Agricultural Information System: Milestone for Agro-commodity Trading



It has been long wait for the clients in the market to enjoy with all the three major pillars of the commodity or the derivative market-speculation, arbitration and hedging. And, on the other hand, the wait has also been long to the commodity exchanges for the regulation of the commodity or derivative market. Current market scenario, especially the commodity market, has been squeezed between these two assumptions. Nevertheless, steps have been taken; now trying to introduce local agricultural products in the contract specifications of the exchanges. Among the various pre-requisites required for the above trading scenario, Agricultural Information System (AIS) is also a major one.

Basically, how AIS can be utilized is:

 
 

Source: Networking of AISS in India, Nandwana and Sreenivasulu

Currently, we are successfully practicing Information Systems like Management Information System (MIS) and Health Management Information System (HMIS). MIS reports if anything faulty takes place regarding the overall management of an organization whereas HMIS has proved itself efficient enough to report from each level of Health service hierarchy in the country and if authority is abused in any level of hierarchy, it is subject to penalty. Similarly, AIS can be executed which will benefit the farmers more, it will tell us how the commodity prices are manipulated in different level and what should actually be the price of a commodity.

This can find us the details how are farmers being exploited by paying them low prices and low wages to workers, and an appropriate policy can be designed to overcome this situation which will actually motivate farmers for more production and when productions increase, there comes the role of commodity exchanges facilitating fair trading.

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