Over 7,000 Farm Organizations Join ONDC’s E-Commerce Platform: A New Dawn in Digital Agriculture
Introduction
In a significant move towards revolutionizing agricultural trade, over 7,000 farmer producer organizations (FPOs) have joined the government’s Open Network for Digital Commerce (ONDC) platform. This initiative by the agriculture ministry aims to empower FPOs with tools for packaging, branding, marketing, credit linkages, digital payments, and statutory compliance, thereby enhancing their market reach and business capabilities.
ONDC: An Alternative to Global Giants
ONDC is promoted as a robust alternative to global e-commerce behemoths like Amazon and Walmart. It offers FPOs a platform to market their value-added agricultural products directly to consumers and businesses, bypassing intermediaries and ensuring better returns. Since April 2023, the ONDC platform has seen an overwhelming response from FPOs, with more than 7,638 entities registering and selling around 3,100 varieties of agricultural products.
Training and Development for FPOs
The agriculture ministry has initiated extensive training programs for these FPOs. Workshops and melas (fairs) are being organized across the country to educate farmers on various aspects of business development and marketing. These events are held twice a month in different cities, featuring collaborations with private sector entities, including banks and packaging companies like DCGpac. The aim is to equip farmers with the necessary skills to thrive in the digital marketplace.
Credit and Financial Support
Financial support is a cornerstone of this initiative. Under the Central Sector Scheme, “Formation and Promotion of 10,000 FPOs,” launched in 2020, FPOs receive up to Rs 1.8 million in financial assistance over three years. Additionally, matching equity grants up to Rs 2,000 per farmer member and a credit guarantee facility of up to Rs 20 million per project loan per FPO are provided. This financial backing is crucial for FPOs to scale their operations and meet market demands.
Market Access and Sales Growth
With ONDC, FPOs have direct access to digital marketing, online payments, and both business-to-business (B2B) and business-to-consumer (B2C) transactions. This move is designed to enhance market access and increase sales for farmers. Tapas Kumar Pati, Chief Operating Officer of BASIX Krishi Samruddhi, highlighted that since joining ONDC, their group has crossed sales of Rs 4 million, with a target to reach Rs 7 million in FY25.
Collaborations and Partnerships
ONDC has partnered with the Small Farmers Agribusiness Consortium (SFAC) to support FPOs in overcoming market access challenges. With more than 30 digital applications integrated into the network, including Mystore, PayTM, Magicpin, and Delhivery, ONDC provides comprehensive solutions covering intercity logistics and buyer-seller platforms. This extensive network ensures that FPOs can seamlessly connect with consumers and businesses across the country.
Empowering Farmers with Digital Commerce
The inclusion of FPOs in ONDC is a game-changer for the agricultural sector. It empowers farmers by providing them with the tools and knowledge to participate in the digital economy. By facilitating direct market access, ONDC helps farmers achieve better prices for their products and reduces dependency on middlemen. This initiative also promotes transparency and efficiency in the supply chain, benefiting both producers and consumers.