National Agricultural Market (NAM)

The National Agricultural Market (NAM) is a pan-India electronic trading platform launched by the Government of India to integrate the existing Agricultural Produce Market Committee (APMC) mandis and create a unified national market for agricultural commodities. The platform aims to enable transparent, competitive, and efficient trade by connecting farmers, traders, and buyers across the country through a single online system.
Launched on 14 April 2016 by the Ministry of Agriculture and Farmers’ Welfare, NAM is implemented by the Small Farmers’ Agribusiness Consortium (SFAC) under the Department of Agriculture, Cooperation and Farmers’ Welfare (DAC&FW).

Background and Rationale

India’s agricultural marketing system has historically been fragmented and regulated under state-specific APMC Acts, leading to:

• Limited market access for farmers.
• Price distortions due to multiple intermediaries.
• Lack of transparency in price discovery.
• Regional variations in market fees and regulations.

To address these inefficiencies and promote the “One Nation, One Market” vision, the Government introduced the National Agricultural Market (NAM) to unify and modernise agricultural marketing through a digital platform.
NAM builds upon the existing APMC mandi structure, rather than replacing it, by linking licensed traders, commission agents, and farmers electronically.

Objectives of the NAM

The key objectives of the National Agricultural Market are:

1. To create a unified national market for agricultural commodities.
2. To facilitate transparent price discovery based on demand and supply.
3. To promote real-time online trading across different mandis and states.
4. To enable farmers to access better markets and prices for their produce.
5. To reduce intermediary costs and post-harvest losses.
6. To promote uniformity in market procedures and levies across states.
7. To leverage information technology for efficient marketing and logistics.

Implementation and Institutional Framework

• Nodal Ministry: Ministry of Agriculture and Farmers’ Welfare.
• Implementing Agency: Small Farmers’ Agribusiness Consortium (SFAC), established under the Department of Agriculture.
• Technical Partner: National Informatics Centre (NIC) and other IT agencies for software and data management.
• Funding: Supported through the Agri-Tech Infrastructure Fund (ATIF).

The Government provides:

• A grant of ₹30 lakh per mandi for e-trading infrastructure.
• Financial assistance for hardware, software, and connectivity.
• Training and capacity building for mandi staff and stakeholders.

Key Features of NAM

1. e-Trading Platform:
   • Integrates physical mandis through a single online portal: eNAM (https://www.enam.gov.in/).
   • Traders and farmers can view live prices, submit bids, and finalise transactions electronically.
2. Transparent Price Discovery:
   • Eliminates manual auctioning and enables price determination based on open competition.
3. One License – One Market:
   • A single trading license valid for all markets within a state integrated with NAM.
4. Unified Market Fee:
   • Only one market fee is levied on a transaction, avoiding multiple charges.
5. Quality Testing and Grading:
   • Facilities for quality assessment are provided at mandis to ensure fair pricing.
6. Online Payment System:
   • Direct electronic payments to farmers’ bank accounts, promoting transparency and financial inclusion.
7. Mobile App Integration:
   • The eNAM mobile application provides real-time price data, trade opportunities, and e-payment options for farmers and traders.
8. Integration with Warehouses and FPOs:
   • Farmers can sell produce stored in Warehousing Development and Regulatory Authority (WDRA)-registered warehouses through NAM.
   • Farmer Producer Organisations (FPOs) act as aggregators for small farmers.

Coverage and Progress

As of 2024, the National Agricultural Market has achieved significant outreach and adoption:

• States/UTs integrated: 23 States and 4 Union Territories.
• Linked APMC mandis: Over 1,000 mandis connected to eNAM.
• Farmers registered: More than 1.8 crore farmers.
• Traders and commission agents registered: Over 2 lakh.
• Commodities traded: 175+ agricultural and horticultural commodities, including cereals, pulses, oilseeds, fruits, and vegetables.

Technological Infrastructure

The eNAM platform operates on a three-tier architecture:

1. National Level:
   • Central online portal for nationwide access and monitoring.
2. State Level:
   • Integration of state APMC systems and databases.
3. Market Level:
   • Local mandi computers and electronic weighing, quality testing, and payment systems.

Supporting digital tools include:

• Electronic weighbridges for accurate measurement.
• Assaying labs for grading produce.
• e-Payment gateways for direct farmer payments.
• Integration with Unified Payment Interface (UPI) and BHIM for faster transactions.

Process Flow of eNAM Transactions

1. Arrival and Lot Creation: Farmers bring produce to the mandi; lots are created with quality and quantity details.
2. Assaying and Quality Testing: Sample testing determines grade and standard.
3. Online Bidding: Licensed traders place bids electronically via eNAM.
4. Price Discovery: System selects the highest bid transparently.
5. Payment Settlement: Buyer makes e-payment; farmer receives payment directly in bank account.
6. Weighment and Delivery: Produce is weighed and handed over to the buyer.

Benefits of the National Agricultural Market

For Farmers:

• Access to multiple buyers and markets beyond local mandis.
• Better price realisation through transparent bidding.
• Reduced dependency on local middlemen.
• Faster payment and settlement via e-transfer.

For Traders and Buyers:

• Access to wider market base and better-quality produce.
• Simplified procedures and single-point licensing.
• Online information on arrivals, prices, and trade volumes.

For Policy Makers:

• Real-time data on trade, prices, and arrivals for policy analysis.
• Facilitates market reforms and standardisation across states.

Challenges in Implementation

Despite progress, NAM faces several operational and institutional challenges:

1. State-Level Regulatory Barriers:
   • Not all states have amended their APMC Acts to permit e-trading, single licenses, or inter-state transactions.
2. Infrastructure Deficits:
   • Inadequate assaying labs, internet connectivity, and power supply in rural mandis.
3. Limited Awareness and Digital Literacy:
   • Many farmers are unaware of or hesitant to use eNAM due to lack of digital access.
4. Quality Standardisation Issues:
   • Variation in grading and assaying systems across states.
5. Inter-State Trading Constraints:
   • Although allowed, inter-state trading remains limited due to logistical and procedural differences.
6. Dependence on Traditional Middlemen:
   • Commission agents continue to influence trade in several mandis.

Measures to Strengthen NAM

The government has taken several steps to improve the effectiveness and outreach of the eNAM platform:

• Expansion of eNAM 2.0:Incorporates additional features such as warehouse-based trading, FPO integration, and interoperability among markets.
• Integration with Agricultural Infrastructure Fund (AIF):Provides financial support for setting up modern assaying, grading, and warehousing facilities.
• Capacity Building and Awareness:Regular training programmes for farmers, traders, and mandi officials.
• Mobile and Multi-Language Interface:The eNAM mobile app supports multiple Indian languages to enhance accessibility.
• Inter-State Trade Promotion:Pilot projects enabling trade between states such as Uttar Pradesh, Madhya Pradesh, and Maharashtra.

Complementary Initiatives

The National Agricultural Market works in synergy with other government programmes:

• Agriculture Infrastructure Fund (AIF): For developing post-harvest and marketing infrastructure.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): Risk coverage for farmers.
• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Direct income support for farmers.
• Formation of FPOs: Enhancing collective bargaining power and efficient market linkages.
• Digital India Programme: Promoting ICT adoption in agriculture and e-governance.

Significance of NAM

1. Market Integration: Moves India towards a unified and transparent agricultural market.
2. Price Discovery and Efficiency: Encourages competition, reducing price exploitation of farmers.
3. Digital Transformation: Supports Digital India by digitising agricultural trade.
4. Rural Empowerment: Strengthens farmers’ participation in formal markets.
5. Policy Innovation: Acts as a foundation for future agri-market reforms.