In a significant move to enhance public procurement, Keralam’s Agriculture department has launched an integrated digital mechanism for the special Onam markets this festival season. This system aims to streamline the procurement process from farmers and ensure timely payments, while also grading market efficiency.
Overview of the Integrated Digital Mechanism
The newly launched integrated digital mechanism in Keralam’s Onam markets is designed to facilitate effective tracking of all activities from procurement to sales. This system allows for direct benefit transfers to farmers’ bank accounts, ensuring that payments are made promptly. The initiative was inaugurated on August 22, 2026, during the opening of 2,000 special markets aimed at stabilising prices for vegetables and fruits during the festive season. With this mechanism, the Agriculture department can monitor sales turnover and efficiency, thereby enhancing the overall procurement process.
Pricing Strategy and Market Operations
The Onam markets operate on a pricing strategy that benefits both farmers and consumers. Farmers are offered a price that is 10% higher than the prevailing open market rates for their produce, while consumers can purchase fruits and vegetables at a discount of 30%. This dual pricing approach not only supports farmers’ income but also ensures that consumers have access to affordable produce during the festival. The markets are managed by various agencies, including Krishi Bhavans, Horticorp, and the Vegetable and Fruit Promotion Council Keralam, which collectively run 2,000 markets across the state.
Grading System to Encourage Market Efficiency
To further enhance operational effectiveness, the Agriculture department has implemented a grading system for the Onam markets, categorising them as ‘A,’ ‘B,’ or ‘C’ based on sales turnover and efficiency. This grading aims to foster healthy competition among the markets, encouraging them to improve their performance. The initiative is expected to not only optimise sales but also contribute to better resource allocation and management within the agricultural sector during the festive season.
| Label | Value |
|---|---|
| Number of Onam Markets | 2,000 |
| Price Increase for Farmers | 10% above open market |
| Consumer Discount Rate | 30% |
| Government Funding for Price Stabilisation | ₹10.74 crore |
The integrated digital mechanism allows for prompt payments to farmers and grades market efficiency, enhancing competition.
WHY IT MATTERS
This digital mechanism represents a significant advancement in public procurement practices, promoting transparency and efficiency in agricultural markets.
Reported from thehindu.com, 2026-08-23. The Tender Wire is published by Otnox.
