Artificial Intelligence Can Transform Agricultural Pricing

KARACHI:

Developing a cutting-edge Artificial Intelligence (AI)-based price forecasting model can help both farmers and consumers make better use of it. This model, filled with completely local historical prices of vegetables, fruits and data on weather, humidity and exchange rates, aims to limit the sharp fluctuations of prices in the market.

Both customers and farmers are clamoring against rising and falling prices of produce, respectively. Peak onion exports are pushing up prices in local markets, while the wheat harvest is driving down rates and forcing farmers to resort to protests. Both local customers and farmers are unaware of market trends and patterns. If someone takes advantage of the price drops, someone else has to suffer big losses. Market experts, progressive farmers and AI experts suggest that a successful AI-based price prediction model could help both consumers and growers reap the benefits with early awareness.

AI Expert and CEO of SI Global Solutions Dr Noman Said explained that both private IT companies and the government can develop this model, but a government initiative may be more beneficial for broad and fair access. Costs can vary widely depending on scale and complexity, but typically range from tens of thousands to several hundred thousand dollars. Private partnerships can also leverage funding and expertise to manage costs effectively.

He said local farmers can use this model to decide the best times to sell their produce, maximizing profits. Customers can use it to plan their purchases when prices are forecast to be lower, ensuring they get the best deals. This model can be accessed through a mobile app or website for convenience.

The CEO of SI Global said it is possible to develop an AI-based price prediction model using five to ten years of historical data. Such models can analyze trends and patterns from past prices, weather conditions and economic indicators to predict future prices. For example, Microsoft’s FarmBeats project uses artificial intelligence to effectively predict crop yields and market conditions.

NiG & NiM (PVT) Ltd Managing Director Hafiz Zain Waheed, who deals with Islamabad-based Arath Enterprises (supply agent), advocates clearer regulations and government support to promote agricultural technology. Programs that facilitate market access for small-scale farmers are also vital to the growth and sustainability of the industry, he said, adding, “I developed a price prediction model using artificial intelligence in the agricultural sector, including historical rates of 70 vegetables, climate, weather conditions, humidity and exchange rates. The model aims to guide growers to prevent losses. For example, onions are priced at Rs30 per kg one year and the next year are sold at Rs300 per kg, showing how wide price swings can be controlled through this. If the government supports this AI-based model, it aims to benefit farmers and end consumers.”

Progressive farmer and agriculture expert Nabi Bux Sathio believes that government officials are usually more willing to take cuts and kickbacks than benefit the local people. “If such an AI-based app or website is created with national and international connectivity, it will revitalize farming standards and help growers avoid losses in advance,” Sathio said. He suggested that the Ministry of Development Planning & Special Initiatives should develop some strategy to create the AI-based model to train farmers so that they can grow crops with less loss.

Published in The Express Tribune, May 5^u2024.

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