ENAM ADVANTAGES AND DISADVANTAGES

META TAG: ADVANTAGES AND DISADVANTAGES OF ENAM

National Agricultural Market (eNAM) is an online trading platform for agricultural commodities in India. This platform aims to create better marketing opportunities for the farmers to sell their products through a competitive and transparent price discovery system along with online payment facility for the buyers.

ADVANTAGES:

• Transparent Online Trading
• Real-Time Price Discovery
• Better Price Realization For Producers
• Reduced Transaction Cost For Buyers
• Stable Price and Availability to Consumers
• Quality Certification, Warehousing, and Logistics
• More Efficient Supply Chain
• Payment and Delivery Guarantee
• Error Free Reporting of Transactions
• Enhanced Accessibility to the Market

DISADVANTAGES:

Lack of storage facility: there is no proper storage or warehouse facility for farmers in villages where they can store their agricultural produce. Because of this, 15–30% of the agricultural produce is eaten or spoilt by rats and other pests or rains annually. This results in farmers being forced to sell their surplus produce at very low and un-remunerative prices.

Distress sale: most Indian farmers are extremely poor and have no capacity to wait for a better pricing on their produce in the absence of proper credit facilities. Farmers often have to go for distress sales of their output to the village moneylenders-cum-merchants at very poor rates.

Lack of poor transportation: farmers cannot reach the markets due to poor transportation facilities. This leads to them not being able to sell their produce. Thus, they prefer to sell their produce in the villages.

Intermediaries: a large number of intermediaries or middle men exists between the final market and the farmer. All these middlemen claim a good amount of the goods and money and therefore, reduce the returns of the cultivators.

Unregulated markets: huge number of markets adopt various malpractices. Prevalence of these false weights and lack of grading and standardisation of products in village markets in India are always going against the interest of ignorant, small and poor farmers.

Lack of market intelligence: Indian farmers are not always aware of the ruling prices of their produce in big markets. Hence, they have to accept low prices for their produce as offered by the middlemen or traders.