eNAM

National Agriculture Market (eNAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities. It was established through Agri-Tech Infrastructure fund (ATIF) in 2015. Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under the aegis of Ministry of Agriculture and Farmers’ Welfare, Government of India.

Vision: to promote uniformity in agriculture marketing by streamlining of procedures across the integrated markets, removing information asymmetry between buyers and sellers and promoting real time price discovery based on actual demand and supply. One nation one market.

Activities:  Integration of APMCs across the country through a common online market platform to facilitate pan-India trade in agriculture commodities, providing better price discovery through transparent auction process based on quality of produce along with timely online payment.

Presently 1000 Mandis has been integrated with eNAM by 2020. Around 1.66 crore farmers have been registered with eNAM. Modules:

1. FPO module on eNAM – FPO conduct trade in eNAM from their collection centres
2. Warehousing based electronic Negotiable warehousing receipts trading
3. Logistics module
4. Inter-operability between ReMS (unified market Portal –UMP) and eNAM portal was launched.

MODEL CONTRACT FARMING ACT, 2018

With a view to integrate farmers with bulk purchasers including exporters, Agro- industries etc. for better price realization through mitigation of market and price risks to the farmers and ensuring smooth Agro raw material supply to the Agro industries, “Model Contract Farming Act” was enacted.

Farmer’s producer organizations (FPO’s) have a major role in promoting Contract Farming and Services Contract. On behalf of famers, they can enter into agreement with the sponsor.

Salient features of Model Contract Farming Act, 2018 are:

1. The Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.
2. In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included.
3. Contracted produce is to be covered under crop / livestock insurance in operation.
4. Contract framing to be outside the ambit of APMC Act.
5. No permanent structure can be developed on farmers’ land/premises
6. No right, title of interest of the land shall vest in the sponsor.
7. Promotion of Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers has been provided
8. The entire pre-agreed quantity of Agro produces to be brought by the contract farmers
9. CEFG Contract farming facilitation groups to be set up at village level or panchayats level.

Latest legislation of the government to improve farm sector

The government as part of the Atmanirbhar Bharat Abiyan in the post pandemic period has come up with major policy decisions and passed the following ordinances:

1. Essential Commodities Amendment act
2. Farming Produce Trade and Commerce (Promotion and Facilitation Ordinance), 2020
3. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm services Ordinance, 2020.

Implications of these acts:

Essential Commodities Amendment Act – during bumper harvest due to lack of storage facility the farmers suffer losses. The essential commodities notified under the previous act of 1955 will be removed hence giving freedom for farmers to sell the commodities like cereals, pulses oilseeds, edible oils onion, and potatoes anywhere. It will drive up investment in cold storage and modernization of supply chain management.

Farming Produce Trade and Commerce (Promotion and Facilitation Ordinance), 2020 – there are restrictions to farmers to sell outside the APMCs. Hence this act will remove the restrictions and facilitate barrier free trade inter-state and intra-state trade. The farmers need not sell the produce only to the registered agents in the registered mandi. It will reduce the marketing cost and surplus produce will get better prices. It aims to achieve one India one Agricultural market.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm services Ordinance, 2020 – this act is to overcome the limitation of fragmented farmers and small produce. The farmers can be linked directly to all other functionaries like wholesalers, aggregators, exporters etc. it will transfer the market risk form farmers to sponsors and enable modern technology accessibility. It will eliminate intermediaries. Hence private players will build efficient supply chain and global markets and modern technology into agriculture.