ANALYSIS OF THE EXISTING FARMER AUCTION SYSTEM:
- The farmers in India, due to illiteracy and absence of proper storage facilities are often the victims of the malpractices, unspecified charges and thus are forced to sell their produce at prices considerably very low as compared to market prices.
- As per the studies conducted, the farmer receives only 20-25% of the retail prices.
- The agents/middlemen in between take away most of the profit.
- Farmer bears all the losses of its produce
The Smart Contracts execution and secure tamper-proof agreement signed between the Farmer and the Bidders prevents any kind of cheating from both sides. It allows auctions to happen in a much secure way, removes middlemen and provides faster payment to farmers. Strong privacy features combined with Ethereum Blockchain can disallow bidders to collude which can offer better price to farmers. Events on Ethereum Blockchain also provides complete transparency to the bidding process.