Key Findings from RBI Survey:
- Cash Transactions Dominant:
- Over 70% of farmers still use cash for selling produce.
- Pre-pandemic (2019): 88% farmers used cash.
- Post-pandemic (2024): 72% farmers still rely on cash.
Relevance : GS 2(Social Issues) , GS 3(Economy )
- Slow Growth in Digital Payments:
- Farmers: Electronic payments usage grew from 8% (2019) → 18% (2024).
- Traders: Electronic transactions increased from 8% (2019) → 31% (2024).
- Retailers: Digital payments surged from 3% (2019) → 22% (2024).
- Limited Digital Awareness for Market Prices:
- 55% farmers rely on traders for price information (↑ from 47% in 2019).
- 47% farmers depend on fellow farmers (↓ from 51% in 2019).
- Digital sources (apps/websites) remain underutilized (only 10% use them in 2024).
Impact of Climate Change on Agriculture:
- 64% farmers reported crop damage in the 2023-24 rabi season.
- Key Reasons for Crop Damage:
- Unseasonal Rainfall: 37% farmers affected.
- Heatwaves (Climate Change Impact): 30% reported losses.
- Weather Forecasts Influence Sowing Decisions:
- 90% farmers rely on weather forecasts.
- Irrigation availability (60%) and expected prices (40%) rank lower.
Farmers’ Share in Final Retail Prices (2024):
- Highest Share: Wheat (67%), Lentils/Chana (60%) (Govt. Procurement Involved).
- Lowest Share: Perishable goods like potatoes, mangoes, cauliflower (40%).
Key Takeaways:
- Digital penetration remains low in agricultural transactions and price discovery.
- Climate change is increasingly affecting crop yields and sowing decisions.
- Market inefficiencies lead to lower price realization for perishable goods
