Impact of e-NAM on arrival & prices of major commodities: A case study of Bhatapara APMC in Chhattisgarh

Abstract

Honourable Prime Minister of India Mr. Narendra Modi launched the electronic trading portal for National Agriculture Market (e-NAM) on 14th April 2016. The objectives of e-NAM have multi dimensions like to establish a national e-market platform for transparent sale transactions and price discovery initially in regulated markets, to provide liberal licensing of traders/buyers and commission agents by state authorities without any pre-condition of physical presence or possession of shop/premises in the market yard, to create one license for a trader valid across all markets in the state, harmonization of quality standards of agricultural produce and provision for assaying infrastructure in every market to enable informed bidding by buyers etc. Looking to the new intervention in marketing through e-NAM and its impact on price discovery, trade and marketing of agricultural produces in these selected APMCs, so far no study has been conducted in Chhattisgarh about the impact of e- NAM on the farmers hence the present study was taken. Chhattisgarh state was selected purposively for present study. Bhatapara APMC in Baloda Bazar district was selected purposively as it was among the 5 APMCs which was integrated with e-NAM system in the first phase. 50 farmers and 25 traders from Bhatapara APMC were selected randomly and primary data were collected from them. It was seen from the present study that there were 21 commodities notified under regulation and the APMC used to lack any provision of cold storage facility. Paddy was the major commodity arrived in highest quantity in Bhatapara APMC as most of the farmers were paddy cultivators. There was 8.01 percent decrease in paddy arrival post-unification. Highest increase in arrival was noticed in mustard (232.41 percent) followed by red gram (124.70 percent), lentil (67.69 percent), gram (14.60 percent) and wheat (7.76 percent). 14.65 percent increase in price of paddy happened post-unification. Wheat, red gram, gram and lentil had shown decrease in price in proportion of 1.16 percent, 16.46 percent, 33.28 percent and 24.53 percent respectively.