ECONOMY AND FINANCE : ONDC MAGIC: ACCESS TO A WIDER MARKET

BY ROBIN GHOSH

(ECONOMIST)

KOLKATA, 4 JULY 2023:

Open Network for Digital Commerce (ONDC) has created a magic in providing access to small farming communities from local markets to a wider national market.

Let us study two case studies.

Daringbadi Mahila, a tribal women led FPO from Orissa – on boarded ONDC platform – and through Mystore app – is now selling organic turmeric to National market. Previously, they used to sell produce locally. Now they have access to all India markets. Since ONDC does not charge any platform fee, the margins are better and they are able to sell in large volumes .
The Second case study is about procurement of quality seeds by marginal farmers.

National Seeds Corporations on board with ONDC – small and marginal farmers have now access to certified seeds at reasonable prices. Plus with the advantage : no platform fees, charges are on account of products and logistics and it is home delivered. Moreover, there is no minimum quantity of order a farmer is bound to buy when placing orders online.

Selling seeds online is basically reengineering the business process for the agriculture input sector. The process also identifies which geographic segments seem to be active for the purchase of certified seeds and helps where the dealer network needs to be strengthened.

Now, read this:

“On platforms like Flipcart and Amazon, one is required to pay a commission to be on their platform, ONDC does not charge anything. ”
Harihom Nagar
Accountant,
Rich Returns Krishi Producer Company.
” In big cities, farmers can maintain a margin of 20 to 30 percent
Ashok Sajjan, FPO Coordinator, Indian Council of Agricultural Research.
” The ability to sell directly to a market digitally is in contrast to middleman and local markets that farmers traditionally sell to.”
Maninder Kaur, MD.
Small Farmers Agri Business Consortium.