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AgriTech Blog Series: ONDC Simplified-2
AgriTech Blog Series: ONDC Simplified-2

November 21, 2022

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Before getting into ONDC for AgriTech, it’s important to understand what ONDC is and how it works. Open Network for Digital Commerce, an initiative to promote open networks to exchange goods and services over digital networks in all possible aspects It’s an open protocol-based platform enabling local store owners to display their products and services in the search results of any app. In simple terms, after integrating with ONDC, all companies can sell their products and services on any platform.

By empowering small businesses, ONDC could help curb the monopoly of large players. It will provide equal opportunity for MSME businesses to enter the growing e-commerce business. Now, bringing e-commerce to agriculture is equally important, and hence ONDC plays a big role here.

NABARD (the National Bank for Agriculture and Rural Development) has already laid the groundwork by partnering with ONDC to promote e-commerce in AgriTech. NABARD hosted a grand challenge to establish market linkage for players with farmer-producer organisations.

Aim of ONDC:

  • Digital enabling In India, there are 12 million Kirana stores; currently, only 0.125 percent (15,000) of them are digitally enabled.
  • Increasing e-retail penetration in India, which is 4.3% (online retail GMV out of total retail GMV), is 25% for China, 26% for South Korea, and 23% for the UK.

What ONDC can offer:

  • Allow buyers, sellers, and logistics to interact with each other and require one-time registration from all.
  • Empowering retailers and merchants
  • Expanding reach to small retailers

Graphical user interface, application

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Source: ONDC

Principles behind ONDC:

  • Unbundling: A buyer on one platform cannot interact with a seller on another platform. ONDC allows unbundling of e-commerce components.
  • Interoperability: Unbundled e-commerce components can be interoperable.

That means if someone has a userbase, they can be a buyer application; they just need to allow a set of services, like check-in and check-out, or connect with a seller application.

Similarly, anyone can be seller application like If the PoS software contains specific store information and is enabled with ONDC, the store inventory information is available across the board. 

 

ONDC – One stop shops for all solutions:

  • If a person has to do the following activities:
    • Buying clothes
    • Purchase airline tickets
    • Take an education course.
  • Following ONDC, all of the aforementioned activities can be carried out on a single platform. 

 

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