The news of corporations increasingly procuring agricultural products directly from Farmer Producer Organizations (FPOs), effectively bypassing traditional mandis, is a development I’ve watched unfold with a deep sense of reflection Hindubusinessline. It’s a testament to the persistent push towards a more transparent and efficient agricultural ecosystem, an evolution I've long contemplated and advocated for.
Years ago, I often spoke about the vital necessity of leveraging technology to bridge the chasm between farmers and markets, directly challenging the opaque structures that often disempowered our farmers. I vividly recall the discussions surrounding the old farm laws and the palpable fears — not just of farmers, but also the unspoken concerns of adatiyas (middlemen) losing their traditional business. It was clear then that the very objective of reform was to shorten the long chain of intermediaries that historically separated farmers from consumers, capturing significant value along the way.
In December 2020, in my blog titled "e-NAM; reimagined to resolve farmer agitation," I proposed a concrete solution: a dedicated 'CONTRACT FARMING' section within the existing e-NAM portal. My vision was for a platform where farmers and corporate buyers could register, share their requirements, and enter into transparent, digitally recorded contracts. I even suggested algorithms for 'match-making' to generate shortlists and alerts, ensuring fair prices and government oversight. It's truly striking how relevant that earlier insight still is, and I feel a distinct sense of validation seeing these ideas materialize in practice today.
The expansion of India’s e-NAM platform, now integrating 247 tradable items and aiming for enhanced market access and price discovery Markets.financialcontent.com, perfectly aligns with this digital transformation. This is not merely adding products; it’s solidifying the foundation for a unified, efficient national agricultural market. The recent reports confirm that companies like Olam India, Britannia, Mother Dairy, and HIL are actively participating in direct procurement from FPOs in states like Uttar Pradesh and Bihar Hindubusinessline. This directly echoes my earlier calls for enabling direct procurement from farm-gates by processors, exporters, and bulk buyers, a theme I explored in "Influence farmers and win Votes?" and "A Grass-Root Revolution" back in 2019.
This shift is instrumental in reducing the 'double asymmetry of information' and 'collusive practices' that have historically undermined competitiveness in traditional regulated markets, as noted in the recent study on natural farming in Himachal Pradesh SSRN. The very essence of e-NAM and direct FPO linkages is to empower farmers, turning them from 'price takers' into 'price makers,' especially for high-value and unique regional crops. My blog, "Integration of mandis with eNAM helping farmers as the role of middlemen is curbed" (August 2025), further highlighted this crucial curbing of intermediaries.
While this progress is gratifying, I also recognize the ongoing challenges. The need for improved digital literacy among farmers, robust rural infrastructure, and streamlined payment systems remains critical. My earlier discussions on these very foundational pillars of agricultural transformation, specifically the necessity of government-backed training initiatives, public-private partnerships for infrastructure development, and the integration of advanced fintech solutions for secure and instant payments, are now more pertinent than ever. For instance, in 'A Grass-Root Revolution' (2019), I highlighted how empowering local communities with digital tools and financial literacy is crucial for any reform to take root and flourish. The success of direct procurement and FPO models hinges not just on their existence, but on the full participation and capability of every farmer within the system. Ensuring equitable access to technology and information, alongside a robust physical and digital infrastructure, will be key to unlocking the full potential of this agricultural revolution, ensuring that the benefits truly reach the last mile and transform the lives of millions of farmers across India.
Regards,
[Hemen Parekh]
Any questions? Feel free to ask my Virtual Avatar at hemenparekh.ai
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