e-NAM to be Upgraded to Address Logistical Challenges

General Studies Paper -3

Context: The Union Agriculture Minister has announced plans to upgrade the National Agricultural Market (e-NAM) to e-NAM 2.0 to resolve logistical hurdles in inter-state and inter-mandi trade.

About e-NAM (2016)

• e-NAM is a pan-India electronic trading platform that connects Agricultural Produce Market Committee (APMC) mandis to create a unified national market for agricultural commodities.
• Implemented by the Small Farmers Agribusiness Consortium (SFAC) under the Ministry of Agriculture & Farmers’ Welfare (MoA&FW).
• Provides digital services to traders, farmers, Farmer Producer Organizations (FPOs), and Mandis.
• As of December 31, 2024, 1.79 crore farmers and 2.63 lakh traders have registered on the platform.

Key Challenges in e-NAM

• Despite integrating 1,361 mandis across 23 states and 4 Union Territories, and facilitating ₹79 lakh crore worth of trade, several challenges remain:
• Logistical Issues: Inefficient transportation causes high transit time and limits distribution efficiency.
• Inadequate Warehousing & Storage: Lack of proper storage facilities leads to post-harvest losses.
• Limited Digital Literacy & Internet Access: Many farmers struggle with online platforms.
• Interstate Trade Barriers: Variations in state APMC laws hinder smooth trade.
  • Different state tax and compliance norms create complexity.

Key Features of e-NAM 2.0

• Integrated Logistics and Transportation Support: Unified Logistics Interface Platform (ULIP) integration for real-time tracking of produce.
• Optimized freight options to reduce transit times and improve delivery efficiency.
• Expanded Warehousing and Cold Storage Infrastructure: The Agricultural Infrastructure Fund (AIF) will offer subsidized loans to promote private investment in storage facilities.
• AI-Driven Price Discovery & Quality Assessment: AI and Machine Learning (ML) to suggest fair market prices.
• Automated quality testing to minimize disputes over product grading.
• Faster Digital Payments & Financial Support: Direct bank transfers and e-wallets for quick settlements.
• Fintech partnerships to provide micro-loans based on transaction history.
• Simplified Interstate Trade: Introduction of a unified digital pass to ease regulatory compliance.
• Standardized tax & compliance framework to facilitate free movement of produce.
• Mobile Accessibility & Vernacular Support: Voice-based commands and local language options on the e-NAM app.
• Digital literacy campaigns to help farmers navigate the platform.

Expected Impact of e-NAM Upgrades

• Increased Farmer Participation: Easier access and better incentives will attract more farmers.
• Higher Price Realization: Direct market access will reduce middlemen, ensuring fair prices.
• Reduced Wastage: Improved storage and transport infrastructure will cut post-harvest losses.
• Investment in Logistics Sectors: Investments in supply chain solutions will drive economic growth.