The electronic spot market has introduced technological innovations to agricultural commodity market trading through the electronic National Agriculture Market. To assess the role of the electronic spot market in price discovery, this paper explores the price efficiency test between select commodities’ spot and futures markets. While we find that the spot plays an instrumental role in price formation and transmission in selected markets, eNAM is yet to augment price-setting for farmers. We propose improvisations in the spot market design that align institutional structures, governance mechanisms and incentives and strengthen spot market infrastructure to enhance farmer participation.
