based on actual demand and supply, promotes transparency in auction process, and access to a nationwide market for the farmer, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.

Prime minister of INDIA, Shri. Narendra Modi.

Prime minister of INDIA, Shri. Narendra Modi.

Advantages

  • Freedom to farmers to sell in any Mandi of their choice
  • Freedom from local cartels by traders tat depress prices
  • Facility for the discovery of best price & transparent sales process
  • Access to larger national market for secondary trading for traders 

PROGRESS OF IMPLEMENTATION (as on April 2016)
The Project Appraisal Committee (PAC) set up under the Chairmanship of Secretary (AC&FW) has so far given in-principle approval to DPRs from 12 States. Releases have been made to Gujarat, Telangana, Jharkhand, Chhattisgarh, Rajasthan and partially to Madhya Pradesh. So far, projects from the following States have been appraised:

Status of proposal from States which have been granted in principle approval as of April 2016

State /UT No. of Mandis Proposal Cost (Rs. in crore) Maximum Admissible assistance (Rs. in crore)
Gujarat 40 27.86 12.00
Maharashtra 30 16.74 9.0
Telangana 44 13.264 12.165
Jharkhand 19 5.92 5.70
Chhattisgarh 05 2.58 01.50
Madhya Pradesh 50 35.21 15.00
Rajasthan 25 18.80 7.50
UT of Chandigarh 01 2.01 0.30
Haryana 54 38.62 16.20
Himachal Pradesh 19 5.70 5.70
Uttar Pradesh 66 32.94 19.80
Andhra Pradesh 12 3.88 3.60

Simultaneously, to facilitate assaying of commodities for trading on NAM, common tradable parameters have been developed for 25 commodities. NAM is launched for trading on 14th of April, 2016 in 21 markets in 8 States on Pilot basis in the following mandis:-

State wise list of mandis for Pilot launch

Sr.No. State APMC District Commodity proposed
1 Gujarat Patan Patan Castor Seed
2 Botad Bhavnagar Chana (Black Gram)
3 Himmatnagar Sabarkantha Wheat
4 Telangana Tirumalgiri
Bhavnagar
Nalgonda Paddy
5 Nizamabad Nizamabad Turmeric
6 Badepally Mahboobnagar Maize
7 Hyderabad Hyderabad Onion
8 Warangal Warangal Maize
9 Rajasthan Ramganj Mandi Kota Chana (Black Gram)
10 Madhya Pradesh Karond, Bhopal Bhopal Chana (Black Gram)
11 Uttar Pradesh Sultanpur Sultanpur Wheat
12 Lakhimpur Lakhimpur Kheri Wheat
13 Lalitpur Lalitpur Wheat
14 Bahraich Bahraich Wheat
15 Saharanpur Saharanpur Wheat
16 Mathura
Sultanpur
Mathura Wheat
17 Haryana Ellanabad Sirsa Mustard
18 Karnal Karnal Wheat
19 Jharkhand Pandra,
Ranchi
Ranchi Mahua Flower & Tamarind
20 Himachal Pradesh Fruit Mandi,
Solan
Solan Shelling Peas
21 Dhalli,
Shimla
Shimla Shelling Peas

 

How does eNAM works?

Let’s Examine

The above information was taken from http://www.enam.gov.in published by the government.  This article was published just to share the initiative taken by the Government to support the farmers in the country. Few questions for which farmers looking for clarity from the government as follows,

  1. The new model again focused on supporting trader rather than farmer. Is there will be able further plan in this system which may support the farmer to reach the consumer directly to yield more profit?
  2. Is there any encouragement or facility or possibility for the farmers community to move from chemical farming to organic farming?
  3. Does farmer can able to create their own market place?
  4. What is the difference between eNAM & regular MANDI system. Both the way the farmers were not getting big profits.
  5. Finally how does this system supports the consumer?

Implementing a new system is not that much easy to do in a country like INDIA. At this point we really don’t know how this eNAM is going to work across the nation, on the other side govt is taking an initiative but just 12 states out of 29 came forward & accepted proposal. Let’s be calm & await for better results.

Bharathiraja Thangappalam, Founder of Beachange, India. Be A Change is about taking responsibility as the representative of this planet earth, and start contributing to the human society. We are a team who is focused towards taking our Nation to join the League of Developed Nations through Entrepreneurship.