Transformative App for Farmers in Bihar

In Bihar, an innovative application named Ergos is empowering farmers by giving them unprecedented control over their crop sales. This digital platform, referred to as a “grain account,” connects to a network of grain banks. It allows farmers to store their produce, monitor inventory levels, keep an eye on national prices, and sell their crops easily via their mobile phones.

Farming can be incredibly stressful, especially for those who own small plots of land. Often, farmers lack the time during harvest to establish connections with the necessary intermediaries, delivery personnel, and sales teams to ensure their grain reaches the market at a fair price—one that can sustain their families.

Intermediaries have historically played a pivotal role in this process, but not always for the benefit of the farmers. Many times, farmers were forced to accept prices set by middlemen, leaving them little room for negotiation. Kishore Kumar Jha and Praveen Kumar sought to change this dynamic by developing the Ergos system, which cuts out the middlemen entirely, thereby granting farmers complete autonomy over their marketing strategies.

Ajay Kumar Chaudhary, a 66-year-old farmer from Kalyanpur, shared how Ergos has changed his approach to selling crops. He previously felt pressured to sell at unfavorable prices. “If I’m told the price has dropped by 10 rupees, I had to accept that,” he noted. Now, he feels he can wait for a better price, which could come in a few days.

Chaudhary also mentioned the option to take loans to help with immediate cash flow needs. “If you need money right away, you can take out a loan at about 1% interest to store your grains. The loan is automatically paid back when you sell the grains,” he explained.

In regions like Bihar, borrowing costs can be astronomical. While some might view a 19.5% interest rate on a credit card as high, farmers often encounter rates of 50% or 60%. This situation highlights the challenges of lending to farmers who often lack adequate resources, machinery, or proper storage solutions.

Chaudhary acknowledged the multitude of uncertainties in farming, from unpredictable weather to fluctuating market prices. However, the introduction of Ergos has noticeably alleviated one major concern—the dependency on middlemen.

According to Jha, the app’s benefits extend beyond individual farmers. He pointed out that around 18% of India’s grain harvest is lost each year due to poor storage conditions. The village grain banks operated by Ergos apply scientific methods for long-term grain preservation, helping to reduce waste significantly.