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
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Editor's Notes
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