As many as 5,630 farmers’ collectives across the states are now able to sell various agricultural produce including rice, pulses, honey, millets, mushrooms, spices and value-added products on the government’s e-commerce platform – Open Network for Digital Commerce (ONDC).
The platform is being promoted as an alternative to global e-commerce giants such as Amazon and Walmart for supporting small enterprises.
Since the farmers producer organisation (FPOs) started joining the ONDC platform in April, 2023, over 8,000 got registered with the government. Over 3,100 varieties of products are currently being traded on the platform.
“The move aims to empower FPOs with direct access to digital marketing, online payment, business-to-business and business-to-consumer transactions,” according to an official note.
Over the six months or so all the collectives registered with the government would be onboarded into ONDC so that they can sell their produce online.
In the last couple of months, Rich Returns, Baran, Rajasthan based FPOs has sold Rs 3,00,000 worth of chana and garlic papad and millets-based products through Mystore. “We have achieved a sales turnover of Rs 4,00,000 this fiscal on the ONDC,” Hari Om Nagar, CEO, Rich Returns, told FE.
In addition, the farmers’ collective from Rajasthan has supplied Rs 2,00,000 worth of pampad to the Indian army using the Government e-Marketplace (GeM) portal.
“Since on board of ONDC this fiscal, we have crossed sales of Rs 5 million and the target is increase sales to Rs 10 million in FY25,” Tapas Kumar Pati, chief operating officer, BASIX Krishi Samruddhi , a group which has supported 80 FPO into ONDC in Odisha, West Bengal, Bihar and Uttar Pradesh, sadi.
Pati said initially FPOs used services of India Post for delivery of the products because of the large network but subsequently other logistic partners have been added ensuring quicker delivery of products to consumers.
ONDC supports and trains FPOs, free registration, in developing and digitisation of product catalogues, generating shipping labels, identifying delivery partners and facilitating digital payments so that they leverage the platform for marketing of their product.
The network has more than 30 odd digital applications including Mystore, PayTM, Maginpin and Delhivery in the spheres of intercity logistics provider, platform for buyers and sellers and others.
While ONDC has collaborated with small farmers agribusiness consortium (SFAC), a body under agriculture ministry to support FPOs, officials said the aim is to support small and micro enterprises as FPOs face challenges in accessing markets countrywide.
Recently tech major Meta had announced a partnership with ONDC to upskill small businesses including FPOs.
For FPOs, the digital network provides direct access to digital marketing, online payment, business-to-business (B2B) and business-to-consumer transactions, and encourages local value addition, catalyzing growth of logistics in rural areas.
In April 2022, the government had launched ONDC, as a section 8 company established by the department for promotion of industry and internal trade.
Over 8,000 FPOs have been registered under the central sector scheme titled “Formation and Promotion of 10,000 FPOs” launched in 2020 with budgetary provision of Rs 6,865 crore.
Under the scheme, FPOs are provided financial assistance up to Rs 1.8 million per FPO for a period of 3 years. In addition, provision has been made for matching equity grants up to Rs. 2,000 per farmer member of FPO with a limit of Rs. 1.5 million per FPO. It also entails a credit guarantee facility up to Rs 20 million of project loan.
Officials said that the government now must provide support to FPOs to sell their products on the GeM used for public procurement by central and state government agencies.