Agri trade on e-platform up a third to Rs 75k cr in FY23
Turnover on e-NAM to cross Rs 1 trillion this fiscal.
With more farmers, traders and farmers producers organisations (FPOS) starting to use the electronic National Agriculture Market (e-NAM), which digitally integrates wholesale markets, the turnover of the e-NAM trade rose by 32% to Rs 74,656 crore in 2022-23 compared to the previous fiscal.
Officials said that after seven years since the launch e-NAM platform, farmers and buyers are increasingly using it for trade both within and outside the states. The turnover on the platform is expected to cross Rs 1 trillion in the current fiscal.
In FY22, the turnover on the e-platform was Rs 56,497 crore while in the previous fiscal, sales worth of Rs 31,366 crore were reported. The annual trade in farm goods, excluding milk and marine products, is seen to be in excess of Rs 5 trillion.
In FY23, 18.6 million tonne of agricultural and allied sector commodities were traded on e-NAM platform, which was 41% more than 13.2 MT traded in the previous fiscal.
The increase in e-NAM trade volume indicates that this platform, aimed at improving market access of farmers and creating a unified national market for agricultural produce, has reached a scale to make a meaningful difference in farmers’ income.
Last fiscal saw commencement of inter-state trade using e-NAM platform on commodities with farmers from Uttar Pradesh, Kashmir, Maharashtra and Rajasthan selling commodities such as potato, apples, mustard, ragi, silk cocoon, chana, soyabean and jeera, to buyers in Kerala, Odisha, Jharkhand, Madhya Pradesh and Tamil Nadu, sources said.
Trading amongst various markets within the states in commodities including copra (Tamil Nadu), dry fish, coconut, betel leaf and amarind (Odisha), soyabean (Maharashtra), jeera (Rajasthan), tomato and raw mango (West Bengal) has risen at a steeper pace last fiscal.
“Vegetables are denotified to be traded outside designated mandi yards and the states should liberalise registration norms of traders from outside the state so that farmers get remunerative prices through competitive biddings of commodity,” an official told FE.
The Uttar Pradesh government last month allowed traders from outside the states to buy several vegetables and fruits including potato, tomato, mango, green chillies and carrot on e-NAM, without the requirement of a separate license.
During March 11- April 21, 2023, traders from Haryana, Madhya Pradesh, Uttarakhand, Tamil Nadu and Jharkhand have purchased 29,247 tonne of potatoes at an average price of Rs 6.3/kg from nine mandis including Agra, Sambhal, Saharanpur, Chandausi, Aligarh and Moradabad using e-NAM platform.
In an official note, agriculture production commission of Uttar Pradesh has stated that allowing inter-state potato trade on e-NAM platform has helped farmers to sell their commodities to highest bidder.
The e-NAM platform allows online trading in 203 agricultural, horticultural and other commodities notified by respective state governments.
At present, 1,361 mandis in 27 states and Union Territories are integrated with the e-NAM platform, which was launched in April 2016. At present, 17.5 million farmers, 2575 FPOs, 0.24 million traders and around 0.1 million commission agents are registered with e-NAM
Last year, the government had allowed integration of trading, transportation, logistics, warehousing, assaying, packaging, weather forecast and fintech services provided by 60 odd private entities through Platform of Platform with e-NAM portal, a move that allows more farmers use the online platform to sell their produce to buyers of their choice.
Entities whose digital platforms which have been integrated with eNAM include Star Agrobazaar Technology, Kisan Network, FPO Bazaar, Arya.ag, Aryadhan, Intello Lab, Bijak and Warehousing Development Regulatory Authority.
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