NAM is an electronic trading portal. NAM collaborates with the AMC/Agricultural Market Committees and other markets. The motive of NAM is a unified single platform for the nationwide market. People from everywhere in India can utilize agricultural products. You can understand NAM as a virtual market in India and the back-end of NAM, there is a physical market that performs every task.
You can not say NAM is an independent market but it is a network of all of the local mandis that are physically located in one place or another place. The people can access the details of all of the mandis in India on a single platform NAM. It is like a trading portal where buyers can buy agricultural products. The buyer can operate the sale and purchase at any money by sitting at any place.
Purpose of NAM
Below we are going to discuss the problems associated with the local markets and why the need for a single online platform is required for the benefit of farmers.
- The present scenario of local markets in India is limited in scope. The farmer can sell the harvest to the local mandis only due to the location constraint.
- If a person wants to sell the harvest to another state even then the process is not smooth, the farmer can not afford the cost. Interstate sale requires Multiple licenses and it increases the cost.
- Even in a single state, one market of a district is not linked with another district market and the cost/ price of various agricultural vegetables and harvest differ and the cost is higher if a farmer goes to another district market.
- NAM is made to resolve all of these issues. The problem comes due to the fragmentation of markets in India. Now, all the farmers from everywhere in India can access the NAM online and can do the transactions.
Operation of NAM
- Govt of India has invested in the NAM concept to build a nationwide trading platform for agriculture products.
- The Ministry of Agriculture is looking after the process of NAM.
- A special software is developed to handle the task of NAM.
- The govt has informed the local mandis to join the NAM structure.
Pre-Requisites for NAM
The govt of India has three criteria for the state markets to join the NAM.
- There must be a concept of electronic trading in the APMC Act of the state.
- It should be mentioned in the State APMC that there is no need for licenses if someone outside the state wants the trade in your state.
- There should be a single fee concept for all of the people in India.
- The govt has instructed the states to build an act for nationwide trade in the state to avoid complications.
Benefits of NAM
- All of the people who are frustrated with the interstate sale process complications will be happy with the implementation of NAM.
- All the farmers now have more options to sell their products.
- For the local traders, NAM has multiple options for trade.
- The people who are exporters or processors of the bulk products can directly participate in the sale of the product. Transparency in the process will resolve many issues.
Names of the Pilot Agricultural Market Committees
The govt has chosen five AMC/Agricultural Market Committees for the pilot launch of this online project.
- Nizamabad AMC/Agricultural Market Committees
- Warangal AMC/Agricultural Market Committees
- Badepally AMC/Agricultural Market Committees
- Hyderabad (Malakpet Yard) AMC/Agricultural Market Committees
- Thirmalgiri AMC/Agricultural Market Committees
Software for NAM
The govt has India has chosen NFCL for the development of the software for the NAM. NFCL is Nagarjuna Fertilizers and Chemical Limited. The NFCL will design the software for the NAM, then develop the software and test the NAM software before the launch. The maintenance of the NAM software will also be done by NFCL.
- The govt of India has approved 44 markets from Telangana state to be incorporated with NAM. For this, the hardware requirements will cost Rs. 12.195 Cr.
- The govt of India has appointed specialists for each market to smooth the run of the NAM project.
- All of the requirements for the online NAM platform are sorted out as the number of Desktops required, the number of internet networks, leased lines, Entry & exit gates, handheld, etc.
- There will be a proper orientation program for the staff of NAM.
- The commission agents/traders/purchasers are informed for the awareness meeting about the working of NAMhow to utilize the online trading platform.
- Press and Electronic media will be used properly to broadcast awareness of NAM among the local public.
Process Involved for NAM
- Stage 1: Gate Entry
- Stage 2: LOT ID Generation
- Stage 3: Unloading of the lot
- Stage 4: Assaying (Lab)
- Stage 5: Display of the lot
- Stage 6: E-tendering
- Stage 7: Price discovery
- Stage 8: Acceptance by the farmer
- Stage 9: Post-sale weighing
- Stage 10: Generation of Post sale documents
- Stage 11: Online Payment
Note: We are not associated with NAM, were independent organization operating with the URL: https://tsmarketing.in/.