Karnataka Government has signed a Memorandum of Understanding (MoU) with software giant Microsoft India to develop a unique “farm price forecasting model.”
The proposed initiative is claimed to be the first-of-its-kind in the country. It will aid farmers from states to predict farm prices in advance and deal effectively with the unpredictable market.
The farm price forecasting model will use latest IT tools in a bid to help farmers, administrators and other stakeholders to understand market behaviour in advance. It will be a “multi-variate” platform that will take into consideration various factors beyond conventional supply-demand equation while forecasting prices of crops.
The model will examine a slew of related factors including weather, rainfall and external factors that impact market behaviour. It will help to provide real-time market data, besides helping analyse its implications on farm sector. The model is expected to be in place for major crops by 2018 kharif season.
The purpose of the mode is to achieve is predictability as well as stability of farm incomes. Knowing the market situation in advance, it will help farmers, policymakers and industry make informed decisions. Moreover, the forecast will aslo help the government prepare in advance for market intervention if there was an indication of price crash.