By Ritwik Mukherjee Jan 13 2011 , Kolkata

Reuters market light (RML) was launched as an innovative business in late 2007 in India and in just over 2 years, RML’s service was sold to nearly 200,000 farmers. It is estimated to be used by over 1000,000 farmers. The financial return to farmers by using RML has ranged from $10 to $8000 at the cost of only $5 per quarter. Speaking to Ritwik Mukherjee of Financial Chronicle, Amit Mehra, founder and MD, RML, delves at length on what do they do and how do they do it. Excerpts:

n What is the current coverage of RML?
RML operates across 13 states in India and covers over 440 crops and varieties with more than 1400 markets and 2800 weather locations across these states. It is estimated that the RML service has been used by over 1000,000 farmers, through sharing, with several hundred thousand using a paid service.

n How do you deliver or
disseminate these information?
RML is sold as an easy-to-use card in thousands of retail outlets. The information is delivered through SMS.
This service is available across all handsets and telecom operators.
n Do you have something like Kissan Sim Card, being offered by IFFCO Kissan Sanchar?
A farmer does not need a special sim card or handset to use this service. RML is sold as an easy-to-use card (RML Direct card) in thousands of retail outlets in rural India. This service is available across all handsets and telecom operators.

n What kind of information do you disseminate?
The service provides expert information to farmers at every stage of their crop cycle, thus enabling them to take informed decisions. RML information covers crop advisory, taluka level weather forecasts, commodity news and information, spot market prices and any other agri-rural information relevant for the farming community. This information is delivered as per their individual preference of each farmer aligned tightly with his daily work schedule in a mix of relevant local and international content as per the stage of his individual crop cycle in his local language through SMS.

n What is your revenue model? Is it only through SMS or there are other means (like sponsorship/advertisement etc) as well?
The revenue model is subscription based.
n How is this whole business/concept growing in India? How do you see it grow in the years to come?
The category of agricultural information over mobile phones has shown great potential. It is estimated that the RML service has been used by over a million farmers, through sharing, with several hundred thousand using a paid service.
The category wh­ich RML has pioneered is seeing more players enter which is a testimony to the growing potential.
Given the nascent nature of the category and the large rural base in India combined with increasing mobile penetration this category is expected to grow healthily in the future.
n What is the way forward for you?
The plan is to scale up the distribution in rural India across the states. Thereafter the plan is to take the business to other emerging economies wherever farmers suffer information asymmetry.

n How has the consumer base increased in the last 3 years – by how many subscribers?
It is estimated that the RML service has been used by over a million farmers, through sharing, with several hundred thousand using a paid service in the last three years.