What are eNAM and APMC?
India’s National Agriculture Market, often known as eNAM, is an online marketplace for agricultural products. Farmers, merchants, and purchasers can trade commodities online thanks to the market. The National Agriculture Market eNAM aids in more accurate price determination and offers resources for efficient promotion of their goods.
APMC Agricultural Produce Market Committee is a marketing organization set up by state governments to stop instances of farmers being exploited by middlemen and compelled to sell their produce at extortionate prices.
The market must receive all the food products, and transactions are conducted by an auction. Mandi, the market, is put up at various locations around the states. The state is geographically divided by these marketplaces. The traders are given licenses to operate in a market. The owners of malls, wholesalers, and retailers are prohibited from making direct purchases of produce from farmers.
Let us get a clear view of the National Agriculture Market eNAM and APMC Agricultural Produce Market Committee
Vision of eNAM
To remove the information asymmetry between buyers and sellers, streamline processes across integrated markets, and encourage real-time price discovery based on current demand and supply in order to improve uniformity in farm marketing.
Mission of eNAM
To simplify pan-India commerce in agricultural commodities, APMCs from all across the nation will be integrated through a single online marketplace platform. This would improve price discovery through an open auction process based on the quality of the output and prompt online payment.
Objectives of eNAM
- Integrating markets through a shared online market platform, initially at the level of the States and subsequently throughout the nation, to enable trade in agricultural commodities across India.
- To standardize and streamline all marketing and transactional processes in marketplaces to encourage the markets’ effective operation.
- To encourage improved internet access for farmers’ and merchants’ marketing opportunities.
- Elimination of information asymmetry between farmers and consumers, expansion of marketplaces and buyers.Better and more timely price discovery for traders based on actual supply and demand for Agri-commodities, open auctions, and prices that reflect their quality.
- To produce, online payments, etc., all of which improve marketing effectiveness.
- To build quality assurance assaying methods to encourage informed decision-making.
- To encourage stable costs and consumer access to high-quality produce.
Benefits of eNAM
All the stakeholders, including farmers, mandis, traders, buyers, processors, and exporters, are intended to gain from the design and implementation of e-NAM. The advantages for all parties involved include:
- Transparent internet trading with improved market accessibility
- Real-time price discovery helps producers to realize better and more stable prices
- Lower transaction costs for purchasers
- The availability of commodity pricing information on the e-Nam mobile app.
- SMS is used to deliver information about the pricing and quantity of a sold product.
- Certification for quality.
- More effective warehouse-based sales and supply chains.
- Online payments are made to farmers’ bank accounts immediately.
Features of APMC
Since agricultural marketing is a state concern, the Agricultural Produce Market Committee (APMC) is a system that falls under that authority.
- In the market area, the APMC has Yards/Mandis that control the livestock and agricultural products that have been notified.
- The purpose of the APMC was to prevent farmers from making distressed sales as a result of being coerced and exploited by creditors and other middlemen.
- The APMC ensures that farmers receive fair prices and prompt payments for their produce.
- The regulation of agricultural trading practices falls under the purview of APMC. This has a variety of advantages, including:
- There are no longer any unnecessary middlemen.
- Reduced market charges, which leads to increased market efficiency.
- The interest of the producer-seller is effectively safeguarded.
What are the advantages of eNAM for APMCs?
- Free software for system integration and automated transaction recording
- Comprehensive data about commerce
- Recording instantaneous arrival
- Examine trading activity, arrivals, and price patterns.
- Automated financial data recording
- A decrease in the amount of labour needed