Progress and Constraints of e-Trading under the e-NAM Platform in Telangana, India

Abstract

Agricultural marketing in India has undergone several reforms to improve efficiency, transparency and price realization for farmers. Despite the establishment of regulated markets under the Agricultural Produce Market Committee (APMC) system, farmers continued to face problems such as limited competition, lack of transparency and dependence on intermediaries. To address these issues, the Government of India launched the electronic National Agriculture Market (e-NAM) in 2016 to integrate Agricultural Produce Market Committees (APMCs) across the country through a unified online trading platform. The present study examines the progress of e-trading in Telangana and identifies the constraints faced by farmers in participating through the e-NAM platform. Both primary and secondary data were used for the study. Secondary data relating to stakeholder participation and commodity-wise trade were collected for the period 2016-17 to 2023-24 from the e-NAM portal and the Department of Agricultural Marketing, Telangana. Primary data were collected from 100 farmers across five selected e-NAM markets using a structured interview schedule. The data were analysed using descriptive statistics, Compound Annual Growth Rate (CAGR) and the Garrett ranking technique. The results revealed that out of 197 regulated markets in Telangana, only 57 markets (28.93%) have been integrated under e-NAM. The platform has registered 18.23 lakh farmers, 6,371 traders, 5,161 commission agents and 137 Farmer Producer Organizations (FPOs). From 2016-17 to 2023-24, a total of 64.68 lakh tonnes of commodities valued in Rs 23,637.6 crore were traded through e-NAM. Commodity-wise analysis shows that paddy was found to be high in traded volume, whereas turmeric, chilli and cotton account for a higher share in trade value. The compound annual growth rate of the value of trade was positive and significant (8.69%). Inter-mandi trade was more active compared to interstate trade, which remained limited. The study also identified lack of digital literacy, inadequate understanding of e-NAM procedures and dependence on commission agents as the major constraints faced by farmers. The findings suggest that strengthening digital awareness, improving infrastructure and expanding market integration are essential for enhancing the effectiveness of the e-NAM platform in Telangana.