UPSC IAS - 2017

Which of the following 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 codes given below:

Year Asked: 2017

A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2

Correct Answer

C. Both 1 and 2

Detailed Explanation

Both statements describe genuine advantages of eNAM, so the answer is C. eNAM was launched on 14 April 2016 by the Government of India as a pan-India electronic trading portal for agricultural commodities. It links existing APMC mandis rather than replacing them, and it works on the states' APMC Acts. Mandis were given a state-level unified market framework and a single trading licence that works across participating mandis.

  • Statement 1 is correct. It is a single online platform that connects mandis across states, so a trader in one state can bid for produce arriving in another. Quality assaying, online e-auctions and digital payments are part of the platform.
  • Statement 2 is correct. Wider bidding improves price discovery. Quality testing and grading, which are built into the platform, let the price reflect the quality of the produce, and farmers are no longer tied to the single local mandi.

Core concept: market integration and price discovery. This links to the Mains theme of agricultural marketing reforms, the Model APMC Act 2017 and the debate on the 'One Nation One Market' idea. Note that the number of integrated mandis has grown well beyond the initial count since 2016.

Trap: students often confuse eNAM with a price-support or procurement scheme like MSP operations. eNAM is a trading platform and does not guarantee any minimum price.

This question appeared in UPSC Prelims 2017 GS Paper-1.

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