Traders Boycott e-NAM Auctions Over Direct Payment Rules

Farmers across several districts face severe distress as coconut and copra auctions remain suspended for two weeks due to a standoff over digital payment rules under the electronic National Agriculture Market, or e-NAM, system.

The Payment Dispute

Under the updated e-NAM 2.0 guidelines, traders are required to transfer purchase funds directly to farmers' bank accounts online on the same day. Previously, traders deposited funds with market committee management, which then disbursed the money to farmers. Traders strongly oppose this direct payment rule, citing technical hurdles, potential transfer errors, and a lack of administrative readiness. They demand a return to the old routing system through the market committee and have boycotted auctions in protest.

Impact on Growers

With auctions stalled, growers who bring their produce to markets return empty-handed and face mounting losses. Selling produce in external open markets yields much lower prices, depriving farmers of expected revenues. Growers have urged the government to intervene and restore the previous payment routing through market administration so that regular auctions can resume.

Context

Digital agricultural platforms aim to bring transparency and speed up transactions by removing intermediaries in the supply chain. However, shifting payment responsibilities directly to private buyers often creates friction when technological readiness and banking infrastructure lag behind policy changes. Resolving such standoffs typically requires flexible transitional guidelines that protect farmer revenues while addressing buyer concerns.