Aadhaar Number Mandatory To Avail e-NAM Benefits

PWOnlyIAS

April 24, 2025

Aadhaar Number Mandatory To Avail e-NAM Benefits

The Agriculture Ministry has made Aadhaar authentication mandatory for availing benefits under the e-NAM (National Agriculture Market) scheme.

  • This applies to both individual farmers and farmer producer organizations (FPOs).

About e-NAM

  • e-NAM (National Agriculture Market) is a pan-India electronic trading portal that connects APMC mandis to create a unified market for farm produce. 

About Farmer Producer Organisations (FPO)

  • Definition: FPOs are voluntary organizations formed by farmers with the objective of leveraging economies of scale in production and marketing of agricultural products. 
  • Registration of FPOs: FPOs can be registered under the Companies Act (Part IXA) or the Co-operative Societies Act, depending on the state.
  • Central Sector Scheme: The Government of India has launched a Central Sector Scheme to form and promote 10,000 FPOs by 2027-28
    • The scheme is being supported by the Small Farmers’ Agribusiness Consortium (SFAC).
  • Approaches for FPO Formation: The scheme for FPO formation follows two approaches: the Produce Cluster Area and Commodity-based approaches.

  • Funding and Ministry: The platform is fully funded by the Central Government and falls under the Ministry of Agriculture and Farmers’ Welfare.
  • Implementing Agency: It is implemented by the Small Farmers Agribusiness Consortium (SFAC).
    • Small Farmers Agribusiness Consortium (SFAC) is an Autonomous Society promoted by the Ministry of Agriculture. 
      • It is focused on increasing incomes of small and marginal farmers through aggregation and development of agribusiness.
  • Current Scope of e-NAM:
    • 17.9 million farmers and over 4,400 FPOs are registered with the platform.
    • 1,473 mandis across 23 states and 4 Union Territories are integrated with e-NAM.
  • Benefits under e-NAM
    • Grants of up to ₹75 lakh per mandi for infrastructure development:
    • ₹30 lakh for ICT equipment and internet
    • ₹40 lakh for processing and packaging facilities
    • ₹5 lakh for composting units
  • Biometric & Offline Verification: If biometric authentication fails (e.g., fingerprint/iris scan issues), alternative methods will be used: QR code scanning and Paperless e-KYC.

Objective of Making Aadhaar Mandatory

  • Aimed at enhancing transparency, efficiency, and accountability in agri-market transactions.
  • Part of the government’s broader push to link welfare schemes with Aadhaar to prevent duplication and ensure targeted benefit transfers.

Alternative Documentation Provision 

  • Farmers who don’t have Aadhaar yet can avail benefits until their Aadhaar number is issued by providing:
    • Aadhaar enrolment proof
    • A valid government-issued ID (e.g., voter card, ration card, passport, school certificate)

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