E-commerce Growth Has Limited Impact on Fresh Produce Trade, Says Former Azadpur Mandi Secretary

New Delhi, October 20 (Daily Kiran) : As the festive season approaches, the rise of e-commerce and quick commerce platforms is evident, yet the impact on the fresh produce market remains minimal. Rajkumar Bhatia, former secretary of Azadpur Mandi, shared these insights during an interview on Tuesday.

Bhatia noted that despite the growth in online sales, the role of traditional markets continues to be significant. Many online companies still source their products directly from these markets. He explained that consumer purchasing habits for fruits and vegetables remain largely traditional, especially among homemakers in Delhi and other parts of the country. These consumers prefer to inspect the quality of produce before making a purchase.

While there is a noticeable increase in online shopping among students, corporate employees, and younger consumers, it has not significantly affected the mandi business. Bhatia highlighted that small retailers have felt the most impact, with about 20% of their trade shifting to e-commerce platforms. However, overall demand at the mandis remains stable, as they continue to be the primary supply source for both online and offline sales.

This year, favorable rainfall has contributed to a better yield of fruits and vegetables, helping maintain a balance between demand and supply. Typically, demand for fruits spikes during the festive season, and this year is expected to yield good prices in the market.

Bhatia pointed out that while returning unsatisfactory clothing or other products is straightforward, it is not practical to return spoiled fruits or vegetables. He believes that while online platforms may significantly affect grocery, pharmaceutical, and packaged goods sales, the fresh produce trade has not undergone major changes in the last 15 to 20 years.

He added that the nature of fresh produce limits the impact of online platforms due to its perishable nature, making returns or exchanges impractical. Additionally, he noted that recent protests and road blockages in Delhi pose a greater challenge to business operations.

Bhatia also mentioned that mandis continued to function smoothly during the COVID-19 pandemic, as food needs never ceased.

Meanwhile, the Chamber of Trade and Industry (CTI) reported that protests in October have resulted in an estimated loss of around ₹3,000 crores for businesses in Delhi. The organization stated that the retail sector has suffered about ₹1,800 crores in losses due to disrupted shopping during the Navratri and Diwali periods, while the wholesale sector experienced a hit of approximately ₹600 crores. Supply chains have also been affected, with a significant portion of festive goods stuck in warehouses due to road blockages and disruptions in truck movement.