Agri Startups with E-Commerce Platforms

• 21 Jun 2024

Why in News?

The Uttar Pradesh government is planning to connect the state's agriculture commodity startups with central government promoted e-commerce platforms like ONDC (Open Network for Digital Commerce) and e-NAM (National Agriculture Market).

Key Points

• The state government has instructed the agriculture department to link Farmer Producer Organizations (FPOs) with ONDC and e-NAM using a specialized farmer producer cell, which will be formed shortly.
  • The startups are also at liberty to join any e-commerce or digital marketing platform.
• The state plans to support an open agriculture market by streamlining licensing procedures for inputs like fertilisers, seeds, and pesticides, as well as licenses for market yards, Goods and Services Tax (GST), Food Safety and Standards Authority of India (FSSAI), and connecting with the ONDC and e-NAM platforms for market access.
  • Around 3,240 FPOs are currently active in Uttar Pradesh as part of the Atmanirbhar Krishak Samanvit Vikas Yojana.
  • Under Atmanirbhar Krishak Samanvit Vikas Yojana, 2,725 FPOs will be formed, which will directly benefit 27.25 lakh shareholder farmers.
• The Uttar Pradesh government has collaborated with industry partners to boost food processing and implement artificial intelligence in agriculture.
  • They also aim to organize the Krishi Bharat global farmers' conference in November 2024 in partnership with the Confederation of Indian Industry (CII).
  • Farmers from nations including the US, Germany, Brazil, Italy, Poland, France, Spain, Indonesia, and Kenya are anticipated to attend the four-day event in Lucknow.

ONDC (Open Network for Digital Commerce)

• The ONDC aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols, independent on any specific platform.
• The project to integrate e-commerce platforms through a network based on open-source technology has been tasked to the Quality Council of India.
• Implementation of ONDC, which is expected to be on the lines of Unified Payments Interface (UPI) could bring various operational aspects put in place by e-commerce platforms to the same level.
  • Various operational aspects include onboarding of sellers, vendor discovery, price discovery and product cataloguing etc.
• On ONDC, buyers and sellers may transact irrespective of the fact that they are attached to one specific e-commerce portal.

E-NAM (National Agriculture Market)

• It is a pan-India electronic trading portal for agricultural commodities.
• It enables farmers to sell their produce directly to buyers, reducing intermediaries, ensuring fair prices, and enhancing sustainability.

Other Government Schemes to Promote Agri-Export in India

• Operation Greens: Operation Greens is an initiative to stabilise the supply and prices of essential agricultural commodities, including fruits and vegetables.
  • It aims to reduce price volatility, ensure farmers receive remunerative prices, and promote sustainable agri exports.
• Market Access Initiative (MAI): MAI is a program that supports export promotion activities, including participation in international trade fairs, capacity building, and market research. It helps Indian agricultural exporters explore new markets and gain market access.
• Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA): SAMPADA aims to modernise infrastructure for agro-processing clusters, which helps reduce post-harvest losses, increase the shelf life of agricultural products, and enhance the export competitiveness of Indian agri-products.
• National Horticulture Mission (NHM): NHM focuses on promoting sustainable horticulture practices, including organic farming, precision farming, and water-use efficiency. It supports the production of high-value horticultural products for export.
• APEDA (Agricultural and Processed Food Products Export Development Authority): APEDA is responsible for promoting the export of scheduled products and provides guidelines for sustainability, quality, and certification requirements for exporters.
• Setting up of Agri Export Zones (AEZs): AEZs are established in different parts of the country to promote the export of specific agricultural commodities.
  • These zones provide a conducive environment for sustainable agri exports through infrastructure development and technology adoption.
• Promotion of Organic Farming: The government has initiated programs to promote organic farming, which contributes to environmental sustainability and increases the export potential of organic products.

Confederation of Indian Industry (CII)

• CII is a non-government, not-for-profit, industry-led and industry-managed organization. It was founded in 1895.
• It works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes.