Lok Sabha Question No. 2438 (UNSTARRED), answered on 2021-03-09
Subject: Connecting Markets on e-NAM
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Bharatiben Dhirubhai Shyal, Hemant Patil, Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 2438

TO BE ANSWERED ON THE 9 TH  MARCH, 2021

## CONNECTING MARKETS ON E-NAM

2438. DR. BHARATIBEN DHIRUBHAI SHIYAL: SHRI HEMANT SRIRAM PATIL: SHRI OMPRAKASH BHUPALSINH ALIAS PAWAN RAJENIMBALKAR: SHRI RAHUL RAMESH SHEWALE:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the time by which all the mandis are likely to be on the electronic platform across the country;
- (b) the  advantage  of  e-NAM  to  the  farmers  particularly  during  the  period  of  COVID-19 Pandemic;
- c) whether  the  Government  has  achieved  the  desired  results  of  setting  up  the  NAM across the country, if so, the details thereof and if not, the reasons therefor; and
- (d) the other steps taken by the Government to regulate and modernize the mandis and strengthen the agricultural market infrastructure in the country particularly in rural areas?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (c): National  Agriculture  Market  (e-NAM)  is  a  virtual  platform  integrating  physical wholesale  mandis/  markets  of  different  States/  Union  Territories  (UTs)  to  facilitate  online trading  of  agriculture  and  horticulture  commodities  to  enable  farmers  to  realize  better remunerative prices for their produce.

Three reforms are mandatory for States/ UTs in their respective State Agricultural Produce Market  Committee  (APMC)  Acts  for  integrating  their  mandis  with  e-NAM  platform  i.e  (i) Provision for e-trading, (ii) Single point levy of market fee, (iii) Unified Single trading license for  the  State.  Based  on  the  Detailed  Project  Reports  (DPRs)  proposals  received  from  the

reform compliant States/ UTs, mandis are considered for integration by Government of India with e-NAM platform.

So far, based on earlier targets and as per the proposals received from States/ UTs, 1000 mandis of 18 States and 3 UTs have been integrated with e-NAM platform. Government of India  has  announced  in  Budget  2021-22,  further  integration  of  1000  mandis  on  e-NAM platform.

So far, more than 1.69 crore farmers have been registered on e-NAM platform and tradable parameters  in  respect  of  175  commodities  have  been  prepared  for  trading  on  e-NAM platform.  Total  of  1820  FPOs  have  been  onboarded  on  e-NAM  platform.  The  agricultural produce trade with a value of ₹1.25 lakh crore have so far been recorded on e-NAM platform.

e-NAM platform promotes better marketing opportunities for the farmers to sell their produce through  online,  competitive  and  transparent  price  discovery  system  and  online  payment facility. It also promotes prices commensurate with quality of produce. Government has also provided e-payment facility on e-NAM platform.  e-payment facility enables sale proceeds in e-NAM to be directly transferred from buyers account to the bank account of the farmers in a transparent,  speedy  and  safe  manner.  All  these  contribute  towards  better  marketing efficiency and also better prices to farmers.

During COVID-19 lockdown, Farmers were able to sell their produce through e-NAM portal, adhering the social distancing norms and avoiding over-crowding at mandi premises. e-NAM facilitated  payments  to  farmers  via  electronic  mode  directly  into  their  bank  accounts,  thus eliminating the risk of physical presence in mandis during COVID19 lockdown.

Further,  Government  has  launched  FPO  trading  module  during  covid-19  pandemic  to enables FPOs to upload their produce from collection centres/ farm gate with picture/ quality parameter for on-line bidding without physically bringing their produce to the mandis.

As per the evaluation Report of CCS National Institute of Agricultural Marketing (NIAM) on 'performance evaluation of e-NAM ' , the platform helps in creating a unified market through online trading both at State & National levels. This e-NAM concept further ensures various benefits  like  streamlining  of  procedures  across  the  integrated  markets,  promotes  real  time price  discovery  based  on  actual  demand  and  supply,  removes  information  asymmetry between buyers and sellers, promotes transparency in auction process, promotes access to a nation-wide market for the farmer along with prices commensurate with quality of produce and online payment of sales proceeds.

(d): In  order  to  provide  better  marketing  facilities  to  the  farmers,  the  Government  had released  a  new  model  'The  Agricultural  Produce  and  Livestock  Marketing  (Promotion  & Facilitation)  Act,  2017'  popularly  known  as  Model  APLM  Act,  2017,  in  April  2017  for  its adoption by States/Union Territories (UTs). The aforesaid Model APLM Act, 2017 promotes alternative marketing channels of private markets, direct marketing etc. for farmers to market their produce at competitive & remunerative prices. Government has been modernizing the mandis and strengthenining the agricultural market infrastructure in the country particularly in rural  areas  through  various  schemes  like  Rashtriya  Krishi  Vikas  Yojna  -  RAFTAAR, Agriculture Market Infrastructure (AMI) and National Agriculture Market (e-NAM) etc. Further Government  is  providing  financial  support  under  Agriculture  Infrastructure  Fund  (AIF)  in terms of interest subvention and credit guarantee for projects for post-harvest management and building community farming assets such as warehouse, cold storage, silos, e-marketing

etc. In addition to the above, in order to provide additional marketing channels to farmers for selling    of  their  produce  in  'trade  area'  and  promote  barrier-free  inter-state  and  intra-state trade, the  Government  has  enacted  'The  Farmers'  Produce  Trade  and  Commerce (Promotion  and  Facilitation)  Act,  2020'  and  'The  Farmers  (Empowerment  and  Protection) Agreement  on  Price  Assurance  and  Farm  Services  Act,  2020'.  These  Acts  will  further motivate  APMCs to be  more effective,  competitive  and  efficient  in  providing  cost  effective services to farmers for efficient marketing of their produce towards improving their income.

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