Online trading

Nine private sector e-commerce portals will join the updated e-NAM

As the Center prepares to expand the scope of its e-NAM e-commerce platform, where 41 other entities, including 9 commerce platforms, will offer their services, e-commerce is expected to experience a significant boom. However, the success of the new platform hinges on reducing reliance on Agricultural Commodity Marketing Committee (APMC) yards by making it available to farmers outside mandis.

Union Agriculture Minister Narendra Singh Tomar to launch “Platform of Platforms (PoP) under e-NAM” at planned National Agriculture and Horticulture Ministers Conference July 14-15 in Bengaluru, Karnataka. The new initiative will also offer transportation, warehousing, quality analysis, storage, fintech, sorting and grading. and agricultural advisory services.

Going beyond state borders

The Center has been working on this initiative over the past year to broaden the participation of all stakeholders as this is seen as bringing the next level of revolution in the marketing of agricultural products. “The outlets will help farmers sell their produce across state lines. This will improve farmers’ digital accessibility to multiple markets, buyers and service providers, and bring transparency in business transactions with the aim of improving the price discovery mechanism for better price realization of agricultural products,” he said. said the Department of Agriculture in a statement. .

This can help eliminate one of the major bottlenecks in online trading – crop quality assurance – as testing and certification agencies have also been established. As many as eight companies have agreed to offer their analytics services via POPs so that a trader sitting remotely can be assured of quality when buying through the portal, sources said.

Best potential

“While e-NAM is currently limited to 1,000 mandis, held by Agricultural Commodity Market Committees (APMCs), bringing these online portals closer to the private sector will definitely take the trade out of the mandis limits of the market. ‘APMC. But, the Center needs to make it effective with the state governments, because the trading volume of these private platforms was also not so large, while the potential is better after they join the government initiative,” said a former senior official of the Ministry of Agriculture.

After the Agricultural Laws, which were repealed in November last year, were introduced by the Centre, several states such as Rajasthan, Gujarat, Madhya Pradesh and Uttar Pradesh allowed traders to buy direct from farmers outside of mandis through a unified license, although in most of the United States mandi fees are collected even if purchased outside.

While Nebulla Innovations and National Bulk Handling Corporation (NBHC) will provide quality analytical services, some companies will provide multiple services, such as Star Agribazaar Technology which will offer trading, market information and agricultural input services.

Double choice for farmers

“Electronic mandis and APMCs can work side by side to develop the market. Farmers will have dual choice, resulting in better efficiency, better customer service and science-based sales methods,” said Amith Agarwal, co-founder and CEO of the Agribazaar platform. With mobile penetration and internet connectivity, e-mandis will complement APMC’s physical mandis in ensuring farmers get better and faster pay for produce, he said, appreciating the decision to launch PoPs. .

The new initiative will enable the integration of other public and private trading and service delivery platforms from across the agricultural ecosystem via APIs. Farmers and FPOs from e-NAM and other platforms will be able to upload their products to more buyers on the portals. It will be a win-win situation for both buyer and seller on the integrated platform, officials said.

Chatannathan Devarajan, co-founder of Arya.ag, said the proliferation of new age market-based business models has demonstrated the positive difference it can make, based on mutually beneficial propositions. “As an agri-tech player at the heart of the confluence of the conventional agricultural chain with technology-induced disruptions, we have also seen a remarkable transformation in the way farming communities have benefited from access to market linkages. based on e-commerce,” he said.

Published on

July 13, 2022