Online Auction of Farm produce
Farmers all over the country are always in the pursuit of getting the best price for their produce.
Market sizes differ and so do the distances from their farm lands. All markets have differing rates and therefore every farmer has a task of choosing the market he wants to sell in .
Governments have made agricultural Market committees and have established large wholesale markets in tehsils and districts however it is not always possible for a farmer getting produce from his farm 100 kms away to get a good price even after travelling the distance.
To summarise the farmer is never in control of the market prices and never has a guarantee on his selling price.
Trader etc is a long chain right from aggregating the material from the villages to take it to the market. He uses age old feel and estimate to sell his stock on the market and almost always pays the farmer only after his stock is sold at a rate that is never pre fixed . The trader always avails of a credit facility from the farmer and this makes the trader take more stock in anticipation of better sales at better rates . This plan doesn’t always work and leads to a stock lying unsold. The farmer is never compensated for this.
The whole seller :
The whole seller or purchaser is not always the end buyer but a bulk buyer who is wanting to get produce at a reasonably lower cost and then retail through his own outlets or other sellers.
You will notice that no where in the chain is a price standardised nor the quality standardised, it is an unorganised market place and various traders take advantage of their positions there.
The retailer is not in touch with the traders in the market and they in turn are never in touch with the producers. The middlemen add their margins and this ends up loading prices. Large traders are also in a position to hoard stock for it to go up and create an unreal shortage. Therefore various issues emerge and do not allow the farmer to command his own prices. Today with the help of technology this can get organised.
There already exists on line selling as well as farming apps that directly connect with consumers however these too are aggregators who are not too different from traditional Traders.
Bridging the gap:
We feel that there is a large vacuum that can be bridged by the use of technology and this can get the farmer in direct connect with his purchasers. A virtual market is created which is vibrant and where the producers are able to establish their own rates. They will then have the choice to send it to the markets of their choice .
We aim to create an online auction for farm produce.
This will be a game changer as the farmer provides a minimum reserve price for his stock with a photograph and specifications of his produce. He also states a selling price which he pre fixes. If a purchaser is willing to give him that price then the auction does not go through .
Each participant in selling and purchasing is given a code and therefore none of them are in touch with each other. An e wallet is used where payment is first made into an account and a challan is generated with the same value points. These value points are exchanged in the transaction and these can be encashed with real money at the end of the trade.
The purchaser is able to buy only as per his capacity of e wallet .there is no credit given by the farmers. The transaction is digital and clean and transparent. In time to come a detailed market rate for the average can be taken for almost every item sold on it. Purchase trends as per a season can be made.
Growers in various areas can be given this information to take a call on the produce they should grow in a particular season and the quantity that got sold the previous year.
Since there is no credit there is no over trading and no wastage .
It does not require the material to reach a nodal point and can be transported directly to the seller.
All participants will be given a rating with relation to their transactions and their size as well as quality of the produce.
The app will charge a nominal fee on every transaction .
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