The Indian government’s electronic–National Agriculture Market (e-NAM) platform has been making waves among farmer producer organisations (FPOs) ever since a dedicated module was introduced to facilitate their trading activities. This move has resulted in a significant increase in traded volume, reaching about 42,875 tonnes during the fiscal year 2023-24, almost double the volume recorded in the previous year.
While this increase may seem modest compared to the overall volume of nearly 195 lakh tonnes traded on the platform, the government remains optimistic about sustained growth due to a combination of factors, including the low base effect and various initiatives launched for FPOs and e-NAM. Currently, 3,759 FPOs are registered on the platform, with plans to onboard all eligible FPOs in the near future.
According to sources, once inter-state trade is liberalized through legislation, FPOs are poised to play a significant role on the e-NAM platform, especially those backed by corporate entities. This potential for growth is limitless, given the favorable conditions and emerging opportunities for FPOs to access private sector markets and secure better prices for their produce.
ITC’s agtech platform
During the announcement of its financial results for Q4 2023-24, ITC revealed that over 1,650 FPOs representing more than 1.5 million farmers have been incorporated into the ITCMAARS network. The company has successfully expanded ITCMAARS, a comprehensive agtech platform agnostic to crops, alongside a “phygital” ecosystem across 10 states.
By leveraging cutting-edge agricultural technologies, this initiative aims to create a robust ecosystem that delivers tailored solutions to farmers while generating new revenue streams, enhancing sourcing efficiencies, and bolstering ITC’s renowned Indian brands.
Meanwhile, e-NAM’s trade volume has seen a 4% growth to 194.29 lakh tonnes in FY24 from 186 lakh tonnes in FY23. The digital trade value also rose to over Rs 78,424 crore in FY24, marking a 5% increase from the previous fiscal year. Notably, there has been a remarkable 124% growth in total transactions over the past five years, reaching Rs 34,940 crore in 2019-20.
Independent body on the horizon
The e-NAM platform facilitates online trading of 219 agricultural, horticultural, and other commodities sanctioned by both the Central and State governments. The Centre is contemplating the enactment of a farm law that would enable interstate trading, allowing farmers to sell their produce online to buyers beyond their state borders.
As part of this plan, an independent regulatory authority is set to be established to devise rules and regulations, including fees, to streamline interstate trading activities. However, intrastate trade will remain under local government jurisdiction, ensuring control and oversight at the state level.