Indian farmers are turning to the mobile industry for information about weather and markets, under a new scheme run by Reuters. In rural India, where pricing information is often impossibly hard to come by, the news service and financial market data provider has been piloting a service which delivers market information to farmers' mobile phones.
The programme, known as Reuters Market Light, has been trialled in the state of Maharashtra, around the size of Italy and one of India's most prominent agricultural centres. 60 Reuters reporters have been dispatched to the area to collect market information which is then sent in local-language text messages to subscribers.
According to a recent report commissioned by the Indian government, every 34 minutes an Indian farmer commits suicide because of debts, crop failures and other problems. Economists hope that the new scheme will give the state's economy a much-needed boost by informing farmers about different markets and thus boosting competition.
“We saw that there was clear market inefficiency,” said Mans Olof-Ors, a Reuters employee who initiated the scheme. “The farmer would decide which market to travel to, then would just sell to that market. So there was no competition between markets.”
As well as helping farmers get the best price for their goods, it is also hoped the information the service Over one third of the 146 million tones of fruit and veg that India produces annually rots before it can be eaten.
A similar project was set up last year by the Indian Institute of Technology in Mumbai, in which farmers are use text messages to receive alerts and ask questions of experts and colleagues. Called “aAQA” (almost all questions answered), the programme enables farmers to enquire about everything from projected rainfall patterns, disease forecasts for plants and animals to efficient ways of milking buffaloes.
However, both projects are still available only to the privileged few who own mobile phones. According to the International Telecommunication Union, a United Nations agency, India has a long way to go before mobile phone use catches up with that of the developed world. It reports that last year 20% of the Indian had a mobile phone subscription, compared with mobile owners in the UK. What is more, many farmers are illiterate and would need younger family members on hand to read the text messages to them.