Mandi Bhav, also known as the Mandi Market, is a premier wholesale market in India, situated in Indore, Madhya Pradesh. As a significant trading center for agricultural products, it has been in operation for over three decades. Throughout its existence, Mandi Bhav has embraced various technological advancements that have greatly enhanced its efficiency and transparency.
Introduction of Electronic Trading
The advent of electronic trading has precipitated a series of transformations at Mandi Bhav. In 2017, the National Agriculture Market (e-NAM) debuted a digital platform that enables farmers to purchase and sell agricultural commodities online, thereby streamlining the process. This has brought several benefits:
Increased reach: Traders from anywhere in the country can now participate in Mandi Bhav's trading online. This has expanded the customer base and opened new markets.
Better price discovery: Real-time bidding allows for dynamic price discovery based on demand and supply. This has made the system more efficient.
Improved transparency: All information related to arrivals, prices, bids etc. is available online. This has reduced information asymmetry.
Trading is faster: The electronic trading system allows bids to be matched up with offers more quickly.
The trading process has been accelerated. Secure and convenient online payments are made possible by the integration of payment systems.
Over 500 farmers are now using the e-NAM trading platform to trade agricultural commodities.
Use of SMS Services
Mandi Bhav has also adopted SMS services to disseminate key information to farmers and traders. Some of the SMS services include:
Daily prices: Farmers across Madhya Pradesh receive SMS alerts of the prices at Mandis to assist them in making informed selling decisions.
Alerts on arrivals: Traders get regular updates on incoming arrivals via SMS. This helps them plan their procurement in advance.
Payment notifications: SMS alerts are sent out regarding payments or dues. This enables prompt reconciliation of accounts.
Weather warnings: Farmers receive advance information on adverse weather conditions to enable them to protect their crops.
By making use of SMS services, timely information has been spread around Mandi ecosystem stakeholders quickly.
Installation of CCTV Cameras
Mandi Bhav has installed over 300 CCTV cameras across its premises. The cameras help monitor activities in the market in real-time. Key benefits include:
Enhanced security: The CCTV feed helps identify theft or pilferage incidents and take corrective action. Women traders feel more secure due to increased surveillance.
Dispute resolution: In case there are any disagreements among traders, CCTV footage can serve as evidence to facilitate resolution.
Improved supervision: With access to live CCTV feed, market committee members can better oversee operations for smooth functioning.
Greater accountability: The presence of cameras has made traders, commission agents and laborers more compliant with rules and operating procedures.
The CCTV surveillance has helped make Mandi Bhav a more orderly, efficient and secure place for traders and farmers alike.
Introduction of Reverse Auction
Mandi Bhav has implemented reverse auctions for certain produce like onions and potatoes. Reverse auctions differ from regular auctions in that buyers bid against one another; the lowest bidder will ultimately win. By contrast, traditional auctions involve sellers placing goods out for bidding before buyers bid against each other on them.
Reverse auction benefits:
Better price discovery: The competitive bidding results in discovery of best price.
Prevents collusion: Reverse auction format prevents traders from forming syndicates and demanding unjustified high prices.
Assured offtake: Farmers are assured of selling their entire stock as buyers bid for the produce.
While the volume of trade via reverse auction is still low, it holds immense promise for farmers. The simple and transparent bidding process puts greater power in the hands of the farmer.
Automated Grading and Sorting
Mandi Bhav has introduced automated grading and sorting machines for commodities like fruits and vegetables. These machines can:
Grade the produce based on visual parameters like size, color etc.
Sort the graded produce into different quality piles accordingly.
Do this at a rate much faster than manual grading.
The key advantages are:
Reduced labor: Significantly reduces the need for manual sorting and grading.
Consistency: Automated machines offer consistency unmatched by human graders.
Speed: Automated lines can grade and sort produce rapidly.
Higher realization: Better grading ensures farmers get prices commensurate with quality. Traders can pay as per exact quality.
The grading and sorting machines have uplifted supply chain efficiency for horticulture produce. However, such automation will need complementary steps like farmer training and bulk handling infrastructure.
Mobile Apps for Information Access
Mandi Bhav has launched its own mobile app called Mandi Bhav App. Key features of the app include:
Daily market prices of all commodities trading in the Mandi.
Arrivals information along with quantity expected.
Payment records of traders and outstanding dues.
Complete details of licenced traders and commission agents.
Latest news and announcements related to the market operations.
Enables farmers to track prices and plan crops accordingly.
Allows traders to stay updated on arrivals even while on the move.
Provides all key information on a real-time basis on farmers' fingertips.
The app brings convenience and transparency to all stakeholders. It is available in Hindi for greater access. Its successful adoption can potentially transform market efficiency.
In addition to the official app, some private tech startups have also launched their own apps providing price discovery tools specifically for farmers. Examples include Agrimarket and Mandi Trades. While official data is sourced from Mandi Bhav, these apps present it in a format tailored to farmer needs and allow personalized tracking.
Market Digitization Initiatives
The government has undertaken end-to-end digitization of Mandis in order to modernize their operations, promote paperless trading and bring transparency. Some key initiatives include:
e-RUPI vouchers to pay farmers digitally, replacing cash payments.
eNWR (electronic Negotiable Warehouse Receipts) to enable pledge finance against farm produce.
Unified farmer service portal for e-services related to procurement and payments.
Integration of land records and Aadhar ID to create unique farmer IDs and link to trading accounts.
Mandatory online registration of all incoming lots to enable complete digitization of trading.
While the progress is gradual, the digitization efforts are helping transition Mandi Bhav towards robust electronic trading, payment and inventory management systems. This is preparing the Mandis for efficient future trading.
Adoption of Futures Trading
In 2018, NCDEX (National Commodity Derivatives Exchange) launched futures trading in Mentha oil from Mandi Bhav. This allows traders to hedge commodity price risks and discover future pricing through trading contracts expiring over different months.
Key benefits of futures trading include:
Price risk management: Farmers and traders both can hedge risk using futures.
Efficient price discovery: Futures represent views of market participants on future price trends.
Increased liquidity: Presence of futures trading attracts more participants and capital.
Warehousing development: Futures trading necessitates quality warehousing facilities to allow delivery on contracts.
The adoption of futures trading is preparing Mandi Bhav for more sophisticated commodity trading practices. However, participation is still low and focused efforts on financial literacy are needed to broaden adoption.
Conclusion
In summary, Mandi Bhav has made steady progress in adopting technology to upgrade its wholesale trading infrastructure and systems. The usage of e-trading, SMS, CCTV, automated grading, mobile apps and electronic payments shows a commitment to leveraging technology to benefit farmers and traders.
However, active training and change management efforts are equally vital to induce behavioural shift and drive adoption of these technologies. Institutional reforms may also be required to optimize incentives and participants' conduct. Furthermore, technologies like blockchains, IoT and AI can lend even greater efficiency going forward.
The transformation of Mandi Bhav into a modern, tech-enabled trading ecosystem will ensure it continues to meet the needs of 21st century agriculture. The foundation is being laid through the slew of innovations adopted. Their deeper penetration and next-generation upgrades can potentially make Mandis the core of a farmer-centric, inclusive and transparent national agricultural market.
