Kisan Mandi

Kisan Mandi is an online platform operated by the Small Farmers Agribusiness Consortium (SFAC) that facilitates the purchase, sale or promotion of fruits and vegetables, agri-produce, agri-machinery, tools, tractors, etc in the Delhi NCR region. The portal, which could be utilized by the farmers at no cost, aids them in selling their produce to the end consumers without engaging any middlemen. Also, the farming sector would benefit from direct group procurement of agri-products or machinery from manufacturing companies and major distributors at a reasonable price.

Objective

Kisan Mandi was introduced with the objectives of eliminating middlemen to help the farmers garner more profits and reducing information asymmetry between small farmers and consumers. Consumers in this context refer to bulk buyers such as organized retail chains, hotels, caterers, offline and online retail chains, exporters etc.

Platform Overview

The project would enable buyers to make direct procurements of fruits and vegetables from Farmer Producing Organizations (FPOs) operating in hubs like Nashik and Western Uttar Pradesh through local franchisees. These local franchisees would be involved in quality grading and sorting of produces before linking it to an electronic platform. All products under the initiative are processed as per the defined quality parameters.
We can infer from the above that the FPOs, promoted by the Small Farmers’ Agribusiness Consortium (SFAC), would use the platform to make direct sales of produce, i.e. without the intervention of any commission agents.
Facilities such as transit cold storages and warehouses would be provided to Farmer Producer Organizations (FPOs) and grower associations who are having stalls at the market.
The software for the portal is developed by National Commodity and Derivatives Exchange (NCDEX), and funded by the Centre.
The procurer may, through the portal, assess the quality and grade of the produce through the portal before proceeding with the procurements.

Who can be a Franchisee?

A franchisee, in this context, could be a private player, an entrepreneur or a mandi registered with the portal. As already stated, franchisees have been designated with the task of verifying the quality and quantity of produce before sourcing them for auctions.

Why Delhi?

India’s capital was chosen as the launch destination as it is among the seven States/Union Territories that had delisted fruits and vegetables from the Agriculture Produce Marketing Committee (APMC) Act. For the awareness of the readers, the delisting has enabled farmers to sell their produce to wholesale markets beyond designated limits. The platform may soon be extended to the States of Maharashtra, Madhya Pradesh, and Uttar Pradesh.

Note – Delhi is Asia’s largest market for fruits and vegetables, receiving 11,000-13,000 tonnes on a daily basis.

Anticipations

The project is expected to yield a profit of up to 20-25% for the producers, and 15-20% for the consumers. The financials apart, it is envisaged to tackle the asymmetry between buyer and seller as the buyers could quote a price before trading (if acceptable to the farmer) and make a successful transaction. This ensures transparency and mutual benefits as the farmer is also empowered to decide a price and save his/her money from being wasted on commissions to middlemen.

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Frequently Asked Questions

Common questions about Online Platform for Agri Produce Sales in Delhi NCR.

Kisan Mandi is an online platform operated by the Small Farmers Agribusiness Consortium (SFAC) that facilitates the direct purchase, sale, or promotion of agricultural produce, machinery, tools, and tractors in the Delhi NCR region. It aims to eliminate middlemen and help farmers earn higher profits by selling directly to consumers.

The Kisan Mandi platform can be utilized by farmers, Farmer Producer Organizations (FPOs), and bulk buyers such as organized retail chains, hotels, caterers, offline and online retail chains, and exporters. Farmers and FPOs can sell their produce directly to these buyers through the platform.

Local franchisees are involved in quality grading and sorting of produce before listing it on the electronic platform. All products listed on Kisan Mandi are processed as per defined quality parameters, and buyers can assess the quality and grade of the produce through the portal before making purchases.

Delhi was chosen as the launch destination for Kisan Mandi because it is one of the seven states/union territories that have delisted fruits and vegetables from the Agriculture Produce Marketing Committee (APMC) Act. This deregulation allows farmers to sell their produce in wholesale markets beyond designated limits.

Kisan Mandi helps farmers garner higher profits by eliminating middlemen and enabling direct sales to consumers. It reduces information asymmetry between small farmers and buyers, ensures transparency in pricing, and empowers farmers to decide the price for their produce without paying commissions to middlemen.

Consumers, such as bulk buyers, can benefit from Kisan Mandi by procuring fresh produce directly from farmers and FPOs at reasonable prices. The platform is expected to yield savings of up to 15-20% for consumers due to the elimination of middlemen.

The software for the Kisan Mandi portal was developed by the National Commodity and Derivatives Exchange (NCDEX), and the project was funded by the Central Government.

The Kisan Mandi platform may soon be extended to the states of Maharashtra, Madhya Pradesh, and Uttar Pradesh, as the article mentions these as potential expansion destinations.

Franchisees on the Kisan Mandi platform can be private players, entrepreneurs, or registered mandis. They are designated to verify the quality and quantity of produce before sourcing them for auctions on the platform.

Kisan Mandi tackles information asymmetry by enabling buyers to quote a price before trading, which farmers can accept or reject. This ensures transparency and mutual benefits, as farmers are empowered to decide the price and avoid paying commissions to middlemen.