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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
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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 analysis

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Statement analysis

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