Strengthening of Agricultural Marketing

Why in news

The Government of India supports states in strengthening agricultural marketing and ensuring fair prices for farmers through policy measures and schemes, notably the National Agriculture Market (e-NAM) portal and the scheme for Formation and Promotion of Farmer Producer Organizations (FPOs).

Exam relevance

GS3, GS2 · Economy, Governance, Society · Prelims · Mains

Key facts

1. Agricultural Marketing is a State subject.
2. Government of India supports states in strengthening agricultural marketing and ensuring fair prices for farmers.
3. National Agriculture Market (e-NAM) is an all-India electronic trading portal integrating Physical Agricultural Produce Market Committees (APMCs).
4. e-NAM provides farmers access to a larger pool of buyers through transparent online bidding, better price discovery, and direct payment.
5. e-NAM facilitates inter-State trade.
6. As on 30th June 2026, 1.89 crore farmers and 2.78 lakh traders are registered on e-NAM.
7. Inter-State trade on e-NAM increased from 563 MT (₹37 lakh) in 2018-19 to 2,984.3 MT (₹14.28 crore) in 2025-26.
8. Cumulative inter-State trade on e-NAM is 28,566 MT valued at ₹83.95 crore.
9. The average number of trader bids per lot on e-NAM increased from 2.1 in 2016-17 to 2.8 in 2025-26.
10. Under the Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs), 10,000 FPOs have been registered.
11. FPOs collectivise farmers for aggregation of produce.

Prelims pointers

• Agricultural Marketing is a State subject.
• e-NAM is an electronic trading portal for agricultural produce.
• e-NAM aims to integrate APMCs and facilitate inter-State trade.
• FPO scheme is a Central Sector Scheme.
• FPOs collectivise farmers for aggregation of produce.

Mains practice question

Discuss the significance of e-NAM and the Farmer Producer Organizations (FPOs) scheme in strengthening agricultural marketing in India. What are the challenges and way forward for these initiatives?

Static linkage

Agricultural Marketing falls under the State List of the Constitution of India. The Union Government's role is supportive through policy and schemes. e-NAM is an initiative to reform agricultural markets, while FPOs aim to enhance the bargaining power of small and marginal farmers by promoting collective action.

Significance

Strengthening agricultural marketing is crucial for improving farmer incomes and rural livelihoods. Initiatives like e-NAM aim to create a unified national market, reduce post-harvest losses, and enhance price discovery through technology. The promotion of FPOs empowers farmers by enabling them to achieve economies of scale in production, aggregation, processing, and marketing, thereby improving their access to inputs, finance, and markets.