Mathematical Modelling for Crop pricing based on Market value of its products
The attempt of the research paper is to develop a mathematical model framework to determine the valuation of a crop based on the premise that the key drivers of the crop lie at the consumer’s end. The key factors are the crop production costs, crop productivity, service costs and market value of the crop products due to urban tastes and population growth. The framework is designed based on linked differential equations. Farmers are expected to get the valuation of their harvests based on end consumer pay-off, thus providing them reasonable bargaining power to increase their farming profits. It is expected to provide farmers the valuation of the crops before cultivation, which will enable them to choose the most profitable crop. It also provides the farmers better bargaining power and encourages building food processing enterprises to reach the consumers through the most efficient channels. This helps famers to create more successful business groups and organize farming business units. The valuation of the crop considers the risk factors in the value chain and ensures fair crop valuation share based on the end consumer pay-off.