Why in news?
The government recently added nine new commodities to the National Agriculture Market (e‑NAM), increasing the total number of tradable items to 247. The expansion is part of efforts to enhance farmer incomes by widening market access.
Background and history
Launched in April 2016, e‑NAM is a pan‑India electronic trading platform that integrates wholesale markets operated by Agricultural Produce Market Committees (APMCs). Farmers can sell their produce online to buyers across states, promoting transparent prices and reducing inter‑state barriers. Since its inception, the platform has been steadily adding commodities and markets.
New commodities added
- Green tea and tea
- Ashwagandha (dry roots)
- Mustard oil
- Lavender oil
- Mentha oil
- Virgin olive oil
- Lavender dried flowers
- Broken rice
How e‑NAM works
- Digital marketplace: The platform connects APMCs, private markets, traders, processors, exporters and consumers, enabling online trading.
- Price transparency: Live auction and real‑time price information allow farmers to make informed decisions and receive better prices.
- Quality assurance: Many e‑NAM markets have assaying labs that grade and certify produce, building trust between buyers and sellers.
- Ease of transaction: Online payments through NEFT, RTGS and bank transfers reduce delays and eliminate the need for middlemen. Farmers can also sell through warehouses using electronic Negotiable Warehouse Receipts.
- Inclusivity: Farmers, small traders, Farmer Producer Organisations (FPOs) and large agribusinesses all benefit from the platform.
Significance of the expansion
- Diversification: Adding tea, medicinal plants and oils encourages farmers to diversify into high‑value crops beyond cereals.
- Market access: Producers of niche commodities can reach buyers across states without being limited to local markets.
- Income enhancement: Transparent pricing and reduced transaction costs can improve earnings for growers.
- Supply‑chain development: Inclusion of processed products like mustard oil and olive oil may encourage local processing and value addition.