Powered by

Home Insight

How Online Mandis are different from Commodity Trading Companies

By Viestories
New Update
How Online Mandis are different from Commodity Trading Companies<br />

By providing farmers with a digital platform to sell their produce directly to buyers, online mandis are building a name for themselves in the agricultural industry. Online mandis, which can be generic or specialised in terms of items, are essentially online markets where farmers can sell their produce. E-mandi is the name of the technology that makes these transactions possible.

An E-mandi is essentially an electronic marketplace that facilitates transactions between sellers and buyers of agricultural produce. This article will explain how online mandis are different from commodity trading companies, and why agri-producer firms should consider registering as an online mandi instead of a CTC. E-mandis are gaining popularity among farmers and traders because of the ease with which they can strike deals and open new markets using these platforms.

Commodity Trading Companies (CTC)

A partnership corporation known as a commodity trading company (CTC) facilitates the trading of agricultural commodities. A CTC operates under the commission model, acting as a neutral party to assist buyers and sellers in negotiating a price before purchasing the good from the manufacturer and reselling it to the customer.

Read also - How Apna Godam brings Mandi at the door step of the farmer

Companies that trade commodities have been operating for a long time and offer several advantages. For instance, these companies can contribute to boosting the trading of agricultural commodities and the market's liquidity. Their lack of operational transparency, however, is their biggest drawback. Commodities are highly perishable and cannot be kept for an extended period of time after purchase.

Online Mandi

A technologically enabled online marketplace run by an e-mandi corporation is known as an online mandi. Farmers can upload information about their produce and the quantity they are willing to sell on the online mandi. The information is then made available to customers via the website, where they can purchase the fruit at a price that both the vendor and the customer have agreed upon.

The e-mandi company normally takes a percentage of the amount that the vendor and the buyer agree upon as payment. One of the main distinctions between an e-mandi and a CTC is this. Produce isn't first purchased by the e-mandi company and then sold to the customer. Online mandis are fully digital platforms that help sellers and buyers conduct transactions. In contrast to a CTC, there is no third party interference in this situation.

Apna Godam is an online mandi that is brought right to the doorstep of farmers. A corporation that specialises in post-harvest solutions, Apna Godam primarily serves the non-perishable market. It is the first officially announced online Mandi in both Rajasthan and India. As value-added services, it also offers warehousing, commodity finance, and logistic services in addition to facilitating spot trading of commodities. The farmer need not travel anywhere to sell the product to any buyer in the nation. With the assistance of a network of logistical partners, Apna Godam manages the logistics.

Read also - [Funding alert] Agri-Fintech startup Apna Godam raises Rs. 2 Cr in seed funding

Key Differences Between Commodity Trading Companies and an e-Mandi

  • Buyer-seller interaction - Commodity trading companies are not direct sellers to the buyer and may not even be aware of the names of the buyers. On the other hand, an e-mandi facilitates a direct interaction between the seller and the buyer. Once a seller has listed the produce they want to sell on the website, the buyer can contact the seller directly and negotiate a mutually agreed price.
  • Product specificity - Commodity trading companies deal with a broad range of agricultural commodities, such as wheat, cotton, corn, and soybeans. However, an e-mandi can be specific to a product or a group of products. For example, an e-mandi for onions or potatoes.
  • Product quality - In most cases, the quality of agricultural commodities is difficult to grade or differentiate. An e-mandi can segregate the produce based on the grade or quality of the produce. For example, cotton crops are graded as either normal or extra. Through an e-mandi, a farmer can sell only normal grade cotton and not extra grade.
  • Payment frequency - Payment for commodities is usually made once a year, and the entire quantity sold is paid to the farmer at that time. In the case of an e-mandi, the payment frequency can be as low as once a month.
  • Taxability - Commodity trading companies are taxed as non-corporate business entities (NCBEs). However, an e-mandi is taxed like any other marketplace.

Read also - Apna Godam – Super App for Farmers | Online Mandi

Why Agri-Producer Firms Should Register as an Online Mandi Instead of a CTC?

An agri-producer company should be persuaded to register as an e-mandi rather than a CTC based on the benefits mentioned above. There are moreover some other advantages. For instance, e-mandis are able to list and sell a wide range of agricultural commodities, including perishable goods and hard-to-sell goods. The vast advantages that an e-mandi offers over a CTC are the reason that agri-producer companies should think about registering as an e-mandi rather than a CTC.

E-mandis are additionally subject to GST, making them a more dependable source of income and a superior business opportunity than a CTC. E-mandis are more dependable sources of revenue and better business opportunities than CTCs because they are subject to GST. Aside from the primary distinctions between CTCs and e-mandis, it is important to keep in mind that an e-mandi is not a magic solution to every problem facing the agricultural industry. A wholesaler or a retailer in the supply chain cannot be replaced by an e-mandi or any other digital platform.

Conclusion

E-mandi is an online market for purchasing and selling agricultural products. Unlike a CTC, an e-mandi doesn't involve a third party. The buyer and seller negotiate a price directly, and e-mandi facilitates the transaction. Agri-producer enterprises should register as an e-mandi instead of a CTC due to its many benefits. E-mandis aren't a cure-all for agriculture's problems. In the supply chain, it can't replace a wholesaler or retailer. It has advantages over a CTC and can be an agri-ideal producer's partner.

Read also - How Agri logistics is solving the big problems of small farmers

Frequently asked questions (FAQs)

What is an Online Mandi?
A technologically enabled online marketplace run by an e-mandi corporation is known as an online mandi. Farmers can upload information about their produce and the quantity they are willing to sell on the online mandi.
What are the Commodity Trading Companies (CTC)?
A partnership corporation known as a commodity trading company (CTC) facilitates the trading of agricultural commodities. A CTC operates under the commission model, acting as a neutral party to assist buyers and sellers in negotiating a price before purchasing the good from the manufacturer and reselling it to the customer.
How Online Mandis are different from Commodity Trading Companies?
Online mandi is an online market for purchasing and selling agricultural products. Unlike a CTC, an e-mandi doesn't involve a third party. The buyer and seller negotiate a price directly, and e-mandi facilitates the transaction. Agri-producer enterprises should register as an e-mandi instead of a CTC due to its many benefits.

publive-image

Read the Next Article

Weekly Startup Funding News Report For 25 October - 29 October 2024 (Latest Updates)

Weekly Funding Roundup - We compile a Weekly Startups Funding News Report summarizing all the startups that secured funding during the week. This report provides a consolidated list of newly funded ventures daywise.

By Viestories
New Update
Weekly Startups Funding News Report For Monday, 17 June 2024 to Saturday, 22 June 2024
Weekly Startups Funding Report

Weekly Funding Roundup - We compile a weekly startups funding news report summarizing all the startups that secured funding during the week. This report provides a consolidated list of these newly funded ventures day-wise, offering a concise overview of the latest developments in the startup funding landscape. Get all Indian statups news at Viestoires.

Weekly Startups Funding News [25 October 2024 - 29 October 2024]

Althion Funding News - Althion has Secured Rs 3.6 crore in Pre-Series A Round Funding

Homversity Funding News - Homversity has Secured $1 Million in Pre-Series A Round Funding

Stellaris Venture Partners Funding News - Stellaris Venture Partners has closed its third Fund at $300 Million

CADRE ODR Funding News - CADRE ODR has Secured $200,000 in Strategic Funding

Ladies Who Lead Funding News - Ladies Who Lead has Secured $1 Million in Pre-Series A Round Funding

Nazara Technologies Funding News - Mumbai-based Nazara Technologies has Secured Rs 855 crore in Funding

ParkMate Funding News - ParkMate has Secured $1.2 Million in Pre-Series A Round Funding

Univest Funding News - Univest To Secured $16 Million in Funding

Arihant Foundations & Housing Funding News - Arihant Foundations & Housing Limited has Raised Rs 109 Cr in Funding

Alt Mobility Funding News - Alt Mobility has Raised $10 Million in Series A Round Funding

ShopDeck Funding News - ShopDeck has Raised $8 Million in Series B Round Funding

BitSave Funding News - BitSave has raised Undisclosed Amount in Pre-Series A Round Funding

True Diamond Funding News - True Diamond has Secured $1 Million in Seed Funding

Ikin Global Funding News - Ikin Global has Secured $1 Million in Pre-Series A Round Funding

All Things Baby Funding News - All Things Baby has Raised INR 30 Cr in Funding

OneCard Funding News - OneCard To Secures INR 239.4 Cr From Peak XV Others

Solarworld Energy Funding News - Solarworld Energy Solutions Secured Rs 110 cr in Pre-IPO Placement

Biomaterials Funding News - Biomaterials startup Ukhi has Raised $1.2 Million in Pre-Seed Funding

Beyond Appliances Funding News - Beyond Appliances has Secured $2 Million in Seed Funding

Elchemy Funding News - Elchemy has Secured $5.6 Million in New Funding

18 Oct. to 23 October 2024 Funding News

Zepto  Funding News - Zepto has Secured Another $350 Mn From Domestic Investors

KGeN Funding News - Decentralized gaming network KGeN has Secured $10 Million in Funding

Zopper Funding News - Zopper has Raised $25 Mn in Series D round Funding

CredFlow Funding News  - CredFlow raises $3.7 Million in Pre-Series B Round Funding

Order For Health Funding News - Order For Health Secures INR 1 Crore in Seed Series Round Funding

OneCell DiagnosticsFunding News - OneCell Diagnostics has Secured $16 Million in Series A Round Funding

Abyom Funding News - Abyom has Secured $2.5 Mn in the First Tranche of $5.4 M Seed Funding

Locad Funding News - Locad has Secured $9 Million in a Pre-Series B Round Funding

Doodhvale Farms Funding News - Doodhvale Farms has Secured $3 Million in Funding

Taqtics Funding News - SaaS Platform Taqtics has Secured $1.2 Million in Seed Funding

Baanhem Ventures Funding News - Baanhem Ventures has Secured Rs 3.3 crore Fresh in Funding

Indic Wisdom Funding News - Indic Wisdom Secures $2 Million in Pre-Series A Round Funding

PeLocal Funding News - Fintech startup PeLocal Secures $2 Million in Seed Funding

Proost Beer Funding News - Proost Beer Secures INR 30 Cr in Series A Round Funding

Theranautilus Funding News - Deeptech Startup Theranautilus Secures 1.2 million in Seed Funding

Swish Funding News - 10-minute food-delivery Startup Swish Secures $2 Million

HealthKart Funding News - Omnichannel nutrition platform HealthKart Secures $153 Million in Funding

Matrix Geo Solutions  Funding News - Matrix Geo Solutions Secures Nearly $1 Million in a pre-IPO Funding

Adani Green Energy  Funding News - Adani Green Energy plans to raises $2 billion through bonds and loans

VoloFin Funding News - Supply Chain Fintech VoloFin Raises $50Million in Funding

11 Oct. to 16 October 2024 Funding News

LegalKart  Funding News - LegalKart Secures Rs 6.5 Cr in Fresh Round Funding

Airbound Funding News - Drone Startup Airbound Receives Funding from Lightspeed

SarvaGram Funding News - SarvaGram Secures Rs 565 Crore in a Series D Round Funding

Pavestone Technology Funding News - Pavestone VC Closes its Pavestone Technology Fund at INR 816 Cr

Mushin Innovative Funding News - Mushin Innovative Labs raises $250K in Seed Series Round led by Inflection Point Ventures

ePlane Funding News - The ePlane Company Raises $14 Million in Series B Round Funding

Pikndel Funding News - Pikndel Raises $1 Million in Seed Round Funding

Ennoventure Funding News - AI SaaS startup Ennoventure has raised $8.9 million from Tanglin Venture Partners

BlackBuck Funding News - BlackBuck Secures INR 501 Crore from Anchor Investors

Vedantu Funding News - Vedantu Secures $2.3 Mn Debt and Equity Capital Funding from Stride Ventures

Curefoods Funding News - Curefoods Raises $9.6 Mn Funding Led by Binny and Jitender Kumar Bansal

Qure.ai Funding News - Qure.ai Secures $65M Series D Funding Round Led by Lightspeed and 360One Asset

HomeLane Funding News - HomeLane to Acquire Design Cafe and Raises Rs 225 Cr Funding

Seekho Funding News - Seekho to Raises $8-10 Mn Funding from Lightspeed and Elevation

Care.fi Funding News - Fintech Startup Care.fi Raises Rs 8 Cr in Debt Funding Round

12 September 2024 - Funding News

Trisu Funding News - A pre-seed funding round, which was co-led by All In Capital, has secured an undisclosed quantity of investment for the vermeil jewelry brand Trisu.

GameEon Funding News - GameEon, a game development studio, has raised $1 million in its most recent funding round, which was co-led by SucSEED Indovation Fund, ICE VC, IAN, CD EQUIFINANCE, Nexus Global Opportunities Fund, Vivek Goel, Patni Family, Tal64.

Wundrsight Funding News - Wundrsight, a digital therapeutics startup, has secured $400K in its seed round, which was led by Inflection Point Ventures. Social Alpha, in conjunction with other angel investors, has also participated in the round.

Dharaksha Ecosolutions Funding News - Dharaksha Ecosolutions, a biotech-driven R&D start-up, has secured Rs 24.8 crore (approximately $2.95 million) in a Seed funding round sponsored by Avaana Capital.

Omnivore Funding News - Omnivore’s third fund, the Omnivore Agritech and Climate Sustainability Fund, received $5 million in investment from Proparco, a subsidiary of the Agence Française de Développement (AFD) Group.

Futwork Funding News - In its Series A round, which was led by the Michael & Susan Dell Foundation and included Artha Ventures, Simile Capital, and other investors, sales outreach platform Futwork has raised Rs 20.9 crore, about $2.5 million.

Centricity Funding News - In a seed round, Lightspeed and returning investors Burman Family Office and Shantanu Agarwal, among others, led the investment in wealth management startup Centricity, which raised $20 million at a valuation of $125 million.

11 September 2024 - Funding News

Zivy Funding News - Zivy, an AI tool that prioritizes workplace messages and duties, has secured $1.2 million in a pre-seed funding round co-led by Blume Ventures, Paradigm Shift Capital, iSeed, Everywhere Ventures, Indian Silicon Valley, and Marsshot Ventures.

Mitra Funding News - A strategic family office based in Dubai and Bestvantage Investments led the Pre-Series A fundraising round for D2C FMCG firm Mitra, which raised INR 11 Cr ($1.3 Mn).

InMobi Funding News - MARS Growth Capital, a joint venture between MUFG and Liquidity Group, has provided $100 million in debt financing to InMobi, a provider of mobile advertising network software.

Track3D Funding News - Track3D, an AI reality intelligence platform for the construction industry, announced that it had secured $4.3 million in seed funding. The funding was led by Endiya Partners, with participation from Shadow Ventures and Monta Vista Capital.

 Flexiloans Funding News - In an equity funding round led by American not-for-profit fund Accion, US asset management firm Nuveen, and Nandan Nilekani-backed venture fund Fundamentum, Mumbai-based digital lending startup Flexiloans has secured Rs 290 crore (approximately $35 million).

10 September 2024 - Funding News

Crackle Technologies Funding News - Crackle Technologies, an adtech startup, has secured $1.7 million (approximately INR 14 crore) in a pre-seed funding round that was jointly headed by We Founder Circle and AC Ventures.

Nestasia Funding News - Nestasia, a lifestyle and home décor brand, secured $8.35 million in a new funding round from Susquehanna Asia VC, Stellaris Venture Partners, and angel investors.

Supersquad Funding News - Supersquad, a startup that specializes in creator monetization, has secured Rs 2.1 crore in a funding round that was spearheaded by WLDD. Nitin Rajput and Jivraj Singh Sachar, angel investors, also contributed to the round.

AppsForBharat Funding News - AppsForBharat, the parent company of the devotional app Sri Mandir, has secured $17.8 million in its Series B funding round, which was led by Fundamentum.

Arnya Real Estate Funding News - Arnya Realestates Fund Advisors, an alternative investment management firm, has successfully closed the first close of its Rs 1,000-crore maiden debt fund, raising Rs 375 crore.

9 September 2024 - Funding News

Transcell Biologics Funding News - Quantiphi and IAN Group, both of Boston, have invested an undisclosed sum in Transcell Biologics, a biotechnology company.

5 September 2024 - Funding News

Nautical Wings Funding News - Nautical Wings Aerospace Raises Pre-Series A Funding

Rapido Funding News - Rapido Secures $200 Mn Funding Round from WestBridge

4 September 2024 - Funding News

Sunsure Energy Funding News - Sunsure Energy Secures Rs 226 Cr Long Term Debt Funding

Spolto Funding News - Sports-tech Startup Spolto Secures $1 Mn in Seed Funding Round

Valyx  Funding News - Valyx Raises $800K Pre-Seed Funding Round Led by Huddle Ventures and Waveform Ventures

3 September 2024 - Funding News

Mytek Innovations Funding News - Infratech Startup Mytek Innovations Secures Rs 6 Cr Debt in Funding

Plan B Funding News - Kids Innerwear Brand Plan B Secures Funding from JIIF, Others

Theater Funding News - Theater Secures $1.5 Mn Pre-Series A Funding Round

2 September 2024 Monday - Latest Funding News in India

Mintifi Funding News - Mintifi a B2B digital lending startup, is reportedly in discussions to secure $100 million in a new funding round.

Clean Electric Funding News - Clean Electric, an energy storage solutions startup, has secured Rs 48.5 crore (approximately $6 million) in funding from both new and existing investors.

Want to go deeper into the world of startups and entrepreneurship? Check out these categories on VIESTORIES:

Startup Success Stories: Discover inspiring tales of startups overcoming challenges and achieving success.

Funding Startup News: Stay updated with the latest news and trends in startup funding and investment.

Startup Insights: Dive into in-depth analyses of various industries and market trends to make informed business decisions.