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What is an e-NAM trading portal? How does it benefit farmers?
What is e-NAM?
The National Agricultural Market is a pan-India virtual trading platform for agricultural commodities launched on 14th April 2016. This integrates the existing market channels such as Agricultural Produce Marketing Committees (APMCs), Rural Marketing Centers (RMCs), and Mandis (local market) through an online trading portal. Till April 2021, there are 585 APMCs and 634 FPOs in 16 States and 2 Union Territories that have been integrated on the e-NAM portal. It is a single-window service that aims to create better marketing opportunities for farmers to sell their products through a competitive and transparent price discovery system along with an online payment facility for the buyers. The e-NAM platform provides a common virtual place for producers and buyers irrespective of their State to sell and purchase agricultural produce to the higher bidder. It enables buyers situated even outside of the States to participate in trading at the local level. Such online trading participation increases the reach of producers and buyers at a national scale.
- This digital platform will help the farmers to showcase their agricultural commodities through their nearby market agencies and facilitate traders from anywhere to quote price.
- The e-NAM portal provides single window services for all Agricultural Produce Marketing Committee (APMC) related services and information which includes:
- total arrivals of commodities in the market
- prices and quality
- offers on buy & sell
- digital payment settlement directly into farmers account
- One license for a trader valid across all markets in the State.
- Through the eNAM service, license for the trader, buyer and commission agents can be availed from the State-level authorities without any pre-condition of physical presence or possession for shop or premises in the market yard.
- Harmonisation of quality standards of agricultural products and infrastructure for quality testing is made available in every market. Common tradable parameters have so far been developed for 69 commodities.
- Provision of Soil Testing Laboratories is provided for the selected mandi (market) in order to facilitate the farmers visiting the mandi.
- Single point levy of market fees, i.e on the first wholesale purchase from the farmer.
Who are the stakeholders and how do they get benefits from e-NAM?
Farmers
- They can register themselves at the nearest mandi/APMC with proper documents.
- No fees charged
- Benefits: transparency and better price discovery, access to more markets and traders, real-time information in regards to prices and arrivals in particular markets, quick online payment
Traders
- Require: a single trading licence that to be valid across the state, single-point levy of market fee across the state; and provision for e-auction/e-trading as a mode of price discovery
- Benefits: real-time information regarding trade, price, arrivals; analyse price trends, automated record of financial information, reduction in manpower requirement
APMC (Agricultural Produce Marketing Committee):
- No fees, registration at the nearest mandis/APMC, no fees to be paid
- Benefits: easy to reach out to other mandis, access to more sellers; access to large and integrated markets; access to real-time information on arrival, quality and price of commodities; ease of doing business through a mobile app; access to online banking and payments; e-NAM facilitate quality assaying
FPOs (Farm Producing organisations)
- Registration is the same as above, no fees need to be paid.
- Benefits: can act as an aggregator for its members and sell through an e-trading portal; eNAM facilitates payments using online modes such as RTGS, NEFT and BHIM UPI wherein payments are made instantly in the respective farmer's bank account.
What is the registration process for farmers/traders and FPO?
- Farmers - have to visit the official link of e-NAM i.e. https://enam.gov.in/web/ and register as to whether ‘farmer/trader’ and select desired ‘APMC’ from the registration page. A temporary Login ID and Password will be provided on the given mailing address. With the temporary Login ID, a farmer has to register with APMC and provide all necessary details for KYC. Once KYC is completed, the request will be sent for approval to your selected APMC. Once a farmer gets approval from the APMC, he/she will receive e-NAM Farmer Permanent Login ID and Password for complete access under the e-NAM platform on the registered email ID. You can also contact your nearby APMC for offline registration.
- FPOs/FPCs - the Farm Producing Organisations/Company can register on the e-NAM portal through the official website or mobile app or providing the following details at the nearby APMC: name of FPOs/FPCs, name, address, email Id and contact number of the authorized person (MD, CEO, Manager), Bank account details such as Name of Bank, Branch, Account number, IFSC
How do I get a better price under e-NAM?
The eNAM facilitates better prices for far through transparent bidding, increased number of buyers from different markets, and hence, greater negotiation power via assaying, price commensurate to the quality of produce is obtained by the farmer.
How much time does it take to sell my produce?
eNAM records all arrivals digitally and assigns unique LOTs id's that could be tracked from the mobile until it is sold. This digitization is aimed at reducing the time of the transaction in an eNAM mandi. However, the time of completion of a transaction depends on other factors such as the volume of arrivals of that particular mandi and season.
New features of e-NAM amid COVID-19 pandemic
Amid the pandemic, the Ministry of Agriculture & Farmers’ Welfare introduced two launched two software modules are namely (i) Warehouse based trading module in e-NAM software to facilitate trade from warehouses based on eNWR (ii) FPO trading module in e-NAM whereby FPOs can trade their produce from their collection center without bringing the produce to APMC. These new features will help in providing a contactless remote bidding and mobile-based any-time payment for which traders do not need to either visit mandis or banks for the same. It will fulfill the objectives of smooth trading while improving social distancing and safety in the APMC markets to fight against CODID-19.
a) The Negotiable Warehouse Receipt (e-NWRs) software module
This module will enable small and marginal farmers to directly trade their stored produce from the registered warehouse (under Warehousing Development and Regulatory Authority - WDRA). Farmers will be able to place their produce in WDRA accredited warehouses. Already States of Telangana (14 warehouses) & Andhra Pradesh (23 warehouses) declared designated warehouses in the State as a deemed market.
Benefits as:
- The depositor can save the Logistics expenses and will have better income.
- Farmers can sell their produce across the Nation to get better prices and at the same time can save themselves from the hassle of mandi.
- Farmers will be able to place their produce in WDRA accredited warehouses avail the benefit of a pledge loan if required.
- Price stabilization by matching supply and demand through time and place utility.
b) FPO trading module
This module helps to enable FPOs to upload their produce from their premise/collection centres for bidding. FPOs can upload the picture of the produce and quality parameters from their premises to help distant bidders to visualise the produce before bidding. They have the option for delivery of produce either from their premises or by bringing to mandi premise after successful bidding. This will not only decongest the mandis but also reduce the logistics cost for the FPOs. This facility supports FPO to upload assaying reports or photos of their produce from their premise to enable traders to visualise the produce before bidding.
Benefits as:
- This will not only decongest the mandis but also reduce the hassle of FPOs dealing with mandis.
- This will help FPOs by reducing transaction costs (Transportation) and enhancing their bargaining power.
- Facilitates FPOs to avail online payment facility with ease of doing business.