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SMS Farming: A Text Message A Day Keeps Losses Away, Say Farmers Who Have Subscribed To RMLBy ugesh srakar, Section Information
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![]() Amit Mehra, Managing Director, RML</center> Suresh Dumbre's day starts with a text message on his mobile phone. The message, in Marathi, usually comes at 7 am. The 40-year-old vegetable farmer in Dawadi village in Pune reads it aloud: Cabbage. Pune: Rs 64 for 10 kg. Mumbai: Rs 80 for 10 kg. Kolhapur: Rs 80 for 10 kg. Now, Dumbre knows how much his cabbages will fetch him in the nearby wholesale markets. He leaves home with his stocks only after reading the message. Every day, at seven, 100,000 farmers in Maharashtra, Haryana and Punjab receive similar messages tailor-made to their specific crop and market requirements. Each of them has paid an average of Rs 50-Rs 100 a month for this service. Reuters Market Light (RML), the SMS-based information service targeted at farmers, was launched two years ago by the $13.4 billion Thomson Reuters Group. "We expect subscriber numbers to touch one million in three years," says RML's Managing Director, Amit Mehra.
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RML is trying to reach out to as many farmers as it can, says Amit Mehra. It is now all set to roll out services in other states, including Rajasthan, Gujarat, Himachal Pradesh and Madhya Pradesh. "I believe this service could lead to (cumulative) savings of $5-6 billion," he says confidently. Mehra describes RML as a social enterprise initiative from the house of Thomson Reuters. "We wanted to take a lead in offering market solutions that have an impact on the society, and yet, are profitable." Source: business.outlookindia.com SMS Farming Click On "Full Story" For More...
A three-month subscription of RML services costs a farmer around Rs 200-300, while a one-year subscription is in the region of Rs 600-Rs 700. By comparison, a farmer here spends about Rs 10,000 a year on fertilisers. For Reuters, on a subscriber base of 100,000, this means revenues of about Rs 6 crore. "We are charging them for the value we offer. Our services help them reduce risks," says Mehra.
Seeding the Idea
RML identified two markets to launch its service: India and Africa. In fact, the company first decided to launch its services in Africa, and even went there to study the market. Soon, however, it realised that it was Indian farmers who faced an information crisis. "The only source of information for them was Krishi Darshan on Doordarshan. But that gave them only a macro view of things," says Mehra. "Poor farmers never get to know of any government policy decisions," says Manohar, the Sarpanch of Dawadi village. He pulls out his mobile and retrieves a text message on agricultural subsidies announced by the Finance Ministry. He received the message the day the news was announced. "Usually, it takes months to reach us." Manohar, who cultivates roses for both the export market and domestic ones such as Mumbai, Pune and Delhi, receives messages on prices in all these markets at 4 pm every day. "This helps me to make an estimate of what the likely rates would be the next day and how many bunches I should send to the market. I save almost Rs 1,000 every day. Earlier, I had to call up each and every market and find out the rates," says Manohar. "I was not even sure whether I was getting the right price," he adds. A short, pot-bellied person, Manohar is visibly the friend, guide and philosopher of hundreds of farmers like Dumbre. As he recounts his RML experience at his village office, about half a dozen farmers huddle around him respectfully.
If there was a huge need for information among farmers, there were means to take it to them as well. The mobile phone penetration in villages was more than 30% even in 2006. Around 4-5 million new mobile subscribers are added every month in rural India. "This was an added incentive to launch the service," says Mehra. The subscription can be renewed by buying pre-paid cards available at village post-offices, Sarpanch offices and kirana stores. RML offers information on over 150 crop types and covers over 500 markets. But can Indian farmers actually afford a service such as RML? Krishna Durbha, Head, Value-Added Services (VAS), Reliance Communications, says that the rural consumer purchases as much VAS as the metro consumer. "A mobile screen is like an entertainment screen for villagers. The demand for such services is huge." Bollywood music and caller tunes account for over 60% of VAS consumption in the smaller markets. But will the same consumer spend Rs 600-Rs 800 a year for farm updates? "If the information is credible, they will definitely pay for it, and RML has proved its credibility," says Durbha of Reliance Communications. In fact, Reliance Communications has also launched a service called Mandi Bhav, which provides commodity prices to its customers through SMS.
Give Me More "My revenues have gone up by 20% thanks to the weather and market alerts, but I don't find the technology tips all that useful," he says. "We would also like to know the prices at more markets, which could help our expansion plans," says Sarpanch Manohar. Currently, most RML subscribers can choose a maximum of three markets for which they get alerts. Nine out of ten farmers want information on more than three markets. Mehra of RML admits that the company is aware of the drawbacks in its services and is working towards improving content. "We are partnering with agricultural universities to offer more advanced crop-related information." The company is also looking at providing other information like updates on power supply. Since electricity supply is erratic in rural India, a load-shedding schedule could help the farmers, says Mehra.
RML launched the project with an investment of around $3 million. "Going forward, we will continue to invest so that we are able to offer a superior product," says Mehra. Is it looking for other revenue streams? The company had initially tied up with fertiliser companies to carry ads along with the messages, but has since abandoned it. "It struck us that we could put off customers by inundating them with messages," says Mehra. In any case, a few text messages a day are good enough to keep both Reuters and farmers happy.
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