When we take into account India's vast land area, the difficulties faced by farmers, and the quantity of agricultural output, the achievements of eNAM over the course of seven years may appear unimpressive. However, given the enormity of the obstacles and obstacles it confronts, the fact that this platform has achieved even a partial success is laudable.
PHOTO: enam
Seven years ago on this day, April 14, 2016, Prime Minister Narendra Modi introduced the Electronic National Agriculture Market (eNAM), with a commitment to establish a national market across the entire country. This groundbreaking initiative had the potential to revolutionize the agricultural marketing sector in several ways. As the project celebrates its 7th anniversary today, it is an opportune moment to assess where the eNAM project currently stands.
Initially, it is essential to comprehend the concept of eNAM and its potential to transform the agricultural marketing sector in the country. Following this, we will examine the metrics of its triumph and evaluate the project's accomplishment based solely on those factors.
As per the present system, various mandis have been established in different states of the country, which function under the Agri Produce and Livestock Marketing Committee (APMC). Under this system, any purchaser must visit these markets to procure any agricultural product since transactions of agricultural produce outside the market are not permissible. Even if a purchaser procures goods directly from farmers outside the market, they must pay the applicable market tax.
Under the current system, every purchaser or institution looking to procure agricultural produce from farmers must acquire a market license. These licenses are available at the local market level. Consequently, if a purchaser wishes to buy from three different mandis in a district, they must acquire licenses for all three markets. These licenses come with a substantial fee, and as a result, the number of traders operating in smaller mandis is limited.
The Electronic National Agriculture Market (eNAM) comprises two elements - electronic and national agriculture market. As the name suggests, this platform was designed to establish the entire country as a single agricultural market. However, since the Agricultural Marketing and APLM Act, which establishes APMCs, is a state subject, it is essential to designate states as the primary market entity under eNAM. Therefore, the first requirement for any state to join eNAM is to amend its APMC Act and designate the entire state as a marketing yard. This will enable traders or companies to purchase from farmers across the entire state using a single mandi license. Consequently, agricultural produce can be procured from various locations with greater ease.
Once a state designates its entire region as a marketing yard, it becomes part of the national network, connected electronically. This electronic platform has several benefits. All mandis across different states can connect, and traders can purchase agricultural produce with greater ease. For instance, if a farmer brings turmeric to the Erode market in Tamil Nadu, an electronic entry is created at the gate of the market. This entry is visible to a turmeric trader sitting in Delhi, who can view the details of the available turmeric on the eNAM platform. However, one of the biggest challenges is ensuring the quality of the produce.
Agricultural produce prices are typically determined based on three categories, namely Grade-A, Grade-B, and Grade-C. However, a trader in Delhi cannot bid for turmeric from the Erode market without knowing the specific grade of the produce. To address this issue, it is essential to have government-regulated assaying-grading units in every mandi. The government has allocated Rs 75 lakh to each mandi for this purpose, and the success of eNAM is contingent upon the proper functioning of these units.
Despite the challenges and limitations, it is noteworthy that in the past seven years, eNAM has made significant progress. As many as 23 states and 4 union territories, including Jammu and Kashmir, have joined the eNAM platform, and a total of 1361 mandis across these states have been linked to the electronic platform. The state of Tamil Nadu has the highest number of mandis at 157, followed by Rajasthan (145), Gujarat (144), Madhya Pradesh (136), Uttar Pradesh (125), Maharashtra (118), and Haryana (108). The eNAM platform facilitates trade in 209 agricultural commodities, including fruits and vegetables. Currently, approximately 2.5 lakh traders, 1.10 lakh jobbers, 2575 FPOs, and 1.75 crore farmers have registered themselves on this platform.
In the initial phase, eNAM allowed trading within a single mandi through its online platform. However, on January 10, 2019, interstate trading was initiated for the first time when a farmer from Haldwani, Uttarakhand sold his tomatoes to a trader in Bareilly, Uttar Pradesh through eNAM. Since then, various vegetables such as potatoes, brinjals, and okra have been traded between Uttar Pradesh and Uttarakhand using this platform. On February 1 of this year, Agriculture Minister Narendra Singh Tomar tweeted that apples were traded for the first time through eNAM. The sale was made from Sopore Mandi in Jammu and Kashmir to Dhanbad in Jharkhand using the online platform.
When we look at the challenges faced by farmers in India and the vastness of the country, the progress of eNAM in the last seven years may seem limited. However, given the complexities of the issues and obstacles involved, even the partial success of this platform is noteworthy. While it may take some time to see the full impact of eNAM on the lives of farmers, the platform has already made a positive difference.
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