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National Agriculture Market

Topics Covered: e-technology in the aid of farmers.

National Agriculture Market

What to study?

For Prelims: NAM- features.

For Mains: Need for and significance.

 Context: Punjab Mandi Board (PMB) had recently organised awareness camps, training programmes and seminars on the National Agriculture Market (e-NAM) across mandis in the state.

What is e-NAM?

E-NAM (National Agriculture Market) is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price by smooth marketing.

It was launched by the Centre in 2015 and the government had to extend it in a phased manner across the 585 mandis of the country by December 31, 2019.

NAM has the following advantages:

  1. For the farmers, NAM promises more options for sale. It would increase his access to markets through warehouse based sales and thus obviate the need to transport his produce to the mandi.
  2. For the local trader in the mandi / market, NAM offers the opportunity to access a larger national market for secondary trading.
  3. Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi / market level through the NAM platform, thereby reducing their intermediation costs.
  4. The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licences, levy of fee and movement of produce.
  5. The NAM will also facilitate the emergence of value chains in major agricultural commodities across the country and help to promote scientific storage and movement of agri goods.

Need for:

  1. Fragmentation of state into multiple market areas.
  2. Poor quality of infrastructure and low use of technology.
  3. In the traditional mandi system, farmers generally procured very less price for their crops as they had to pass through various intermediaries at the physical marketplace. This not only adds costs but also handling costs.
  4. In addition, the farmer has to face obstacles in form of multiple tax levies and licenses and weak logistics and infrastructure in India.

Sources: the Hindu.