Traditionally, the majority of farmers in India access government administered mandis to sell/market their produce. These mandis were initially encouraged to ensure fair prices, timely payments and minimum transaction cost for farmers. Nevertheless, these farmers continue to suffer from inefficient auction system and inadequate dissemination of market intelligence. Most remain unaware of prevailing market prices till they visit the mandi. Further, to save the transportation costs, they travel only to the closest market instead of exploring prices in other accessible markets. In the worst case, farmers are forced to sell locally at the village level at a much lower price.
While the government has made several efforts to strengthen the agricultural sector and enhance opportunities for the Indian farmers, agricultural productivity and marketing are yet to reach its potential.To improve farmers’ access to information, thereby increasing their bargaining power in the market, in 2008 the Global comprehensive solution for farmers with buyers and Business Division team at Intuit conceived Fasal, a simple yet farmers. Fasal is a free SMS-based service that connects rural provides them with real-time price information. Farmers can subscribe to this service by calling the toll-free number 1800 102 8767, and provide details regarding the crop, agricultural land and mandis visited, to enable dissemination of personalised information. The mobile technology then uses a patented algorithm to match the farmers with potential buyers. The success of the model lies in its use of local language, personalised information and financial sustainability. Studies indicate that Fasal has helped farmers increase their income by 15 to 20 percent (Rs. 15,000 p.a.) because of the improved access to timely information. As of March 2012, more than 800,000 farmers are benefiting from this service in Andhra Pradesh, Gujarat and Karnataka. The model is also known as Agrinova and Fasal amongst local farmers. More and more farmers are enlisting for this service. By helping farmers earn more, Fasal is bringing about a change in lives of Indian farmers. Fasal has far reaching implications in India.
This case study intends to highlight the benefits of Fasal as an innovative initiative that facilitates to enhance the condition of Indian farmers. It improves their access to favourable opportunities based on the creation and strengthening of market linkages in rural India.