SMART PORTAL FOR GOOD

PRICING IN AGRICULTURE
Introduction
Agriculture production in India goes through lot of tiers
before it reaches the consumer.
 There is a big difference between the selling price of the
farmer to the selling price of the consumer.
 This neither benefits the producer nor the consumer but gives
growth to unnecessary middlemen.
This also results frequent fluctuation and high pricing of all
the commodities.
 Abstract
The formulation of agricultural price policy is complicated by the
multiplicity of functions that price performs.
The objectives, thrust, and instruments of agricultural price policy in India
have undergone conspicuous shifts during the past 50 years and so has the role
and effectiveness of price policy as a tool to influence the agricultural
economy.
The country’s post-reform period witnessed higher emphasis and
dependence on price policy compared with previous decades, where price
policy aimed only at maintaining a balance between the interests of consumers
and producers.
 An in-depth analysis of costs and returns is required for
wheat and paddy, the crops offered the highest
protection by the state, to get idea of the profitability of
Indian agriculture and gain insights into the workings of
the price policy.
PROBLEM STATEMENT
The price at which all the goods sold by the farmers is very
minimal compared to the price received from the user’s end.
This hugely affects marginal farmers and peasants.
Given this situation, goal is to optimize the pricing and
regulate it uniformly for producers belonging to all strata.
Methodology
 The regional consumption of the products tend to vary but
the production rate is always viewed as a upward graph.
 Keeping this key idea in mind our project focus on stabilising
the pricing of these products across the country so that the
cost price is set by the government and all modification is
taken care by the govt officials
Methodology(cont.)
 This type of policy makes it highly transparent for both
producers and the consumers about the manufacturing trend.
 Thus the middlemen who are in the chain are effectively
removed and thus this provides a direct linkage from
producer to consumer.
 Now that we have a basic idea lets look at the implementation
part.
 Implementation
The price setting is done after taking the following parameters into
consideration:
 Cost of production
 Changes in input prices
 Input-output price parity
 Trends in market prices
 Demand and supply
 Inter-crop price parity
 Effect on industrial cost structure
 Effect on cost of living
 Effect on general price level
 International price situation
 Parity between prices paid and prices received by the farmers.
 Effect on issue prices and implications for subsidy
 Implementation(cont.)
 After this a basic web portal is created and a machine learning
algorithm is used to predict the price of the crop given all those
previous factors affecting it.
 This is then fed into the portal and data centers should be set up
in villages and these numbers are accessible to them as they are
not connected via internet.
 For the benefit of the poor this web portal is available in offline
so that internet connection is not mandatory.
 Implementation(cont.)
 After this in future the values are updated every month and thus
the prices change accordingly.
 If this idea works exactly like planned this could lead to more
cultivation, higher profit, higher consumption rate, balance in
supply-demand and also indirectly impacts hugely on nation’s
GDP as India has more of agricultural population.
SURVEY
 We visited a village Named Panagattupakkam.
 To learn about real time or practical problems the farmers
actually face in selling the crops
 Also about the price variations and the profit history they
face.
 Our aim target was farmers selling vegetables
 After listening to their opinion almost 10 of them.
 We explained the solution we drafted theoretically .
 We asked their opinion about this system.
 The practical advantages of the proposed system was questioned.
 The extent this system would help scenarios were interviewed
Survey Data
 Name:chidambaram , ramu ,kaali , maari
 Experience: 20 -25yrs
 Crops: vegetables(clusterbeans ,broad
beans,binjal,bittergourd)
Problems:
 We do not gain any profit from farming.
 Getting back the invested money itself has become a big deal
nowadays.
 We simply continue agriculture because it is a prestigious
profession , we do not get any profit.
 The cost of living , commodities, seed, fertilizers keeps
increasing in a great scale but the cost we sell the crops very
rarely increases .There has been no improvement in years.
 [after explaining the system]
 This would make us better if the amount to be fixed is divided by
the government after all proper survey about the cost of
production and hard work involved
Survey Data
Name: Sivagami,Mariyama,Muthuselvi,Kumari
Crops:Vegetables ,pulses and variety of beans.
Experience:15-20 yrs
Problems:
 We have almost given up agriculture as we have been seeing
losses continuously.
 The final crop is valuable as a born baby.
 There are different unstoppable problems and obstacles that
happens in the process of farming
 We need to do intense hard work and invest lot of time in
overcoming these problems.
 But we have never got a reasonable profit instead we face lot of
losses.
 Even availing loans for agriculture has become hectic .
 The consumers actually but for a higher price than we sell it and
the amount of commission we actually pay is higher than the
profit we get.
 [after the system explained]
 This would help us only if the committee or the group setting the
fixed amount clearly understand and analyses the present
situation and scenario.
 The invested amount and other investment the time spent and
hard work must be taken into considerations and the price is too
be fixed.
 Name: Rangaswamy
 Age:15 yrs
 Crops:vegetables and beans
 I have similar opinion and I always wanted to stop this
middlemen practice.
 We get lesser profit than the total amount spent between the
farmers and consumers.
 A fixed price after thoroughly analyzing the issues and facts is to
be fixed.
 Problem analysis
 1Perishability of product
 2Seasonalization of production
 3Bulkiness of products
 4Quality variation in production
 5Irregular supply
 6High storage cost
 7Transportation cost
 8Damage cost
 9Lack of cold storage place
 10 Intermediaries exploitative practices
 11 Lack of proper grading
 12 Lack of proper quality control
 13 Low exports
 15 Long marketing channel
 16 Inadequate post-harvest care
 17 Primitive method of selling and price
 18 Packing of products
 19 Monopoly of middleman
 20 Packing and loading problems
 21 Delay payment
 22 High carriage and other handling charges
 23 Long distance of market access
 24 Advance sales agreement
 25 Exploitation of growers by market force.
 Analysis:

 Agricultural Marketing, rather than production, is going to be the

key driver of the agriculture sector today, thanks to the new market
realities posed by the increasing accent on globalization,
liberalization and privatization of the economy.
 Market-driven production is an idea whose time has come.
 With the gradual shifting of agricultural system from subsistence to
commercial one, there is increasing focus on Agripreneurship and
Agri-marketing.
 It is the need of the time to tune up the Agricultural Marketing
System of the country to enable the farmers to face the new
challenges and reap the opportunities as well.
 This summons us to revisit our traditional statistic policies and laws
and bring about the requisite reforms in the sector.
 The imperatives of the integration of the Agricultural Marketing
System of the country are increasingly posing new challenges in
respect of each of the components of the system such as-
 cleaning, grading, quality certification, packaging, storage,
transportation, financing, wholesaling and retailing etc of
agriculture produce.
 The subtlety of the management of Agricultural Marketing issues
today calls for high degree of professionalism to measure up
,hence qualified officials are to be appointed to do a deeper
analysis and set a standard cost of every commodities.
Major Problems of Agricultural
Marketing
 Too Many Intermediates
 Defective Weights and Scales
 Illiteracy and Lack of Unity among Farmers
 Lack of Financial Resources
 Lack of Organised Marketing System
 Lack of Transport Facilities
 Lack of Store Houses
 Lack of Standardization
 Lack of Awareness of the Market
 Corrupt Policies of the ‘Mandis’
 Distress Sale
 Lack of Market Intelligence
 Lack of Organization
 Poor quality of product
 Problem of Produce collection
Conditions for Satisfactory Development
of Agricultural Marketing in India:
 Eliminating Middlemen
 Freedom from Moneylenders
 Storage Facility
 Bargaining Capacity
 Regulated Markets
 Adequate Transport Facility
 Agricultural Marketing Societies
 Market Intelligence
 Use of Standard Weight
 Loan Facilities
 Publicity of Market Policies
 Training Facilities
Importance of Agricultural Marketing:

Agricultural marketing plays an important role

not only in stimulating production and
consumption, but in accelerating the pace of
economic development.
Its dynamic functions are of primary importance in
promoting economic development.
For this reason, it has
been described as the most important multiplier
of agricultural development.
 Optimization of Resource use and Output
 Management
 Increase in Farm Income
 Widening of Markets
 Growth of Agro-based Industries
 Price Signals
 Employment
 Addition to National Income
 Better Living

Agricultural marketing is also important in

creation of the various types of utility like form
utility, place utility, time utility and possession
utility.