In the heart of India’s sprawling landscape lies the backbone of its economy and sustenance: Agriculture. For centuries, the rhythm of rural life has been dictated by the cycle of sowing and reaping, deeply rooted traditions passed down through generations. The country leads as the top producer of milk, pulses, horticulture, livestock, shrimp, and spices.
However, as the world hurtles towards a future defined by innovation and efficiency, India’s agricultural sector stands at a critical juncture. Today, the convergence of digital advancements, precision farming techniques, and innovative agritech solutions holds the promise of revolutionising the way we cultivate the land, unleashing untapped potential and propelling Indian agriculture into the digital world.
These accomplishments in Indian agriculture are due to enablers like farm mechanisation, disruption in food productivity and increased irrigation coverage.
Let us look at some statistics- approximately 394.6 million acres of land in our country is under farming, with an average farm size of about 2 acres. Increasing population pressure and lack of land management policies is leading the country’s relatively small land holdings to further fragmentation, directly affecting productivity, income levels, and overall gross domestic product (GDP).
‘The country’s majority of land holdings – 86.2% is small and marginal farmers. However, data from the Ministry of Agriculture and Farmers’ Welfare 2020 depicts that even though small and marginal farmers hold the majority of the land holdings, the operated area held by them is only 47%. This Data highlights the disparity. Yet small farmers contribute nearly 51% of agricultural output and a higher share (by almost 70%) in high-value crops with the limited operated land they hold. However, as they are not literate and belong to marginalised communities, they are usually excluded from modern market arrangements.
The agriculture sector in the country harnesses nearly 46.5% of the nation’s workforce and contributes 15% to the gross value added (GVA) with a constant annual growth rate of approximately 4%, the growth rate has not matched up to that of the other sectors. Integrating smallholder farmers and optimising their efforts with the use of new technology, farming practices, and modern input and output markets is the need of the time, but it’s a daunting challenge in the sector.
Lack of quality inputs at the right time: Farming is not as easy as owning land and getting started with growing crops. Right from sowing, Indian farmers face challenges such as getting better inputs such as good quality seeds, access to and availability of the required quality and quantity of fertilisers at the right time and cost, relevant crop advisory, and farm management. Usually, the timely unavailability and inaccessibility of these inputs lead to the usage of low-quality inputs, which further leads to reduced productivity.
The dearth of water for agriculture: Rain-fed agriculture covers about 51% of the country’s net sown area and accounts for nearly 40% of total food production. The unpredictability and scarcity of rainfall, as well as its unequal intensity and distribution leads to a volatile situation in terms of sowing, growth, and harvesting. Meanwhile, many countries use sprinkler systems and micro-irrigation due to increasing water shortage. All of these are, however, expensive in terms of costs and accessibility for many small and marginal farmers.
Farm management: The requirement for farm labour is increasing with time; on the contrary, it is predicted that there will be a drop in the labour force by 26% in the next 25 years. While mechanisation can solve increasing labour shortages and costs, it is unequal across the country. States such as Haryana, Punjab, and Uttar Pradesh see about 40-45% mechanisation levels, while north-eastern states have negligible levels. Mechanisation is capital-intensive and is a considerable cost for small and marginal farmers, while small and scattered land holdings make mechanisation difficult, unsuitable for operations as well as contradict the economies of scale.
Harvesting and post-harvest management: Even if farmers are able to manage their resources during the process from sowing to farm management, harvest and post-harvest management is a daunting task. To maximise value, farmers must access broader markets. This requires integration into value chains, spanning post-harvest operations, from transport and storage to value-added processing, and connecting to markets beyond local mandis. Small and marginal farmers are scattered and integrating them into the value chain is a formidable task.
Financial support: Lack of bespoke financial support is a huge deterrent, with almost no institutional credit available for small, landless farmers and share-croppers who are struggling to avail individual loans. Even under the Kisan Credit Card scheme, small farmers need to prove their right to operate or cultivate land to avail of loan facilities. These challenges push farmers to seek support from informal sources, landing in debt traps and further complicating investments. A good credit system also supports a well-functioning insurance system. However, lack of accessibility, resistance amongst private participants, and restrictive implementation of crop insurance schemes have discouraged both farmers and governments from building a supportive insurance system against crop failure.
A farmer working at his field
The agriculture sector has been drastically impacted by climate change. Due to extreme fluctuations in climate with unprecedented droughts, dry spells, floods, and heat waves, agriculture output and productivity are affected. According to the Economic Survey 2017-2018, farmers in rain-fed areas, landless labor, and women are among the most vulnerable populations, with an estimated a drop of 20-25% in their wages because of climate uncertainty.
Call For Action
The Indian diaspora, in terms of culture, population, agricultural practices, and climate, is very different and distinctive. Over the years, various policies have been introduced, yet we are at an impasse when it comes to the agricultural sector. It is clear that a country like India, with its rich and diverse biodiversity, needs a tailored approach to solve the issues in farming.
“Technology is the game-changer for the Indian agriculture landscape, and agritech startups are leading the charge. At Cisco, we believe that the true measure of technological advancement lies in its ability to create a positive impact on the ground. By supporting and collaborating with agritech startups, we aim to catalyze a transformation in India’s agricultural sector that benefits not only the farmers but also the entire ecosystem. Together, we can harness the power of technology to drive inclusive growth, enhance food security, and build a sustainable future for generations to come,” said Harish Krishnan, Managing Director & Chief Policy Officer, Cisco India & SAARC.
What we need is a call for action from innovators, policymakers, ecosystem players, domain experts, investors, government stakeholders, to catalyse initiatives and scale them up. There is a clear need for innovation at an institutional level so that we can face present and future challenges head-on. We need disruptive ideas to take on sustainability issues and turn them into opportunities.
The issue of small and marginal farmers and farm sizes is a major one in India. Additional measures targeted specifically to improve agricultural productivity, income situations, and overall economic development are needed to see a poignant change in the Indian agricultural sector.
There are ongoing collaborations that hold the promise of hope to the farmers who are moving towards technology to solve their problems. One such is Krishi Mangal, a scale-up accelerator program jointly initiated by Cisco and Social Alpha that focuses on scaling technology on the ground for small and marginal farmers while building a robust ecosystem with multiple partners. To know more about the need for such solutions please read “A cohesive ecosystem to support innovations for small and marginal landholding.”
