National Agriculture Market (e-NAM) and National Agricultural Market Yojana: A Comprehensive Study

Introduction

Agriculture is the backbone of India’s economy, employing more than half of the country’s workforce and contributing significantly to GDP. Despite its importance, the agricultural sector has historically faced challenges such as fragmented markets, lack of transparency in pricing, dominance of middlemen, and limited access to fair markets for farmers. To address these concerns, the Government of India launched the National Agriculture Market (e-NAM) and associated schemes such as the National Agricultural Market Yojana.

This reform aims to create a unified, transparent, and efficient market for agricultural produce by integrating mandis (agricultural markets) across the country on a single digital platform. It represents a major step toward agricultural modernization, farmer empowerment, and rural economic growth.

What is the National Agriculture Market (e-NAM)?

The National Agriculture Market (e-NAM) is a pan-India electronic trading portal launched in April 2016 by the Ministry of Agriculture and Farmers’ Welfare. It provides a unified online marketplace for farmers to sell their produce, enabling competitive and transparent price discovery.

Instead of being confined to local mandis, farmers can access buyers from different states, improving their bargaining power and reducing exploitation by intermediaries.

Key Features of e-NAM

• Online Trading Platform: Provides a digital interface for buyers and sellers.
• Transparent Price Discovery: Ensures farmers get fair value for their produce.
• Pan-India Integration: Unifies physical mandis into one virtual platform.
• Licensing Reforms: A single license valid across states.
• Payment Facility: Direct online payment to farmers’ bank accounts.
• Real-time Information: Price, quality, and quantity details available instantly.

What is the National Agricultural Market Yojana?

The National Agricultural Market Yojana is the government’s flagship scheme to implement and expand e-NAM. It focuses on integration of Agricultural Produce Market Committees (APMCs), providing digital infrastructure, and training farmers in online trading.

It acts as the policy and financial support framework to promote the use of e-NAM across India.

Objectives of the Yojana

1. To integrate wholesale mandis across the country.
2. To provide farmers wider access to markets beyond their local areas.
3. To eliminate the dominance of middlemen and ensure fair prices.
4. To reduce agricultural wastage by improving supply chain management.
5. To strengthen digital governance in agriculture.

History and Evolution of e-NAM and the Yojana

• Pre-2016: Agriculture marketing was highly fragmented; farmers depended on local mandis controlled by middlemen.
  
  
• 2016: Launch of e-NAM portal on April 14, integrating 21 mandis across 8 states.
  
  
• 2017-18: More states and mandis brought under the scheme.
  
  
• 2018-20: Expansion to over 1,000 mandis covering most major agricultural states.
  
  
• 2020 onwards: Digital reforms under Atmanirbhar Bharat to strengthen agricultural marketing, including direct farmer-buyer linkages, warehouse-based trading, and integration with Farmer Producer Organizations (FPOs).

How Does e-NAM Operate?

The functioning of e-NAM is based on digital trading, but it still works in sync with physical mandis.

1. Farmer Registration – Farmers register themselves and their produce on the e-NAM portal.
2. Uploading of Produce – The details of produce (quality, quantity, grade) are listed.
3. Bidding Process – Licensed buyers across India bid for the produce.
4. Price Discovery – The best price is automatically offered to the farmer.
5. Payment & Settlement – Direct transfer to the farmer’s bank account.
6. Logistics & Delivery – Buyers arrange for transportation of goods.

Benefits of National Agriculture Market and Yojana

For Farmers

• Access to a larger pool of buyers across India.
• Better price realization due to competitive bidding.
• Direct payment in bank accounts ensures financial security.
• Encourages grading and quality improvement of produce.

For Consumers

• Availability of diverse produce at reasonable rates.
• Reduction in price fluctuations due to better supply chain.

For Economy

• Promotes transparent trade and curbs corruption in mandis.
• Encourages digital inclusion in rural areas.
• Reduces agricultural wastage by improving market linkages.

Challenges of e-NAM and Yojana

Despite being a revolutionary step, e-NAM faces several hurdles:

1. Digital Divide – Many farmers still lack smartphones or internet access.
2. Awareness Issues – Farmers in remote areas are unaware of online platforms.
3. Resistance by Middlemen – Traditional intermediaries oppose digital reforms.
4. Infrastructure Gaps – Lack of storage, grading labs, and logistics in rural areas.
5. State-Level Variations – Since agriculture is a state subject, not all states have fully adopted the model.

Government Initiatives to Strengthen e-NAM

• Integration with FPOs to encourage collective selling.
• Warehouse-based trading to allow farmers to sell without transporting to mandis immediately.
• Mobile app development for easier farmer participation.
• Capacity building programs to train farmers and traders in digital usage.
• Linkages with schemes like PM-Kisan and Kisan Credit Card for financial support.

Future of National Agricultural Market

The future of e-NAM and the Yojana is highly promising as India pushes toward digital transformation and farmer empowerment.

1. AI and Big Data in Agriculture – e-NAM may integrate price prediction, demand forecasting, and crop advisory.
   
   
2. Blockchain in Agriculture Trade – To ensure complete transparency and traceability of produce.
   
   
3. Expansion to 100% mandis – Aim to cover all major APMCs in India.
   
   
4. Direct International Linkages – Future possibility of connecting Indian farmers to global buyers.
   
   
5. Support for Agri-startups – Encouraging startups to develop logistics, storage, and quality assessment tools.

Role in Improving Farmers’ Economy

The National Agriculture Market is not just a platform, but a structural reform in India’s agricultural sector. By eliminating exploitative practices, reducing the dependence on local mandis, and providing farmers with nationwide market access, it significantly improves their income levels.

• Farmers get fair prices and avoid distress sales.
• Encourages crop diversification since demand is wider.
• Enhances rural employment through better market linkages.
• Supports the vision of Doubling Farmers’ Income.

Conclusion

The National Agriculture Market (e-NAM) and National Agricultural Market Yojana mark a turning point in India’s agricultural reforms. By leveraging technology, it addresses age-old problems of middlemen exploitation, fragmented markets, and lack of transparency. While challenges like digital literacy and infrastructure gaps remain, continuous government support and integration of modern technologies will ensure that e-NAM evolves into a robust platform for agricultural growth.

For farmers, this reform represents not only an economic opportunity but also a path to dignity, empowerment, and sustainable prosperity.