Technology is playing an increasing role in Indian agriculture. Mobile apps, GPS support and smart machines are just some of the ways in which farmers are finding support. One of the ways in which the digitalisation of agriculture is making a difference is the digital mandi. 

A mandi means a big market and for a farmer, a mandi is one of the access points to sell their produce. More often than not, a mandi exists at a village level and is controlled by a few big sellers who are also in a position to dictate prices and other terms and conditions. The advent of technology in this mandi space has opened up new possibilities for farmers. 

Why digitalise mandis?

By making the marketplace virtual or digital rather than bound by geography, farmers can get access to:

• Solutions to address liquidity problems
• Increase the number of buyers and sellers of commodities
• Deal more effectively with volatile prices
• Be a part of a more efficient supply chain and
• Get better prices for their produce as well

In most physical mandis, the farmers do not get their payments in time. This leads to bigger problems and the farmer is forced to sell their produce at lower rates. Democratising the process of payment will have a beneficial effect on income levels for the farmers. 

Going beyond geographical borders means that the farmer can sell their produce in a marketplace that gives them the best prices. By removing the middleman, farmers get direct access to consumers, regardless of their location. This results in a growth in their consumer base. 

Mode of operation

Farmers can get access to the facilities of the digital mandi through their phones. One option is for the farmer who has a simple phone - they have to register their number with the closest mandi. Thereafter, information is given to the farmer via text messages or voice calls. 

The other option is multi-modal. Here the farmer has a smart phone which is capable of receiving mandi based information via:

• Images
• Texts
• Voice calls

Farmers can also get additional information on a commodity if they need the same. 

This e-mandi model is a national network, relying on a warehouse-based trading system. By uploading availability of produce, a farmer invites direct purchases from buyers all over India. 

The electronic payment processing system ensures that the farmer is paid immediately and gets a fair price for their produce as well. This kind of transparency is fair to the producer and consumer in more ways than one.

Smoother and faster process

E-mandi also makes the journey of produce from farm to table a much quicker process. Farmers do not have to travel long distances to get to the mandis and then wait for auctions and negotiations to offload their produce. 

Digital mandi offers price discovery to the farmers. They tap into information on selling prices before transporting their crops and therefore get to decide where they should sell. When the sales process is simplified, the farmers can rely on fair trade and prices to enjoy a higher level of income and productivity too. 

Indubitably, an e-mandi can certainly make a farmer’s life easier and simpler in more ways than one.