“Mobile Mandi & Mandi on Wheels” for Efficient Agriculture Markets to facilitate Doubling Farmers’ (Kisan) Income as proposed by Prof. Aman Agarwal, Indian Institute of Finance (IIF) & Finance India

Prof. Aman Agarwal, Director, Indian Institute of Finance, Greater Noida, proposed setting up Mobile Mandis & Mandis on Wheels for Efficient Agriculture Markets facilitating doubling farmers Income. In this respect he appreciated Finance Minister- Shri Arun Jaitley's initiatives in the Union Budget 2018-19 focusing on the aspiration of the Farmers (Kisan) ; the Youth and the Senior Citizens by providing for a Healthy and Happy Living through Growth oriented Forward Looking Budget.

Professor Agarwal feels that one of the most serious problems of Agriculture produce is marketing and realization of appropriate Price (returns) for their produce. The Finance Minister has rightly proposed 22,000 rural Haats to be developed and updated into agricultural market to protect the interest of 86% small and marginal farmers. In this respect Prof. Agarwal urged the Government to promote and develop “Mobile Mandi & Mandi on Wheels for Efficient Agriculture Markets for Doubling Farmers (Kisan) Income”

Prof. Agarwal appreciated that the Finance Minister has given due emphasis to Agriculture [more specifically Farmers (Kisans)], which house 70-75 % of India’s population in Agriculture (including Agro based Industries) after a gap of almost Four (4) decades in the Union Budget of India. Finance Minister’s proposal to raise the MSP to one and a half time for all agricultural produce will greatly help the farmers in increasing their incomes states Professor Agarwal

There has been a serious concern voiced by the Farmers (Kisans) for over Three (3) decades for not-getting an appropriate price for their produce given the difference of price which is clearly evident from the price a farmer gets for selling his produce against the market price at which it is sold to the end consumer. The difference at times has been to the tune of over 35-300% of the price that farmer gets after working hard for the full year. This has been due to the fact that there has been excessive hoarding (Kalabazari) and exploitation by the middle men involved in connecting the farmers (Kisan) produce to the end consumer through mandies. The Union Budget 2018-19 and the actions taken by the Government in the last 3 years have been trying to resolve / reduce such exploitation.

IIF have undertaken large number of studies on financing agriculture and improving the lot of farmers and poverty alleviation. IIF had proposed the formulation of Kisan Credit Cards and Corporate Farming at various forums, conferences & news channels between 1995 to 1997. This was brought to light by the joint action taken by Government of India, RBI and the Ministry of Agriculture.

Prof. Agarwal stated that IIF recent study indicates that by adopting the concept of Mobile Mandi and Mandi on Wheels the Government would be able to facilitate in
(a) Doubling the income of farmers (Kisan) possibility within one or two years;
(b) Reducing the role of middle men, exploitation and price disparities;
(c) Reducing wastages of produce;
(d) Managing inflation (especially food inflation)
(e) Reducing the burden on Exchequer / Treasury (Fiscal Spending toward grant of loan waivers and the heavy Cost control measures undertaken by Government to control fueling prices from time to time).

The Mobile Mandies and Mandi on Wheel will lead to creation of efficient agriculture markets by removing information asymmetry and robust food buffers to be appropriately allocated toward the need of growing India. Prof. Agarwal has advocated development of “mobile mandies and mandies on wheel” in his TV Interviews in Lok Sabha TV (30-01-2018); Rajya Sabha TV (1-02-2018); All India Radio (2-02-2018) and Delhi Doordarshan TV (DD News) (2-02-2018) and at series of academic forums in the November 2017 to - January 2018.

The Geneses of “Mobile Mandi & Mandi on Wheels” is based on the fact that the poorest of the poor, small and marginal farmers are connected via mobile today given the telecommunication drives in India since the early 2000s. With the power of Mobile, the farmer today can communicate the information of the produce through SMS / Whats App to Centralized Mandi Hub System which will then connect the message to all Mandies (Large / Small). This will greatly remove information asymmetry. It is heartening to see that the connectivity between the large and small mandies (proposed Haats) has been provisioned in the Union Budget 2018-19 by the Finance Minister. The message is then routed to the nearest mandies whereby necessary mobilization for collection of produce from the farmer can be facilitated and hence forth reducing the direct cost to the farmer (Kisan) due to middle man / hoardings. The reduction of cost to the farmer (kisan) has been raised as a key concern factor by the Prime Minister Shri Narendra Modi in his address to the nation immediately after the presentation of the Union Budget 2018-19.

Prof. Agarwal strongly feels that this Budget is a Path Breaking Budget. It is Growth oriented Progressive, Forward Looking and Practical. The Budget will foster growth in social sector and the economy; the needs of farmer (Kisan, Agriculturist); reducing poverty; healthcare; women, youth and senior citizens of India. The budget will also ensure the re-emergence of the feeling of Sone Ki Chidiya (Golden Bird) in the hearts of every Hindustani for a better happy and healthy living in Bharat.

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This release was published on openPR.