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Deloitte Maverick
The Raptors
LIBA Chennai
Tanmoy Porel
Ritaban Sengupta
Rohit Bhattacharya
Mahatma Gandhi said “India lives in villages and agriculture is the soul of economy”. Irrespective of development and
industrialisation, India is still an agrarian economy with more than 50 % of Indian population depending directly on it for livelihood
and agriculture contributes approximately 16% of the GDP. Due to vast expense of land, wild climate variations, inadequate
coverage of orgainised credit institutions, lack of access to or knowledge of seed and farming technologies, poor infrastructure
(electricity, irrigation, storage for perishables, processing capacity shortfall, etc), and an inefficient market, there is high yield gap
and low value generation in agriculture. The sector is still considered as a livelihood sector rather than a business sector and fails to
draw investment towards it.
The idea of embedding technology into agriculture is not a new one but an holistic approach has been missing in the sector and the
initiatives taken has only reached till experimentation stage. Based on our primary and secondary research we have chosen the
segment of marginal and small farm holders. We strive to create a smart and balanced eco-system for farming including all the
stakeholders of agriculture industry fueled by Information Technology. Due to lack of infrastructure direct application of IT is not
possible in agriculture but IT can be used as binding thread to bring together the members of the eco-system who are scattered and
unorganized now. We would introduce sustainable intensification using technology enabled services and technologically advanced
inputs. We have introduced ‘Krishi consultant’ who will serve as an one-stop solution for farming needs. This will help to bridge
the yield gap, increase productivity. The monetary benefits can be injected back into the eco-system to make it sustainable. Next we
designed a resilient and effective supply chain to support the eco-system. The supply chain has been divided into two stages: farm
to market and market to fork. In farm to market we have introduced a specialised agency which will eliminate innumerable
middlemen and will provide marketing and logistic services. In market to fork we have brought in standardization by converting
commodities to products using technology.
As India moves towards development and better infrastructure, these reforms are bound to happen. Better today than tomorrow. We
strongly believe that laying a foundation for future sustainable growth supported by ICT (Information and
Communication Technology) is the only way to improve the sector and make it profitable.
Executive Summary
Primary Research
 Village Name : Khurigachi, W.B.
 Farmer’s Name : Kanhai Porel
 Crop : Rice
 Input Cost : Rs 17600 per Ha
 Revenue : Rs 23100 per Ha
Market Overview
Target Market
Marginal and Small land holding
 Contributes to 84% of
operational holdings
 Increase in access to irrigation
 The average size of land holdings
in India fell from 2.82 ha to 1.16
ha between 1970 and 2011
 The fertilizer per hectare is
inversely related to farm size
 High multiple cropping index
 High value crop for higher and
quicker returns
 Contribution to output is higher
 The cost of cultivation per
hectare is high
Yield Gap and Low value creation1
 Imperfect markets for inputs/product –
lower value realisation
 Lack of formal education and skills
 Smaller access to suitable extension
services – restricted decision making
in cultivation practices
 Poorer access to ‘public goods’ e.g.
public irrigation, command area
development, electricity grids
 Greater negative externalities – poor
quality land, poor water management
 Inefficient demand forecasting –
farmers try to push what they produce2
Sustainable Intensification
A form of production wherein “yields are
increased without adverse environmental
impact using same or less resources”
Smart eco-system
Sustainable
Intensification
Technology
Enabled
Services
Technologically
Advanced Inputs
1:Small farmers in India : Challenges and
opportunities, IGIDR 2012
2:Can India be food basket for the World? – working
paper series ISB.edu
Technology-enabled smart eco-system
Krishi
Consultant
Financial Services
Insurance Services
Climate Risk
Management
Soil Fertility
Management
Crop Scheduling
Risk mitigation services
Water Management
Training & Development
Forecasting Services
Fertilisers
Seeds
Pesticides
Irrigation
Farmer
Informed
decision
making
% of
revenue
Value addition & Service enhancement
Real time
info & advice
 Krishi Consultant will act as a single point of contact (SPOC)
 All technology enabled services are integrated and co-dependent
 Consultancy charges are based on revenue generated rather than a fixed fees
 Crop scheduling and Forecasting services – better demand planning, production according to
the need of the market
 Climate risk management and risk mitigation services – risk associated with investement and
methods to reduce it (insurance services)
 Soil fertility management and water management – Better allocation of resources and
optimal usage
 Training & development – Increase in awareness, making the farmers more equipped
IT enabled agriculture1
IT as a strategic tool
 Awareness Database :
Unambiguous Interpretation
with implications
 Decision support system (DSS) :
facilitate farmers to do SWOT
analysis for appropriate decision
making
 Bricks and mortar to click and
mortar : Appropriate alliance for
collective benefit
 Remove geographical barriers
 Generate cross border employment
opportunities
 Monitoring : Advance warning
systems and periodic analytical
reports
Kiosks, Telecentres and Smart services
 Non linear development
 Lack of localisation and user friendliness
 Lack of infrastructure for direct use :
Precision agriculture
 Kiosks : Dissemination points, multiple usage
 Mass deployment required
 Service providing model to revenue generating
model
 Training and Distance education
 E-insurance and E-financing
 Local sourcing
 Telecentres
 Localised services and information
 Attracting private investments from rural
entrepreneurs
 Smart services
 Still in experimentation stage (mKrishi, Reuters
Market Light)
 Mobile phone usage in rural India growing
Benefits
 Integrated approach to
agriculture with collaborative
demand forecasting
 Since IT is mostly private sector
so attracting private investment
 IT infrastructure improvement
and deeper penetration
 ICT (Information and
Communication Technology) will
help to address the untapped
potential of rural India
 High rural teledensity
 Cost effective and eco friendly
solution
 Promoting a centralized system
in an advisory role to coordinate
among specialised institutions
and evolve standards
1: Role of Information Technology in Agriculture and
its scope in India, S.C. Mittal
Sustaining the eco-system
 Rice (Mg/ha)
 Present average yield (rice) : 2.9636
 Yield potential rice : 5.6272
 Yield gap to be bridged : 2.6636
 Monetary Benefits per hectare : Rs 111872.7273
Bridging the yield gap
 Wheat (Mg/ha)
 Present average yield (wheat) : 2.85
 Yield potential wheat : 4.9375
 Yield gap to be bridged : 2.0875
 Monetary benefits per hectare : Rs 31103.575
• Logistic scheduling
• Loading/Unloading facility
• Marketing of goods
• Cold Storage /warehouse
facilities
• Inventory planning
Payment in cheque
Charge % of profit generated
Crops produced
Specialised
Agency
Farmer
Farm to market – Stage I
Benefits
 If the eco-system is implemented the
yield gap can be bridged/minimised
 This in turn will increase the monetary
benefits per hectare of land
 The monetary benefits reaped can be
injected back into the eco-system
Farm
Harvesting Storage Market
Farm to Fork (SCM)
Farm to Fork contd..
Market to fork – Stage II Processing Packaging Sales
Commodity to Product Benefits
 Standardisation
 Fosters transparency
 Prevents supply chain stake holders
from exorbitant price margin
 Back tracking
 Sales data collection
Results
 Transparency in supply chain
 Efficiency in supply chain
Process
 Risk identification
 Risk prioritization
 Risk mitigation
Supply Chain resilience
Implementation
 Sorting & grading of the product at
the start of supply chain
 Assigning Unique Id (RFID/QR Code)
Conclusion
Sustainable
Intensification
Profitable
Farming
Technology
based smart
eco-system
Interdependent
Increase in productivity per hectare
Eco-system Resilient supply chain
Logistic Services
Marketing
Services
Specialised Agency
Value Generation
Result
• Reduce yield gap
• Transparency in
supply chain
• Prevent some
stakeholders
from gaining
exorbitant
margins
 54% population still dependent on
agriculture (only 16% GDP contribution)
 Still a mode of livelihood rather than a
profit making business
 Push to market what is produced tendency
 High yield gap due to inefficient supply
chain, lack of access to knowledge of seed
and farming, poor infrastructure capacity
planning
Thank you
References
Research Papers and Reports
 Supply chain resilience : A risk intelligent approach to
managing global supply chains, Deloitte
 Challenges and opportunities for viability of marginal and
small farmers in India, Mahendra Singh, June 2012
 Agricultural productivity trends in India: Sustainability issues,
Praduman Kumar and Surabhi Mittal
 Can India be the food basket of the world, Working paper
series, ISB
 Pursuit and promotion of science, Agriculture, Ch 21
 TCS mobile agro advisory system, mKrishi
 Manual on cost cultivation surveys, Central Statistical
Organisation (CSO)
 Stratefies to increase Agricultural productivity and land
degradation in Uganda : An econometric analysis, Pender,
Jagger et al
 Developing Indian grain supply chain cost model : a system
dynamics approach, MDI Gurgaon
 Utilizing Industry-led Capacity to enhance supply chain
performance: An empirical study, Cooperative research
centre for Beef Genetic Technologies, University of
Queensland
 The agricultural treasure – an undersold opportunity,
Devangshu Dutta
 A conceptual framework for supply chain collaboration:
empirical evidence from the agri-food industry, Matopulos
and Manthou
 Incraeaing Africa’s Agricultural productivity, A report by Pan
Africa Chemistry Network
 Policies for raising agricultural growth and productivity in
India, S Mahendra Dev
 Secret of Gujarat’s agrarian miracle after 2000, Tushaar shah,
RC Jain, Hemant P
 Sustainable Intensification in agriculture, Tara Garnett, H.
Charles Godfrey, Oxford Martin Programme on future of food
 Increasing agricultural productivity of farming systems in
parts of central India through participatory research-cum-
demonstrations and knowledge sharing innovations, ICRISAT
 The movement of sustainable agricultural in Japan, Seth A.Y.
Davis, Seton Hall University
 Small farmers in India: Challenges and Opportunities, S.
Mahendra Dev, IGIDR
 Use of mobile technologies for empowering small holder
farmers in India, K.D. Kokate and A.K. Singh
 Opportunities and solutions for sustainable food production,
Sustainable Development Solutions Network, UN
 Connected Agriculture, Cisco
 Role of Information Technology in Agriculture and its scope in
India, S.C. Mittal
 The role of information and communication technology
sector in expanding economic opportunity, William J. Kramer,
Beth Jenkins, and Robert S. Katz, Oxford University
Links
 Proquest.com
 http://bcognizance.iiita.ac.in/jul-sep07/i5.html
 http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=736
 http://social.yourstory.in/2012/02/fixing-the-agricultural-
supply-chain-from-the-top-and-bottom/
 http://southasia.oneworld.net/features/a-silent-agricultural-
revolution#.Uh-TctJHKHR
 http://www.icec-council.org/india-
china/index.php?param=news/379069/75
 http://www.commodityonline.com/news/wastewater-
recycling-will-improve-agricultural-production-in-india-eu-
icrisat-52489-3-52490.html
 http://www.rainforestconservation.org/rainforest-primer/6-
conservation-of-tropical-rainforests/a-means-of-conserving-
tropical-rainforests/6-improvement-of-agricultural-methods-
and-productivity
 http://www.fao.org/agriculture/crops/core-
themes/theme/spi/scpi-home/framework/sustainable-
intensification-in-fao/four-key-areas-of-scpi/en/
 http://www.monsanto.com/improvingagriculture/Pages/how
-are-we-doing-it.aspx
 http://www.preservearticles.com/201101052561/technology
-to-improve-agriculture.html
 http://www.narendramodi.in/gujarats-noteworthy-reforms-
in-public-distribution-system/
 http://www.moneycontrol.com/news/economy/how-did-
gujarat-becomefarming-paradise_447382.html
 http://ketpan.wordpress.com/2011/05/29/comment-on-
agricultural-reforms-in-gujarat/
 http://agri.gujarat.gov.in/boards_corporations/gs-agri-mark-
board/schemes/contract-farming/cf_overview.htm
 http://www.pmg.org.za/report/20120522-department-
agriculture-forestry-and-fisheries-latest-developments-tur
 http://farmfutures.com/story-quiet-overnight-markets-
attempt-turnaround-17-101102
 http://www.agriclinics.net/
 http://www.manage.gov.in/
 http://www.agrotech-india.com/cii/Default.aspx
 http://www.iari.res.in/?option=com_content&view=article&i
d=228&Itemid=650
 http://www.csiro.au/Portals/Media/Harvesting-smart-
technologies-to-tackle-the-global-food-shortage.aspx

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Deloitte Maverick_Final

  • 1. Deloitte Maverick The Raptors LIBA Chennai Tanmoy Porel Ritaban Sengupta Rohit Bhattacharya
  • 2. Mahatma Gandhi said “India lives in villages and agriculture is the soul of economy”. Irrespective of development and industrialisation, India is still an agrarian economy with more than 50 % of Indian population depending directly on it for livelihood and agriculture contributes approximately 16% of the GDP. Due to vast expense of land, wild climate variations, inadequate coverage of orgainised credit institutions, lack of access to or knowledge of seed and farming technologies, poor infrastructure (electricity, irrigation, storage for perishables, processing capacity shortfall, etc), and an inefficient market, there is high yield gap and low value generation in agriculture. The sector is still considered as a livelihood sector rather than a business sector and fails to draw investment towards it. The idea of embedding technology into agriculture is not a new one but an holistic approach has been missing in the sector and the initiatives taken has only reached till experimentation stage. Based on our primary and secondary research we have chosen the segment of marginal and small farm holders. We strive to create a smart and balanced eco-system for farming including all the stakeholders of agriculture industry fueled by Information Technology. Due to lack of infrastructure direct application of IT is not possible in agriculture but IT can be used as binding thread to bring together the members of the eco-system who are scattered and unorganized now. We would introduce sustainable intensification using technology enabled services and technologically advanced inputs. We have introduced ‘Krishi consultant’ who will serve as an one-stop solution for farming needs. This will help to bridge the yield gap, increase productivity. The monetary benefits can be injected back into the eco-system to make it sustainable. Next we designed a resilient and effective supply chain to support the eco-system. The supply chain has been divided into two stages: farm to market and market to fork. In farm to market we have introduced a specialised agency which will eliminate innumerable middlemen and will provide marketing and logistic services. In market to fork we have brought in standardization by converting commodities to products using technology. As India moves towards development and better infrastructure, these reforms are bound to happen. Better today than tomorrow. We strongly believe that laying a foundation for future sustainable growth supported by ICT (Information and Communication Technology) is the only way to improve the sector and make it profitable. Executive Summary
  • 3. Primary Research  Village Name : Khurigachi, W.B.  Farmer’s Name : Kanhai Porel  Crop : Rice  Input Cost : Rs 17600 per Ha  Revenue : Rs 23100 per Ha Market Overview Target Market Marginal and Small land holding  Contributes to 84% of operational holdings  Increase in access to irrigation  The average size of land holdings in India fell from 2.82 ha to 1.16 ha between 1970 and 2011  The fertilizer per hectare is inversely related to farm size  High multiple cropping index  High value crop for higher and quicker returns  Contribution to output is higher  The cost of cultivation per hectare is high Yield Gap and Low value creation1  Imperfect markets for inputs/product – lower value realisation  Lack of formal education and skills  Smaller access to suitable extension services – restricted decision making in cultivation practices  Poorer access to ‘public goods’ e.g. public irrigation, command area development, electricity grids  Greater negative externalities – poor quality land, poor water management  Inefficient demand forecasting – farmers try to push what they produce2 Sustainable Intensification A form of production wherein “yields are increased without adverse environmental impact using same or less resources” Smart eco-system Sustainable Intensification Technology Enabled Services Technologically Advanced Inputs 1:Small farmers in India : Challenges and opportunities, IGIDR 2012 2:Can India be food basket for the World? – working paper series ISB.edu
  • 4. Technology-enabled smart eco-system Krishi Consultant Financial Services Insurance Services Climate Risk Management Soil Fertility Management Crop Scheduling Risk mitigation services Water Management Training & Development Forecasting Services Fertilisers Seeds Pesticides Irrigation Farmer Informed decision making % of revenue Value addition & Service enhancement Real time info & advice  Krishi Consultant will act as a single point of contact (SPOC)  All technology enabled services are integrated and co-dependent  Consultancy charges are based on revenue generated rather than a fixed fees  Crop scheduling and Forecasting services – better demand planning, production according to the need of the market  Climate risk management and risk mitigation services – risk associated with investement and methods to reduce it (insurance services)  Soil fertility management and water management – Better allocation of resources and optimal usage  Training & development – Increase in awareness, making the farmers more equipped
  • 5. IT enabled agriculture1 IT as a strategic tool  Awareness Database : Unambiguous Interpretation with implications  Decision support system (DSS) : facilitate farmers to do SWOT analysis for appropriate decision making  Bricks and mortar to click and mortar : Appropriate alliance for collective benefit  Remove geographical barriers  Generate cross border employment opportunities  Monitoring : Advance warning systems and periodic analytical reports Kiosks, Telecentres and Smart services  Non linear development  Lack of localisation and user friendliness  Lack of infrastructure for direct use : Precision agriculture  Kiosks : Dissemination points, multiple usage  Mass deployment required  Service providing model to revenue generating model  Training and Distance education  E-insurance and E-financing  Local sourcing  Telecentres  Localised services and information  Attracting private investments from rural entrepreneurs  Smart services  Still in experimentation stage (mKrishi, Reuters Market Light)  Mobile phone usage in rural India growing Benefits  Integrated approach to agriculture with collaborative demand forecasting  Since IT is mostly private sector so attracting private investment  IT infrastructure improvement and deeper penetration  ICT (Information and Communication Technology) will help to address the untapped potential of rural India  High rural teledensity  Cost effective and eco friendly solution  Promoting a centralized system in an advisory role to coordinate among specialised institutions and evolve standards 1: Role of Information Technology in Agriculture and its scope in India, S.C. Mittal
  • 6. Sustaining the eco-system  Rice (Mg/ha)  Present average yield (rice) : 2.9636  Yield potential rice : 5.6272  Yield gap to be bridged : 2.6636  Monetary Benefits per hectare : Rs 111872.7273 Bridging the yield gap  Wheat (Mg/ha)  Present average yield (wheat) : 2.85  Yield potential wheat : 4.9375  Yield gap to be bridged : 2.0875  Monetary benefits per hectare : Rs 31103.575 • Logistic scheduling • Loading/Unloading facility • Marketing of goods • Cold Storage /warehouse facilities • Inventory planning Payment in cheque Charge % of profit generated Crops produced Specialised Agency Farmer Farm to market – Stage I Benefits  If the eco-system is implemented the yield gap can be bridged/minimised  This in turn will increase the monetary benefits per hectare of land  The monetary benefits reaped can be injected back into the eco-system Farm Harvesting Storage Market Farm to Fork (SCM)
  • 7. Farm to Fork contd.. Market to fork – Stage II Processing Packaging Sales Commodity to Product Benefits  Standardisation  Fosters transparency  Prevents supply chain stake holders from exorbitant price margin  Back tracking  Sales data collection Results  Transparency in supply chain  Efficiency in supply chain Process  Risk identification  Risk prioritization  Risk mitigation Supply Chain resilience Implementation  Sorting & grading of the product at the start of supply chain  Assigning Unique Id (RFID/QR Code)
  • 8. Conclusion Sustainable Intensification Profitable Farming Technology based smart eco-system Interdependent Increase in productivity per hectare Eco-system Resilient supply chain Logistic Services Marketing Services Specialised Agency Value Generation Result • Reduce yield gap • Transparency in supply chain • Prevent some stakeholders from gaining exorbitant margins  54% population still dependent on agriculture (only 16% GDP contribution)  Still a mode of livelihood rather than a profit making business  Push to market what is produced tendency  High yield gap due to inefficient supply chain, lack of access to knowledge of seed and farming, poor infrastructure capacity planning Thank you
  • 9. References Research Papers and Reports  Supply chain resilience : A risk intelligent approach to managing global supply chains, Deloitte  Challenges and opportunities for viability of marginal and small farmers in India, Mahendra Singh, June 2012  Agricultural productivity trends in India: Sustainability issues, Praduman Kumar and Surabhi Mittal  Can India be the food basket of the world, Working paper series, ISB  Pursuit and promotion of science, Agriculture, Ch 21  TCS mobile agro advisory system, mKrishi  Manual on cost cultivation surveys, Central Statistical Organisation (CSO)  Stratefies to increase Agricultural productivity and land degradation in Uganda : An econometric analysis, Pender, Jagger et al  Developing Indian grain supply chain cost model : a system dynamics approach, MDI Gurgaon  Utilizing Industry-led Capacity to enhance supply chain performance: An empirical study, Cooperative research centre for Beef Genetic Technologies, University of Queensland  The agricultural treasure – an undersold opportunity, Devangshu Dutta  A conceptual framework for supply chain collaboration: empirical evidence from the agri-food industry, Matopulos and Manthou  Incraeaing Africa’s Agricultural productivity, A report by Pan Africa Chemistry Network  Policies for raising agricultural growth and productivity in India, S Mahendra Dev  Secret of Gujarat’s agrarian miracle after 2000, Tushaar shah, RC Jain, Hemant P  Sustainable Intensification in agriculture, Tara Garnett, H. Charles Godfrey, Oxford Martin Programme on future of food  Increasing agricultural productivity of farming systems in parts of central India through participatory research-cum- demonstrations and knowledge sharing innovations, ICRISAT  The movement of sustainable agricultural in Japan, Seth A.Y. Davis, Seton Hall University  Small farmers in India: Challenges and Opportunities, S. Mahendra Dev, IGIDR  Use of mobile technologies for empowering small holder farmers in India, K.D. Kokate and A.K. Singh  Opportunities and solutions for sustainable food production, Sustainable Development Solutions Network, UN  Connected Agriculture, Cisco  Role of Information Technology in Agriculture and its scope in India, S.C. Mittal  The role of information and communication technology sector in expanding economic opportunity, William J. Kramer, Beth Jenkins, and Robert S. Katz, Oxford University Links  Proquest.com  http://bcognizance.iiita.ac.in/jul-sep07/i5.html  http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=736  http://social.yourstory.in/2012/02/fixing-the-agricultural- supply-chain-from-the-top-and-bottom/  http://southasia.oneworld.net/features/a-silent-agricultural- revolution#.Uh-TctJHKHR  http://www.icec-council.org/india- china/index.php?param=news/379069/75  http://www.commodityonline.com/news/wastewater- recycling-will-improve-agricultural-production-in-india-eu- icrisat-52489-3-52490.html  http://www.rainforestconservation.org/rainforest-primer/6- conservation-of-tropical-rainforests/a-means-of-conserving- tropical-rainforests/6-improvement-of-agricultural-methods- and-productivity  http://www.fao.org/agriculture/crops/core- themes/theme/spi/scpi-home/framework/sustainable- intensification-in-fao/four-key-areas-of-scpi/en/  http://www.monsanto.com/improvingagriculture/Pages/how -are-we-doing-it.aspx  http://www.preservearticles.com/201101052561/technology -to-improve-agriculture.html  http://www.narendramodi.in/gujarats-noteworthy-reforms- in-public-distribution-system/  http://www.moneycontrol.com/news/economy/how-did- gujarat-becomefarming-paradise_447382.html  http://ketpan.wordpress.com/2011/05/29/comment-on- agricultural-reforms-in-gujarat/  http://agri.gujarat.gov.in/boards_corporations/gs-agri-mark- board/schemes/contract-farming/cf_overview.htm  http://www.pmg.org.za/report/20120522-department- agriculture-forestry-and-fisheries-latest-developments-tur  http://farmfutures.com/story-quiet-overnight-markets- attempt-turnaround-17-101102  http://www.agriclinics.net/  http://www.manage.gov.in/  http://www.agrotech-india.com/cii/Default.aspx  http://www.iari.res.in/?option=com_content&view=article&i d=228&Itemid=650  http://www.csiro.au/Portals/Media/Harvesting-smart- technologies-to-tackle-the-global-food-shortage.aspx

Editor's Notes

  1. Share of marginal and small farmers in land holdings accounted for 84% of operational holdings Increase in access to irrigation has been highest for marginal farmers followed by small farmers The average size of land holdings in India fell from 2.82 ha to 1.16 ha between 1970 and 2011 rural population growth inheritance practices unfriendly land leasing systems The fertilizer per hectare is inversely related to farm size (both irrigated and unirrigated areas) Multiple cropping intensity is higher for marginal and small farmers than medium and large farmers Small and marginal farmers grow high value crop for higher and quicker returns The contribution to output is higher for marginal and small farmers (diversification and food security) The cost of cultivation per hectare is high on small and marginal farms than medium and large farms 86% of the land holdings are now less than 2ha and the average operated land is around 0.4ha for this group