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Paddy e-procurement system suffers from high cost

Industry: Agriculture & Livestock, Agro

A recent study conducted by the Bangladesh Institute of Development Studies (BIDS) unveiled that the paddy e-procurement system in the country suffers from higher transaction costs compared to the traditional method, primarily due to irregularities and mismanagement. However, the system has proven to positively impact farmers’ income from selling paddy. The study recommended addressing the existing irregularities to enhance the popularity and effectiveness of the public paddy e-procurement program.

Speakers at the event emphasized the need to overcome service-related issues, high administrative costs, leakage, and inefficient implementation. The mobile phone-based e-procurement system, introduced by the government, aims to ensure fair prices for farmers by directly purchasing paddy from them through a computer-based lottery system. To increase farmer participation, the study suggested reducing transaction costs and conducting awareness programs. Additionally, the study highlighted the misuse of “krishi cards” by non-farmers and proposed incorporating registered mobile phone numbers of genuine farmers to prevent irregularities.

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