eNAM
BENEFIT OF eNAM & HOW TO REGISTER IN IT
National Agricultural Market (eNAM) is an online trading platform for agricultural commodities in India. This platform aims to create better marketing opportunities for the farmers to sell their products through a competitive and transparent price discovery system along with online payment facility for the buyers. The Small Farmers Agribusiness Consortium (SFAC) which act as the lead agency for implementing e-Nam under the Ministry of Agriculture and Farmer’s Welfare. In this article, we look at the National Agricultural Market (eNAM) in detail.
At mandis across the country, farmers are slowly but surely getting a better deal. eNAM or Electronic National Agriculture Market (eNAM), a pan-India trading portal developed by Nagarjuna Fertilisers and Chemicals Limited (NFCL), is driving agricultural trade towards the objective of remunerative prices for farmers by plugging the rampant trade malpractices in mandis. While the farmer is the primary stakeholder, eNAM also provides traders, commission agents and exporters better business opportunities through a unified and extensive marketplace. eNAM facilitates profits through better marketing, as against emphasis on productivity. Real-time information on prices creates healthy competition among buyers and increases farmers’ negotiation capabilities. Launched in April 2016, eNAM is transforming the way India trades in farm produce. The portal is available in Hindi, Telugu, Odiya, Bangla, Tamil, Gujarati and Marathi.
eNAM allows trading of commodities at mandis through mobile and web applications. For seamless operations, it mandates three changes in the agricultural marketing laws of states-provide for electronic trading, single trading licences that are valid in all mandis in a state and a single-window levy of transaction fees. But bringing all on board is the challenge.
It has achieved integration of 1,000 wholesale mandis, located in 21 states and union territories, with the electronic-National Agriculture Market (e-NAM). While 585 mandis were integrated in the first phase, 415 mandis were integrated in the second phase.
Vision
To promote uniformity in agriculture marketing by streamlining of procedures across the integrated markets.
Salient Features of eNAM
The features of the National Agricultural Market (eNAM) are as follows:
- eNAM portal will enable farmers to showcase their products through their nearby markets and facilitate traders from anywhere to quote price.
- e-NAM provides single window services for all Agricultural Produce Market Committee (APMC) related services and information. This includes commodity arrivals, quality & prices, buy & sell offers & e-payment settlement directly into farmers account, among other services.
- Using the eNAM service, license for the trader, buyers and commission agents can be obtained from the state-level authorities without any pre-condition of physical presence or possession of shop or premises in the market yard.
- Harmonisation of quality standards of agricultural products and infrastructure for quality testing is made available in every market. Recently, common tradable parameters have been developed for 25 commodities.
- Provision of Soil Testing Laboratories is provided for the selected mandi (market) in order to facilitate the farmers visiting the mandi.
Benefits of Trading on eNAM
The benefits of trading on e-Nam are listed below:
- Transparent Online Trading
- Real-Time Price Discovery
- Better Price Realization For Producers
- Reduced Transaction Cost For Buyers
- Stable Price and Availability to Consumers
- Quality Certification, Warehousing, and Logistics
- More Efficient Supply Chain
- Payment and Delivery Guarantee
- Error Free Reporting of Transactions
- Enhanced Accessibility to the Market
Implementation Agency
- Small Farmers’ Agribusiness Consortium (SFAC) which is the lead promoter of National Agricultural Market (eNAM). SFAC which is formulated under the Department of Agriculture, Cooperation & Farmers’ Welfare (DAC&FW). SFAC through open tender, selects a Partner to develop, operate and maintain the NAM e-platform.
- SFAC implements eNAM with the technical support of a partner and budgetary grant support from the nodal department. DAC&FW will provide one-time assistance of up to Rs.30 lakhs per Mandi (market) for installation of the e-Market platform. Around 6500 Agricultural Produce Market Committee (APMCs) operating throughout the country of which 585 district level Mandis (markets) in States or Union Territories (UTs) are planned to be linked by eNAM.
Selection of Beneficiaries
The following selection committee will select the beneficiaries to participate under the eNAM.
| S.No | Selection Committee | |
| 1. | Additional Secretary (Marketing), DAC&FW | Member |
| 2. | AS&FA, DAC&FW | Member |
| 3. | Managing Director, SFAC | Member |
| 4. | APC/Secretary, I/c Agriculture Marketing of concerned State | Member |
| 5. | Joint Secretary (Marketing), DAC & FW | Member Secretary |
Allocation of Funds
The Cabinet Committee on Economic Affairs had designated a Scheme for Promotion of National National Agricultural Market through Agri-Tech Infrastructure Fund (ATIF). The Government has allocated Rs.200 crore to the newly created ATIF along with this fund SFAC will implement NAM for the upcoming years.
Advantages for Various Stakeholders
Farmers
Farmers can sell products without the interference of any brokers or mediators by generating competitive returns from their investment.
Traders
Traders will be able to perform secondary trading from one APMC to another marketing committee in India. The local traders can get access to the larger national market for secondary trading.
To apply for Online Trade License click here
https://enam.gov.in/web/
Trade License
A place of business within a State, Corporation or Municipality will require a trade license from the concerned State Government or Corporation or Municipality for operating. Rules and regulations pertaining to trade license varies from state to state. Hence, to obtain trade license, the applicant must first understand the jurisdiction under which he/she is operating the business and the applicable Act.
In most states, the application for grant or renewal of license will be made to a Commissioner in the Corporation. The application must be made within 30 days of starting to operate a business. On applying with the required information and documents, the concerned Officer will ensure that the business is suitable for the purpose used, there is no possibility of danger or nuisance for any person around and issue the license. Trade license would normally be issued within a period of 7-15 days on submission of application. IndiaFilings can help you obtain trade license for your business. Get in touch with an IndiaFilings Advisor to know more about the rules and regulations applicable for your business and begin the process of applying for a trade license.
Buyers, Processors & Exporters
Buyers such as retailers, processors or exporters will be able to source commodities from any markets in India by decreasing the mediation cost. Their physical presence and dependence on intermediaries are not required.
Consumers
eNAM will expand the number of traders, and the competition among them will increase. This transforms into stable prices and availability to the consumers.
Mandis (Markets)
The monitoring and regulation of traders and commission agents will become accessible as the reporting system will be generated automatically. The transparency in the process excludes the scope of manipulation of auctioning/tendering process. Market allocation fee will rise due to an accounting of all transactions taken place in the market. It will lessen the manpower requirements as the auctioning or tendering process is carried out electronically. It also reduces information asymmetry as all the activities of an APMC can be directly known from the official website.
Others
NAM intends to improve the marketing aspect of the agriculture sector with one license for the entire state and single point levy, will turn into a market and the market fragmentation within the same state will gets abolished. And it will improve the supply chain of commodities and reduces wastage.
Online Registration Procedure for Farmers/Traders
The farmers can register under the eNAM portal by following the steps given below:
Step 1: The farmer/trader has to visit the official portal of eNAM. https://enam.gov.in/web/
eNAM – Home page
Step 2: Select “Registration Type” as to whether “Farmer/Trader” and select the desired “APMC” from the registration page.
eNAM – Registration Page
Step 3: Provide your correct Email ID as you will receive Login ID and Password in the same.
eNAM – Provide Login Details
Step 4: Once successfully Registered, you will receive a temporary Login ID and Password in the registered e-mail.
Step 5: Now, login to the Dashboard by clicking on the login icon through the system.
Step 6: Then the user will find a message on the dashboard as “Click here to register with APMC”.
Step 7: Click on the link which will redirect you to Registration Page for filling or updating details.
Step 8: After KYC is completed, the request will be sent for approval to your selected APMC.
Step 9: After Successful Login to your dashboard, you will be able to see all APMC address details.
Step 10: Upon Successful Submission user will get an e-mail confirming the submission of the application to concerned APMC along with the status of the Application as Submitted/In progress or approved or Rejected.
Step 11: Once approved by APMC, you will receive eNAM Farmer Permanent Login ID and Password for complete access under eNAM platform on the registered e-mail id.
Note: Alternatively, you can also contact your respective Mandi or APMC for the same.
Online Registration Procedure for FPCs/FPOs
The Farmer Producer Organizations (FPOs)/FPCs can register on e-NAM Portal via the same website or mobile app or by providing following details at the respective eNAM mandi:
- Name of FPOs/FPCs
- Name, address, email Id and contact number of the authorized person (MD, CEO, Manager)
- Bank account details such as Name of Bank, Branch, Account number, IFSC
Online Registration Procedure for Mandi Board
The State Agriculture Marketing Boards (Mandi Board) interested in integrating their Mandis with eNAM are required to carry out following reforms under the APMC Act.
- The unified trading license to be valid across the state has to be obtained.
- The provision for e-auction or e-trading as a mode of price discovery is required.
- The single point levy of market fee across the state is applicable.
- Reference-on request
