Mr. Malik Kumar Meena, Manager, Sickle Innovations Pvt Ltd, Gandhinagar, Gujarat, talks about eCommerce in agriculture.
eCommerce is selling and buying of goods or any services over the internet. Post Covid, the eCommerce in India has grown manifolds. The data shows that it will reach 200 billion US $ by 2026, and India will be the second largest eCommerce market. The number of people who are purchasing things via eCommerce has increased, and it is expected to rise further with the better availability of internet. India’s total transaction is expected to reach 350 billion US $ by 2030. Some of the major segments where eCommerce contributes more are textiles, electronics, grocery, food, and furniture. But the agriculture sector does not have that much of presence in eCommerce. With rise in smart phone and internet users from rural areas also, the percentage of online buyers is increasing. It is also encouraged by the government to help buyers buy from online platforms and the sellers not to face the hassles of submitting tender, quoting price, etc. eCommerce increases the efficiency and transparency.
Some agriculture companies have forayed into eCommerce, apart from inputs for agriculture. The major players in the Agri input segment are Amazon, Flipkart, which occupy the major portion of the market. There are many other companies that provide Agri eCommerce for specific products and are doing good. Some of them are BigHaat, Agrostar, Gramik, Agribegri, Behtar, and so on that offer reliable supply of Agri inputs. One can find many Agri ingredients on these online platforms. We can search for Agri Kisan, and it will take us to the page where we can find Agri products like seeds, pesticide, herbicide, growth regulator, garden tools, and Agri implements. The new and innovative products are constantly added to the platform with better rating. We will then know which are better selling products with high rating.
Companies like BigHaat provide all sorts of Agri equipment and Agri inputs on their website, serving nearly 17 million farmers. They have more than 400 brands listed on their website under various categories. They are serving nearly 16 thousand places, and their growth and turnover are increasing exponentially. If we want to buy a small equipment, we can purchase directly. We can contact the nearby supplier to provide inputs, but we have to buy only what they sell. In an online platform, we can get micro fertilisers that are less in size and weight. BigHaat has received approximately 5 lakh orders in the last one year through website and calls. Gramik is another company that sells Agri inputs and other services through their apps and website. Their gross merchandise has gone up to Rs. 200 crores within 3 years. They have nearly 300 Agri products on their website. They purchase directly from the vendor and supply to the customers. They also have procurement centre where they store the inventory and send the goods to the customers based on the orders. Thus, time wastage is avoided, and supply is also faster. Most of the people search on Amazon for the goods. We can use multiple search terms to find a product with different names and uses. The volume of searching websites is increasing, and the volume of search for products like grass cutting machine is the highest.
The factors that drive the growth of Agri eCommerce in the recent times, especially after the pandemic, there is a significant increase in the purchase of products from Amazon and other eCommerce products. Digitalisation and connectivity has helped lot of people to access eCommerce platforms like Amazon, especially for urban people. The significant increase in number of people using smart phones and cheaper cost of data are other contributing factors. People can spend more time on eCommerce sites to search for product relevant to their requirements. Convenience and accessibility in rural areas, the advantage of purchasing by cash on delivery or UPI payments have increased the usage of these websites. The product variety is high. The retailers may not have more number of products, and your seeing and selecting a product is restricted. Products like power sprayer may be available in different quality and price online. This may not be available with the retailers. In an eCommerce platform, we can see more number of people selling the product at different prices and quality, specifications and size. With the retailers, the price and quality depend on the stock they have, we can negotiate, but there is no transparency of price. Online eCommerce sites reduce the time required to find the product at affordable prices which will be less than the ones with retailers. In Agri equipment sector in particular, the product feedback is available in eCommerce platforms. We can check the reviews about the product, feedback, and then decide whether to buy or not. We cannot get this information from the retailers.
There are a few challenges faced by farmers in eCommerce. First one is delivery services which has not improved much though it is better. Especially when a product has to be delivered to a remote village, it does not work out financially profitable for the delivery service. But when we buy in the traditional method, we can see, touch, and decide if we can buy it or not. In eCommerce platforms, we have to depend on the pictures and input provided by the dealer which often misleads farmers. Next one is the frauds which is increasing rapidly. There are many websites that offer good price for the product, but when we pay for it, wrong product or fake product is delivered to us. There is no way to resolve the issue. But in case of any aggregator, they will take the responsibility of buying from the vendors, deliver the product, and take care of the return and refund. Another major issue is the language as most of the eCommerce sites use English as the language. Some websites have the translation facility, but it may not be correct, thereby providing incorrect information to the farmers. Often there is no post sales service which is a problem for the farmers, while the retailers take the responsibility of post-sale service and spare parts.
Some of the reliable suppliers are Amazon Kisan store, Flipkart, BigHaat, AgriBegri, Gramik, Agrostar, Kisan eStore, Ugawoo, etc., that cater to people from many areas. They keep things in warehouses in various locations and supply making the delivery services fast. We need to go by some basic information by which we can identify if the product is good or not on websites. All the genuine websites will have contact details and phone numbers, and we have to check if the number is working or not. If the company is doing unethical business, the number will not work or people will not respond. So, it is better to avoid such websites. Also, companies that are not genuine, often change their website. We have to check the content of the website, spelling, details, errors, quality in general, additional details, conditions, shipping and refund policy, payment policy, and grievance mechanism. We also need to check the reviews of the product.
How is eCommerce currently being used to connect farmers with buyers in the Agri sector? What are the specific advantages eCommerce brings to farmers in case of market access and product sales?
From companies like BigHaat or Marketmirchi, farmers can actually put the details of their products, crops, quality, and quantity. eCommerce sites are majorly used by sellers to sell the products than buyers. There are reliable websites where we can connect with the trader to sell the Agri inputs. Instead of selling products and purchasing Agri products, when a seller lists up his products, there are less number of vendors and more number of buyers in that eCommerce site works well. They can maintain the quality of the content they have put on the website, manage the services required, logistics, and other things. But people are not too much in favour of letting go the traditional method of doing business. The sellers’ side in the eCommerce platforms is not much used, but some companies are working on it. They themselves become the middlemen and are not able to compete with the traditional value chain. It is going to take lot of time, and till the government starts the national mandi, it will be working the traditional segment only.
Can you provide examples of successful eCommerce platforms that have positively impacted the Agri trade? How does eCommerce contribute to reducing middlemen and improving profit margin for farmers?
Marketmirchi is one which is promoted by the government and is being used by people. The website has lot of good features, and from the information I get, lot of people are using it. marketmirchi.com is the name of the website. It basically provides apps for farmers for inputs that they want to purchase. In terms of selling model, there are lot of companies involved in connecting farmers directly to the traders or consumers. But not much is happening here. These companies have become middlemen as it is difficult to remove middlemen in Agri value chain. For the next few years it is going to be the same. Many of the companies have proved profitable or show significant action on ground. The funds they raised would have dried, and only a few companies like DeHaat have omnichannel model where they act as middlemen and help farmers purchase the produce. Mostly they are focusing on organic products, and so when the farmers try to sell the produce to consumer or trader online, it is not greatly successful.
What challenges do farmers face when engaging with eCommerce platform, and how can they be addressed?
The major challenge for the farmers is the language as the eCommerce platforms provide details in English, and very few have the option of translating the same into local languages. So farmers have to rely on images and ultimately end up buying wrong products. The logistics services is another issue as it is not fully developed to reach villages. Unless there are more buyers from a specific village, it is not financially viable for the delivery service company. So the farmers are forced to go to the nearest place and collect the product. When it comes to sale of seeds and pesticide, a single day’s delay can cause heavy loss to the farmer. The farmers do not want to depend on them, but they prefer to go to retailers and buy. Only recently, the government has relaxed selling pesticide and insecticide online. Some eCommerce websites have crop advisory who can suggest based on the issues in our farm, while many do not have.
Are there any government initiatives or policies to support and promote eCommerce adoption in agriculture? How can farmers effectively leverage eCommerce platform and tools for their produce? How do weather conditions and logistical challenges impact the efficiency of eCommerce in Agri transactions?
Only recently, the government has amended the law to sell pesticide on the eCommerce sites. The seller is benefited by the government market place as they can be helped to sell their produce. Government organisations have funds to buy from the seller. Otherwise the process is tedious. There is no subsidy for online purchases while the offline purchases have. Not much action is being taken to selling product online in agriculture sector. Some companies are working on it, but the area covered is less and limited by geography. Weather conditions impact the delivery services as it does in the traditional business. In the event of weather being bad, there will be delay in services till the condition improves.
In your opinion, what are the future trends or innovations we can expect in eCommerce in agriculture? Are there any specific training programs or resources available to educate the farmers on using eCommerce platforms for their benefit?
The main reason for the success of eCommerce is the availability of wide range of products for the people to choose and buy from. With the retailer, the options are limited and may not suit perfectly. Agri eCommerce promotes innovative products to reach the customers. When the number of implements ordered from a particular place is not more, the retailer may not procure it for a singe person, which can be done in an eCommerce platform. We can quickly identify and purchase directly. It is very useful for farmers who are looking for new technologies. Companies have resources such as the team who can educate farmers on how to purchase products online. They also run magazines. Bigger eCommerce companies analyse our problems, find solutions, and offer customized production services. The team educates the farmers to exercise caution. They teach them how to identify, upload the requirements, suggest medicines for pest control which is greatly helpful to the farmers.
Malik Mumar Meena
Manager, Business Development
Sickle Innovations Pvt Ltd
M +919913850925,
Email - malik@sickle.in
Web www.sickle.in
eCommerce is selling and buying of goods or any services over the internet. Post Covid, the eCommerce in India has grown manifolds. The data shows that it will reach 200 billion US $ by 2026, and India will be the second largest eCommerce market. The number of people who are purchasing things via eCommerce has increased, and it is expected to rise further with the better availability of internet. India’s total transaction is expected to reach 350 billion US $ by 2030. Some of the major segments where eCommerce contributes more are textiles, electronics, grocery, food, and furniture. But the agriculture sector does not have that much of presence in eCommerce. With rise in smart phone and internet users from rural areas also, the percentage of online buyers is increasing. It is also encouraged by the government to help buyers buy from online platforms and the sellers not to face the hassles of submitting tender, quoting price, etc. eCommerce increases the efficiency and transparency.
Some agriculture companies have forayed into eCommerce, apart from inputs for agriculture. The major players in the Agri input segment are Amazon, Flipkart, which occupy the major portion of the market. There are many other companies that provide Agri eCommerce for specific products and are doing good. Some of them are BigHaat, Agrostar, Gramik, Agribegri, Behtar, and so on that offer reliable supply of Agri inputs. One can find many Agri ingredients on these online platforms. We can search for Agri Kisan, and it will take us to the page where we can find Agri products like seeds, pesticide, herbicide, growth regulator, garden tools, and Agri implements. The new and innovative products are constantly added to the platform with better rating. We will then know which are better selling products with high rating.
Companies like BigHaat provide all sorts of Agri equipment and Agri inputs on their website, serving nearly 17 million farmers. They have more than 400 brands listed on their website under various categories. They are serving nearly 16 thousand places, and their growth and turnover are increasing exponentially. If we want to buy a small equipment, we can purchase directly. We can contact the nearby supplier to provide inputs, but we have to buy only what they sell. In an online platform, we can get micro fertilisers that are less in size and weight. BigHaat has received approximately 5 lakh orders in the last one year through website and calls. Gramik is another company that sells Agri inputs and other services through their apps and website. Their gross merchandise has gone up to Rs. 200 crores within 3 years. They have nearly 300 Agri products on their website. They purchase directly from the vendor and supply to the customers. They also have procurement centre where they store the inventory and send the goods to the customers based on the orders. Thus, time wastage is avoided, and supply is also faster. Most of the people search on Amazon for the goods. We can use multiple search terms to find a product with different names and uses. The volume of searching websites is increasing, and the volume of search for products like grass cutting machine is the highest.
The factors that drive the growth of Agri eCommerce in the recent times, especially after the pandemic, there is a significant increase in the purchase of products from Amazon and other eCommerce products. Digitalisation and connectivity has helped lot of people to access eCommerce platforms like Amazon, especially for urban people. The significant increase in number of people using smart phones and cheaper cost of data are other contributing factors. People can spend more time on eCommerce sites to search for product relevant to their requirements. Convenience and accessibility in rural areas, the advantage of purchasing by cash on delivery or UPI payments have increased the usage of these websites. The product variety is high. The retailers may not have more number of products, and your seeing and selecting a product is restricted. Products like power sprayer may be available in different quality and price online. This may not be available with the retailers. In an eCommerce platform, we can see more number of people selling the product at different prices and quality, specifications and size. With the retailers, the price and quality depend on the stock they have, we can negotiate, but there is no transparency of price. Online eCommerce sites reduce the time required to find the product at affordable prices which will be less than the ones with retailers. In Agri equipment sector in particular, the product feedback is available in eCommerce platforms. We can check the reviews about the product, feedback, and then decide whether to buy or not. We cannot get this information from the retailers.
There are a few challenges faced by farmers in eCommerce. First one is delivery services which has not improved much though it is better. Especially when a product has to be delivered to a remote village, it does not work out financially profitable for the delivery service. But when we buy in the traditional method, we can see, touch, and decide if we can buy it or not. In eCommerce platforms, we have to depend on the pictures and input provided by the dealer which often misleads farmers. Next one is the frauds which is increasing rapidly. There are many websites that offer good price for the product, but when we pay for it, wrong product or fake product is delivered to us. There is no way to resolve the issue. But in case of any aggregator, they will take the responsibility of buying from the vendors, deliver the product, and take care of the return and refund. Another major issue is the language as most of the eCommerce sites use English as the language. Some websites have the translation facility, but it may not be correct, thereby providing incorrect information to the farmers. Often there is no post sales service which is a problem for the farmers, while the retailers take the responsibility of post-sale service and spare parts.
Some of the reliable suppliers are Amazon Kisan store, Flipkart, BigHaat, AgriBegri, Gramik, Agrostar, Kisan eStore, Ugawoo, etc., that cater to people from many areas. They keep things in warehouses in various locations and supply making the delivery services fast. We need to go by some basic information by which we can identify if the product is good or not on websites. All the genuine websites will have contact details and phone numbers, and we have to check if the number is working or not. If the company is doing unethical business, the number will not work or people will not respond. So, it is better to avoid such websites. Also, companies that are not genuine, often change their website. We have to check the content of the website, spelling, details, errors, quality in general, additional details, conditions, shipping and refund policy, payment policy, and grievance mechanism. We also need to check the reviews of the product.
How is eCommerce currently being used to connect farmers with buyers in the Agri sector? What are the specific advantages eCommerce brings to farmers in case of market access and product sales?
From companies like BigHaat or Marketmirchi, farmers can actually put the details of their products, crops, quality, and quantity. eCommerce sites are majorly used by sellers to sell the products than buyers. There are reliable websites where we can connect with the trader to sell the Agri inputs. Instead of selling products and purchasing Agri products, when a seller lists up his products, there are less number of vendors and more number of buyers in that eCommerce site works well. They can maintain the quality of the content they have put on the website, manage the services required, logistics, and other things. But people are not too much in favour of letting go the traditional method of doing business. The sellers’ side in the eCommerce platforms is not much used, but some companies are working on it. They themselves become the middlemen and are not able to compete with the traditional value chain. It is going to take lot of time, and till the government starts the national mandi, it will be working the traditional segment only.
Can you provide examples of successful eCommerce platforms that have positively impacted the Agri trade? How does eCommerce contribute to reducing middlemen and improving profit margin for farmers?
Marketmirchi is one which is promoted by the government and is being used by people. The website has lot of good features, and from the information I get, lot of people are using it. marketmirchi.com is the name of the website. It basically provides apps for farmers for inputs that they want to purchase. In terms of selling model, there are lot of companies involved in connecting farmers directly to the traders or consumers. But not much is happening here. These companies have become middlemen as it is difficult to remove middlemen in Agri value chain. For the next few years it is going to be the same. Many of the companies have proved profitable or show significant action on ground. The funds they raised would have dried, and only a few companies like DeHaat have omnichannel model where they act as middlemen and help farmers purchase the produce. Mostly they are focusing on organic products, and so when the farmers try to sell the produce to consumer or trader online, it is not greatly successful.
What challenges do farmers face when engaging with eCommerce platform, and how can they be addressed?
The major challenge for the farmers is the language as the eCommerce platforms provide details in English, and very few have the option of translating the same into local languages. So farmers have to rely on images and ultimately end up buying wrong products. The logistics services is another issue as it is not fully developed to reach villages. Unless there are more buyers from a specific village, it is not financially viable for the delivery service company. So the farmers are forced to go to the nearest place and collect the product. When it comes to sale of seeds and pesticide, a single day’s delay can cause heavy loss to the farmer. The farmers do not want to depend on them, but they prefer to go to retailers and buy. Only recently, the government has relaxed selling pesticide and insecticide online. Some eCommerce websites have crop advisory who can suggest based on the issues in our farm, while many do not have.
Are there any government initiatives or policies to support and promote eCommerce adoption in agriculture? How can farmers effectively leverage eCommerce platform and tools for their produce? How do weather conditions and logistical challenges impact the efficiency of eCommerce in Agri transactions?
Only recently, the government has amended the law to sell pesticide on the eCommerce sites. The seller is benefited by the government market place as they can be helped to sell their produce. Government organisations have funds to buy from the seller. Otherwise the process is tedious. There is no subsidy for online purchases while the offline purchases have. Not much action is being taken to selling product online in agriculture sector. Some companies are working on it, but the area covered is less and limited by geography. Weather conditions impact the delivery services as it does in the traditional business. In the event of weather being bad, there will be delay in services till the condition improves.
In your opinion, what are the future trends or innovations we can expect in eCommerce in agriculture? Are there any specific training programs or resources available to educate the farmers on using eCommerce platforms for their benefit?
The main reason for the success of eCommerce is the availability of wide range of products for the people to choose and buy from. With the retailer, the options are limited and may not suit perfectly. Agri eCommerce promotes innovative products to reach the customers. When the number of implements ordered from a particular place is not more, the retailer may not procure it for a singe person, which can be done in an eCommerce platform. We can quickly identify and purchase directly. It is very useful for farmers who are looking for new technologies. Companies have resources such as the team who can educate farmers on how to purchase products online. They also run magazines. Bigger eCommerce companies analyse our problems, find solutions, and offer customized production services. The team educates the farmers to exercise caution. They teach them how to identify, upload the requirements, suggest medicines for pest control which is greatly helpful to the farmers.
Malik Mumar Meena
Manager, Business Development
Sickle Innovations Pvt Ltd
M +919913850925,
Email - malik@sickle.in
Web www.sickle.in