Gaining heft – On e-NAM’s trade effectiveness

News: There is an increase in the e-NAM’s trade volumes after the repealing of the three agricultural laws.

What is electronic National Agricultural Market (e-NAM)?

It is a pan-Indian digital market, launched in 2016. About 1,000 markets in over 20 states and Union Territories have been linked to the e-NAM portal and the network is further expanding.

What is the present status of e- NAM?

Although trade in e-NAM is increasing, online trading is taking place only in 570-odd markets of the 1,000 linked to the e-NAM. Many big agricultural markets, like Delhi’s Azadpur mandi, one of the largest in Asia, are yet to be connected to it. Besides, just three states Rajasthan, Haryana, and Andhra Pradesh account for over 70% of the transactions.

Also, the bulk of the trading consists of the deals within the same mandis (intra-mandi trade) or between the mandis of the same district. Inter-mandi and, inter-state trade are minimal, though that is what the e-NAM is chiefly meant for.

How the e-NAM can be further promoted?

There is a need for a single trading license that will be valid throughout the state and across the states as well. Also, state APMC Acts should be amended to make specific provisions for inter-state trading in farm commodities. Issues concerning the quality, grading, packaging, storage, and transportation of the commodities should be resolved.

To overcome the legal hurdles in inter-state marketing of farm produce, the Ashok Dalwai committee proposed to shift agricultural marketing from the State List to the Concurrent List. Along with the expansion, there is a need to consolidate the existing network of the e-NAM.

Source: This post is based on the article “Gaining heft” published in the Business Standard on 3rd March 2022.