Agriculture 2.0, Harnessing agri-tech towards a US$5 trillion economy (GS Paper 3, Agriculture)
Context:
- Employing nearly half of the workforce and contributing to 18 percent of the country’s GDP, the Agriculture sector is undergoing a transformative phase with the growing application of digital technologies through various agri-tech initiatives.
- India’s Union Budget 2023-24 presented unique opportunities for leveraging digital technologies in agriculture and promoting urban farming.
Agriculture Accelerator Fund:
- The Agriculture Accelerator Fund, with an initial investment of INR 2,200 crore, highlights India’s commitment to supporting agri-tech startups to enable India to achieve a US$5 trillion economy by 2025–2026.
- With an outlay of approximately INR 500 crore for startups alone, this fund seeks to incentivise young innovators to collaborate with the agriculture sector.
Understanding Agri-tech:
- Combined with traditional knowledge, farmers can make informed decisions, optimise resource utilisation, and increase productivity. For example, AI-based crop selection and prediction tools help farmers select the most suitable crop for their land based on soil type, weather conditions, and market demand.
- Further, digital technologies can provide farmers with insights into animal health and nutrition, and assist in smart breeding and livestock management, enabling farmers to improve productivity and profitability.
- Many countries have adopted agri-tech to build a resilient agriculture sector, especially for urban farming.
- Companies like Blue River Technology in the United States (US) have enabled automated essential crop management tasks like weed scouting, fertiliser application, and crop harvesting to reduce labour costs and increase efficiency.
Potential of India’s Agri-Tech industry:
- With a compound annual growth rate (CAGR) of 25 percent, India’s Agri-Tech industry is expected to reach US$24.1 billion by 2025.
- The sector has also attracted increased foreign investments in recent years, including from international giants such as John Deere, Monsanto, and Syngenta.
- India has 3,000 startups in the agricultural sector. Companies like DeHaat, Absolute, Reshamandi, and AgNext utilise advanced technologies of precision farming and virtual farm aggregation including soil and water sensors, supply and demand chain monitoring, smart crop selection, weather tracking, satellite imaging, pervasive automation, minichromosomal technology, and vertical farming to revolutionise agriculture.
Millets:
- India’s abundant millet production and the global demand for nutritious superfoods present a valuable opportunity.
- With the Indian government’s focus on millet consumption to enhance nutrition, food security, and farmer welfare, India is well-positioned as the leading producer and second-largest exporter of diverse millet varieties.
Challenges:
- Food production in the world must increase by 70 percent to feed its population, which is estimated to reach 9.7 billion by 2050. The gains of technological innovation in the agri-food sector are largely concentrated in the Global North.
- The existing socioeconomic conditions, fragmented farm sizes, larger populations, and the nascent development stage of countries in the Global South call for a different approach.
- Agri-tech attempts to help resolve challenges the agricultural sector faces in the Global South, such as low-value capture, distress selling, and limited knowledge about climate-smart agriculture.
- Though it provides sustainable solutions, agri-tech has its complications, such as high infrastructure cost, customer acquisition and devices, lack of digital literacy, and inadequate farm- and farmer-level data sets.
Existing gaps in Indian context:
- Smooth transformation of Indian agriculture methods requires advanced training and efforts for inclusivity from the government.
- For example, 54.6 percent of India’s population is engaged in agriculture and its allied sectors, and only 1.65 lakh students are enrolled in Under Graduate, Post Graduate and PhD programmes in leading agricultural institutes.
- Moreover, insufficient credit availability exists for farmers to utilise the digital technology effectively. Establishing high-speed internet connectivity and mobile networks are essential to ensure farmers’ access to basic digital tools and information.
- A lack of information on access to gadgets like smartphones for farmers and the implementation of such high-tech solutions in the field add to the challenges.
Roadmap for the future
Foster Inclusivity:
- The Digital India initiative is pivotal in driving digital inclusivity by ensuring widespread broadband connectivity in rural areas, benefiting the agricultural sector.
- Increased digital connectivity must be supplemented by training and capacity-building, vital to empowering farmers, by incorporating digital literacy classes in the National Agricultural Higher Education Project, and collaborating with leading agricultural institutes.
- Such innovations can help educate farmers on technology adoption and development while prioritising training and digital access.
Facilitate Data exchange:
- The government could encourage data sharing among farmers, researchers, and private sector entities to facilitate research and innovation in agriculture.
- Fostering a collaborative data-sharing ecosystem through dedicated platforms is crucial for exchanging insights and mutual learning and leveraging the full potential of data-driven technologies that drive innovation.
- India must harness the potential of Data Free Flow with Trust (DFFT) at the international level, forging collaborations with countries such as the US, Japan, Singapore, Australia, and the European Union.
- This strategic cooperation would enable India to enhance its data capacity and leverage advanced AI technologies available in countries worldwide.
Encourage Innovation:
- The United Nations Development Programme (UNDP) launched Cultiv@te, a programme that focuses on utilising South-South and Triangular Cooperation (SSTC) to examine and expand technological innovations. Its primary aim is to assist developing nations, including India, promote local innovation.
- Krishi Vigyan Kendra Knowledge Centres (KVKs), a 100 percent Government of India-funded scheme, is a single-window agricultural knowledge resource and capacity development platform “evaluating location-specific technology modules in agriculture and allied enterprises through technology assessment, and demonstrations”.
- They support public, private, and voluntary initiatives for improving the district-level agri economy, linking the National Agriculture Research System with farmers.
- In April 2023, NITI Aayog’s Atal Innovation Mission and the Ministry of Agriculture and Farmers Welfare connected the Atal Tinkering Labs with KVKs and the Agricultural Technology Management Agency to support agriculture-related innovation, especially among the school-going youth.
- Similarly, the government could provide grants and support to agricultural startups, following the successful model of the Ministry of Agriculture’s Rashtriya Krishi Vikas Yojana.
Way Forward:
- The Agriculture Accelerator Fund has given a fillip to the Innovation and Agri-Entrepreneurship Development programme, which has already supported 1,138 startups with financial assistance for improving farming practices such as precision agriculture, farm mechanisation, agri logistics and supply chains, waste to wealth, organic farming, animal husbandry, and dairy and fisheries.
- If the government’s intent is translated into action, the Agriculture Accelerator Fund could galvanise inclusivity, data mining and exchange and innovation initiatives to transform India’s agricultural landscape and uplift India’s agriculture production capabilities, and also contribute to the unrealised promise of doubling farmers’ incomes.
