Kerala launches digital system, grading for Onam markets to ensure timely farmer payments
In a significant move to streamline the functioning of special markets during the Onam festival, the Kerala Agriculture department has introduced an integrated digital mechanism for the first time. The system, launched during the formal inauguration of 2,000 Onam markets on Saturday, August 22, 2026, is designed to facilitate prompt payments to farmers and grade the markets based on their performance.
Agriculture Minister T. Siddique inaugurated the markets, which are part of the state’s annual effort to keep vegetable and fruit prices stable during the festive season. Under the initiative, vegetables and fruits are procured from farmers at a price 10 per cent higher than the prevailing open market rates and sold to the public at a 30 per cent discount. This dual approach aims to benefit both producers and consumers.
The special Onam markets are a key component of the state’s market intervention strategy, aimed at preventing sharp price fluctuations during the festival when demand for vegetables and fruits typically surges. By procuring directly from farmers and selling at subsidised rates, the initiative seeks to ensure reasonable prices for consumers while providing farmers with a fair return.
The newly launched integrated digital mechanism allows the department to monitor all activities, from the procurement of produce from farmers to the final sales at the markets. It also enables direct benefit transfer (DBT) of payments to farmers’ bank accounts without any delay, ensuring that they receive their dues on time. Special Secretary (Agriculture) T.V. Subhash launched the digital system.
The direct benefit transfer mechanism eliminates the need for intermediaries and reduces the possibility of payment delays or leakages. This is expected to instil greater confidence among farmers, who often face uncertainty regarding payment for their produce. The digital system also creates a transparent record of transactions, which can aid in future policy planning.
In addition to the digital mechanism, the special markets are being graded as ‘A’, ‘B’, and ‘C’ based on their sales turnover and marketing efficiency during this festival season. This grading is intended to encourage efficiency and foster healthy competition among the markets. The move is expected to incentivise market operators to perform better and improve service delivery.
While the exact parameters for grading have not been detailed, the system is likely to consider factors such as daily sales turnover, customer footfall, and the efficiency of procurement and sales processes. Market managers will be expected to maintain accurate records, which will be verified by the department. The grades may be reviewed periodically, and markets showing improvement could be upgraded, while those underperforming may face closer scrutiny.
A total of 2,000 Onam markets have been opened across the state by various agriculture department agencies. Among these, 1,074 markets are being operated by Krishi Bhavans, while the Horticulture Products Development Corporation (Horticorp) has opened 766 markets and the Vegetable and Fruit Promotion Council Keralam (VFPCK) has set up 160 markets. To support the operation of these markets, the state government has sanctioned ₹10.74 crore under the scheme for market intervention support for price stabilisation for this year.
The combination of digital tracking and performance grading is expected to bring greater transparency and accountability to the market operations. By ensuring timely payments and encouraging competition, the initiative seeks to strengthen the agricultural supply chain during the festive season. The move is part of the government’s broader efforts to support farmers and provide quality produce to consumers at fair prices.
