Consider the following statements with reference to Indian agriculture:
1. To enhance efficiency in agricultural marketing and improve price discovery, the government has introduced the e-NAM scheme.
2. This initiative provides free software and financial assistance of Rs. 5 crore per Agricultural Produce Market Committee.
Which of the above statement/s is/are correct?

Correct option is D

The correct answer is (d) Only 1 is correct

Explanation:

• Statement 1 is correct: The e-NAM (National Agriculture Market) is a pan-India electronic trading portal that networks existing APMC (Agricultural Produce Market Committee) mandis to create a unified national market for agricultural commodities.

• Its core objective is to promote transparency in the bidding process and improve price discovery for farmers by removing information asymmetry.

• Statement 2 is incorrect: While the government provides free software to the states/UTs, the financial assistance provided under the scheme is ₹75 lakh per mandi (increased from the initial ₹30 lakh) for setting up hardware and infrastructure like quality assaying labs.

• The figure of ₹5 crore is not the standard grant for e-NAM integration; such higher amounts are typically associated with the Agriculture Infrastructure Fund (AIF) for larger projects, which is distinct from the e-NAM specific grant.

• The scheme is implemented by the Small Farmers’ Agribusiness Consortium (SFAC) under the Ministry of Agriculture and Farmers' Welfare.

Information Booster:

• e-NAM was launched on April 14, 2016, with the vision of "One Nation, One Market" to reduce the transaction costs for buyers and sellers.

• The platform integrates physical mandis through a virtual network, allowing farmers to showcase their produce to traders across the country, rather than being limited to local buyers.

Additional Knowledge:

(a) Neither 1 nor 2 is correct (Option a)

• This is incorrect because Statement 1 is a factual description of the e-NAM portal's purpose as per NCERT and government guidelines.

• The scheme has successfully integrated over 1,300 mandis to date.

(b) Only 2 is correct (Option b)

• This is incorrect because Statement 2 contains a factual error regarding the quantum of financial assistance (₹75 lakh vs. ₹5 crore).

• It also ignores the valid definition of the portal's objective provided in Statement 1.

(c) Both 1 and 2 are correct (Option c)

• This is incorrect because, while the scheme does provide software and aid, the specific financial limit mentioned (₹5 crore) is factually inaccurate for the e-NAM infrastructure grant.

• This option is a common trap in competitive exams where one part of the statement is true (free software) but the numerical data is false.