Small Traders Get ONDC Push as Government Initiative Eyes 5 Lakh MSME Onboardings

India’s traders’ welfare body has urged small sellers to join ONDC as MSME-TEAM targets digital commerce support for 5 lakh micro and small enterprises nationwide.

Key Highlights
 

• Sunil J. Singhi backed wider ONDC participation at Utkarsh 2026 in Bhubaneswar on June 28, 2026.
   
• The Board had supported ONDC adoption on January 9, 2026. MSME-TEAM separately targets 5 lakh enterprises, including 2.5 lakh women-owned firms.

National Traders’ Welfare Board Chairperson Sunil J. Singhi urged small traders to explore the Open Network for Digital Commerce at the Utkarsh 2026 All Odisha Business Summit in Bhubaneswar on June 28, 2026. The appeal was reported by The Times of India and ANI through New Kerala.

The move could give neighbourhood shops access to buyers outside their local markets. Yet online registration does not assure regular orders. Smaller sellers may still struggle with product catalogues, packaging, returns, delivery costs and daily stock updates.

What Do ONDC’s Published Numbers Show?

The official ONDC website lists the following network figures. These numbers describe different parts of the network and should not be combined as one active-seller count.

The network can let buyers and sellers transact through different connected applications. For households, this could bring more local shops and regional products online. Traders may gain wider visibility without remaining tied to only 1 marketplace.

How Could 5 Lakh MSMEs Receive Support?

The MSME-TEAM Initiative plans to help 5 lakh micro and small enterprises join digital commerce. A Press Information Bureau release dated December 1, 2025, said 50% of the intended beneficiaries would be women-owned enterprises.

The programme offers operational help, not merely seller registration.

Training in Tier 2 and Tier 3 cities could help traders unfamiliar with online selling. Sellers will still need dependable logistics, local-language assistance and fast complaint handling after onboarding.

What Had The Traders’ Board Recommended Earlier?

At its 8th meeting, the Board had already asked small traders to adopt ONDC for wider market access and added income opportunities, according to a PIB release dated January 9, 2026.

On June 23, 2026, its 10th meeting discussed DigiDukaan’s expansion after its Jaipur launch on June 19. PIB and Devdiscourse reported plans to take the initiative to Mumbai, Bengaluru and other cities.

What Does The ONDC Push Mean For Small Businesses?

According to LoansJagat, the 5 lakh target will carry value only when onboarding leads to repeat sales. Small traders may require working capital for stock, packaging and delayed settlements. A LoansJagat report also explains recent collateral-free credit support for small businesses.

The workable route is local training, affordable delivery, simple cataloguing tools and quick payment settlement. Monthly active sellers, repeat orders, and seller earnings would provide better progress indicators than registrations alone.

Conclusion

ONDC offers small traders a route into wider digital markets. Regular orders, manageable costs, and higher earnings will decide whether the initiative delivers lasting gains.

FAQs

What Is ONDC?

ONDC is an open network connecting buyers, sellers, logistics firms and digital-commerce applications.

How Many MSMEs Does MSME-TEAM Target?

The government initiative aims to support 5 lakh micro and small enterprises.

How Many Beneficiaries Will Be Women-Owned Firms?

The stated target is 2.5 lakh women-owned enterprises, equal to 50% of beneficiaries.

Does Joining ONDC Guarantee Orders?

No. Sales depend on pricing, product availability, delivery performance, demand and customer service.

Does ONDC Charge Sellers A Commission?

ONDC does not set one fixed commission for every seller. Charges can differ based on the seller app, buyer app, logistics partner, payment service, and product category.