Anjani Sinha, MD National Spot Exchange, India: National Spot Exchange’s objective is to reduce cost of intermediaries and enable farmers to sell directly to consumers. When the farmer harvests they can bring produce to our warehouse. A receipt is issued to him. He can then sell immediately to us, and electronic negotiation will happen. Buyers anywhere in the country can see the price and bid.
LIRNEasia lead economist Harsha de Silva presented a paper on “ICT Policy for Agriculture in Sri Lanka: An Economic Perspective” at the first ever information technology in agriculture conference jointly organized by the IT Department of the University of Moratuwa and the Agriculture Department of the University of Ruhuna. Harsha argued for mobile-centric, demand-driven, value-chain based, accurate and timely two-way information exchange systems that could lower transaction costs leading to increased efficiencies in agricultural markets to move farmers from subsistence to commercial agriculture. His slides are here. LIRNEasia lead economist Harsha de Silva presented a paper on “ICT Policy for Agriculture in Sri Lanka: An Economic Perspective” at the first ever information technology in agriculture conference jointly organized by the IT Department of the University of Moratuwa and the Agriculture Department of the University of Ruhuna. Harsha argued for mobile-centric, demand-driven, value-chain based, accurate and timely two-way information exchange systems that could lower transaction costs leading to increased efficiencies in agricultural markets to move farmers from subsistence to commercial agriculture.
At Sri Lanka’s largest agricultural market a large projection screen overlooks 12 acres of stalls brimming with produce. Traders at the Dambulla market consult the screen to receive up-to-the-minute pricing information on produce being sold in the market. This information helps them negotiate fair prices at any of the market’s 144 booths, says Harsha de Silva, head economist at Sri Lanka-based LIRNEasia, a non-profit organization and IDRC partner that aims to use information and communication technologies (ICTs) to improve the lives of Asia’s people. In the case of the Dambulla market traders, de Silva says farmers can negotiate from a stronger position because information is accessible. Such information is vital to ensuring agricultural markets work efficiently because it helps farmers reduce their transaction costs, according to de Silva.
Harsha de Silva discussed LIRNEasia research on ICTs and Agriculture at a Virtual Forum on ‘Mobile Telephony in Rural Areas’, organized by the e-Agriculture.org, from 17-28 November 2008. Consisting of over 145 people from 52 nations, participants at the forum included farmers; NGO representatives; private sector; researchers, scientists and academics; governmental representatives; and UN staff. A summary report of the first week of discussion is available here.
A case-study from Sri Lanka by Harsha de Silva and Dimuthu Ratnadiwakara
LIRNEasia has come up with startling evidence on how transaction costs in agriculture could be reduced by simple mobile phone applications. The organization’s Lead Economist, Dr. Harsha de Silva called for a multi-stakeholder action plan to implement a series of actions that would help poor farmers as well as consumers by reducing information costs in agricultural markets and value chains. He was speaking at a panel following a public lecture by Indian Institute of Management Professor, Subhash C. Bhatnagar, who spoke on the benefits of ICT applications to farmers, taking India as an example.
You buy guavas from local superstore. They look fine, but when cut, you find worms inside. This is a common problem. These worms enter the product when it was only a flower and grow inside without showing any external signs. Superstore offers an apology, but no guarantee that you will not buy similar low quality products tomorrow.
21 – 23 February 2008 at Kandalama Hotel, Kandalama, Sri Lanka LIRNEasia hosted a Workshop to discuss the policy level implications and business level possibilities of using ICTs to reduce transaction costs in the agricultural value chain as well as to improve traceability and enhance quality of products sold. The Workshop brought together key stakeholders consisting of policy makers, private and public sector participants and researchers, both in agriculture and ICT. It was based on the pilot projects conducted by LIRNEasia in 2007, which was discussed in detail at the Workshop. All presentations made at the Workshop can be found below: Traceability: International Perspective – Visoot Phongsathorn Linking Sri Lankan farmers to global markets – Dr. Harsha de Silva Traceability in agricultural markets – Shamistra Soysa Benefits of ICT applications to farmers with emphasis on transaction costs: experiences from India – Prof.