The sector is seeing tremendous interest from Private Equity and Venture capital funds globally. There has been an inflow of USD 1.9b since 2010, benefitting around 14m farmers. The sector has witnessed a 48% growth in the last five years. The technology introduction and use, though, has to impact the entire value chain end to end. Currently, the input and output management supply chain is attracting most funds to build efficiencies and drive automation connecting farmers to input and output markets. The efficiency in production per se is yet to build up. This needs more focus and attention if we want to improve our yield per hectare and create impact at the farmer level and their incomes. Water management, soil evaluation, pest management are areas where technology can make a massive difference in driving efficiency in the production phase.
It is heartening to see that progress is already underway as far as digitalisation goes. This must happen in two ways.
The first is a one-time exercise to digitise the land records and farmer information.
About 8%-10% of farmers’ (10-12m) land records have already been digitised. States like Hyderabad and Telangana are leading the way in this initiative.
Second is the use of technology like satellite imagery and drones to map land parcels.
Satellite imagery can generate real-time data and information around what crops have been grown in what region and the farmers’ productivity—to name a few. Several such cycles that will be mapped will create reliable data that can be actioned and used by all the stakeholders – big and small.
Embracing and introducing smart digital tools that give real-time advice on planting cycle, soil sensors, product quality (at the input level) must be combined with modernising the system. An example would be bringing in technology used outside, like using drones for spraying crop protection products. This will enable a significant shift from the current scenario where no such data or technology is available both for the farmer and the various stakeholders.