Technology can help cut out role of middleman in agriculture supply chain
Implementation of innovative technologies in agriculture is essential for eliminating the role of middleman, streamlining the farm-to-market access, and significantly increasing farmers’ incomes.
“For decades, Pakistani farmers have faced numerous hurdles in bringing their produce to market. The traditional supply chain, dominated by a network of middlemen, has often resulted in significant losses for farmers,” highlighted M Tariq, a principal scientific officer at National Agricultural Research Centre (NARC).
Speaking to WealthPK, he maintained: “Small-scale farmers face numerous challenges in dealing with middlemen. They lack bargaining power due to their limited access to information about market prices and alternative buyers. Additionally, the absence of proper infrastructure and transportation facilities further exacerbates their dependence on middlemen to sell their produce,” he said.
He said: “Attempts have been made in the past to reduce the role of middlemen, but none of them have been that successful. In 2021, the Punjab government made an effort to interconnect almost 132 agricultural markets to ensure fair prices of crops for farmers, but the outcomes were not sustainable.”
“However, new technological innovations are now enabling direct connections between farmers and consumers, bypassing intermediaries and fostering a more transparent and efficient agricultural marketplace. Pakistan needs to adopt these technological innovations to cut the role of middleman,” he emphasised.
“One of the key developments is the rise of digital platforms that connect farmers directly with buyers. These platforms offer a virtual marketplace where farmers can list their produce, set prices, and negotiate directly with buyers. This direct interaction not only ensures fairer prices for the farmers but also allows consumers to access fresher and more affordable produce.”
Tariq said: “Blockchain technology is another significant development revolutionising farm-to-market access. By providing a decentralised and transparent ledger, blockchain ensures the traceability of produce from farm to fork. This transparency helps build trust among farmers, retailers, and consumers, guaranteeing that the produce is fresh and sourced ethically. It also reduces the risk of fraud and adulteration, which have been persistent issues in the agricultural supply chain.”
Additionally, the NARC scientist said: “Mobile payment solutions are facilitating smoother financial transactions between farmers and buyers. These solutions ensure quick and secure payments, reducing the risk of fraud and delays.”
However, he said despite these advancements, challenges such as limited internet access in rural areas and the need for digital literacy among farmers remained. “Addressing these issues is crucial to ensuring the widespread adoption of technology in agriculture.”
“Moving forward, continuous investment in infrastructure, education, and support for farmers will be essential to fully realise the potential of technology in revolutioniing farm-to-market access in Pakistan,” he stressed.
