The current world population of 7.3 billion people is estimated to reach almost 10 billion by 2050. This growth must be met by corresponding increases in food production, which creates 50% more Agriculture demand.
Agriculture accounts for 16-18% country’s GDP and employs around 50-60%of the labor force in India, yet its very inputs expensive (commercial lending, loans, crop insurance, fertilizers, seeds, etc) and farmers cannot afford yield-enhancing agricultural inputs. With low yields and expensive capital, agricultural processing and any significant value addition become difficult and costly.
The only way to capture the upside of Indian Agriculture is through timely and reliable Data.
Data as a Sevice
We need to build a platform that allows us to expand the amount of timely and reliable data on Indian Agriculture. Along with using data from various sources, we need to come up with a methodology where phone-equipped farmers can become data-generating sensors, as they have the most valuable information. Farmer Producer Organizations (FPO) and cooperatives the key as the data product should be farmer-centric.
1. Financial Sector – Banks, Insurance Companies, Investment Funds
Lack of Agriculture data and effective Ag financial tools kept the banks to minimal lending to Ag Sector. With reliable and powerful data tools we can capture the massive untapped opportunities in lending. Also, we can build data-driven credit models so the financial institutions can lend effectively and insurance companies can create crop insurance products. With access to capital, Indian farmers can compete in global markets. The micro-level farm analysis can be used for computerized estimation of crop failures and in curbing false crop failure claims. This will ensure transparency in crop insurance and other such schemes meant for financial inclusion of the farming community.
2. FMCG – Food processing plants, food conglomerates
Food processing industry serves as a vital link between the agriculture and industry segments of the economy and it is critical to strengthen this link to prevent wastage of agricultural raw material. Food processing companies can use the distribution and production reports to set up processing plants and minimize logistics and transportation costs.
3. Input companies – Seed, Fertilizer, Biotech, and Farm equipment industry
Input companies can improve distribution model plans and create new seed and fertilizer varieties. With right data they can determine the demand and plan product distribution accordingly, facilitating higher crop yield and sustained agricultural production.
4. Agribusiness – Trading, Food conglomerates, Food retailers, Distributors, Warehouse and Cold storages
With a more complete assessment of supply and demand, we can enable agribusiness users to make better decisions and planning. Warehouses and cold storage companies can plan their market procurement, decrease buffer stock and post-harvest losses.
5. Government – Policymakers
With up to date information on market trends, activity, and transportation and infrastructure needs, policymakers will be better equipped to create and fulfill immediate policy objectives. In the long term, the government can be able to prioritize investments and policy initiatives to ensure long term growth. They will be better equipped to manage grain reserves that are caused during production shortfalls and market disruptions.
6. Logistical operators – freight, transportation
Better scale-out opportunities for freight with reliable supply and demand analysis, Future Outlook, Import and Exports.
Farmers will have better access to lending, loans, and crop insurance., and infrastructure improvements to address fragmentation challenges. Easy access to market information will help strategize sustainably on what to grow and where and when to sell. With the Improved education with Data we can reduce agriculture waste and greenhouse emissions.
This article was originally published in Farmioc Blog. Republished with prior permission. Farmioc is developing the world’s most extensive global agriculture data platform. Reach them at https://farmioc.com/