Traders are not ready for a change in the traditional system of marketing and finance. The Uttar Pradesh traders have opposed to the Central government’s decision to introduce eNAM.
The government introduced eNAM, an online platform that connects farmers, traders, and buyers for the exchange of agricultural commodities. The online platform helps in better and transparent prices of agricultural commodity. It further helps farmers connect nationally with buyers therefore making the marketing smooth.
Farmers in India are illiterate and unable to use technology. Platform like eNAM will leave traditional farmers out of the system. Opposing this decision, Uttar Pradesh Yuva Vyapar Mandal (UPYVM) wrote a letter to Finance Minister, Nirmala Sitharaman and asked them to focus on other means to improve farmers condition.
The traders argued that this change would break the understanding between farmers and traders, commission agents and businesses. Further, it will affect their enduring relationship based on which farmers get unsecured loans from them. Vikas Jain, president of UPYVM, said that the traditional system of lending among farmers and traders works on trust and goodwill and benefits both the parties. The online mechanism will end this system.
Nirmala Sitharaman has encouraged the states to join hands for the success of this platform and unshackle from the Agriculture Produce Marketing Committees. She affirmed the effectiveness of eNAM in benefiting the farmers and the traders.
Demand for Regulator
The government refused to appoint a regulating authority for keeping an eye on the e-commerce platforms. The Confederation of all India Traders made this demand to curb the increasing foreign competition. It proposed that the government should have a track on the number of e-commerce platforms specially in agriculture. Answering this, Commerce Minister, Piyush Goyal revealed that such a decision would only help in the short term and that traders need to cooperate on this. Further, he said that the Ministry of Information and Technology is making efforts for the successful implementation of data protection law.
In conclusion, to attain the traders cooperation with eNAM, the government needs to show the advantages of the platform to them. Educating farmers is necessary for them to effectively using eNAM platform.