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A closer look at e-commerce in the seed industry

"Currently, the overall development of e-commerce of the seed industry can be summed up in three words: small, primitive and slow. E-commerce of the seed industry is generally in its infancy and entrepreneurship stage, without large-sized projects and high market awareness," according to Raja Vadlamani, Head of Supply Chain-Asia at Seedworks International. "Although the combination of seed industry and e-commerce develops at a slow speed, it has a promising prospect. This is a kind of social tendency, so this new industry will develop quickly and prosperously in the future.  India has around 35% of internet users as of date mostly urban.

"The most important advantage of e-commerce is to achieve the linkage between production and sales. In the traditional marketing chain, the transfer of the industry’s maximum profit occurs in circulation process. However, this can be changed by e-commerce. Farmers are able to gain more benefits by enjoying ex-works price and experiencing service of enterprises’ technical devices directly. E-commerce provides an open and transparent platform to realize the products’ tractability. This can not only avoid infringements, but also promote fair competition, which is conductive to the industry’s sustainable and healthy development.  

"Once the e-commerce platform for the seed industry appears, the retailer's profits are distributed to farmers, enterprises and the platform respectively. How to change the retailers into delivery business and service providers will be the key to the e-commerce of the seed industry’s success. Because of the conflict of interest, many retailers and agents will resist the e-commerce of the seed industry. As a result, the e-commerce of the seed industry should be promoted with some new products in some specific areas."

Read more at Seedbuzz

Publication date: 2/2/2017

 


 

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