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Real-time information and customized knowledge provided by 'VillageNET' would enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. As a direct marketing channel, virtually linked to the 'Mandi' system for price discovery, 'VillageNET' would eliminate wasteful intermediation and multiple handling. Thereby, it significantly reduces transaction costs.

Figure: Revenue Growth from E-choupal (figure in billion rupees)

While the farmers would benefit through enhanced farm productivity and higher farm gate prices, companies would benefit from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.

E-Markets

Kiosks can be used for 'reverse trading', that is allowing other companies to sell their products and services directly to farmers via the Internet. Companies like Monsanto, Syngenta, Nagarjuna Fertilizers, Madhya Pradesh State Seeds Corporation (MPSSC) can take orders as well as market their products and services through an e-portal. The companies can book orders through the site and deliver to the kiosk manager who would pass it on to the farmers.

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* Contributed by -
Meenal Nigam & Vivek Patni,
NITIE, Mumbai.