Indian Farm Bill 2020 in the context of Farm Management Software!!
The Indian Parliament passed 3 momentous agricultural bills on September 2020 that resulted in a nationwide protest by the famers. Meanwhile the government has instituted an interim period, for discussion with the farmers about their concerns, until the rules are fully imposed.
How do the new laws affect contract farming? What is the one thing you lack that can change the game of your agribusiness?!
Read on to find out!
THE FARM LAWS 2020
The farm reforms passed in 2020 involves three acts but we need to concern ourselves primarily with these two:
1- Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
Farmers can trade outside ‘mandis’ and APMCs
Farmers can negotiate prices for their products
Barrier free interstate and intra-state transportation
Facilitation of electronic framework for trade practices
2- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020
Farmers can enter into contract with agribusinesses or large sellers on pre-determined prices
Risk of market unpredictability transferred to sponsors
Ensures risk mitigation and guaranteed payment to farmer
Thus, the new laws can potentially change the face of your contract farming or agribusiness because now,
You deal with farmers directly eliminating brokerage and govt agencies
Hindering Red tapes are eliminated
Pre agree on prices and product specifications
Govt guarantees barrier free transportation
For forward thinking agribusinesses we have an investor friendly recipe beginning with the judicious utilization of these laws. Now we reach the million-dollar question. What is a key investment that can change your agribusiness game and put you on the world food map?
FARM MANAGEMENT SOFTWARE
Now that an investor can directly communicate with the farmers, introducing an FMS into this agreement can channelize these communication pathways to increase business efficiency. Information and communication technology (ICT), Internet of Things (IOT), Artificial Intelligence (AI), Unmanned Aerial Vehicles (UAV), weather forecast etc. can be incorporated to provide time stamped data to make decisions concerning real time risks.
Still not sure about getting an FMS for your agribusiness? Look below!
This is only the tip of the iceberg. An FMS has almost everything in its armor. Sit back and enjoy your agribusiness. You asked me why. I tell you why not!
I know what you are thinking. How reliable is this data? What if the farmers provide you tampered information that suits their trade?
FMS uses Blockchain technology in its data management. Blockchain technology is essentially a digital register that exists on a network of computer systems, immune to modifications and additions once the data has been furnished. To put it simply, Blockchain technology offers,
De centralization of information as the data cannot be tampered with at any end
Cost effectiveness as it drastically scales down an otherwise complex process
Direct communication eliminating middlemen
Time stamped data for accuracy,
And most importantly,
Traceability and transparency
CONCLUSION
The farm laws 2020 offers a wider horizon for ambitious agribusiness investors. The key to leading the race in this competitive new environment is through investing in a Farm management software (FMS) that can take advantage of the newly opened direct channel between the business and farmers. An FMS can focus your eyes on the prize through its judicious use of technology to give instructions to the farmers from sowing to harvesting and storage. It is also the ethical way to move forward for a socially responsible and sustainable agribusiness looking to stay on top of the game.
Did you know that the World Environment Day 2021 is based on the theme “REIMAGINE. RECREATE. RESTORE.”? Wait, how is this relevant to your agribusiness? Well, an FMS is the most effective way to help this transition.
Watch this space to know how.
