Problem Statement Title - Student Innovation
Problem Statement ID - 1484
Description:
More than 30% of the farmers in India are below poverty line and rest face financial difficulty even for basic facilities like education or healthcare. Unfortunately we come across suicide cases of farmers very often. The poor farmer invests large amount of his savings to his crop all at once and if the crop fails, he is completely devastated. Sometimes he takes informal loans at high interest rate which leads him to dept trap or pledging of his property.
We aim to help farmers to go beyond financial burden by CONNECTING URBAN TO RURAL economics through BLOCKCHAIN.
Problems we aim to tackle:
- Loans
2.Dept Trap
3.Lack of resources
4.Low quality production due to financial limitations
5.A big hit to the farmer if the crop fails.
SOLUTION:
Instead of the poor farmer using all of his hard earned money to grow crops, and taking risk, we have a better approach.
A platform from where urban population can invest in crop production. Farmers only have to use their farm and do the work as usual. Farmer can log in to the website, upload the farm and crop details, investment required, return percentage and upload an 'Investment Request' for the season. The investors can see the farm location and invest what ever amount they want. The farmer starts to get money and buy required products without any loan or financial risk. As the crop is harvested the Government Agency (Food Corporation of India) procures the harvest. The payment is made and the farmer gets the money. The investors get their share.
Example based on real data:
For growing rice on a 4 acre farm, approximately is 100k and total revenue return is approximately 200k making the profit to be 100k. Say 50 people invest 2000 Rupees each. When the crop is sold for 200k the farmer keeps 90% of the profit and 10% is distributed among the investors. The investors in this way will get 10% return to their amount, which is equal to any stock return. So the farmer has earned the profit without any financial risk. Also the government follows the rule of Minimum Support Price (MSP) system, under which the farmer always get the MSP, but under certain conditions can get even more, and keep the profit above.
Issues resolved:
- No financial risk to farmers
- Better crop production.
- Even if crop fails no one is in loss of a big amount.
- Connects urban people to rural and helps in economic development.
- Profit to the investors.
NOTE:
1.All the transactions will be made on blockchain and will be entirely transparent. No corruption can be made.
2.The government will use the blockchain as it has highly encouraged the cryptocurrency this year. The launch of ' E Rupee ' digital currency by RBI has shown that the government is going to be in the field of blockchain.