E-NAM Initiative

Source: Financial Expres
 01-Jul-2017
What is the issue?
The new initiative, e-NAM, is expected to solve the problems surrounding agrarian output market.
What are the existing problems in farmers market?

• Competition in labour, input prices are increasing.
• Market domination by organised traders.
• Friction between inefficient markets for agri-output and efficient markets for their inputs.
• Farmers must buy and sell only in the government-designated Agricultural Produce Marketing Committee (APMC) market-yards.

What is the e-NAM?

https://www.facebook.com/Aovious1

• The electronic National Agriculture Market (e-NAM) platform seeks to create a common national market, for enhancing farmers’ access to buyers.

• It will make price discovery and trading transparent.

• So far, 417 mandis in 13 states have joined the e-NAM platform

• There is a target of connecting 585 mandis with e-NAM by March 31, 2018.

What are the advantages of e-NAM?

• Transparent and robust electronic physical markets.
• Greater standardisation and quality awareness.
• Easier access of buyers by the producers.
• Reduced price of products due to reduced costs of intermediation.
• Open market and competitive price fixing is possible.
• Easier taxation of agricultural income.

How effectively e-NAM can be implemented?

• With wide participation and perfect sync between markets and stakeholders e-NAM can be successful.
• e-NAM authorities can work to encourage farmers to produce better quality crop and meeting exchange standards.
• Price distribution alerts through mobile phones could serve as a reliable reference price for farmers.
• Monitoring the warehouses for the incoming and outgoing stocks will make the initiative stronger.
• The profiles of the farmers linked with e-NAM can be used for credibility reports by financial institutions.
• Indian agriculture needs robust and transparent institutions for e-NAM to deliver long-term benefits.

Don't forget to like our page