Term Report

Consulting in e-Governance Group 2

Consulting in e-Governance

Project Report
On
National Agriculture Market (e-NAM)

Submitted By:
Group 2
Bhoomika Sharma M236-21
Mrinal Dutt M261-21
Sagar Sankalp M283-21
Vatsala Chaudhary M310-21
Shubham Singh M406-21

Submitted to:
Prof. Ambuj Anand

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TABLE OF CONTENTS

1. History

2. About

3. Aim of e-NAM

4. Scale of e-NAM

5. Scope of e-NAM

6. Concerns

7. Way Forward

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e-NAM History

The e-NAM (National Agriculture Market) project was launched in April 2016 by the Ministry of
Agriculture and Farmers' Welfare, Government of India. The project was launched as a part of
the Digital India initiative to create a unified national market for agricultural commodities.

The idea of creating a national market for agricultural commodities was first proposed in the
Union Budget of 2014-15. In the following year, the government announced the creation of a
Common Agricultural Market (CAM) as a part of its agricultural reforms.

In 2016, the e-NAM platform was launched as a pilot project in 21 mandis (marketplaces) across
8 states. The platform was designed to integrate existing Agricultural Produce Market
Committees (APMCs) through an online trading platform.

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Over the years, the e-NAM platform has been expanded to cover more mandis across the
country. As of September 2021, the platform has been implemented in 1000 APMC mandis across
18 states and 3 Union Territories in India.

The e-NAM project has been instrumental in transforming agricultural markets in India by
providing transparency, price discovery, and reducing transaction costs. It has also helped in
eliminating the need for middlemen and providing farmers with direct access to buyers, which
has improved their income and livelihoods.

About e-NAM

eNAM, short for Electronic National Agriculture Market, is an online trading platform for
agricultural commodities in India. The platform was launched in April 2016 by the Government
of India, with the aim of creating a unified national market for agricultural commodities.

eNAM is designed to bring transparency and efficiency to agricultural marketing by providing a

single online platform where farmers, traders, and buyers can transact business. The platform
enables farmers to sell their produce to buyers located anywhere in the country, thus eliminating
intermediaries and ensuring fair prices.

Currently, eNAM has been implemented in over 1,000 markets across 18 states and 3 Union
Territories in India. The platform facilitates the trading of over 150 commodities, including grains,
pulses, oilseeds, fruits, and vegetables.

eNAM provides several benefits to farmers, including:

● Access to a larger market

● Transparency in pricing and payment
● Reduced transaction costs
● Elimination of intermediaries
Overall, eNAM aims to modernize and streamline agricultural marketing in India, and make it
more efficient and profitable for farmers.

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VISION

To promote uniformity in agriculture marketing by streamlining of procedures across the

integrated markets, removing information asymmetry between buyers and sellers and promoting
real time price discovery based on actual demand and supply.

MISSION

Integration of APMCs across the country through a common online market platform to facilitate
pan-India trade in agriculture commodities, providing better price discovery through transparent
auction process based on quality of produce along with timely online payment.

Operational management of e-NAM

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e-NAM Aim

The e-NAM project aims to create a unified national market

for agricultural commodities by connecting mandis
(wholesale markets) across the country through an
electronic platform. The project seeks to improve price
discovery, transparency, and efficiency in the agricultural
marketing system by enabling farmers to access a larger
pool of buyers and get better prices for their produce.

The aim for the e-NAM project involve the following steps:

o Expanding the network of mandis: The e-NAM project currently covers over 1,000
mandis across the country, but there are thousands more that need to be brought on
board. The government should work to expand the network of mandis and ensure that all
traders and farmers have access to the e-NAM platform.

o Enhancing the platform's functionality: The e-NAM platform needs to be continuously

improved to provide better services to traders and farmers. This could involve adding new
features such as real-time price information, weather updates, and logistics support.

o Strengthening infrastructure: The success of the e-NAM project depends on the

availability of good infrastructure, including storage facilities, transport networks, and
cold storage chains. The government should work to improve the infrastructure in rural
areas to support the e-NAM project.

o Encouraging farmer participation: Farmers need to be educated and trained on how to

use the e-NAM platform effectively. The government should work with farmer
associations and other stakeholders to create awareness about the benefits of e-NAM
and encourage farmers to participate.

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o Facilitating payments and settlements: The e-NAM project should enable seamless
payments and settlements to ensure that farmers receive their payments promptly. The
government should work to strengthen the payment infrastructure and facilitate online
transactions.

Overall, the way forward for the e-NAM project would involve a concerted effort from the
government, farmers, traders, and other stakeholders to make the platform a success.

e-NAM Scale

The e-National Agricultural Market (e-NAM) project is a digital platform that aims to create a
unified national market for agricultural commodities in India. Here are some of the key statistics
that illustrate the scale of the e-NAM project:
o Number of markets: The e-NAM platform has integrated more than 1,000 markets across
18 states and three Union Territories in India. These markets are connected through a
common digital platform, allowing buyers and sellers to trade in a transparent and
efficient manner.
o Number of commodities: The e-NAM platform enables the trading of 200 commodities,
including fruits, vegetables, cereals, pulses, and oilseeds. This provides farmers with a
wider market for their produce and enables buyers to access a diverse range of
agricultural commodities.
o Trading volume: As of December 2020, the e-NAM platform has facilitated more than 4.8
crore (48 million) farmer transactions, with a total value of over Rs. 1.4 lakh crore (USD
19.4 billion). This indicates the growing adoption of the platform among farmers and
other stakeholders in the agricultural supply chain.

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o Digital infrastructure: The e-NAM project has invested in creating digital infrastructure to
support its operations. This includes high-speed internet connectivity, data centers, and
software platforms to ensure that the platform can handle a large volume of transactions.
o Government support: The e-NAM project is supported by the Indian government, which
has allocated Rs. 1,000 crore (USD 137 million) for its implementation. This indicates the
government's commitment to promoting digital transformation in the agricultural sector
and improving farmers' income.

In conclusion, the e-NAM project is a large-scale digital platform that aims to create a unified
national market for agricultural commodities in India. With the integration of over 1,000 markets,
trading of 200 commodities, and a growing volume of transactions, the project has the potential
to transform the agricultural supply chain in India and improve farmers' income.

As for the year-on-year (YoY) growth of farmers using E-NAM, the data varies based on the region
and the commodity traded. However, according to the Ministry of Agriculture and Farmers'
Welfare, the total volume of agricultural produce traded on E-NAM has increased from 1.66
million metric tonnes (MMT) in 2016-17 to 18.29 MMT in 2020-21. Similarly, the number of
registered farmers has increased from 0.31 million in 2016-17 to 1.69 million in 2020-21,
indicating significant growth in farmer participation.

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Year No of Mandis integrated in e-NAM

2015-2016 250

2016-2017 455

2017-2018 585

2018-2019 785

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2019-2020 895

2020-2021 1000

2021-2022 1260

There are about 2477 principal regulated markets based on geography (the APMCs) and 4843
sub-market yards regulated by the respective APMCs in India.

Scale Ratio = Number of mandis integrated in E NAM / total number of mandis

These statistics indicate that the integration of mandis on E-NAM has been steadily increasing
over the years, with more states and union territories coming on board and more mandis being
added to the platform. This has enabled farmers to access a larger market, get better prices for
their crops, and reduce transaction costs.

e-NAM Scope

The project aims to provide a platform that connects farmers, traders, and buyers across the
country to facilitate seamless trading of agricultural produce.
The scope of the e-NAM project is vast and encompasses multiple aspects of agricultural trading.
Some of the key features of the e-NAM platform are:

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o Online trading: The e-NAM platform provides a digital marketplace for farmers, traders, and
buyers to buy and sell agricultural produce online.
o Price discovery: The platform facilitates price discovery by providing real-time information
on the prices of various agricultural commodities across different markets in the country.
o Quality certification: The e-NAM platform provides a quality certification system to ensure
that the produce traded on the platform meets the required standards.
o Transportation and logistics: The platform also facilitates transportation and logistics by
connecting farmers, traders, and buyers with transporters and warehouse owners.
o Payment and settlement: The e-NAM platform provides a payment and settlement system
to ensure timely payment to farmers and traders.
o
The e-NAM project has been implemented in a phased manner across the country, with over
1,000 markets in 18 states and 3 Union Territories currently integrated with the platform. The
project has the potential to transform agricultural trading in India by eliminating intermediaries
and reducing transaction costs, thereby increasing farmers' income and improving market
efficiency.

Year New Features

2017 Mobile App, Unified Market Platform - UMP

2018 Electronic Negotiable Warehouse Receipt- eNWR, Warehouse based Trading

Module - WBTM

2019 Farmers Database Feature

2020 Quality Testing & Grading Feature, FPO Trading Module

2021 E- Payments, Logistics Module

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These feature upgrades of E-NAM on a year-on-year basis have aimed to improve the platform's
functionality, increase transparency, and reduce transaction costs for farmers and traders. E-
NAM is expected to continue upgrading its features in the future to make it more accessible and
beneficial for farmers.

o "Unified Market Platform" (UMP), which aimed to integrate all the mandis across the
country onto a single platform. The UMP allowed traders to access real-time prices from
multiple mandis, enabling them to make informed decisions

o "Warehouse Based Trading Module" (WBTM), which enabled farmers to sell their produce
directly from warehouses. This module helped farmers save transportation costs and reduce
post-harvest losses.

o "Farmers Database" feature, which enabled farmers to register on the platform and upload
their produce details. The feature aimed to promote transparency in price discovery and
reduce information asymmetry.

o "FPO Trading Module," which allowed Farmer Producer Organizations (FPOs) to sell their
produce directly on the platform. The module aimed to promote the aggregation of small
farmers' produce and increase their bargaining power.

o "Logistics Module," which aimed to simplify the transportation of agricultural produce from
the mandis to the buyers. The module enabled traders to track the movement of goods in
real-time and reduce transportation costs.
o Warehouse-based trading: In 2018, E-NAM introduced the option for traders to trade in
agricultural commodities stored in warehouses. This has expanded the scope of the platform
beyond the physical mandis and enabled traders to access a wider range of agricultural
commodities.

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o Farmer registration: In 2019, E-NAM introduced the option for farmers to register directly on
the platform. This has made it easier for farmers to participate in auctions and has reduced
their dependence on intermediaries.
o Quality testing and grading: In 2020, E-NAM introduced the option for quality testing and
grading of agricultural commodities on the platform. This has helped to ensure that buyers
receive high-quality produce and has increased the trust and confidence in the platform.
o e-Payments: In 2021, E-NAM introduced the option for e-payments on the platform. This has
made it easier for farmers to receive payments for their produce directly into their bank
accounts and has reduced the risk of delayed payments or fraud.

Sustainability

Scale has been growing since its inception. Constant efforts made to implement new features in
the platform. So, Scope has mostly stayed constant. Hence E-NAM is Sustainable.

The sustainability of E-NAM depends on several factors such as:

o Ease of use: E-NAM should be user-friendly, accessible, and convenient for farmers, traders,
and buyers to use. The platform should also provide a transparent and efficient trading
system that enables participants to easily access information on market prices, quality, and
quantity of commodities.

o Infrastructure: The success of E-NAM depends on the availability of adequate infrastructure

such as internet connectivity, power supply, storage facilities, and transportation networks.
This infrastructure must be able to support the smooth functioning of the electronic trading
platform.

o Adoption: The platform's success will also depend on the number of traders and farmers who
adopt and use it. Efforts should be made to educate and incentivize farmers and traders to
use E-NAM to ensure that it reaches critical mass and can sustain itself.

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o Legal framework: The regulatory and legal framework for E-NAM must be robust and
supportive of electronic trading platforms. The government should also create an enabling
environment for private sector participation in the development and management of the
platform.

o Financial sustainability: The financial sustainability of E-NAM will depend on its ability to
generate revenue through transaction fees, advertising, and other sources. The platform
should be designed to be self-sustaining and not dependent on government subsidies or
grants.

o Government support: E-NAM has received strong support from the Indian government,
which has invested in its development and expansion. The government has also provided
subsidies and incentives to farmers and traders to use the platform, which has helped to
increase its adoption.

o Private sector participation: The government has encouraged private sector participation in
the development and management of E-NAM. Private companies have invested in the
platform, and some have even developed their own software to integrate with E-NAM. This
private sector involvement can help ensure the long-term sustainability of the platform.

o Increased efficiency and transparency: E-NAM has the potential to increase efficiency and
transparency in the agricultural supply chain, which can help reduce waste and increase
profits for farmers and traders. This, in turn, can help ensure the long-term sustainability of
the platform.

o Technological advancements: E-NAM is built on a technology platform that is constantly

evolving. As new technologies emerge, E-NAM can incorporate them to improve its
functionality and increase its efficiency.

o Growing demand for agricultural commodities: The demand for agricultural commodities is
expected to increase in the coming years due to population growth and changing dietary

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preferences. This demand can help ensure the long-term sustainability of E-NAM by creating
a stable and growing market for agricultural produce.

Overall, while there are challenges to be addressed, E-NAM has the potential to be sustainable
in the long run due to government support, private sector involvement, increased efficiency and
transparency, technological advancements, and growing demand for agricultural commodities.

e-NAM Concerns

While the e-NAM project has shown promising results in creating a unified national market for
agricultural commodities, there are also some concerns associated with its implementation.
Some of the major concerns are:

o Limited coverage: While the e-NAM platform has been implemented in 1000 APMC mandis,
there are still many other mandis that are not covered under the platform. This limits the
reach and effectiveness of the platform.

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o Lack of awareness: Many farmers and traders are not aware of the e-NAM platform or do
not have the necessary skills to use it effectively. This has resulted in low adoption of the
platform in some areas.
o Infrastructure constraints: The success of the e-NAM platform depends on the availability of
adequate infrastructure such as internet connectivity, power supply, and storage facilities.
However, many areas in rural India still lack basic infrastructure, which can hinder the
implementation of the platform.
o Price volatility: The e-NAM platform aims to provide transparency and price discovery in
agricultural markets. However, there have been instances of price volatility on the platform,
which has affected the income of farmers and traders.
o Lack of integration: While the e-NAM platform aims to create a unified national market for
agricultural commodities, there is still a lack of integration between different states and
regions. This can limit the effectiveness of the platform in creating a level playing field for
farmers and traders across the country.

Overall, while the e-NAM platform has the potential to revolutionize agricultural markets in India,
addressing these concerns will be crucial to ensure its success and sustainability in the long run.

Way Forward

e-National Agricultural Market (e-NAM) project can take several steps to strengthen its impact
and increase its adoption among farmers and other stakeholders in the agricultural supply chain.
Here are some of the ways forward for the e-NAM project:
o Integration of more markets: The e-NAM project should continue to focus on integrating
more markets into its platform. As mentioned earlier, the government has plans to
integrate an additional 1,000 markets into the e-NAM platform, which would provide a
wider market for farmers to sell their produce.

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o Strengthening infrastructure: The e-NAM project should focus on strengthening its digital
infrastructure to ensure that it can handle a large volume of transactions. This includes
investing in high-speed internet connectivity and upgrading the platform's software to
improve its performance and reliability.
o Promoting awareness: The e-NAM project should focus on promoting awareness among
farmers about the benefits of using the platform. This includes educating them about the
price discovery mechanism and how it can help them get better prices for their produce.
The project can also conduct training sessions and workshops for farmers to help them
understand how to use the platform.
o Encouraging more buyers: The e-NAM project should encourage more buyers to
participate in the platform, which would increase competition and help farmers get better
prices for their produce. This can be done by incentivizing buyers to use the platform and
providing them with training and support to help them understand how to use it.
o Strengthening quality control mechanisms: The e-NAM project should focus on
strengthening its quality control mechanisms to ensure that the produce sold on the
platform meets the required quality standards. This includes implementing grading and
certification systems and providing training to farmers on quality control measures.

In conclusion, the e-NAM project has the potential to transform the agricultural supply chain in
India by providing farmers with a wider market and better prices for their produce. By focusing
on the above steps, the project can strengthen its impact and increase its adoption among
farmers and other stakeholders.

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