Development of Internet based Agricultural Marketing Information System in India

Development of Internet based Agricultural Marketing
Information System in India
—G.H. DHANKAR*
Introduction
Market information is an important facilitating function
in the agricultural marketing system. It facilitates
marketing decisions, regulates the competitive market process
and simplifies marketing mechanisms.  Regular, timely and
reliable market information is needed by farmers in planning
production and marketing, as well as by other market
participants in arriving at optimal trading decisions. In India,
where more than 75 per cent agricultural producers are small
and marginal farmers, marketing information service should
ideally be available to all. Removal of inter and intra-state
r e s t r i c t ions  on  s tor age   and movement  of   agr i cul tur a l
production in the country demand existence of complete and
accurate marketing information service to farmers to facilitate
better realization of prices for the produce marketed. Use of
computers can improve the availability and delivery of
information in a user friendly manner to farmers and other
market participants.
2. India has 28 States and 7 Union Territories. Almost all of
them have their own system of providing market information
to the farmers. However, these prevailing systems are mostly
based on conventional methods due to which communication
of information to target groups usually gets delayed losing
its relevance. The system is also limited to collecting data on
market arrivals and prices on transactions in the regulated
market yards and disseminating through various media like
radio, newspapers, blackboard display and public address
system at market places. In order to access larger markets,
farmers require also to know about the market requirement
in terms of quality, packing and safety standards and
conditions. In the absence of such awareness, their outreach
will continue to be restricted to local market places where
intermediaries take away a major share of the price.
3. Agricultural Marketing in the country is witnessing major
changes owing to liberalization and globalization of markets.
In this context, agriculture has to be market driven, more cost
effective, competitive, innovative and responsive to high tech
and IT applications. There is a need to build capacity of each
of the beneficiary group viz. the farmers, market functionaries
and others involved in the agricultural marketing activities.
Undertaking/utilizing marketing research to educate and train
farmers in 'Good Marketing Practices' and providing for
development of service appropriate to local requirements to
transform information emanating from various sources in a
simple and practically useful manner is considered need of
the hour.
4. FAO Agricultural Services bulletin 'Promoting Private
Sector Involvement in Agricultural Marketing in Africa
observes that although the private sector can, under some
circumstances, develop effective market intelligence systems,
there may be no incentives for large market traders to share
the information they collect as a by-product of their trading
activities with others. In fact, they may see it as giving away
market advantage. Lack of market knowledge may be seen
as a barrier to entry and government provision of a market
intelligence system could remove that barrier. Provision of
ma r k e t   i n f o rma t i o n  ma y   a l s o   r e d u c e   a n y   d i s t r u s t   o f
government by the private sector, by making markets more
transparent.
5. It is likely that the effects in terms of improved arbitrage
will be limited, however, as arbitrage is more often prevented
by lack of finance or cost of transport, rather than simple lack
of information. Nonetheless, there is evidence that the market
information system instituted recently in Tanzania may have
improved spatial arbitrage
1
. A survey showed that most traders
listened to the thrice-weekly broadcasts. A number expressed
annoyance that grain which they had transported to the capital
achieved lower prices than those broadcast, presumably
because the opportunity for profit had been recognized by a
number of traders, and resulting inflow of grain had reduced
prices.