Digitalization and Commercialization of Organic Farming: Assessing the Role of Digital Platforms in Improving Farmers’ Market Access
Introduction In India, organic farming is marketed as a way to improve soil health, reduce input costs, and provide safer food. Public support has been significant: by February 2025, the Paramparagat Krishi Vikas Yojana (PKVY) covered approximately 15 lakh hectares, 52,289 clusters, and 25.3 lakh farmers [25]; by 2023–2024, the total area under NPOP and PGS-India certification reached 59.74 lakh hectares [26]. However, certification and production do not ensure a profitable sale. Small and irregular lots, little local demand for high-quality produce, limited buyer discovery, and challenges demonstrating authenticity to far-off consumers are common challenges faced by small organic farmers. India has developed public digital infrastructure for agriculture at the same time. The Digital Agriculture Mission, approved on 2 September 2024 with an outlay of ₹2,817 crore, is built around AgriStack, a Krishi Decision Support System and soil profile mapping [24]. The e-NAM trading platform connects regulated mandis. The Jaivik Kheti webpage was designed with organic produce in mind. Scientists from Krishi Vigyan Kendra (KVK) are connected to farmers through ICAR’s Kisan Sarathi platform. The cumulative impact of these systems on organic farmers has not been examined because they were created and are regulated independently. REVIEW OF LITERATURE 1. Digitalisation and Agricultural Market Access Due to its capacity to enhance price discovery, reduce information asymmetry, and connect farmers to geographically diverse buyers, digitalisation has become a crucial component of agricultural marketing. The potential of digital trading platforms to impact agricultural commodity prices and improve the efficiency of agricultural supply chains [1]. By providing information on prices, buyers, and market opportunities, digital platforms reduce search expenses. However, the benefits of digitalisation depend on the participation of buyers and sellers, as well as farmers’ ability with the platforms they are using. The authorexplored the extent to which digitisation impacted agricultural wholesale pricing and uncovered indications of better price realization upon the introduction of electronic agricultural markets. According to their findings, digital trading can reduce certain transaction-related inefficiencies and improve price transparency. However, the focus on traditional commodities implies the need for further research to determine whether organic markets provide similar advantages.[3] The author responded to the creation of the National Agriculture Market (e-NAM), an electronic platform intended to improve price discovery and integrate agricultural markets. The platform includes features such as online transactions, price information, and electronic bidding. Organic farmers, especially those producing storable commodities, may find these mechanisms beneficial, but further research is required to determine the market outcomes unique to organic products.[2] 2. E-Commerce and Digital Platforms in Agricultural Marketing A systematic review of e-commerce in the agri-food sector revealed the ability of online platforms to bridge geographical gaps between producers and consumers. E-commerce can enable direct marketing, enhance market data accessibility, and facilitate alternative marketing channels. Nonetheless, the utilization and success of e-commerce depend on infrastructure, digital capabilities, trust, logistics, and the nature of agricultural products.[32] The significance of e-commerce is especially vital for organic products since organic items have credence characteristics that consumers cannot adequately verify through physical inspection. Therefore, marketing organic products digitally requires not merely listing products, but systems for ensuring authenticity, certification, and traceability. The literature reviewed indicates that although digital agricultural platforms have proliferated rapidly, there is limited empirical evidence regarding their direct impact on the commercialization of organic farm products. Consequently, the available evidence supports conventional agricultural commodities more robustly than organic products. 3. Digital Platforms and Price Discovery Price discovery is one of the important mechanisms through which the digital platforms may contribute to commercialisation. The author [3] using the difference-in-differences approach and agricultural markets in Uttar Pradesh as a setting report improved inflation-adjusted wholesale prices after the digital market integration. Their study also referred to the earlier evidence regarding electronic trading and e-tendering. The innovations in agricultural marketing through the case of e-tendering in Karnataka. Their study provided the evidence concerning the role of electronic marketing mechanisms in improving market efficiency and price realization [20]. Similarly, the author have examined the impact of e-Mandi on commodity prices using the double-difference approach.[7] However, the literature reviewed in the document cautions that these findings cannot be automatically generalized to organic produce because the studies mostly concerned conventional commodities. Organic products require the additional verification regarding the production practices and certification. Therefore, the relationship between digital price discovery and organic price premiums remains an important research gap. 4. Organic Certification, Trust and Commercialization Organic produce is different from regular agricultural produce in that the organic production attribute is generally a credence attribute. This means that the consumer cannot fully assess production practices by simply looking at the product. Thus, certification, labelling and traceability become fundamental aspects of the organic market. The document highlights the NPOP and PGS-India, both certification systems in India, being endorsed through the FSSAI organic food regulations, as well as the Jaivik Bharat logo, a common identity for organic food, and the Indian Organic Integrity Database, an institutional mechanism providing searches of organic products and businesses. The author demonstrated the importance of institutional trust in online marketplaces. They demonstrate that the consumer’s willingness to participate in online transactions is partially explained by mechanisms that reduce perceived risk. In the realm of organic farming, this becomes more important in that the consumer needs reassurance that the product marketed as organic has been genuinely produced and certified according to the relevant standards. [21] Therefore, digital commercialization of organic produce needs to integrate digital market platforms with certification systems. Simply uploading an organic product listing does not build consumer trust or enable a price premium. 5. Digital Advisory and Agricultural Extension Digitalization is not limited to marketing and trading but also plays an essential role in agricultural extension and knowledge dissemination. The document mentions Kisan Sarathi as a digital advisory platform connecting farmers with experts through Krishi Vigyan Kendras. A difference-in-differences approach to evaluate Kisan Sarathi based on farmers’ participation in three districts of Uttar Pradesh. The study found that knowledge scores improved among users of the digital platform. However, the study evaluated … Read more