e- NAM completed 6 years
What is the news :
- Small Farmers Agribusiness Consortium (SFAC) celebrates 6th Anniversary of National Agriculture Market (e-NAM) on 14th April.
- On the occasion, MD SFAC congratulates all e-NAM stakeholders across 18 States & 3 UTs for the grand success and continued participation.
- National Agriculture Market (eNAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities.
- Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under the aegis of Ministry of Agriculture and Farmers’ Welfare, Government of India.
- The e-NAM electronic trading platform has been created with an investment by the Government of India (through the Ministry of Agriculture & Farmers’ Welfare).It offers a “plug-in” to any market yard existing in a State (whether regulated or private).
- The special software developed for e-NAM is available to each mandi which agrees to join the national network free of cost with necessary customization to conform to the regulations of each State Mandi Act.
VISION
- To promote uniformity in agriculture marketing by streamlining of procedures across the integrated markets, removing information asymmetry between buyers and sellers and promoting real time price discovery based on actual demand and supply.
MISSION
- Integration of APMCs across the country through a common online market platform to facilitate pan-India trade in agriculture commodities, providing better price discovery through transparent auction process based on quality of produce along with timely online payment.
What is the difference between e-NAM and the existing mandi system?
- e-NAM is not a parallel marketing structure but rather a device to create a national network of physical mandis which can be accessed online.
- It seeks to leverage the physical infrastructure of the mandis through an online trading portal, enabling buyers situated even outside the Mandi/ State to participate in trading at the local level.
Are there any conditions for joining e-NAM?
- States interested to integrate their mandis with e-NAM are required to carry out following three reforms in their APMC Act.
- Single trading license (Unified) to be valid across the state
- Single point levy of market fee across the state; and
- Provision for e-auction/ e-trading as a mode of price discovery
What is SFAC :
- SFAC is an exclusive Society focused on increasing incomes of small and marginal farmers through aggregation and development of agribusiness.
- SFAC has pioneered the formation and growth of Farmer Producer Organizations/Farmer Producer Companies, which is now being implemented across the length and breadth of the country. SFAC is progressing towards establishing an eco system for FPOs/FPCs to make them sustainable and viable in the long run.
- SFAC offers Schemes like Equity Grant and Credit Guarantee Fund Scheme to FPCs to improve availability of working capital and development of business activities.
- SFAC promotes development of small agribusiness through its VCA Scheme for value added processing and marketing linkages.
- SFAC is also implementing the National Agriculture Market Electronic Trading (e-Nam) platform. The purpose is to provide for a single unified market for agricultural products with much higher price discovery for farmers.
VCA scheme of SFAC :
Venture Capital Assistance Scheme
- Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
The main objectives of the Scheme are:
- To facilitate setting up of agribusiness ventures in close association with all Notified Financial Institutions notified by the Reserve Bank of India where the ownership of the Central/State Government is more than 50% such as Nationalized banks, SBI & its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRBs & State Financial Corporations.
- To catalyze private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income & employment.
- To strengthen backward linkages of agribusiness projects with producers.
- To assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility.
- To arrange training and visits, etc. of agripreneurs in setting up identified agribusiness projects.
- To augment and strengthen existing set up of State and Central SFAC
Salient features of the Scheme
SFAC would provide venture capital to agribusiness projects by way of soft loan to supplement the financial gap worked out by the sanctioning authority of term loan under Means of Finance with respect to cost of project subject to the fulfillment of the following conditions:
(a) Qualifying projects under Venture Capital:
(i) Project should be in agriculture or allied sector or related to agricultural services. Poultry and dairy projects will also be covered under the Scheme.
(ii) Project should provide assured market to farmers/producer groups.
(iii) Project should encourage farmers to diversify into high value crops, to increase farm incomes.
(iv) Project should be accepted by Notified Financial Institution for grant of term loan.
(b) The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following:
- 26% of the promoter’s equity
- 00 lakhs.
Provided that for projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following:
- 40% of the promoter’s equity
- 00 lakhs
