Bhutan farmers now have access to market prices through their mobile phones. This is probably the most advanced system of its kind in the world, using Interactive Voice Response (IVR) system, which allows farmers to hear the prices of their closest market in one of four languages – Dzongkha, Sharshop, English or Lothsam. No literacy is needed, which is much better than the alternative systems that are used in many countries, which use SMS text message. The system has been established by an SNV Advisor working with the Ministry of Agriculture, in collaboration with Bhutan Telecom.
Market power for farmers comes from two sources: firstly from freely available information, especially prices of their crops; and secondly from aggregating their produce through collective marketing in farmers groups or cooperatives so they have larger quantities to sell.
If they have the latest price information, farmers will be able to negotiate meaningfully with commission agents and middle-men and reach good farm gate prices. They will also be able to plan to send their produce to auction markets with a better idea of the prices they can expect. Department of Marketing and Cooperatives staff and Ministry of Agriculture Extension Agents will have a role to perform in building understanding in farmers about market margins (the commission agents cost of transport for example), and the necessity to spread the selling season to avoid oversupply and gluts.
Around the world, mobile phones are being now used to bring market information to farmers. This has been very popular in many developing countries, like India, Pakistan, and others. Usually this is by SMS which has limitations for illiterate people, and can usually be used for only one language.
A database collating the latest market prices has been established by DMC in collaboration with Food Corporation of Bhutan (FCB), and is updated daily with the range of prices from each of eleven Market Centres. Prices from the five largest markets will be reported by the MIS.
From this database, a website giving prices has been established (www.agrimarket.gov.bt), in collaboration with the Department of Information Technology (DIT), but since most farmers do not have internet access, it does not go far enough. Information is also available periodically by radio, newspaper and TV. This also does not meet the need, as farmers generally do not have access to these outlets.
But increasingly, mobile phones are being used by farmers in Bhutan. Even in areas with no electricity, farmers are use mobile phones, by charging their batteries with small hand driven generators and torch batteries. Bringing this 21st Century technology giving price information 24 hour a day 7 days per week right across Bhutan is a great boon for farmers.
The mobile phone based information system will be accessible to farmers wherever there is coverage, which is around 70-80% of the population and steadily increasing. There are about 200,000 B-Mobile accounts that are active, covering an estimate 60-70% of Households.
A highly automated “pull” system has been designed where farmers dial only 4 digits 2009 and receive price information following an “information tree”. Farmers are first asked to select their language, and are then asked to select from 5 makets, for example, No1 for Phuntsholing, No 2 for Gelephu, 3 for Samtse, 4 for Samdrup Jongkhar and 5 for Thimphu. The latest prices are then read to the caller such as for apples, potatoes etc. Since the information is mainly numeric, experience in other countries indicates that even illiterate users soon learn to benefit from the system.
Of course, only one market will be reported, according to the number that the caller presses. The prices are given for the 7 main commodities in each market and are given as a range of minimum to maximum per Kg for example: Potato red 17 to 19 per Kilogram. In the situation where there is no supply of a commodity in that market, the system automatically deletes that product until prices are again inserted by the next data update.
The cost of the call has been reduced by kind decision of Telecom Bhutan so that farmers can take advantage of the system, even though they may have little money. The normal B-Mobile cost for a voice call is Nu 2 per minute, right across the country. For the market information calls, this has been reduced to 0.5 Nu. The call is expected to last longer than one minute, perhaps 1 ½ minutes, so the cost can be expected to be Nu 1.0 per call.
Because the system is aimed at farmers, only mobile phones can access the information, and it is only available for B-Mobile subscribers.
It is expected that the trials now underway will be concluded soon, and the Minister of Agriculture together with the Country Director of SNV are scheduled to launch the system publicly in late November 2009.