National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) , Agricultural Produce & Livestock Market Committee (APMC ) and e-NAM

  • IASbaba
  • February 27, 2023
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Context: Recently, a Nashik onion cultivator destroyed 200 quintals of ready-to-harvest crops, fearing bad returns.

About National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED):

  • National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established in  1958.
  • It is registered under the Multi-State Co-operative Societies Act.
  • It was set up with the object to promote Cooperative marketing of agricultural produce to benefit the farmers.
  • Agricultural farmers are the main members of Nafed, who have the authority to say in the form of members of the General Body in the working of Nafed.

Objectives :

  • to  facilitate, coordinate, and promote the marketing and trading activities of the cooperative institutions, partners, and associates in agricultural, other commodities, articles, and goods.
  • to undertake or promote on its own or on behalf of its member Institutions or the Government or Government Organizations, Inter-State, and international trade and commerce.
  • to act as an agent of any Government agency or cooperative institution, for the purchase, sale, storage, and distribution.
  • to act as an insurance agent and to undertake all such work that is incidental to the same.
  • to organize consultancy work in various fields for the benefit of the cooperative institutions.
  • to undertake the manufacture of agricultural, machinery and implements, processing, packing, etc.
  • to maintain transport units of its own or in collaboration with any other organization in India or abroad.
  • to undertake marketing research and dissemination of market intelligence.
  • to subscribe to the share capital and undertake business collaboration.
  • to arrange for the training of employees of marketing/ processing/supply cooperative societies

Additional Information:

About Agricultural Produce & Livestock Market Committee (APMC )

  • The  Agricultural Produce & Livestock Market Committee was established under the provisions of the APLM Act.
  • These are marketing boards set up by state governments to eliminate farmer exploitation by intermediaries
  • The APMC laws in most states require farmers to sell a variety of goods in their neighbourhood mandis.
  • A State is geographically divided into various units and markets (also known as Mandis) which are established in different places within the state.
  • All food must be brought to market and auctioned off.

Benefits of APMC :

  • They safeguard the farmers from exploitation by creditors and other intermediaries.
  • They provide storage facilities such as go-downs etc. to the farmers.
  • They arrange for farmer markets so that the farmers could sell their produce to the consumers directly.
  • They help in controlling price fluctuations.

About National Agriculture Market or eNAM:

  • eNAM platform is an online trading platform for agricultural commodities in India.
  • It was launched in 2016 as a pan-India electronic trade portal linking agricultural produce market committees (APMCs) across all states.
  • It was launched with the objective of integrating the existing Mandis into a “One Nation One Market” for agricultural commodities in India.
  • It facilitates farmers, traders, and buyers with online trading in commodities.
  • It provides for contactless remote bidding and mobile-based anytime payment for which traders do not need to either visit mandis or banks for the same.
  • Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing e-NAM.
  • It functions under the aegis of the Ministry of Agriculture and Farmers’ Welfare


Previous Year Questions

Q.1) With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? (2022)

  1. They can sell their own goods in addition to offering their platforms as marketplaces.
  2. The degree to which they can own big sellers on their platforms is limited.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.2) Which of the following factors/policies were affecting the price of rice in India in the recent past? (2020)

  1. Minimum Support Price
  2. Government’s trading
  3. Government’s stockpiling
  4. Consumer subsidies

Q3. In India, which of the following can be considered as public investment in agriculture? (2020)

  1. Fixing Minimum Support Price for agricultural produce of all crops
  2. Computerization of Primary Agricultural Credit Societies
  3. Social Capital Development
  4. Free electricity supply to farmers
  5. Waiver of agricultural loans by the banking system
  6. Setting up of cold storage facilities by the governments.

In India, which of the following can be considered as public investment in agriculture?

Select the correct answer using the code given below:

  1. 1, 2, and 5 only
  2. 1, 3, 4, and 5 only
  3. 2, 3, and 6 only
  4. 1, 2, 3, 4, 5 and 6


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