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e NAM (Problems faced (States are not showing much
interest for coherent…
e NAM
Problems faced
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mandis are not equipped with infrastructure to do
the assaying and grading, even though eNAM has listed it
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Lack of warehousing==>no pledging receipt for farmer==>farmers cant be part of formal banking system
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eNAM
What is it?
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Agri marketing under state law, under whose regulation states are divided into several market areas and administered by APMC, which imposes its own marketing regulation
Why needed?
Division within state hinders free flow of agri commodities, multiple fee points escalates charges, leaving no commensurate benefit to the farmer
What eNAM does
Creates unified market through online trading platform, both, at State and National level
promotes uniformity, streamlining of procedures across the integrated markets,
removes information asymmetry between buyers and sellers and promotes real time price discovery, based on actual demand and supply
promotes transparency in auction process,and access to a nationwide market for the farmer, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.
Ground Reality
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Farmer has got no voice, as powerful agents and commission agents control the market committee
Farmers cannot sell their produce outside
the market, as APMC Act prohibits it.
Sale of crops produced in an area, notified under market committee can be done under aegis of APMC through licensed commission agents
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Even in linked mandis, physical presence of farmer and buyer is needed