Context: The Union Agriculture Minister has announced plans to upgrade the National Agricultural Market (e-NAM) to e-NAM 2.0 to resolve logistical hurdles in inter-state and inter-mandi trade.

About e-NAM

• e-NAM is a pan-India electronic trading platform that connects Agricultural Produce Market Committee (APMC) mandis to create a unified national market for agricultural commodities.

• Implemented by the Small Farmers Agribusiness Consortium (SFAC) under the Ministry of Agriculture & Farmers’ Welfare (MoA&FW).

• Provides digital services to traders, farmers, Farmer Producer Organizations (FPOs), and Mandis.

• As of December 31, 2024, 1.79 crore farmers and 2.63 lakh traders have registered on the platform.

Key Challenges in e-NAM

• Despite integrating 1,361 mandis across 23 states and 4 Union Territories, and facilitating Rs 2.79 lakh crore worth of trade, several challenges remain:

• Logistical Issues: Inefficient transportation causes high transit time and limits distribution efficiency.

• Inadequate Warehousing & Storage: Lack of proper storage facilities leads to post-harvest losses.

• Limited Digital Literacy & Internet Access: Many farmers struggle with online platforms.

• Interstate Trade Barriers: Variations in state APMC laws hinder smooth trade.

• Different state tax and compliance norms create complexity.

Key Features of e-NAM 2.0

• Integrated Logistics and Transportation Support: Unified Logistics Interface Platform (ULIP) integration for real-time tracking of produce.

• Optimized freight options to reduce transit times and improve delivery efficiency.

• Expanded Warehousing and Cold Storage Infrastructure: The Agricultural Infrastructure Fund (AIF) will offer subsidized loans to promote private investment in storage facilities.

• AI-Driven Price Discovery & Quality Assessment: AI and Machine Learning (ML) to suggest fair market prices.

• Automated quality testing to minimize disputes over product grading.

• Faster Digital Payments & Financial Support: Direct bank transfers and e-wallets for quick settlements.

• Fintech partnerships to provide micro-loans based on transaction history.

• Simplified Interstate Trade: Introduction of a unified digital pass to ease regulatory compliance.

• Standardized tax & compliance framework to facilitate free movement of produce.

• Mobile Accessibility & Vernacular Support: Voice-based commands and local language options on the e-NAM app.

• Digital literacy campaigns to help farmers navigate the platform.

Expected Impact of e-NAM Upgrades

• Increased Farmer Participation: Easier access and better incentives will attract more farmers.

• Higher Price Realization: Direct market access will reduce middlemen, ensuring fair prices.

• Reduced Wastage: Improved storage and transport infrastructure will cut post-harvest losses.

• Investment in Logistics Sectors: Investments in supply chain solutions will drive economic growth.