Digital Mandis and Market Liberalization: Transforming Agriculture Trade Through E-Platforms in India

Abstract

The Agricultural Produce Market Committee (APMC) system, which has historically controlled India's agricultural markets through physical mandis, has been criticized for its inefficiency, high transaction costs, and lack of farmer autonomy. Electronic platforms, or "Digital Mandis," have been introduced as a result of recent policy changes and the development of digital technologies with the goal of enhancing price discovery and liberalizing trade. By increasing transparency, cutting out middlemen, and enabling direct farmer-to-business and farmer-to-consumer transactions, digital mandis are revolutionizing agricultural trade, as this paper explores. According to the study, which draws from case studies of platforms like the National Agriculture Market (e-NAM), e-platforms increase market access and boost competitiveness, but their success hinges on infrastructure, supportive regulations, and digital literacy. According to the analysis, digital mandis are a crucial step toward inclusive, effective, and technologically advanced agricultural markets in India when combined with more general liberalization policies.