The paper analysed e-markets(e-mandis)in Karnataka with the objective of knowing farmers, traders, commission agents and market committee opinion about e-market, identify best practices, bottlenecks in implementation and impact on prices, market arrivals and competition by intensively studying groundnut markets in 16 e-markets and 16 non-e-markets. The study used difference-in-difference approach along with qualitative data to understand the impact of e-market. There was increased competition among traders and reduced scope for collusion, increased number of bids per lot from about six to eleven. There was 128% increase in average prices in e-markets compared to only 88% in non-e-markets between 2007 and 2015. And also there was significant reduction in price variability in e-markets (by 3%) compared to increase in non-e-markets (1%). The difference-in-difference regression results show that with the introduction of e-markets, prices increased by Rs.65/q after controlling for initial conditions. There was also an increase in average market arrivals by 1166 tons with the introduction of e-markets. All stakeholders mentioned that there was increased transparency and reduced delay in payment. However, still most of the e-markets are operating partially; hence there was a need to improve the system in Karnataka as well as in National Agricultural Market scheme. First and foremost is to increase awareness about the e-market processes and benefits to farmers. Improvement in broadband connectivity, placing the skilled manpower for uninterrupted operation of the system, setting up of help desks for farmers, traders and commission agents to place their orders and clarify doubts about e-market system are important for the success of e-market network. Although most of the farmers are in favor of the e-markets, a few traders and also commission agents are expressing their concern about the utility of the system.
Electronic markets, electronic auction, agricultural commodity markets
