Why Buy and Sell Crops Online?

Name: Apurva Tripathi     Date: May 03, 2025

Farmers have been buying and selling crops for years in the same traditional way, the majority of them face the same issue that were faced by farmers before the rise of technology.Losing sales because of logistics or supply chains? Well you are not alone , from large to small farmers and distributors it doesnt matter all have been there.In recent years, the agricultural sector in India has witnessed a significant digital transformation. The rise of e-commerce platforms, mobile applications, and government initiatives has enabled farmers and buyers to engage in online crop trading more than ever before.

What is an Online Agriculture Marketplace?
An online agriculture marketplace is a digital platform, usually a website or mobile app that connects farmers, traders, and buyers to facilitate the buying and selling of agricultural products. These platforms allow users to trade crops, seeds, fertilizers, and other farm inputs or outputs directly without relying solely on physical mandis (markets).
For Example FasalMandi
A quick breakdown of what FasalMandi offer:
● For Farmers: A way to list and sell their produce to a wider audience, often at better prices.
● For Buyers : A space to browse, compare, and purchase crops or agri-products directly from producers.
● For Both: Tools like real-time price tracking, payment gateways, quality ratings, logistics support, and sometimes even crop insurance and credit services.

Why should farmers switch from traditional markets to Online markets ?
There are several advantages of an online marketplace for farmers.Some of the reasons why selling and buying crops online is becoming the preferred choice for many in India:
1. Better and Broader Market Access:
Online platforms remove geographic limitations, allowing farmers to reach a wider audience. Whether it’s a buyer in a nearby city or another state, digital marketplaces enable real-time connections and transactions.
2. Fair Pricing and Transparency:
Digital platforms provides real-time price data and eliminate middlemen, ensuring that farmers receive fair compensation for their produce. Buyers can also compare prices and choose the best quality products within their budget.
3. Convenience and Time-Saving :
Buying and selling crops online reduces the need for physical visits to mandis or markets. With just a smartphone and internet connection, users can complete transactions from the comfort of their homes or fields.
4. Quality Assurance and Reviews :
Many online platforms offer verified listings, quality certifications, and user reviews. This allows both the buyers and sellers to make informed decisions and build trust within themselves.

5. Government Support and Policies:

Initiatives like eNAM (National Agriculture Market) have further encouraged the use of digital platforms. These programs aim to integrate markets across the country and promote fair trade practices.
6. Access to Financial Services:

Online crop trading platforms are increasingly integrating financial services such as digital payments, insurance, and credit facilities. This improves financial inclusion for farmers and provides secure transactions for buyers.
7. Data-Driven Insights:

Digital tools can analyze trends, forecast demand, and suggest optimal selling times. Farmers can use this information to plan their cultivation and maximize profits.

Problems faced by farmers in Traditional Agriculture Markets:
Traditional agricultural markets in India impose numerous costs and barriers on small and marginal farmers from exploitative intermediaries to crumbling infrastructure and crushing post‑harvest losses. Lack of price transparency and market information leaves farmers with weak bargaining power, while credit constraints and inadequate storage further erode their incomes. Together, these factors contribute to chronic agrarian distress and reinforce the cycle of poverty in rural India.
● Exploitative Middlemen and Low Bargaining Power:
Farmers often sell with the help of middle men who demand large commission, leading to decrease in the profits for farmers. Because of the lack of alternative ways for buying and selling, the farmers had to accept whatever price they were offered.
● Information Asymmetry & Lack of Price Transparency:
In many mandis, real‑time price data isn’t shared, so traders exploit farmers’ ignorance of prevailing rates. According to AgEcon SearchIDinsight ,studies show this “buyer–seller information asymmetry” depresses farmgate prices by up to 20 %. Without transparent grading or quality certification, farmers can’t prove their produce merits higher prices, further weakening their negotiating position.
● Poor Infrastructure and Mandi‑Specific Bottlenecks:
Many regulated markets suffer from manual weighing, single‑window operations, and no electronic grading, leading to measurement errors often biased against sellers. Long queues, slow settlement systems, and lack of mechanized loading/unloading prolong the time produce spends in high‑heat, causing quality deterioration.
● Massive Post‑Harvest Losses and Storage Constraints:
According to Statista, India loses an estimated ₹926 billion worth of crops annually after harvest due to inadequate cold chain and warehousing—22 % of total foodgrain output. Perishable commodities like fruits and vegetables suffer the highest losses (up to 19–22 %), directly cutting into farmers’ potential earnings .
● Inadequate Access to Credit and Financial Services:
Most small farmers lack collateral or formal credit history, leaving them dependent on informal lenders at high interest rates. Even government schemes (e.g., Kisan Credit Cards) don’t reach all; farmers often borrow at 24–36 % APR from moneylenders, eroding their net margins .
Together, these entrenched problems depress farm incomes, fuel protests, and reinforce rural poverty. Shifting to online marketplaces can address many of these issues by cutting out middlemen, increasing price transparency, offering logistics support, and integrating financial services helping Indian farmers reclaim fair value for their produce.
Visit FasalMandi to explore more about buying and selling of crops online. You also reach out to us at info@fasalmandi.com to know more