Factors influencing farmers decision to participate in e-auction: A case of Electronic National Agriculture Market (e-NAM) in Punjab, India

CHIDANAND PATIL; ANKITA KUMARI; RAKESH KUMAR MAHTO; PRIYA KUMARI GORAI

CHIDANAND PATIL Department of Applied Agriculture, Central University of Punjab, Bathinda - 151 001
ANKITA KUMARI Department of Applied Agriculture, Central University of Punjab, Bathinda - 151 001
RAKESH KUMAR MAHTO Department of Applied Agriculture, Central University of Punjab, Bathinda - 151 001
PRIYA KUMARI GORAI Department of Applied Agriculture, Central University of Punjab, Bathinda - 151 001

Keywords: Commission Agent, E-auction, E-NAM, Market, Price

Abstract

This study aimed to analyze farmers’ perceptions and the factors influencing their decision to participate in eauctions in Punjab. Primary data were collected through interviews with 250 farmers and analyzed using logistic regression and SMOTE Tomek techniques. The study revealed that the average age of the farmers was 46 years, and the average annual income was `5.2 lakh. Only 12.40 percent of farmers were aware of e-NAM. While 68.80 percent of farmers knew about the electronic quality assaying process, only 36.00 percent could interpret the assaying report, and just 20.40 percent considered the assaying report for price determination.Majority of farmers (90%) reported selling Basmati rice through e- NAM, followed by cotton (84.80%), potato (76.40%), kinnow (28.80%), and green peas (16.80%). All farmers checked commodity prices before bringing their produce to the market, primarily relying on commission agents (100%) for price information, followed by fellow farmers (98.40%) and media/social media (18%). Most farmers (94.40%) owned a smartphone, while 5.60% had a simple phone. All farmers indicated that the open auction method was used at APMC, with the price determination process taking 3 to 5 minutes (60%) or more than 5 minutes (39.2%).After being informed about the eauction process of e-NAM, 89.6% of farmers preferred e-auction over open auction. Payment settlements were mainly handled by commission agents, with cash being the preferred method, and payments were typically received within 3 to 5 days after the sale. Major constraints faced by farmers in using e-NAM included lack of guidance, fear of losing commission agents’ assistance, absence of grading facilities, and complexities in the selling process. Key parameters predicting farmers’ preference for open auction over e-auction were their loan sources, family background, education, family size, annual income, and age.