Center plans to connect 6 online agricultural trading platforms with eNAM


Center plans to connect 6 online agricultural trading platforms with eNAM

The center will soon connect six online portals to the Electronic National Agricultural Market (eNAM), a move that aims to increase trading volume while also allowing farmers better price discovery when selling their produce. This follows the national success of e-NAM.

After involving testing and certification bodies, it can also help to remove one of the main obstacles when selling online – product quality assurance.

From April to January of this fiscal year, total transactions on e-NAM were 42,163 crore compared to 31,366 crore in 2020-21. Since its inception in 2016, this fiscal’s transactions have reached an all-time high.

No monopoly:

“We never wanted e-NAM to have a monopoly.” Small Farmers’ Agri-Business Consortium Managing Director Neelkamal Darbari explained: “Our goal is improved pricing for farmers, and by leveraging the experience of others it will be for Buyers and sellers on the integrated platform will be a win-win situation” (SFAC).

According to Darbari, over 15 companies have expressed interest in participating in the new project, which will provide transportation, warehousing, quality analysis, warehousing, fintech and agricultural advisory services. “Through a single window, farmers, producer organizations (FPOs), traders and other stakeholders would have access to a larger market environment,” she said.

When the expressions of interest (EOI) are opened, the number of platforms will grow, according to sources.

Via APIs, the new project will enable the integration of other public and private trading and service provider platforms in the agricultural ecosystem. As a result of this connection, farmers and FPOs on e-NAM and other platforms can offer their products to more buyers via the portals. She claims this will give farmers more options and help them negotiate better prices for their produce.

SFAC, a corporation under the Ministry of Agriculture, has been tasked with pooling and developing agribusinesses to increase the income of smallholder and smallholder farmers. It is also the primary enforcement body for building 10,000 more FPOs on top of e-NAM.

e-NAM has now connected 1,000 mandis across the country, while private sector online platforms are usually restricted to specific locations or commodities. In addition, e-NAM platforms are operated at FPO locations in states where it is permitted. Even if transactions are completed via e-NAM, Mandi fees must be paid according to local law in each state. While some states, like Rajasthan, maintain identical tariffs for all mandis but fees vary by product, others, like Gujarat, have given APMC exclusive control over market fees.

“Depending on the success of the new initiative, the next step will be to persuade states to waive Mandi fees for transactions completed on the electronic platform.” added a source. The government, whether central or state, may also consider bearing the operating costs if farmers will benefit, according to the sources.


Comments are closed.