Obstacles to the success of e-name system in agriculture: Only 14% join APMC

- This digital market system, which integrates agricultural markets across the country, has not yet reached the level that can be considered as a developed market.

- Even though more than five decades have passed since the Green Revolution, the agricultural system of the country is still weak compared to the developed countries.

The Central Government has set up an Electronic-National Agriculture Marketing (e-name) system in 2016 to provide technology framework for farmers to sell their produce online. Under this system, approximately 1000 agricultural mandis of 17 States and Union Territories have been connected with e-name portal. As of February this year, more than 12 million farmers and 2.12 lakh traders have registered on the e-name platform, but it is not clear how many of them remain active on the platform. According to the Ministry of Agriculture, a total of Rs 1.5 lakh crore was transacted in the first five years of the platform's launch. At present, there are 6 Agriculture Produce Marketing Committees (APMCs) in the country, out of which 14% APMCs are associated with e-name.

The government has said that the e-name platform witnessed record trading between April and January of the current financial year. Although this was a period in which Corona's influence was widespread, it would be premature to claim that the e-name system was a success. The country's farmers today are not so techno-savvy that they are turning to non-traditional methods of selling their produce. The e-nam system is a transparent, fair and intermediary-breaking system in the field of agriculture, yet the digital market system, which integrates agricultural markets across the country, has not yet reached the level of a developed market. According to the information received, out of the 1000 APMCs currently joined, only 40 APMCs were traded. It is also a fact that many of the country's major markets are not yet connected to the e-name platform.

About 60 per cent of the trade between April and January was in Rajasthan, Andhra Pradesh and Haryana. The funny thing is that most of these trades have taken place between traders within the market or between farmers or traders in the same district. The purpose of the e-name system is usually to enable farmers to sell their produce anywhere in the country, but the current picture does not seem to be the same and e-name trading is done within a limited area.

There are a number of reasons why the spread of e-name system is limited, one of which is that the basic features have not been completed yet. There is a lack of single trading licenses that can be run across the state, uniform market payments in one place and provisions for interstate trade in agricultural commodities.

The contribution of agriculture to our economy remains significant, but a recent study has revealed that the use of technology in agriculture is still in its infancy at a time when there is a significant increase in the use of technology in various sectors. The study claims that only two per cent of the total farmers in the country use mobile apps related to agribusiness to get agricultural related activities and real time alerts. The level of acceptance of tech solutions like the Internet of Things is also very low.

From the point of view of use of technology, even though more than five decades have passed since the green revolution in the country, the agricultural system of the country is still weak compared to the developed countries. The gap between farmers and the agricultural sector is as bad as a bad monsoon. Even after 7 years of independence, due to lack of adequate infrastructure in the country, agriculture is still becoming a risky business.

Issues of quality, grading, packaging, storage and transportation of agricultural commodities also remain an obstacle in trading through e-name platform. Buyers are always concerned about the quality of the claims made by the seller, as it is difficult to resolve disputes over quality claims as agricultural products deteriorate quickly. The center as well as the states have a big role to play in the agricultural system of the country. Political parties dominated by the APMC tend to dominate.

India's share in global agribusiness is only 4.5 per cent. For the development of the agricultural sector, the government has to take steps to increase the production as well as the demand and consumption of the country's agricultural commodities abroad, for which the e-name platform can also play a role. Through this platform farmers can sell their high quality products to distant places, but modern arrangements need to be made to reach them on time.

Lack of necessary infrastructural facilities during harvesting from the farm to the market place and to the place of consumption after harvest of crops is a waste of agricultural produce in addition to waste which cannot be denied. Cold storage facilities for storage of crops and lack of timely transport facilities from the villages are causing concern for rot. Continuous efforts are required to prevent crop wastage, spoilage and rot. Farmers will not be able to trade agricultural commodities to distant places through e-nam system unless measures are taken to prevent various crop losses.

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