Open Network Digital Commerce: Pilot project launched

News Excerpt:

The Department of Food and Public Distribution (DFPD) under the commerce ministry has launched the pilot on ONDC in Himachal Pradesh. 

More about the News:

  • The Centre has included 11 fair price shops on the state-run e-commerce portal Open Network Digital Commerce (ONDC), to foster a more inclusive e-commerce ecosystem.

Significance of the Pilot project:

  • The pilot enables consumers in remote locations to access groceries and other essential products through ONDC, while also helping fair price shops to increase their utilisation and revenue from market goods.
    • Now household groceries available on usual kirana stores can be made available through fair price shops on ONDC. 
    • Buyers can purchase these products through ONDC buyer apps like Paytm.
  • The DFPD is funding the programme as a pilot with the help of MicroSave, which provides hand-holding support to fair price shops, and nStore as the technology partner.
  • Initially, five fair price shops in Una district and six in Hamirpur have been incorporated under the pilot project on the ONDC portal.

About the Fair Price shops:

  • These fair-price shops are open to all except beneficiaries of different food security schemes. 
  • These shops also distribute subsidized food grains to individuals below and above the poverty line.
  • Fair price shops are run by the National Cooperative Consumers' Federation (NCCF) across India. 

About ONDC:

  • ONDC was incorporated on 31 December 2021 by the department for promotion of industry and internal trade, it is a not-for-profit entity aimed at creating an open network for digital commerce. 
  • ONDC is a tech-based initiative to transform the way e-commerce functions in the country by enabling e-commerce through an open protocol based on open-source specifications.
  • It will help in facilitating the rapid adoption of e-commerce and boost and strengthen the growth of startups in India. 
  • By facilitating scalable and cost-effective e-commerce through the open protocol, ONDC will empower startups to grow collaboratively.
  • It functions as a platform-neutral network, facilitating access to a variety of digital commerce services.
  • It is currently available in around 600 cities with 80 service providers onboard.

Conclusion:

The DFPD's pilot project in Himachal Pradesh, integrating fair price shops into ONDC, showcases a proactive effort to promote digital commerce inclusivity. Collaborating with companies like MicroSave and nStore, it sets a precedent for expanding accessibility and fostering economic empowerment through innovative technology solutions.

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