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Market Assistance for Sale of Fruits,
Vegetables and other Agricultural Produce
Agriculture is the mainstay of
the India's economy and 74.73 per cent of the people
are rural. As much as 49 per cent of the land area
is cultivable. Being capable of producing the best
crops, India now seeks the role of Information
Technology in agriculture.
Growing human population in India put increasing
demands on land and water resources. Land and water
availability is one of the major factors for food
security, as recently reiterated during the World
Food Summit. On the other hand, land and water are
limited resources. Land degradation and land and
water scarcity are rapidly increasing undermining
the capacity of the resource base to sustain food
production at required levels. A better use of the
land and water resources and an understanding of the
components (soils, climate, vegetation, topography),
their relation, interdependency and interaction are
essential to achieve sustainable production of food
and the conservation of the resources for
generations to come.
Timely availability of reliable geo-referenced land,
climate, plant nutrients, production and water
information, integrated with infrastructure- and
socio-economic factors, are essential for
stakeholders, policy makers and land users to
exercise the best choices among options in using
these resources to achieve sustainable levels of
food production and development in an increasingly
complex environment.
Between the Indian council of Agricultural Research,
Provincial Departments of Agriculture and other
spatial information providers there is a wealth of
information. However, this information is not
readily accessible. This could be due to various
reasons including:
- Data retained as a power base.
- Unsatisfactory communication, resulting in
role players not being aware of the information.
- Information in a non-standard or
incompatible format.
- Information compilation and dissemination
not seen as a priority by organizations.
- Data not in a spatial format.
- Too costly to convert to digital formats.
- Major suppliers of data did not consult
users on their data requirements and often data
is not structured to address the needs of the
end users.
Overview of Agriculture Sector in India
The fundamental problem that plagues the agri-sector
in India is the lack of wealth of the producers.
Agriculture is the direct source of livelihood for
more than 70% of the population. Yet only a handful
of the farming community is said to be rich. The
sector has undergone several changes during the last
5 decades. India started as a food deficient country
and the emphasis was therefore on achieving
self-sufficiency as soon as possible. As time
passed, the basic need has been met and now the
focus has shifted to value added production. India
is today a gain surplus nation and its priority has
been changed. During the first 3-4 decades, there
were more consumers that production and hence it was
not necessary for the farmer to know too much about
what was happening in the market. The situation has
changed since the basic needs of the markets are met
and it now demands different products to suit
individual/ regional preferences. The farming
community now needs to produce for the market and
therefore a closer understanding of market dynamics
becomes necessary.
The current scenario
Today, the government is not in the position to
continue the massive subsidies. It is also
undesirable, since it allocates resources into areas
that are no longer the priority. The area where
demand is growing is not being addressed properly
leading to high wastages and costs. This in turn
constraints demand growth. The following facts are
revealing:
- Nearly 40% of fruits and vegetables produced
are wasted. The farmer loses revenue and the
end-consumer pays a high price. Both are losers
as is the economy. The high wastage and
consequent high cost constraints the growth of
value added processed food sector.
- Livestock sector is plagued with poor
productivity (apart from a few well organized
pockets). It is well known that with better
guidance on livestock management the production
from existing resources can be raised by at
least 50-60%. This will drive down the prices
and stimulate demand for value added products.
- One good thing here is that there are
several sectors of excellence in the farming
community itself - Rice in Tamil Nadu, Dairy in
Gujarat and Punjab, Poultry in AP and
Maharashtra etc to name a few. These sectors
have world-class productivity and cost
structure. If harnessed well, the existing
skills can be leveraged to spread the good
practices across the various other pockets and
deliver high quality value added products at
lower cost to the consumers. This will stimulate
demand further and lead to a virtuous cycle of
demand and production.
The key issues for the sector
1. Information: Farmers operate in the
market, but markets in rural areas, and particularly
agriculture markets, suffers especially from the
problem of information, inadequate competition, and
week enforcement of contracts. Building institutions
that reduce transaction cost for farmers, therefore,
can greatly improve the way agriculture market
operates.
2. Geographic Spread: Agriculture activity is
usually geographically dispersed and distant from
major urban centers. A problem in providing rural
credits, for example, is that formal providers of
credits, such as banks, may find it costly to obtain
information on geographically scattered small
farmers.
3. Ability to access: Beyond physical access
to markets, large segment of the rural population,
and the rural poor in particular, often face
considerable obstacles in accessing agriculture
markets. This is because their relative lack of
education can make some useful formal institutions,
such as institutions for disseminating technological
information, harder to access.
The key challenge is to marry the existing
knowledge and expertise to the communities who need
it the most. This needs to be done such that the
delivery is timely and efficient and the cost of
dissemination is kept low.
Areas of ICT intervention
There are several areas requiring intervention. The
most promising ones are a follows:
1. Facilitation of contract farming: Contract
farming arrangements or "out-grower schemes" are
attractive for farmers because they help small
farmers access modern inputs, such as credit and
seeds, and market their produce to domestic and
international markets. Even though the arrangement
is private, we can help it build in two ways:
a. As information facilitator, helping to
match small farmers with domestic traders and agro
business firms.
b. Through tie-ups with complementary
institutions, especially contract enforcement
mechanism (such as courts to resolve contractual
disputes, or grades and standards). Sectors -
poultry, dairy, horticulture, other cash crops,
back-end to food processing.
2. Grades and standards: Because
agricultural products have a vast array of
characteristics, grades (classification based upon
quantifiable attribute) and standards (rules of
measurement) are used to separate similar product
into categories and describe them with consistent
terminology, this evaluation system can
significantly reduce information cost by allowing
traders to contract 'remotely' through commodity
specification rather than through on-site visual
inspection.
3. Market Information Systems: Market
Information System (MIS) generically describe
dissemination networks of public data that provide
information on agriculture markets. For farmers,
knowledge of market information (such as the
prevailing price of a commodity in key wholesale
market) can help them to plan their production,
harvesting, and sales according to market demand.
For traders, better information improves their
ability to decide whether to hold products in
storage or ship them to the most lucrative markets.
In both cases MIS are of special use to smaller
farmers or traders, who lack the scale economics to
gather such information on their own account.
4. Extension Services: The main function
of extension services are twofold:
a. To inform farmers of new products and techniques,
and
b. To gather and transfer information from farmers
to other participants.
This includes collection feedback on farmers needs
as input for research priorities, and learning
techniques from one farmer and sharing them with
others, for example, irrigation techniques.
Offline extension services exist but are highly
expensive. VIIT can use ICT to provide a relative
low cost platform for high quantity inputs to the
extension activities. This work can be done directly
with the target and /or with agencies involved in
extension work by providing them with the knowledge
backbone.
Target Communities and their needs - ICT
related
Below is the list of our target communities for the
entire process
a. Farmers groups/ Co-operatives
Market intelligence (input and output), Market
trends (input and output), technical support,
extension support training, operating consulting
support, know how access to service providers
b. Trading community
Market intelligence
c. Corporate - machinery, inputs, sourcing
Extension access, Market intelligence, contract
farming
d. Service providers
Access to farmers, corporate bodies, relevant
content, technical service providers
e. Individual consultants - technical, doctors
etc
Content, access to farmers, access to providers of
complementary services
f. Extension service providers
Access to farmers, corporate bodies, relevant
content, technical service providers
g. Service Centers
Knowledge support, access to service providers and
service seekers
h. Universities and research institutions
Expertise dissemination, access to service seekers
and extension service providers, feedback
i. Rural NGO's
Access to farmers, corporate bodies, relevant
content, technical service providers
j. Government agencies
Market intelligence, research related content,
access to service providers and service seekers.
k. External Agencies
As is evident the target for ICT services will
not be just the producer. It will include all
participants -some will pay for value added services
and products (Corporate), some will pay for basic
services (individual consultants, large farmers),
some may have to be subsidized to start with (small
farmers).
The current methods of addressing these needs
- Market intelligence is available from a few
web-based service providers. However, very few
cover it in the depth and width required.
Detailed information is largely absent.
- Service providers reach the seekers through
direct efforts and hence tend to be local in
reach. A large proportion of their time is lost
in just establishing contacts.
- Knowledge and know-how is procured from the
sources or intermediaries. It involves search
time and cost and is hence not readily
available.
- Service centers exist with minimal back end
support and could do with low cost easily
accessible back stopping support.
- Research institutions have a lot of
information and know-how available but their
dissemination is limited and only the seekers
with initiative and resources are able to
benefit from them.
- Expert knowledge available exists in
independent silos that are unconnected.
- Training efforts frequently lose momentum
since the relevant person is not tracked in
time.
Current methods are costly, time taking and
service a very small proportion of needs. Almost
all system are regional in focus and do not have
width or depth of reach. Some of them have ICT
components and have demonstrated success in
small areas. They are at best pilots that have
demonstrated a system, which now needs to be
scaled up.
Proposed role of VIIT
VIIT will be the enabler and facilitator
- Given its strengths and management
bandwidth, VIIT can make a significant
difference in information dissemination and
micro-level problem solving.
- Technology usage in both information
gathering and dissemination will be effective
levers.
- VIIT will be the platform where all service
providers and service seekers will come
together. Mechanism will help them to find each
other quickly and efficiently.
VIIT provides the backbone and management of
knowledge and services. It augments some of the
efforts that are already at place and fill in the
gaps that exist. It creates an exhaustive knowledge
management system that does not exist today and
builds a platform for service providers and service
seekers to meet. This project also offers a
well-coordinated and integrated model, which could
facilitate the farmers in every aspect of their life
by providing them filtered agriculture related
information, assistance for sale, online training,
presentations market information etc.
Baramati Fact File
Baramati taluka has 117 villages with a
population of more than one hundred thousand; out of
with 63.74% population is illiterate and rural. Lack
of information and illiteracy are the major causes
of not growing with the growth of IT. Baramati is
the major producer of sugarcane and other
traditional crops. The production percentage as
compared with India is higher in this region and
incorporating a well-structured Information
Dissemination System can further increase it.
Objectives
1. Create a forum of experts who will be able to
provide technical and managerial advisory services.
2. Enroll professional working actively in the
sector and enable them with information and
consulting services to add value to their
enterprise.
3. Provide information on production and
post-harvest technology and market to the farmers.
4. Develop information dissemination channels to
reach the target groups. The channels will basically
be the kiosk centers. At now 20 such kiosk cnters
are identified in and around Baramati.
Action Areas
- Create a network of function experts
- Enlist agribusiness professional as
associates
- Create a searchable, catalogued knowledge
databank
- Help set up and manage local service centers
by providing training, course content, know-how
and managerial inputs - including helping
entrepreneurs to arrange finance and launch
services.
- Support initiative in the sector to leverage
strengths.
Every problem solving experience on the network
will be documented. The project will use information
technology to convert every experience into a
flexible and easy to use query database.
Below diagram shows the physical structure of
this setup.

Figure 3: Physical setup of the
system at VIIT
A 64 KBPS lease line coming to VIIT will be the
source for these kiosk centers to have fast Internet
access along with the intranet access. VIIT will
gather the information from KVK and various web
sites that provide national and international market
rates and upload it to the main web server. These
web contents will be uploaded to the server to
ensure maximum availability of information at one
place for the kiosk operators and other people. Two
computers and two telephone lines will be dedicated
for IVR system, which a farmer can use to listen to
the market rates by using a telephone network. Two
computers will be placed for the dissemination of
information at VIIT. This will facilitate farmers by
displaying and providing relevant information.
Other useful programs such as audio and video
conferencing, availability of video clips and other
applications will be kept at server and will be
managed by VIIT.
Benefits to service providers
The fundamental benefit will be the enhanced reach.
This will result in:
- Access to a large base of service seekers
- Opportunities to form consortiums with
provides of complimentary services
- Updates on happenings and development in the
sector
Benefits to service seekers
The fundamental benefit will be a consolidation
of the scattered base of service providers. This
will result in:
- Query redress by experts: Access to network
of subject matter experts, agri industry
professionals, innovative farmers, like minded
NGO's and grassroots volunteers.
- Meaningful and useful information on: Price
and crop availability and Goods origin and
destination
- Information sharing mechanism
-Sustainable linkage with all sectors
-A forum to post requirements
-Training in agribusiness
-Referrals from other users of services
Collaboration
For successful implementation of this project
VIIT believes to have partners with their core
skills and area of expertise rather then try to do
everything itself. VIIT can enter into tie-ups with
some of the organizations to add value in terms of
scale and reach of operation. VIIT is very keen to
have collaboration with Agriculture department of
Maharashtra Government for seamless implementation
of this project and KVK, Baramati for providing the
latest information about research on agricultural
issues. VIIT also invites the support of allied
industries for packaging, processing, cold storage,
exporting and other services to give their best for
this project. |