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Sunday / December 8. 2024
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 By Bilal Khimji, Co-Founder, TradeBridge

The global B2B e-commerce in the agriculture market was valued at $6.90 billion in 2021 and is expected to grow at a CAGR of 6.4 per cent from 2022 to 2030. Polaris Market Research & Consulting, Inc noted that factors such as increased penetration of the internet along with the growing usage of mobile phones and the benefits of these platforms are driving the B2B e-commerce in agriculture market growth. According to Tracxn Technologies report there are over 712 companies in India in B2B Farm Produce E-Commerce space as on September 12, 2024. Over 1389 mandis of 23 states and four union territories have been integrated into the National Agriculture Market (eNAM), a platform that was launched in 2016 and has over 1.77 crore registered farmers, 2.53 lakh registered traders and 3510 FPOs onboarded as on February 11, 2024.

The agricultural sector is the backbone of the global economy, contributing significantly to food security, employment, and overall economic growth. According to the Food and Agriculture Organization (FAO), the global food market is expected to reach a staggering $8 trillion by 2030. This immense growth presents a wealth of opportunities, particularly for trade, supply-chain, Agri-Tech and B2B trade platforms. While there are a growing number of players in the market for perishable commodities, no one has been able to crack the code for non-perishable agricultural commodities yet.

Challenge: Fragmented Mandis Hinder Efficiency

India’s traditional agricultural market relies on a network of mandis, which while crucial, suffer from inefficiencies:

Multiple Intermediaries: Layers of middlemen chip away at farmer profits and inflate consumer prices.

Limited Transparency: Opaque pricing leaves farmers vulnerable to exploitation.

Restricted Market Reach: Local mandis limit farmers’ access to broader markets and potentially better pricing.

Poor Infrastructure: Lack of proper storage facilities leads to spoilage and reduces profits.

Limited Information Access: Farmers lack real-time data on market trends, hindering informed decision-making.

These inefficiencies have a domino effect.

Reduced Farmer Income: Intermediary commissions deplete profits, discouraging investment in better practices and hindering overall agricultural productivity.

Higher Consumer Prices: Supply chain inefficiencies lead to higher costs for fresh produce.

Post-Harvest Losses: Inadequate infrastructure and handling practices cause significant losses, impacting food security.

Opportunity: Non-Perishables and B2B Platforms

Unlike perishable goods, non-perishables like dried fruits, spices, cereals, and oilseeds offer greater flexibility in storage and transportation, opening doors for international trade. B2B platforms can revolutionise this market by:

Streamlining Trade: Replacing complex networks with direct connections between buyers and sellers increases transparency and simplifies transactions.

Enhanced Market Access: Platforms connect businesses with a wider pool of potential partners, both locally and globally, empowering small and medium-sized enterprises (SMEs) to compete internationally.

Improved Price Discovery: By aggregating data on supply, demand, and market trends, platforms provide valuable insights for both buyers and sellers, leading to fairer pricing for farmers and competitive prices for buyers.

Reduced Transaction Costs: Eliminating unnecessary intermediaries and automating processes leads to significant cost reductions for businesses, boosting profitability for all parties.

Increased Farmer Empowerment: By removing middlemen, B2B platforms allow farmers to sell at their own pricing, increasing their profit margins.

Power of Technology: Transforming Supply Chains

Technology is fueling the rise of B2B trade platforms. Some key advancements include:

Blockchain Technology: Ensures secure and transparent tracking of products throughout the supply chain, fostering trust, reducing fraud, and enabling efficient logistics management.

Big Data Analytics: Provides valuable insights into market trends, consumer preferences, and production patterns, enabling better demand forecasting, inventory management, and risk mitigation strategies.

Artificial Intelligence (AI): Automates tasks like order processing, logistics planning, and credit risk assessment, increasing efficiency, streamlining processes, and minimising human error.

Beyond Technology: Importance of Distribution

Effective distribution is crucial. A robust network of warehouses, transportation facilities, and logistics providers ensures timely delivery of non-perishable goods. Platforms that can seamlessly integrate with existing networks or develop their own efficient systems will have a significant competitive edge.

Niche of Efficiency: Perishables vs Non-Perishables

B2B platforms need to differentiate between perishables and non-perishables. Perishables, like fruits and vegetables, have short shelf lives and require specialised cold-chain management. Non-perishables require a different approach. B2B platforms focusing on non-perishables can carve out a niche by offering:

Standardised Quality Assessments: Ensure consistent product quality for buyers.

Flexible Warehousing Options: Cater to the specific storage needs of various non-perishable commodities.

Efficient Transportation Solutions: Designed for longer shelf-life products.

Why the Lag?

Despite its potential, the non-perishable B2B trade space remains underutilised. Fragmented supply chains and an opaque environment due to intermediaries hinder direct interaction between buyers and sellers.

To read more click on:https://agrospectrumindia.com/e-magazine

 By Bilal Khimji, Co-Founder, TradeBridgeThe global B2B

This new feature will allow buyers to inspect and purchase essential agro-commodities instantly, thus reducing the delivery time from days to minutes.

TradeBridge, India’s leading B2B agri-tech marketplace, was launched in 2020 to improve and digitise trade. TradeBridge has chosen to merge its existing technology expertise with increasing accessibility to upgrade the agro-commodity market by announcing its latest innovation, “TB’s AgroMobile: Dark Store on Wheels” India’s first movable dark store. This new feature will allow buyers to inspect and purchase essential agro-commodities instantly, thus reducing the delivery time from days to minutes.

In phase 1, TB’s AgroMobile will be available in Mumbai. They will gradually increase their presence to five more cities across Tier-1 and Tier-2 cities by the end of 2024. This movable dark store will also allow purchasers to place orders online at any given time to align their delivery as per their convenience. Through this, TradeBridge intends to targer and uplift the 1.3 crore kirana stores all over India.

Sameer Bhanushali, Co-founder of TradeBridge, says, “Since our inception in 2020, TradeBridge has been dedicated to revolutionising the agri-commodity trade landscape in India. We recognise the need for a seamless, transparent, and equitable system. This new feature reflects our commitment to the growth of the ecosystem through businesses and farmers. It is also a testament to the hard work and dedication of the entire TradeBridge team, and I am proud of the success our team has achieved so far. Our ambition is to become an agri-unicorn, and we believe this innovative platform is a major step towards achieving that goal.”

TB’s AgroMobile feature provides farmers with another opportunity to bypass traditional market limitations. The model will decrease 4–5 layers of middlemen, allowing products to be more affordable for buyers while offering farmers a better selling price.

Bilal Khimji, Co-founder of TradeBridge, expresses his enthusiasm for the new launch, “TB’s AgroMobile: Dark Store on Wheels is a feature that simplifies the purchasing process and accelerates turnaround time while ensuring quality isn’t compromised. It also ensures that small and medium-sized business owners manage their working capital more efficiently. We are attempting to enter micromarkets in Tier 1 and Tier 2 cities with this model. When combined, these micromarkets have a sizable purchase gap that needs to be filled. Based on customer preferences, we intend to extend our reach to multiple densely populated pockets across the country, starting with Mumbai. We want to create increasing opportunities for the entire agro-ecosystem in the coming years.”

The concept of TB’s AgroMobile will not only decrease turn-around time but will also allow buyers to shorten their inventory cycles. This, in turn, has a bundle of opportunities and benefits for purchasers to explore.

This new feature will allow buyers to