Case Study: Can Digital Technologies Rescue Sinking Farmers?
Swetha Rao
Aug 26, 2024
In 2021-22, the total turnover of agricultural mandis in India was estimated to be over ₹13.86 lakh crore. The World Bank estimates that India’s post-harvest losses in fruits and vegetables are around 25-30%, while cereal losses are around 10%. Agriculture forms the backbone of the Indian economy and while we boast to be an agrarian economy, we are confronted by the glaring disparity within the agriculture supply chain. Where demand is on the rise and supply is inconsistent.
The country has been fascinated by technological advancements like remote sensors, hyperspectral imaging, space data, and many more being introduced to ease the burden on farmers. However, in a country where a paper-based litmus test costs Rs.10, farmers are more likely to adopt technology that is within their means. With initiatives like the Pradhan Mantri Fasal Bima Yojana, UPAG, MKISAN, Soil Health Card, and the recent Namo Drone Didi, the fact of the matter remains. Technology penetration is only possible when technology is made widely available and most importantly, affordable.
Smallholding farmers, work hard to cultivate their plots in India, every day. For this, they earn about Rs. 11000 per month—just enough to meet the basic needs of their families. Whilst contending with unpredictable monsoons, frequent droughts, pest infestations, and diminishing yields. Battling the impacts of changing climate patterns and soil health. With no access to a bank, many of them are forced to use local loan sharks for finance, paying crippling interest rates. Even then, the essential resources such as seeds, fertilizers, and pesticides, aren’t always available.
The Forum of Enterprises for Equitable Development (FEED) in collaboration with the Development Intelligence Unit (DIU), surveyed 615 farmers across 21 states. The findings revealed that the primary causes of crop damage were drought (41%), irregular rainfall including excessive or non-seasonal rains (32%), and early withdrawal or late arrival of the monsoons (24%). Nearly 43 percent of the surveyed farmers lost at least half of their standing crops.
These farmers are then trapped in a cycle of subsistence farming because low revenues leave them with less to invest in the next crop cycle. There are roughly 125 million smallholding farmers in India, for whom, agriculture is a high-stakes gamble marked by big risks and minimal returns. New technologies that make this work easier – precision farming, digital market access, or drones, for example. The problem of expensive equipment, limited access to technology, and inability to adjust their processes to adopt them properly remains.
Using Innovation in Agriculture
The state of Telangana in collaboration with India’s Union Ministry of Agriculture and the World Economic Forum India’s Centre for the Fourth Industrial Revolution, launched the AI4AI initiative (AI for Agriculture Innovation). Reflecting the complexity of the challenge, organisations involved come from industry (agri-inputs, consumer, food processing, finance, insurance, and technology firms), the startup ecosystem, and farmer cooperatives.
Over eight months starting June 2020, this endeavour held more than 45 workshops, to discuss the challenges smallholder farmers face and how 4IR could help. These discussions lead to an AI4AI plan that helps smallholder farmers by harnessing the power of new technologies including AI, drones, and blockchain.
Framework to Impact
Locally known as Saagu Baagu, this initiative has revolutionized chili farming in Khammam district by utilizing bot advisory services, soil testing technology, AI-based quality testing, and a digital platform connecting buyers and sellers. The AI4AI framework was tested with 7,000 farmers, involving industry and start-up partners, and using state-government data management tools (the Agriculture Data Exchange and the Agriculture Data Management Framework) to scale up the initiative among this large group.
During the 18-month pilot across three crop cycles, farmers experienced a significant increase in net income, earning Rs. 67,000 per acre. Digital advisory services contributed to a 21% increase in chili yield per acre. Additionally, pesticide use decreased by 9% and fertilizer use dropped by 5%, while quality improvements led to an 8% rise in unit prices.
Saagu Baagu not only succeeded for its farmers but also met the sustainability and efficiency goals set by AI4AI. Consequently, in October 2023, the state government expanded Saagu Baagu to include 500,000 farmers, covering five crops across ten districts.
The Potential of Digital Agriculture
As much of the Global South grapples with challenges of food security, climate change mitigation, and livelihood protection, Indian agtech initiatives show promising results by leveraging digital technologies for agriculture. Collaboration between governments, industry, philanthropists, innovators, and farmers can establish national frameworks to implement digital agriculture programs that ensure food security, promote sustainability, and align with sustainable development goals.
https://initiatives.weforum.org/ai4ai/telangana
https://it.telangana.gov.in/wp-content/uploads/2024/02/Telangana-Saagu-Baagu-2.0.pdf