Lok Sabha Question No. 1598 (UNSTARRED), answered on 2016-07-26
Subject: e-NAM
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAJEEV SHANKARRAO SATAV, SANJAY JAISWAL, CHANDRA PRAKASH JOSHI, RAJESH KUMAR DIWAKAR, MANOJ KUMAR TIWARI, DHANANJAY BHIMRAO MAHADIK, FEROZE VARUN GANDHI, SUPRIYA SADANAND SULE, ANURAG SINGH THAKUR, NARANBHAI KACHHADIA, CHANDU LAL SAHU, HARI OM PANDEY

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

## LOK  SABHA

## UNSTARRED QUESTION NO.1598

TO BE ANSWERED ON THE  26 TH  JULY, 2016

## e-NAM

## 1598.  SHRI SATAV RAJEEV:

DR. SANJAY JAISWAL:

SHRI CHANDRA PRAKASH JOSHI:

SHRI RAJESH KUMAR DIWAKER:

SHRI MANOJ TIWARI:

SHRI DHANANJAY MAHADIK:

SHRI FEROZE VARUN GANDHI:

SHRIMATI SUPRIYA SULE:

SHRI ANURAG SINGH THAKUR:

SHRI NARANBHAI KACHHADIYA:

SHRI CHANDU LAL SAHU:

SHRI HARI OM PANDAY:

## Will the Minister of AGRICULTURE AND FARMERS WELFARE   ‡ãðŠãäÓã एवं कसान कयाण

½ãâ¨ããè

be pleased to state:

- (a) whether  the  Government  is  aware  that  in  the  absence  of  sound  marketing facilities, farmers have to depend upon local traders and middlemen for disposal of their farm produce which is sold at throw-away price and if so, the details thereof;
- (b) whether  the  Government  has  recently  launched  a  programme  namely  e-NAM (National Agriculture Market) in the entire country to break the monopoly of middlemen/traders  and  provide  benefits  to  the  farmers  and  consumers  and  if  so,  the details and outcome thereof;
- c) the details of terms and conditions, fund allocation and regulatory framework in this regard along with its utility to the farmers;
- (d) the details of the hurdles faced by the Government to implement the scheme in various States of the country and the remedial measures taken thereon; and
- (e) the details of the e-NAM proposal on procurement and the manner in which the procurement is  likely  to  be  taken  to  far  flung  areas  and  the  manner  in  which  cost  of transportation will be distributed under the scheme?

## ANSWER

## MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

- (a):     Farmers,  specially  small  and  marginal  ones,  contributing  85%  of  total  land holdings with about 40% marketable surplus, find individually uneconomical to transport their meagre marketable surplus to distantly located mandis. As per report of National Commission  on  Farmers  (2006)  a  regulated  market  should  be  available  to  farmers within  area  of  80  sq.  km,  while  its  all  India  average  is  462  sq.  km.  Thus,  lack  of adequate number of markets and marketing facilities force the farmers to depend upon local traders and middlemen for disposal of their such farm produce.
- (b): In  order  to  break  the  monopoly  of  middlemen/traders  and  provide  maximum benefit to the farmers and provide quality produce at reduced cost to consumers, the Government has launched National Agricultural Market (e-NAM) scheme on 14 th April, 2016 in 21 mandis across 8 States namely Gujarat, Rajasthan, Haryana, Uttar Pradesh, Madhya  Pradesh,  Jharkhand,  Himachal  Pradesh  and  Telangana.  Subsequently,  02 more mandis from Haryana have been integrated with e-NAM.
- (c): The e-NAM scheme has been approved on 01.07.2015 with a budget of Rs.200 crore.  Under  the  scheme,  a  pan  India  electronic  trading  portal  is  being  deployed  in selected regulated wholesale markets in States across the country and 585 markets are proposed to be integrated with e-NAM by March, 2018.

For integration with e-NAM, States are required to complete certain pre-requisite reforms in their respective Agriculture Produce Marketing (Regulation) Acts to provide for (i) A single license to be valid across the State, (ii) Single point levy of market fee, and (iii) Provision for electronic auction as a mode of price discovery.

Under the scheme, the Government is providing software free of cost and grant up to Rs.30 lakh per mandi for related infrastructure/equipments including for assaying to  the  States  who  have  carried  all  the  three  abovementioned  pre-requisite  reforms  in their marketing regulations for integration of their mandis with e-NAM.

e-NAM is expected to benefit the farmers through enhanced market access by way  of  allowing  remote  online  bidding  for  their  produce,  removal  of  information asymmetry between buyers and sellers, real-time price discovery based on the actual demand-supply gap through transparent online auction, uniform marketing procedures, remuneration  according  to  quality  of  produce  and  online  payment  directly  to  farmer's account.

- (d): Regulatory issues, operational issues, lack of Infrastructure, training, awareness, users adaptability issues, lack of capacity etc. are some of the hurdles being faced. The Government is pursuing with the States concerned to address these issues for smooth implementation of the scheme.
- (e): e-NAM  platform  itself  is  not  procuring  and  transporting  commodities  from  one place  to  another.  The  role  of  e-NAM  is  to  act  as  a  facilitator.  All  cost  related  to transaction and transportation will be borne by the buyer and/or seller.
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