Bottlenecks in Price Discovery Mechanisms
Discovering the right price of an agricultural commodities at right time works as panacea in business. It helps in extracting the maximum profit from deals. Thus for understanding, how actually these people do the price discovery I happened to meet several people across agriculture markets in India.
In those interactions with farmers & agri-traders interestingly, i got several answers like
Receive SMS from a specific Agriculture market yard
Pay and receive SMS for a specific commodities(like Paddy, maize, cotton, etc.,) in predefined markets
Call known people in important markets to understand the prices
Few rely on commodity exchange prices
Use whatsapp to get the information
During a normal working day, they receives bulk of price sms but only 1-2 sms are of their use rest all are junk. it becomes difficult to filter the information important for them. Generally a trader deals with 5-6 commodities in 4-5 locations and the sms he receives is of so many locations and that too include many commodities, thus finding the information of interest becomes very tiresome.
One of the prominent trader told us that, “during the peak arrival season every minute is important, as they deals in very large quantities, a minuscule miss of information can sum up to loss of large money. They don’t have time to scan through all the sms, whatsapp to extract the information important to them”.
Generally these sources don’t give the information they need, for instance suppose i am a agri-trader in Raipur, Chattisgarh, India and wants to sell paddy to trader/exporter in Kakinada,(AP), in this scenario all I need is information about the Kakinada like what is the rate, arrival, but what I receive from these sources is the dumping of sms out of which I have to sort information important to me, Which is very time consuming and irking. Most of the above sources fail to give the information (in this case Kakinada paddy prices) the agri-trader need to take the call over the prices on his own.
Such uninformed deal decision is not considered a good practise to follow. This is where Kalgudi walks in. User receives market prices, (Price of paddy in Kakinada region) arrivals or required commodity of his location as well as his interested locations on a daily basis in tailored form. These locations can be within India or across the globe so that they can take timely decision.
For more info visit: Kalgudi
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