Media Lab Asia: Kanpur Lucknow Lab


  About Us
     Apne Hath Se
Craft Revival
Digital Gangetic Plains
Digital Mandi
Digital Music
Info Sculpture
     Mechanical Design
Medical Applications
Design of Power Resources
  KLL in News

  Digital Mandi:

Digital Mandi is an Electronic Trading Platform for Agro Commodities. It being developed as an application for the Infothela.

Digital Mandi is inspired by the vision of Media Labs Asia sustainable village through culturally appropriate use of new technologies. For technology to be important, it should transcend into livelihood of people. We envisage an application for the Infothela which touches the root of village economy.

Existing Scenario

  • Farmer goes to village level mandis.
  • Demand supply imbalance often cause prices to crash.
  • Sellers market controlled by mahajans.
  • Farmer is compelled to sell crop or take loan at higher rates owing to liquidity crunch.

Problems in Existing Scenario

  • Farmer gets low price for his produce.
  • Crunch of liquidity reduces options before the farmer.
  • Price discovery is inefficient and militates against the interests of farmers.
  • Non-homogeneous crop production and trading causes temporal and positional disorders.

Reasons of problems

  • Limited number of buyers and sellers due to limitations in form of geographical and temporal barriers.
  • Inherent risk in terms of volatility in prices of commodities.
  • Perennial liquidity crunch of farmers.

Proposed Solution

  • Eliminate geographical barriers through enabling digital marketplaces.
  • Through future contracts, remove temporal limitations, and hedge risk.
  • Alleviate cash crunch through active participation of various banking and Para-banking institutions.

Bare Essentials of Proposed Marketplace

  • General trading services.
  • Granting finance.
  • Technical infrastructure i.e. Networking.
  • Warehouse certification facilities.
  • Transparent settlement and dispute handling.
  • Knowledge and information dissemination to all stakeholders.

Project Digital Mandi

  • Digital Mandi is envisaged electronic commodities futures and spot marketplace.
  • Solves most of the problems discussed.
  • Is based on modern stock market and future market principles.
  • Stakeholders are farmers, buyers, and brokers.
  • Monetory institutions and exchange will act as enabling agents.

Project Investigator

Prof Jayanta Chatterjee

Page updated on Fri Mar 7 15:35:11 IST 2003