- Pricing mechanism in agricultural marketing is almost opaque under which the producer i.e., the farmer has a little or no role. Prices are fixed and manipulated with the closed connivance of traders, arhatiyas and dalals .The idea behind the online market is to provide transparency in pricing by removing the information asymmetry between sellers and buyers and enable farmers to benefit from price discovery.
- E-Marketing will also reduce transaction cost, provide a single license valid across all markets, help farmers identify the best buyers, enable single-point levy of market fees, and set quality standards.
- Additionally, the online market also liberates farmers from dependence on commission agents, who are the traditional price link between them and consumers. In some cases, commission agents also double as financiers to farmers, who thus feel obligated to sell their produce through the agent to whom they are indebted.
- On the e-Platform, farmers can list the items they want to sell on the portal. Local traders, as well as traders in other States, can then bid for the produce. The farmer will be free to choose to accept the offer made locally or tjy traders in other States. The transaction will be recorded on the books of the local mandi, which will continue to earn the transaction fee.
- Traders, too, stand to benefit as they can tap any number of sellers if for some reason they don’t get what they want from their traditional sellers.
Farmers have improved access to market related information and better price discovery through a more efficient, transparent and competitive marketing platform which gives them access to a greater number of buyers within the State and from outside, through transparent auction processes.
- It would also increase farmers’ access to markets through warehouse-based sales and thus obviate the need to transport his produce to the mandis.