Agricultural Supply Chain needs Technological Reform
Agricultural marketing still continues to be in a bad shape in rural India. In the absence of sound marketing facilities, the farmers have to depend upon local traders and middlemen for the disposal of their farm produce which is sold at throw-away price.
In most cases, these farmers are forced, under socio-economic conditions, to carry on distress sale of their produce. In most of small villages, the farmers sell their produce to the money lender from whom they usually borrow money.
According to an estimate 85 per cent of wheat and 75 per cent of oil seeds in Uttar Pradesh, 90 per cent of Jute in West Bengal, 70 per cent of oil seeds and 35 per cent of cotton in Punjab is sold by farmers in the village itself. Such a situation arises due to the inability of the poor farmers to wait for long after harvesting their crops.
In the absence of an organised supply chain structure, private traders and middlemen dominate the trading of agricultural produce. The remuneration of the services provided by the middlemen increases the load on the consumer, although the producer does not derive similar benefit.
Many market surveys have revealed that middlemen take away about 48 per cent of the price of rice, 52 per cent of the price of groundnuts and 60 per cent of the price of potatoes offered by consumers.
To get rid of such problems faced by farmers on day to day basis, online solution is the best fit where farmers could sell their produce directly to the consumers, avoiding the pain of getting through middlemen and traders. Since the penetration of smart phones and internet in rural areas are not anymore impossible scenarios, Sattve is providing the mobile based platform to farmers and consumers using which farmers can post their produce at a price fixed by government and consumers can buy them at a very fair price compared to the retail shops.