Question 55 from UPSC CSE 2017 - Economics

Question

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 a nationwide market, with prices commensurate with the quality of their produce.
Select the correct answer using the code given below:

IASCODEX · Accepted Answer

Correct Option: C. Both 1 and 2

Strategy: Evaluate the accuracy of the two statements regarding the National Agriculture Market (e-NAM) to identify the correct option.

Key Info: The National Agriculture Market (e-NAM) is an online trading platform launched in April 2016 by the Government of India. Its objective is to integrate existing Agricultural Produce Market Committee (APMC) mandis across the country, creating a transparent, competitive, and unified national market for agricultural commodities through electronic trading.

**Key Benefits**
e-NAM enhances accessibility and market reach for farmers. Key advantages include:
-   Enabling price discovery based on produce quality and demand.
-   Reducing intermediation and transaction costs.
-   Encouraging standardization, grading, and quality certification.
-   Providing farmers from different regions with access to wider price information for potentially better prices.

**Status and Governance**
As of 2023, e-NAM has interconnected hundreds of regulated markets (mandis) across most states. The platform is operated by the Small Farmers' Agribusiness Consortium (SFAC) under the Ministry of Agriculture & Farmers Welfare.

IASCODEX · Answer

Option A: 1 only

IASCODEX · Answer

Option B: 2 only

IASCODEX · Answer

Option D: Neither 1 nor 2