About the Business
Farmers face a critical challenge in the modern agricultural landscape: the pressing need for efficient and timely market linkages to sell their produce. Often, their options are limited to a handful of local agents or dealers in close proximity to their farms. Moreover, accurate data about crop cultivation in the fields remains elusive, as it fluctuates with the seasons. The absence of real-time information on the supply side leads to price discovery only after the harvest is complete, causing daily distress sales and unpredictable price fluctuations in wholesale markets or ‘mandis.’
On the demand side, there is a conspicuous lack of data and research regarding the ‘end buyer segment,’ encompassing hotels, caterers, exporters, food processors, and retail supermarkets. These entities, owing to the intricacies of the existing supply system, also source their agricultural needs from local mandis. Consequently, they grapple with daily price, quality, and quantity fluctuations, often passing these uncertainties on to end customers.
In stark contrast to most modern industries and businesses that rely heavily on information and communication technology (ICT) tools for operational planning and management, the use of technology in India’s largest industry—agriculture—remains surprisingly minimal. The solution to many of the crises faced by the agriculture sector lies in advanced planning, contingent on timely information about supply and demand.
The need of the hour is a straightforward yet dynamic database that compiles comprehensive information about farmers and buyers, offering precise details on demand and supply. This accessible database should be available to anyone with a phone, through SMS, or on the web, thereby enabling farmers to leverage the vast internet network to connect with their buyers seamlessly. To comprehensively address the key pain points of farmers, this platform should also include agro suppliers, transporters, and a labor pool.
Enter efarmdirect:
– efarmdirect serves as an online database connecting farmers and buyers. It gathers supply-side information from farmers, including details on their produce, varieties, harvest dates, expected quantities, and prices. Similarly, it captures the demand from buyers, specifying quantities, quality requirements, and other specifications.
– The platform encompasses a wide range of agricultural and horticultural crops, such as vegetables, fruits, flowers, herbs, exotics, cash crops, cereals, and pulses in its initial phase. Subsequent phases may expand to include value-added products, dairy, and animal husbandry items.
– Users can search and filter data based on various parameters, facilitating precise matches between farmers and buyers.
– Recognizing the scarcity of labor in rural areas and rising farm labor rates, efarmdirect intends to enlist unemployed youth, differently-abled individuals, and semi-skilled laborers in the region, providing a ‘just-in-time’ labor pool.
– Transportation costs are often inflated due to intermediaries, resulting in empty return trips for trucks. By enlisting all truck operators, efarmdirect aims to create an efficient ‘call-taxi’ system, reducing logistics costs for farmers.
– Remarkably, farmers do not need to be literate or have access to a computer. They can access the data via phone (through a call center), SMS (using mobile phone 2-way text messages), or at an internet center near them. Franchisors are sought across India to facilitate data gathering, liaison between farmers and buyers, and transaction facilitation.
Revenue Model:
The efarmdirect revenue model comprises registration fees and commissions from sales, ensuring a sustainable and economically viable platform for all stakeholders involved.
