eNAM (National Agriculture Market) - Everything You Need to Know About the Electronic Trading Portal of India

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By CMV360 Editorial StaffUpdated On: 03-Mar-2023 12:46 PM

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ByCMV360 Editorial Staff |Updated On: 03-Mar-2023 12:46 PM

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4,956 Views

eNAM (National Agriculture Market) is an online trading platform for agricultural commodities in India, allowing farmers, traders, and buyers to conduct online transactions. The letter "e" in eNAM stands for electronic or digital.

The platform enables better price discovery and offers facilities for smooth marketing of produce. The market recorded transactions worth ₹36,200 crore (equivalent to ₹410 billion or US$5.2 billion in 2020) as of January 2018, mainly for intra-market trade. It currently lists over 90 commodities, including staple food grains, vegetables, and fruits, available for trade.

One of the reasons behind eNAM's popularity is the immediate weighing of crops, same-day stock lifting, and online payment clearance. The adoption of the platform has been further facilitated by attractive features such as the MIS dashboard, BHIM and other mobile payments, enhanced mobile app features like gate entry and payment through mobile phones, and a farmers' database, introduced in February 2018.

Although most of the current trading on eNAM is within the same market, the platform's developers plan to expand it to inter-market and inter-state trade, eventually creating a unified national market for agricultural commodities.

Features and Benefits of eNAM

eNAM (National Agriculture Market) is an online trading platform for agricultural commodities in India that provides several features and benefits to farmers, traders, and buyers. Here are some of its main features and benefits:

Features of eNAM:

• Online Trading: eNAM provides a digital platform for farmers, traders, and buyers to conduct transactions online.

• Mobile App: The mobile app is available in multiple languages, which facilitates easy access for farmers who may not be proficient in English.

• Real-Time Information: Real-time information is available on market arrivals, prices, and trade offers on the platform.

• Secure Payments: Payments on eNAM are done through the online mode, providing a safe and secure payment option.

• Quality Control: The platform also provides quality testing and certification services to ensure quality control of products.

• Transparent Transactions: eNAM ensures transparent transactions by providing access to real-time information on prices, quantities, and transactions.

Benefits of eNAM:

• Better Price Discovery: eNAM enables farmers to discover the best market prices for their products, leading to better income generation.

• Increased Access to Markets: The platform provides farmers access to markets outside their local region, enabling them to reach new buyers.

• Reduced Transaction Costs: eNAM eliminates intermediaries and reduces transaction costs for farmers, which increases their profit margin.

• Efficient Supply Chain: eNAM provides a single-window platform for farmers, traders, and buyers, which facilitates an efficient supply chain.

• Access to Information: eNAM provides farmers with real-time information on market prices, helping them make informed decisions about when and where to sell their produce.

• Improved Quality Control: eNAM provides quality control services, which helps to maintain the quality of agricultural produce and increases buyer confidence in the product.

Key Objectives of National Agriculture Market (eNAM)

• To establish a national e-market platform that promotes transparent sale transactions and price discovery in regulated markets.
• To encourage willing states to enact suitable provisions in their APMC Act that promote e-trading by their State Agricultural Marketing Board/APMC.
• To enable liberal licensing of traders/buyers and commission agents by State authorities without any pre-condition of physical presence or possession of shop/premises in the market yard.
• To ensure that one license for a trader is valid across all markets in the state.
• To harmonize quality standards of agricultural produce and provide assaying (quality testing) infrastructure in every market to enable informed bidding by buyers.
• To develop common tradable parameters for commodities, 25 of which have been identified so far.
• To levy market fees at a single point, i.e., on the first wholesale purchase from the farmer.
• To provide Soil Testing Laboratories in or near the selected mandi to facilitate visiting farmers to access this facility.
• Nagarjuna Fertilizers and Chemicals Ltd. is the Strategic Partner (SP) responsible for the development, operation, and maintenance of the platform. Their comprehensive role includes writing the software, customizing it to meet the specific requirements of the mandis in the states that integrate with NAM, and running the platform.

How to register in the eNAM portal?

Here are the steps to register on the eNAM portal:

• Go to the eNAM portal (https://enam.gov.in/web/) and click on the "New Farmer Registration" or "New Trader Registration" button on the homepage.

• Fill in the registration form with your personal details, including name, address, mobile number, email address, and bank account details.

• Upload the necessary documents, such as ID proof, address proof, and bank account details.

• Once you have filled in all the required details, click on the "Submit" button.

• You will receive a registration confirmation message on your registered mobile number and email address.

• Log in to your eNAM account using your registered mobile number and password.

• You can now start trading on the eNAM platform by bidding on the available agricultural products or posting your products for sale.

Steps involved in the application process of eNAM.

The application process for eNAM is as follows:

• Farmer registration: The farmer needs to get registered on the eNAM portal. For this, the farmer needs to provide basic details like name, address, contact details, and bank account details.

• Produce details: After registration, the farmer needs to provide the details of the produce he/she wants to sell. The farmer needs to provide information like the type of produce, quantity, quality, and expected price.

• Listing the produce: Once the produce details are submitted, the farmer can list the produce on the eNAM portal. The listing includes details like the quantity, price, and quality of the produce.

• Bid acceptance: Buyers from different parts of the country can bid for the produce listed on the eNAM portal. The farmer can accept the highest bid from the buyers.

• Payment and delivery: After the bid is accepted, the buyer needs to make the payment for the produce. The payment is made online through the eNAM portal. The farmer can then deliver the produce to the buyer's specified location.

• Feedback: The eNAM portal provides a feedback system where the farmer and the buyer can rate each other's performance. This helps to build trust and credibility among the buyers and sellers.

Overall, the eNAM application process is simple and easy to use, and it provides a transparent platform for farmers and buyers to conduct trade in a hassle-free manner.

Advantages of eNAM

Advantages for Farmers:

• Can sell their products without intermediaries, resulting in better returns on their investment.
• Transparency in pricing and trading processes will ensure that farmers receive fair prices.

Advantages for Traders:

• Will be able to trade in multiple APMCs across India, thereby expanding their market reach.
• Access to a larger national market will enable local traders to expand their businesses.

Advantages for Buyers, Processors & Exporters:

• Will have access to a wider variety of commodities from all over India.
• Reduction in intermediation cost will result in cost savings for buyers, processors, and exporters.

Advantages for Consumers:

• Increased competition among traders will lead to more stable prices and better availability of commodities.

Advantages for Mandis:

• Bookkeeping and reporting systems will be automated, reducing paperwork and manual effort.
• Transparent and efficient trading processes will lead to improved monitoring and regulation of traders and commission agents.
• Market allocation fee will increase due to an accounting of all transactions taking place in the market.
• Tendering and auctioning process carried out electronically will reduce manpower requirements.
• Information asymmetry will be eliminated, and all activities in APMC can be known directly from the website.

Other Advantages:

• NAM aims to improve the marketing aspect of the agriculture sector.
• One license for the entire state and single point levy will create a unified market, abolishing market fragmentation within the same state.
• Supply chain of commodities will improve, resulting in reduced wastages.

Implementation and Future Plans for eNAM - Role of Government and Agency

The Ministry of Agriculture, Government of India launched eNAM. The electronic market pilot was first introduced nationwide on April 14, 2016, by Indian Prime Minister, Narendra Modi. The portal is managed by The Small Farmers' Agribusiness Consortium (SFAC) and the technology is taken care by NFCL's iKisan division.

The Small Farmers’ Agribusiness Consortium (SFAC) is responsible for promoting and implementing the National Agriculture Market (NAM). SFAC is a registered society under the Ministry of Agriculture and Farmer Welfare's Department of Agriculture, Cooperation & Farmers’ Welfare (DAC&FW). The agency selected Nagarjuna Fertilizers and Chemicals Ltd / Ikisan Division as the Strategic Partner (SP) through an open tender to develop, operate, and maintain the NAM e-platform.

Farmers have the option to trade directly on their own or through registered commission agents via the mobile app on eNAM. The platform is linked to 1000 markets (APMCs) in 18 states and 2 union territories, with over 50 lakh farmer members in 18 states. It facilitates traders and exporters to procure quality products in bulk, in one place and ensures transparent financial transactions.

The government has plans to connect over 22,000 GrAMs (local farmers' markets) to the platform. The Agriculture Department is considering AGMARK certification to provide better grading and assaying services.