The sericulture department in Karnataka is rolling out a unique, smart-card based model for silkworm farmers to sell their produce and collect their payments. The model, which cuts out middlemen and corrupt officials, helps farmers realise full value for their produce, and helps them carry out end-to-end trade at government-owned cocoon exchanges. The system, being set up with assistance from technology service provider NCR, will be launched in five cocoon exchanges in the state in the next two months.
According to the model designed by the state sericulture department, entry to the market will be restricted with a smart card, which keeps unauthorised persons outside. The farmer can pick up trays by swiping the same card to weigh and display produce for auction, avoiding involvement of officials at the state-owned exchanges.
After the auction, the successful bidder submits the amount to exchange officials, who load it in ATM machines located in the cocoon markets. The farmer can swipe the same smart card in the ATM machine and withdraw money that was remitted by the bidder, avoiding any ?commission? to officials.
As of now, farmers bring their produce to the cocoon exchange to be auctioned by government officials. The successful bidder (reeler) deposits the amount with the officials, who in turn, make the payment to the farmer. Following frequent complaints that officials were delaying payments or demanding commissions, the government has finally stepped in.
The five cocoon exchanges selected for the rollout include the one in Ramanagaram, said to be the world?s largest cocoon market. The other four are Siddalagatta, Kollegal, Kolar and Kanakapura. Around 60% of silk auctioning in Karnataka happens at these five markets. Officials said that the project would be extended to other markets too after gauging its success rate.
Venkataramanappa, minister for small industries and sericulture told FE: ?This will be the first such move in the country. The entry of farmers into the market, weighing of produce, auctioning of items and money disbursement ? everything will be automated and can be handled completely by the farmers.? He added that the programme, which is currently taking shape, would be introduced in the next two months.
?No other farmer-related government markets such as APMCs or Raita Bazar or Uzhavar Sandhai in other states have tried this kind of fully-automated operations,? he said. According to sericulture department data, the government operates 54 out of 66 cocoon markets in Karnataka ? the largest silk-producing state ? accounting for 40% of the country?s 19,000 tonnes raw silk production. The government has issued passbooks to 1.4 lakh sericulture farmers, who can sell their produce at any of the government cocoon markets. The government has also offered licences to 13,500 reelers, who can buy cocoons through open bidding every day. Around 48,000-50,000 tonnes of cocoon worth about Rs 1,000 crore change hands at these exchanges every year, an official attached to the sericulture department told FE.