It appears that the government-supported Open Network for Digital Commerce (ONDC) is about to receive an additional boost, as discussions are underway between the National Cooperative Consumers’ Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to offer discounted tomatoes on the platform within the Delhi/NCR region.
According to a report by news agency ANI, the ONDC platform is currently undergoing testing for the online sale of tomatoes. If all goes well, the government is planning to announce the sale of tomatoes on ONDC at a subsidized rate of INR 70 per kg in the near future, as stated by a reliable source.
The initial rollout of tomato sales on ONDC is expected to commence in Delhi/NCR, with plans to later expand to other cities.
The development comes at a time when the cost of tomatoes has skyrocketed to INR 160 per kg in certain parts of the country. In response to this concerning situation and to provide much-needed relief to the general population, the government has taken action. They have directed agricultural marketing agencies NCCF and NAFED to make tomatoes available at a subsidized price of INR 90 per kg. Subsequently, recognizing the urgency of the situation, the price was further decreased to INR 70 per kg, ensuring more affordable access to this essential commodity.
Read More: Central government takes action to address soaring tomato prices, plans procurement from key states
It must be noted that tomatoes are being sold for as much as INR 170 per kg by quick commerce platforms like Zepto, Blinkit, and Swiggy Instamart.
The latest development signifies the rising importance of ONDC, as it endeavors to expand its influence and impact. By introducing subsidized tomato sales in physical retail markets, the initiative aims to tap into a broader customer base, with a particular focus on targeting online shoppers. This strategic move is poised to provide a further push to ONDC, solidifying its position as a significant player in the distribution and e-commerce landscape.
The ONDC platform, launched last year, receives support from the Department for Promotion of Industry and Internal Trade. It functions as an open network with a primary objective of democratizing the ecommerce sector, facilitating the active involvement of small businesses.
Since its launch last year, the network has been steadily extending its reach to various cities and sectors. Just recently, ONDC announced its Beta launch in five additional cities, including Delhi/NCR, Mumbai, and Chennai. Furthermore, this month marked a significant achievement for the network, as it surpassed the milestone of processing 35,000 daily orders.
Read More: ONDC surpasses 35,000 daily retail orders, aims for 200,000 transactions by year end
Moreover, having already made a disruptive impact on multiple sectors such as food delivery and grocery delivery, the platform is now setting its sights on entering the fintech space.