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Q33 (IAS/2017) Economy › Agriculture & Rural Economy › Agricultural marketing reforms Official Key

What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme ? 1. It is a pan-India electronic trading portal for agricultural commodities. 2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below :

Result
Your answer: —  ·  Correct: C
Explanation

The correct answer is option C (Both 1 and 2) because both statements accurately describe advantages of the National Agriculture Market (e-NAM) scheme.

Statement 1 is correct as NAM provides a pan-India electronic trading portal which connects selected APMC mandis to create a Unified National Market for agricultural commodities.[2] This is indeed a key advantage as it creates a nationwide digital platform for agricultural trade.

Statement 2 is also correct because NAM seeks to leverage the physical infrastructure of mandis through an online trading portal, enabling buyers situated even outside the State to participate in trading at the local level.[2] This gives farmers access to a nationwide market. Additionally, the platform ensures quality standards are maintained, which helps farmers realize prices commensurate with the quality of their produce.

Therefore, both statements correctly identify advantages of implementing the e-NAM scheme, making option C the correct answer.

Sources
  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
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Q. What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme ? 1. It is a pan-India electronic trading …
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10

This is a textbook 'Flagship Scheme' question. It appeared in 2017, shortly after the scheme's 2016 launch. The strategy is simple: for every major government scheme, memorize the official 'Definition' (Statement 1) and the 'Intended Vision' (Statement 2). Do not overthink implementation failures; UPSC asks about the design, not the glitches.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Is the National Agriculture Market (e-NAM) scheme a pan-India electronic trading portal for agricultural commodities?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
Presence: 5/5
“National Agricultural Market is not entirely a new concept but it is an online platform with physical markets or mandis at the backend. NAM is not a parallel marketing structure but rather an instrument to create a national network of physical mandis which can be accessed online. NAM seeks to leverage the physical infrastructure of mandis through an online trading portal, enabling buyers situated even outside the State to participate in trading at the local level. NAM provides a pan-India electronic trading portal which connects selected APMC mandis to create a Unified National Market for agricultural commodities. The scheme is being implemented through Small Farmers Agribusiness Consortium (SFAC), which is an autonomous organization under Dept. of Agriculture and Cooperation (DAC).”
Why this source?
  • Explicitly describes NAM/e-NAM as providing a 'pan-India electronic trading portal'.
  • States e-NAM connects selected APMC mandis to create a Unified National Market (online access to physical mandis).
  • Identifies implementation mechanism (SFAC), confirming it is a formal scheme/platform.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.6 Warehouse Receipts > p. 373
Presence: 4/5
“Hence, these NWRs will not only facilitate an easy pledge/collateral financing (Warehouse Receipt Finance) by banks and other financial institutions but also smooth trading on various trading centres like commodity exchanges, electronic National Agriculture Markets (e-NAM) and other electronic platforms (Since April 2020, Govt. has allowed e-NWRs to be sold on e-NAM platform). These e-NWRs will save expenditure in logistics as the stocks could be traded through multiple buyers without physical movement and can be even split for partial transfer or withdrawal. It will revolutionise the marketing of agricultural commodities and help farmers realize better price for their produce which will be a step towards doubling the farmers' income by 2022.”
Why this source?
  • Mentions e-NAM as a trading platform where electronic warehouse receipts (e-NWRs) can be sold.
  • Places e-NAM among 'trading centres', indicating its role in electronic trading of agricultural stocks.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Challenges: > p. 315
Presence: 3/5
“Still, the traders want to verify quality physically.• Another major challenge is the storage capacity in the mandis as farmers still needs to bring their produce in the mandi and it takes time for traders in other mandi to take this produce.• First the traders need to make payment online then afterward they will be eligible to take the produce from the mandi.• Since the e-NAM project was launched in April 2016, less than 5% of the wholesale trade in farm commodities has shifted online and as far as inter-mandi/inter-state e-NAM trade is concerned, it has remained a non-starter.”
Why this source?
  • Refers to the e-NAM project launch and its intended inter-mandi/inter-state online trading function.
  • Although noting low uptake, it corroborates e-NAM's purpose as an electronic platform for wholesale farm commodity trade.
Statement 2
Does the National Agriculture Market (e-NAM) scheme provide farmers access to a nationwide market?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 2019 > p. 361
Presence: 5/5
“Agriculture 9.75 • 21. What is/are the advantage/advantages of implementing the 'National Agriculture Market' (NAM) scheme? • 1. It is a pan-India electronic trading portal for agricultural commodities. • 2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below: • (a) 1 only • (b) 2 only • (c) Both 1 and 2 • (d) Neither 1 nor 2 • 22. Which of the following has/have occurred in India after its liberalisation of economic policies in 1991? • 1. Share of agriculture in GDP increased enormously. • 2.”
Why this source?
  • Describes e-NAM as a pan-India electronic trading portal.
  • Explicitly states that it provides farmers access to a nationwide market.
  • Highlights the connection between prices and the quality of produce.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
Presence: 5/5
“National Agricultural Market is not entirely a new concept but it is an online platform with physical markets or mandis at the backend. NAM is not a parallel marketing structure but rather an instrument to create a national network of physical mandis which can be accessed online. NAM seeks to leverage the physical infrastructure of mandis through an online trading portal, enabling buyers situated even outside the State to participate in trading at the local level. NAM provides a pan-India electronic trading portal which connects selected APMC mandis to create a Unified National Market for agricultural commodities. The scheme is being implemented through Small Farmers Agribusiness Consortium (SFAC), which is an autonomous organization under Dept. of Agriculture and Cooperation (DAC).”
Why this source?
  • Defines e-NAM as an online platform that connects physical markets.
  • Indicates that it enables buyers from outside the state to participate in local trading.
  • Emphasizes the creation of a Unified National Market for agricultural commodities.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 329
Presence: 5/5
“Consider the following statements: [2017] • The nation-wide 'Soil Health Card Scheme' aims at• (i) Expanding the cultivable area under irrigation.• (ii) Enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.• (iii) Checking the overuse of fertilizers in farmlands. Which of the above statements is/are correct? • (a) (i) & (ii) only• (b) (iii) only• (c) (ii) & (iii) only• (d) (i), (ii) & (iii)• 5. What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme? [2017] • (i) It is a pan-India electronic trading portal for agricultural commodities.• (ii) It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.”
Why this source?
  • Reiterates that e-NAM is a pan-India electronic trading portal.
  • Confirms that it provides farmers access to a nationwide market.
  • Links the scheme to the advantages of better pricing for farmers.
Statement 3
Does the National Agriculture Market (e-NAM) scheme provide prices to farmers that are commensurate with the quality of their produce?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > The following are some of the important features/benefits of NAM: > p. 315
Presence: 4/5
“Over the next 3-5 years volume of business will significantly increase creating greater competition and better price discovery and resulting in major benefits through higher returns to farmers, lower transaction costs for buyers and stable prices and availability to consumers.• NAM will facilitate the emergence of integrated value chains in major agricultural commodities across the country and help promote scientific storage and movement of agricultural goods.• Respective APMC mandis will have to ensure quality standards of agricultural goods sold through the e-platform.”
Why this source?
  • Explicitly states e-NAM will create greater competition and better price discovery, which helps align prices with true market value.
  • Notes that respective APMC mandis must ensure quality standards for goods sold through the e-platform — a prerequisite for quality‑based pricing.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.6 Warehouse Receipts > p. 373
Presence: 4/5
“Hence, these NWRs will not only facilitate an easy pledge/collateral financing (Warehouse Receipt Finance) by banks and other financial institutions but also smooth trading on various trading centres like commodity exchanges, electronic National Agriculture Markets (e-NAM) and other electronic platforms (Since April 2020, Govt. has allowed e-NWRs to be sold on e-NAM platform). These e-NWRs will save expenditure in logistics as the stocks could be traded through multiple buyers without physical movement and can be even split for partial transfer or withdrawal. It will revolutionise the marketing of agricultural commodities and help farmers realize better price for their produce which will be a step towards doubling the farmers' income by 2022.”
Why this source?
  • Describes trading of warehouse receipts on e-NAM and argues this will help farmers realize better prices for their produce.
  • Links electronic trading and reduced logistics/fragmentation to improved seller bargaining and price realization.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > The following are some of the important features of the model Act: > p. 316
Presence: 4/5
“The idea is to remove disincentives for farmers and traders to trade across the country. (Presently a trader requires separate licenses for trading in each mandi and the mandi charges are levied several times if the produce moves through several markets) The law also proposes a cap on levy of market fees at 2% of sale price for fruits and vegetables and 1% for food grains.• Other proposals in the model Act include promotion of national market for agriculture produce through provisioning of inter-State trading licence, grading and standardisation and quality certification, rationalisation of market fee and commission charges, provision for special commodity market yard and promotion of e-trading to increase transparency.”
Why this source?
  • Model Act features include grading, standardisation and quality certification plus promotion of e-trading to increase transparency.
  • Grading and certification are mechanisms that enable prices to reflect quality differences across produce.
Pattern takeaway: UPSC Scheme questions often follow a 'Definition + Benefit' structure. Statement 1 usually defines the mechanism (portal, app, fund), and Statement 2 describes the ultimate policy goal (empowerment, price discovery, access). Both are typically correct unless they contain extreme exclusionary words.
How you should have studied
  1. [THE VERDICT]: Sitter. This was the headline agricultural reform of the year, covered in every Economic Survey and standard book (Vivek Singh, Singhania).
  2. [THE CONCEPTUAL TRIGGER]: Agricultural Marketing Reforms (APMC issues) and the move towards a 'One Nation, One Market' ecosystem.
  3. [THE HORIZONTAL EXPANSION]: SFAC (Implementing Agency) -> 3 Prerequisites for States (Single License, Single Point Levy, E-trading provision) -> e-NWR (Warehouse Receipts) -> GrAMs (Gramin Agricultural Markets) -> Operation Greens.
  4. [THE STRATEGIC METACOGNITION]: Distinguish between the 'Platform' and the 'Market'. e-NAM is not a new market; it is a digital layer over existing physical APMC mandis. Understanding this 'Phygital' (Physical + Digital) nature validates Statement 1.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 e-NAM as an online portal linking APMC mandis
💡 The insight

The core description of e-NAM in the references is that it provides a pan-India electronic trading portal by connecting selected APMC mandis to form a unified market.

High-yield for UPSC: questions often ask about agricultural marketing reforms and digital initiatives. Understanding e-NAM's architecture (online front-end + physical mandis backend) helps answer benefits, scope and policy design questions; it links to topics on APMC reforms, market integration and farmer price discovery. Study by comparing scheme description and its intended institutional links.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > M Integrated Scheme for Agricultural Marketing > p. 325
🔗 Anchor: "Is the National Agriculture Market (e-NAM) scheme a pan-India electronic trading..."
📌 Adjacent topic to master
S1
👉 e-NAM and electronic warehouse receipts (e-NWRs) in trading
💡 The insight

Evidence cites e-NWRs being tradable on the e-NAM platform, showing how e-NAM integrates with warehouse/finance instruments.

Important for UPSC because it connects market infrastructure to credit and supply-chain policy (warehouse receipt finance, logistics savings). Mastering this helps answer questions on farm finance, storage policy and how digital platforms can reduce physical movement and enable collateralization.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.6 Warehouse Receipts > p. 373
🔗 Anchor: "Is the National Agriculture Market (e-NAM) scheme a pan-India electronic trading..."
📌 Adjacent topic to master
S1
👉 Implementation status and adoption challenges of e-NAM
💡 The insight

References note the launch timing and report low shift of wholesale trade online and weak inter-mandi/inter-state e-NAM trade.

Crucial for balanced answers in UPSC essays/GS papers: candidates must state both objectives and on-ground challenges. Knowing adoption issues (quality verification, storage, limited online trade) helps frame policy critique and recommend reforms; links to governance, implementation and rural infrastructure topics.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > Challenges: > p. 315
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
🔗 Anchor: "Is the National Agriculture Market (e-NAM) scheme a pan-India electronic trading..."
📌 Adjacent topic to master
S2
👉 Unified National Market
💡 The insight

The concept of a Unified National Market is central to understanding how e-NAM operates.

Mastering this concept is crucial for grasping the implications of agricultural policies and market access in India. It connects to broader discussions on economic liberalization and agricultural reforms, which are often tested in UPSC exams.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
🔗 Anchor: "Does the National Agriculture Market (e-NAM) scheme provide farmers access to a ..."
📌 Adjacent topic to master
S2
👉 Electronic Trading Platforms
💡 The insight

e-NAM is an example of an electronic trading platform that facilitates market access for farmers.

Understanding electronic trading platforms is vital for analyzing modern agricultural marketing strategies and their impact on farmers' income. This knowledge is applicable in various contexts, including discussions on technology in agriculture.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.2 Electronic - National Agriculture Market (e-NAM) > p. 314
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.6 Warehouse Receipts > p. 373
🔗 Anchor: "Does the National Agriculture Market (e-NAM) scheme provide farmers access to a ..."
📌 Adjacent topic to master
S2
👉 Market Access for Farmers
💡 The insight

The statement directly addresses the access farmers gain through e-NAM.

This concept is essential for evaluating agricultural policies and their effectiveness in improving farmers' livelihoods. It is relevant for questions on rural development and economic policies.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 2019 > p. 361
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 329
🔗 Anchor: "Does the National Agriculture Market (e-NAM) scheme provide farmers access to a ..."
📌 Adjacent topic to master
S3
👉 Price discovery in electronic agricultural markets
💡 The insight

e-NAM is described as increasing competition and improving price discovery, which is central to whether prices reflect produce quality.

High-yield concept for UPSC: explains how market design (electronic trading, wider buyer pool) affects farmer price realization. Connects to topics on market reforms, mandi integration and agricultural marketing policy; useful for policy‑effectiveness and evaluation questions.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > The following are some of the important features/benefits of NAM: > p. 315
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > 12.6 Warehouse Receipts > p. 373
🔗 Anchor: "Does the National Agriculture Market (e-NAM) scheme provide prices to farmers th..."
🌑 The Hidden Trap

The 'Entry Ticket' for States: To plug into e-NAM, a State MUST amend its APMC Act to ensure three things: 1) Single trading license valid across the state, 2) Single point levy of market fee, and 3) Provision for electronic auction. Without these legal changes, a mandi cannot join e-NAM.

⚡ Elimination Cheat Code

Use the 'Bureaucratic Optimism' rule. When UPSC asks about the 'advantages' of a government scheme, they are asking about the *design intent*, not the ground reality. Does the scheme *intend* to give better prices based on quality? Yes. Does it actually happen perfectly? Irrelevant. If the statement describes the 'Good Governance' goal, mark it true.

🔗 Mains Connection

Mains GS-3 (Agriculture - Marketing): e-NAM is the technological answer to 'Market Fragmentation'. It links to the Ashok Dalwai Committee on Doubling Farmers' Income, which emphasized moving from 'Production-centric' to 'Income-centric' agriculture via price discovery.

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