Agricultural development is one of most potent weapons to fight poverty and reduce gaps in income and wealth since India is primarily an agrarian economy with more than 58% people dependent on agriculture as the primary source of income. Agriculture contributes 18% to national GDP. It brought a whopping US $38.54 billion in foreign exchange through agricultural exports in FY19 and US $35.09 billion in FY20. India is the biggest producer, consumer, and exporter of spices in the world. Top importers of Indian spices in FY21 were US, UAE, UK, Hong Kong, Australia, and Canada.
In the 21st century, emerging fields like digital agriculture, also known as “smart farming", or “e-agriculture” are being applied in agriculture to increase productivity. Indian agriculture is challenged by low productivity and profitability, poorly organised agricultural markets; inefficient logistics; inadequate warehousing facilities resulting in wastage of produce and mismatch between demand and supply. Besides, untimely availability of information leaves farmers vulnerable. [1]
Agritech is an effective tool in increasing crop yields, improving animal health, reduce waste and lower carbon footprints. It uses digital technologies- internet, data analytics, artificial intelligence, digitally delivered services and apps. Sensors, remote satellite data, techniques for optimising inputs and monitoring in various stages of agro-food chain are changing the face of agriculture from traditional to modern all over the world. Technology can help farmers plan for the type of crop, variety of seeds and fertilizers to optimise the yield of their crops. Farmers can remotely monitor their equipment using smartphones and using weather forecasts plan their harvest. They can make predictions about their crops and livestock using technology. Drones are helpful to farmers for surveying their lands, conducting field analysis and generate data. Farm mechanisation and Internet of Things (IOT) adoption have shown remarkable improvements in agricultural yields and farmer incomes. Global smart agriculture market size is estimated to grow threefold globally by 2025.[2]
Agritech is projected to grow $30 billion-$35 billion market by 2025, according to Bain & Company. [3] India is the third largest nation in terms of funding received in AgriTech start-ups after United States and Germany. Between 2017 to 2020 it received a funding of $1billion in AgriTech. Ninjacart, Agrostar, Husk, WayCool Foods and Products, DeHaat were some top companies in which investments were made. These start-ups are working in different areas of AgriTech. India is currently shifting towards incorporating advanced technology in agriculture- the Modi government aims to double farmers’ income by 2022 by increasing productivity and technology usage Government [4]. Internet penetration has grown by 20% CAGR with 328 million users in rural India alone. Minimum Support Price (MSP) has increased by 50-80% for different crops. In 2020, improved market linkages and rural logistics have improved helping farmers in realising better price for their crop. [5].
A boost to AgriTech will give boost to rural economy, improve the quality of life for farmers and facilitate a balance of population between rural and urban areas by making it fashionable and trendy to live in villages as much as in cities. It will create a multiplier effect in other segments of the economy as well. During the Covid-19 pandemic many people took to terrace farming and soilless farming to de-stress themselves and to enjoy self-grown organic produce. [6] Agritech could be an attractive alternative to white collar jobs as it will upgrade the image of agriculture as a modern activity and encourage more people to become food entrepreneurs.
In the process of digitalisation, consumers will also benefit as they will get fresh, high quality, nutritious food at affordable prices. Big basket, Mera Kisan, Licious are some examples of demand driven and tech-enabled distribution of food which are household names today. Big Haat, Unnati, Agrostar are companies which help in optimisation of agricultural inputs. UrbanKisan, Future farms use techniques such as vertical farming, hydroponic, aquaponics. Bijak, Jaikisan, Satsure are engaged in farmer advisory and data driven crop monitoring and precision farming.
Digital technologies can play a significant role in making the food system resilient, productive, and sustainable. While the country is going through the tough Covid-19 pandemic, digitalisation has acted like a saviour for most businesses including farming. E-mandis were created by start-ups like AgriBazar where farmers were able to sell their produce despite restrictions on live mandis.
Success of digital technologies would depend on participation and cooperation of various actors in the ecosystem- farmers, researchers, private sector, non-profit organisations, and government. A cost benefit analysis of various technologies can be undertaken and necessary skillsets should be developed for its effective implementation.
Government can use various policy levers and funding options to give impetus to AgriTech. The government can absorb part of the initial capital expenditure for demonstrating AgriTech as an incentive to start-ups. It can offer subsidies as part of the capital or operating costs. It gives technical support to farmers through its various institutions and encourage technology transfers between companies. The recent landmark policy announcement of the government to make use of drones by reducing entry barriers and compliance requirement has opened new gateways for AgriTech business as well. [7]
In conclusion, if “food be thy medicine” as Socrates [8] had rightly said, AgriTech is technology for that medicine. However, despite the benefits of AgriTech to farmers and players in the value chain, penetration of AgriTech in India is just 10%. Digitalisation needs support from the government on a war footing on the lines of “Make in India.” Internet infrastructure needs to be developed faster for the AgriTech movement in India to catch up with the world. The payment ecosystem turned digital in a large way paving the way for a cashless economy. In a similar fashion if AgriTech takes over India’s farming it can create a revolution more impactful than the historic “Green Revolution.”
References
2. Agritech in India-Maxing India farm output-NASSCOM
3.“Indian Agriculture: Ripe for disruption “by Bain and Company.
4. Government looking to double farmers income by 2022…. Hindustan Times, February 9, 2021 5. Agritech Start-ups : The ray of hope in Indian agriculture https://www.ibef.org 6. Stress buster balcony gardens thrive during the pandemic https://www.hindustantimes.com
7. India Today Landmark moment: PM Modi says new drone rules will open avenues for innovation, business in India.-India Today August 26, 2021
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