Prathimesh Kant, CTO of Agribid India Pvt. Ltd., in Bengaluru, Karnataka, discusses how technology is revolutionizing agriculture by improving the way food is grown and distributed. Farmers now have access to advanced tools that boost productivity and reduce challenges. These innovations are essential in strengthening food systems and ensuring global food security.
Technology usage in agriculture is evident in listing and price fixation, which promotes transparency of information. So, when a farmer goes to the APMC with his produce, he may get only limited information. If he obtains all the listed information, the behaviour of the market would certainly change, with improved efficiency, an increase in stakeholder income, and a reduction in any form of frustration. In the case of the supply chain, where the buying and selling efficiency is determined by effective communication, time-bound delivery, and payment, in all these areas, technology plays a huge role. We can run the analytics to get complete details to help in marketing, sales, and personalization, effective operations, and better communication with each other. Items will be delivered within the specified timeframe. Process automation in agriculture is the activities involved in the transaction, trade, and practices of agriculture, and when these processes are automated, they can save time, improve efficiency, and higher income.
Technology can mean the software used in various ways, such as mobile phones, computers, and other means to communicate effectively. In the case of agriculture, technology may mean higher quality of machinery, good quality of seeds, superior inputs, and many such things to improve the productivity of the crops and reduce costs. Data is made available to all stakeholders, including traceability about the products’ origin, delivery, and quality checks. It takes a long time to do a quality check of an agricultural product manually, such as the grain size, foreign particles, consistency, etc. But when we use technology here, make the process automated, we can have a say on the price of the produce based on the quality as assessed by the technology. The products are graded based on their quality using parameters, and prices are determined based on this. So accountability and transparency are brought in. Blockchain technology helps in accessing finance, the availability of credit, etc. There are lots of activities in agriculture for which credits are not given, and so farmers resort to lenders. If awareness about the financial access available to them is given them, it will be beneficial to the farmers. It is this Fintech aspect that is gaining momentum, and it involves two aspects: backward and forward linkages. Backward linkage involves procuring good inputs such as fertilizer, seeds, and plays a great role in technology. The forward linkage involves what takes place in post-harvest activities. With just an increase in productivity, there is no guarantee of higher income for the farmers. The rate of the commodity is determined by the market’s demand and supply, and storage facilities will be known. When products are sold at the right time, they can fetch a higher income for the farmers. Next is awareness about the origin and destination of the produce, how it gets sold in the market, and how to get money with the help of networking, which is provided by the technology.
There are many challenges in every phase of agriculture. The first one is landholding. In India, the landholding is quite small, and to be economically farming, the size of the land should be large. There are a few companies that are working on aggregating multiple farms together to bring in economic efficiency. Next comes insurance and credit facilities. The farmers are getting credit facilities from the banks, cooperative societies, and agriculture credit societies, only to some extent, even if it is a viable project. So, they are forced to seek help from moneylenders, which comes to them at a higher rate of interest. Water resources are another problem, as India is highly dependent on rain, which is inconsistent. Productivity will suffer when the rains are less. When we consider soil health, fertilizers, quality seeds that can improve productivity, and other inputs. Many companies are working on providing quality inputs and soil health to prevent any diseases from attacking the crop. Also, the availability of farm equipment is a huge challenge, as the landholding is small and buying the equipment does not work economically. Transportation and storage are areas where people are struggling. They are unable to get cold storage where they can keep perishables fresh and of good quality. Also, they face challenges from middlemen, leaving the farmers with less profit or no profit at all. With all these challenges, even if the productivity is high, there is no guarantee of the farmers getting a good profit. It needs multiple channels of buyers for sales.
Our company, Agribid, is a virtual APMC company to help farmers in various stages of agriculture. APMC is usually the place where the farmers bring their produce, the rate is finalized, and they sell the produce. There are lots of disadvantages. So in a virtual system, the buyer can see the listing, the auction happens, and the deal is finalized. The responsibility for the fulfillment of the deal is with the platform. That is what we do at Agribid. In a regular APMC, the farmers have to pay tax, but on our platform, the farmer listing is done free of cost. The buyer pays the commission, which is 5%. It gives a huge pricing benefit to the seller. It is a transparent list for getting a fair price, and we support the aggregation through channel partners in case the farmer does not have a sizable commodity. Channel partners may include FPO, primary agriculture credit societies, etc. Logistics is working on getting value additions. All these make buying and selling transparent. We do a very efficient agriculture transaction as we have set up with multiple entities. Any payment from the buyer goes to the farmer. This infusion of finance can bring down many forms of risks associated with various stages where money is involved. Availability of money is always restricted. Data from banks or financial institutions is not enough to support farmers. If anyone wants at ground level, the interest rates go up as it is considered micro finance. Farmers are usually small and marginal.
The most preferred source of finance is the KCC or Kissan Credit Card available through agriculture credit societies. But each state has its limits. The money has to be paid back within a year and renewed again, and it has a low interest rate. Loans based on the land from banks are good, but because of politics and loan waivers, the farmers do not get money and are forced to go back to money lenders. The main purpose is to get access to professional finance from banks and NBFs for farmers to solve their problems. Recovery, of course, is a problem.
Technology for fair prices
Post harvest, the farmer has to sell his produce to a better income channel, find out the channels of sales that can fetch them income, such as APMC, where their goods are stored and sold at a later time. Selling to a private buyer or the government through Fair Market Price can get them a good income. Farmers are unable to use them as payments sometimes get delayed, and it becomes difficult for the farmers to manage their livelihoods. Prices may crash as there is no guarantee of a good price, and the farmers also cannot predict the quantity and quality of the produce. Farmers cannot hold their produce for a long time, and they have to dispose of the same immediately to get cash. So they seek APMC for the same. To get a higher income, we help them by giving them an advance, which is equivalent to a warehouse receipt. Farmers can use it when they approach private buyers or government agencies. This will also help in increasing their income. Using technology, the line of credit is taken from banks and NBFCs, and whatever data is available about the price, the final payment for the product for that season is decided. We automate and disperse loan money and recover the same for the NBFCs. We charge them for the service. Technology helps in the immediate release of goods to market post-harvest, financing, storage, pay letter option, reducing contact with money lenders, selling the produce, and getting a higher income.
Digital tools for farmers
Farmers have great knowledge passed from generations that needs to be preserved. They will know just by looking that a plant has a specific disease. But when we use technology, Scouting Image uses AI to detect plant disease, which is almost perfect, and this can save the plants and money. It is like shifting from manual to automated work. Timely detection of plant disease and taking proper action can be taken up by the farmer. Based on the size of the land size, and the economics, high-end machinery can be used to save time and labour. Farm labour is also difficult and costly. Getting good quality input from universities and KVKs will make a huge difference. Post-harvest, such links to sell the produce and get income will be a great help for the farmers. Contract farming can be followed subject to risks and terms and conditions. Having a good idea about the buyers at the time of cultivation can help the farmers plan things better. They can take care of the quality of the produce as specified by the buyer. These things can be taken care of by technology. Also, they can stay connected with the farming community, get all the data and information, price details, and also decide what to cultivate based on the soil and climate. They will also know about the demand and supply for their product in the market. We are building fintech models, financial inclusion using technology. Mobile app with all integration of NBFC, Banks, and all the data from channel partners. These are very useful to us from the farmers’ perspective to run a virtual APMC and our work.
Tech for tough seasons
It can help us in situations where there is less rainfall, or an abundance of rain, low yield, plant disease, etc. We do not have any control over the weather, but based on the forecast, we can take certain preventive measures to save the crop from damage. Plant diseases can be identified in advance, and timely action can be taken. It will take a long time to come across solutions to face climatic challenges. We have to follow the best practices of carbon emission by planting a lot of trees to take care of the climate issues. Farmers have the benefit of carbon credits by using carbon reduction technology. We can use pellets made from Agri waste to reduce carbon emissions. It involves money. So we have to find a technology to tackle this. The mobile with suitable apps can help the farmers, and they should be easily handled by the farmers who are not very educated. With a proper internet connection, changes can be made to the server and app. It is very difficult to bring in any totally new change. The farmer has to have the mindset, be willing to learn technology, and take the help of early adapters to help others also learn, including the customers. We have many models in agricultural technology, such as Phygital, which is a combination of physical and digital. There are different categories of customers, and physical intervention is required at many stages. Some farmers may need help, and some may do it all by themselves.
Tech-enabled crop planning
When we go through APMC, we will know the exact amount we can get by selling a product after some time. Data analytics play a major role here. Everyone is growing regular crops like wheat, which do not yield high income. But if it is a different crop, we can get a higher income. For this, we should know how much revenue we can expect after selling the produce, and data analytics gives us the details about the price. We can choose the crop accordingly. Data analytics also help us in marketing and sales. Machinery, aggregating lands, and the crops we should focus on, areas to focus on, and go on with the cultivation of the same. It will also help in intercropping. Farmers can list their products on Agri platforms. There will also be buyers listed there; the platform will match the buyer and seller, and the auction rate will be finalized, which is usually higher than what APMC offers. The deal is done transparently. The farmer should reduce contact with moneylenders by doing this. With multiple buyers, he can decide to whom he can sell to get a higher profit. Grading, sorting, and selling the product as per the expectations of the buyer can also increase the profit. Backward and forward linkages help the farmers get different inputs and sell the products. Technology helps farmers to save time, money and increase their income.
Balancing tradition and technology
There is no contradiction between the two, basically. By mixing the two, we can increase efficiency, make things better, and save money. Agriculture is preserving genetic diversity, which is very important because it is linked to climate change. Monocrop reduces diversity and harms the environment. Preserving diversity is very important. Traditional knowledge will help here, and the technology of backward and forward linkage helps us do better. Agriculture is full of abundance, and scarcity comes from economics and the price of things. This problem can be solved by technology.
Empowering smallholders effectively
With landholding size so small in India, it is important to support them with aggregation. There are many players who are working on it and helping farmers to get the best price for the produce, making them aware of the procuring sources. It is difficult for small farmers to use technology. The app should be easy for them to understand. If it is storage-based and finance-based, it can do wonders. The rates may go down during seasons as the output is high. The farmer should be able to hold and sell the farmers based on the demand at all levels. Buying machinery may not be a viable option, but if someone has machinery that can be used on their farms on a pay-per-use model, it will work out economically. Many universities and KVKs can help farmers get connected to buyers, cultivate multiple crops, and thus reduce the risk. There are lots of solutions available.
Contact details
Prathimesh Kant
CTO of Agribid India Pvt. Ltd., in Bengaluru, Karnataka
Mob: 99805 27914
Email: prathmesh.kant@agribidindia.com
Technology usage in agriculture is evident in listing and price fixation, which promotes transparency of information. So, when a farmer goes to the APMC with his produce, he may get only limited information. If he obtains all the listed information, the behaviour of the market would certainly change, with improved efficiency, an increase in stakeholder income, and a reduction in any form of frustration. In the case of the supply chain, where the buying and selling efficiency is determined by effective communication, time-bound delivery, and payment, in all these areas, technology plays a huge role. We can run the analytics to get complete details to help in marketing, sales, and personalization, effective operations, and better communication with each other. Items will be delivered within the specified timeframe. Process automation in agriculture is the activities involved in the transaction, trade, and practices of agriculture, and when these processes are automated, they can save time, improve efficiency, and higher income.
Technology can mean the software used in various ways, such as mobile phones, computers, and other means to communicate effectively. In the case of agriculture, technology may mean higher quality of machinery, good quality of seeds, superior inputs, and many such things to improve the productivity of the crops and reduce costs. Data is made available to all stakeholders, including traceability about the products’ origin, delivery, and quality checks. It takes a long time to do a quality check of an agricultural product manually, such as the grain size, foreign particles, consistency, etc. But when we use technology here, make the process automated, we can have a say on the price of the produce based on the quality as assessed by the technology. The products are graded based on their quality using parameters, and prices are determined based on this. So accountability and transparency are brought in. Blockchain technology helps in accessing finance, the availability of credit, etc. There are lots of activities in agriculture for which credits are not given, and so farmers resort to lenders. If awareness about the financial access available to them is given them, it will be beneficial to the farmers. It is this Fintech aspect that is gaining momentum, and it involves two aspects: backward and forward linkages. Backward linkage involves procuring good inputs such as fertilizer, seeds, and plays a great role in technology. The forward linkage involves what takes place in post-harvest activities. With just an increase in productivity, there is no guarantee of higher income for the farmers. The rate of the commodity is determined by the market’s demand and supply, and storage facilities will be known. When products are sold at the right time, they can fetch a higher income for the farmers. Next is awareness about the origin and destination of the produce, how it gets sold in the market, and how to get money with the help of networking, which is provided by the technology.
There are many challenges in every phase of agriculture. The first one is landholding. In India, the landholding is quite small, and to be economically farming, the size of the land should be large. There are a few companies that are working on aggregating multiple farms together to bring in economic efficiency. Next comes insurance and credit facilities. The farmers are getting credit facilities from the banks, cooperative societies, and agriculture credit societies, only to some extent, even if it is a viable project. So, they are forced to seek help from moneylenders, which comes to them at a higher rate of interest. Water resources are another problem, as India is highly dependent on rain, which is inconsistent. Productivity will suffer when the rains are less. When we consider soil health, fertilizers, quality seeds that can improve productivity, and other inputs. Many companies are working on providing quality inputs and soil health to prevent any diseases from attacking the crop. Also, the availability of farm equipment is a huge challenge, as the landholding is small and buying the equipment does not work economically. Transportation and storage are areas where people are struggling. They are unable to get cold storage where they can keep perishables fresh and of good quality. Also, they face challenges from middlemen, leaving the farmers with less profit or no profit at all. With all these challenges, even if the productivity is high, there is no guarantee of the farmers getting a good profit. It needs multiple channels of buyers for sales.
Our company, Agribid, is a virtual APMC company to help farmers in various stages of agriculture. APMC is usually the place where the farmers bring their produce, the rate is finalized, and they sell the produce. There are lots of disadvantages. So in a virtual system, the buyer can see the listing, the auction happens, and the deal is finalized. The responsibility for the fulfillment of the deal is with the platform. That is what we do at Agribid. In a regular APMC, the farmers have to pay tax, but on our platform, the farmer listing is done free of cost. The buyer pays the commission, which is 5%. It gives a huge pricing benefit to the seller. It is a transparent list for getting a fair price, and we support the aggregation through channel partners in case the farmer does not have a sizable commodity. Channel partners may include FPO, primary agriculture credit societies, etc. Logistics is working on getting value additions. All these make buying and selling transparent. We do a very efficient agriculture transaction as we have set up with multiple entities. Any payment from the buyer goes to the farmer. This infusion of finance can bring down many forms of risks associated with various stages where money is involved. Availability of money is always restricted. Data from banks or financial institutions is not enough to support farmers. If anyone wants at ground level, the interest rates go up as it is considered micro finance. Farmers are usually small and marginal.
The most preferred source of finance is the KCC or Kissan Credit Card available through agriculture credit societies. But each state has its limits. The money has to be paid back within a year and renewed again, and it has a low interest rate. Loans based on the land from banks are good, but because of politics and loan waivers, the farmers do not get money and are forced to go back to money lenders. The main purpose is to get access to professional finance from banks and NBFs for farmers to solve their problems. Recovery, of course, is a problem.
Technology for fair prices
Post harvest, the farmer has to sell his produce to a better income channel, find out the channels of sales that can fetch them income, such as APMC, where their goods are stored and sold at a later time. Selling to a private buyer or the government through Fair Market Price can get them a good income. Farmers are unable to use them as payments sometimes get delayed, and it becomes difficult for the farmers to manage their livelihoods. Prices may crash as there is no guarantee of a good price, and the farmers also cannot predict the quantity and quality of the produce. Farmers cannot hold their produce for a long time, and they have to dispose of the same immediately to get cash. So they seek APMC for the same. To get a higher income, we help them by giving them an advance, which is equivalent to a warehouse receipt. Farmers can use it when they approach private buyers or government agencies. This will also help in increasing their income. Using technology, the line of credit is taken from banks and NBFCs, and whatever data is available about the price, the final payment for the product for that season is decided. We automate and disperse loan money and recover the same for the NBFCs. We charge them for the service. Technology helps in the immediate release of goods to market post-harvest, financing, storage, pay letter option, reducing contact with money lenders, selling the produce, and getting a higher income.
Digital tools for farmers
Farmers have great knowledge passed from generations that needs to be preserved. They will know just by looking that a plant has a specific disease. But when we use technology, Scouting Image uses AI to detect plant disease, which is almost perfect, and this can save the plants and money. It is like shifting from manual to automated work. Timely detection of plant disease and taking proper action can be taken up by the farmer. Based on the size of the land size, and the economics, high-end machinery can be used to save time and labour. Farm labour is also difficult and costly. Getting good quality input from universities and KVKs will make a huge difference. Post-harvest, such links to sell the produce and get income will be a great help for the farmers. Contract farming can be followed subject to risks and terms and conditions. Having a good idea about the buyers at the time of cultivation can help the farmers plan things better. They can take care of the quality of the produce as specified by the buyer. These things can be taken care of by technology. Also, they can stay connected with the farming community, get all the data and information, price details, and also decide what to cultivate based on the soil and climate. They will also know about the demand and supply for their product in the market. We are building fintech models, financial inclusion using technology. Mobile app with all integration of NBFC, Banks, and all the data from channel partners. These are very useful to us from the farmers’ perspective to run a virtual APMC and our work.
Tech for tough seasons
It can help us in situations where there is less rainfall, or an abundance of rain, low yield, plant disease, etc. We do not have any control over the weather, but based on the forecast, we can take certain preventive measures to save the crop from damage. Plant diseases can be identified in advance, and timely action can be taken. It will take a long time to come across solutions to face climatic challenges. We have to follow the best practices of carbon emission by planting a lot of trees to take care of the climate issues. Farmers have the benefit of carbon credits by using carbon reduction technology. We can use pellets made from Agri waste to reduce carbon emissions. It involves money. So we have to find a technology to tackle this. The mobile with suitable apps can help the farmers, and they should be easily handled by the farmers who are not very educated. With a proper internet connection, changes can be made to the server and app. It is very difficult to bring in any totally new change. The farmer has to have the mindset, be willing to learn technology, and take the help of early adapters to help others also learn, including the customers. We have many models in agricultural technology, such as Phygital, which is a combination of physical and digital. There are different categories of customers, and physical intervention is required at many stages. Some farmers may need help, and some may do it all by themselves.
Tech-enabled crop planning
When we go through APMC, we will know the exact amount we can get by selling a product after some time. Data analytics play a major role here. Everyone is growing regular crops like wheat, which do not yield high income. But if it is a different crop, we can get a higher income. For this, we should know how much revenue we can expect after selling the produce, and data analytics gives us the details about the price. We can choose the crop accordingly. Data analytics also help us in marketing and sales. Machinery, aggregating lands, and the crops we should focus on, areas to focus on, and go on with the cultivation of the same. It will also help in intercropping. Farmers can list their products on Agri platforms. There will also be buyers listed there; the platform will match the buyer and seller, and the auction rate will be finalized, which is usually higher than what APMC offers. The deal is done transparently. The farmer should reduce contact with moneylenders by doing this. With multiple buyers, he can decide to whom he can sell to get a higher profit. Grading, sorting, and selling the product as per the expectations of the buyer can also increase the profit. Backward and forward linkages help the farmers get different inputs and sell the products. Technology helps farmers to save time, money and increase their income.
Balancing tradition and technology
There is no contradiction between the two, basically. By mixing the two, we can increase efficiency, make things better, and save money. Agriculture is preserving genetic diversity, which is very important because it is linked to climate change. Monocrop reduces diversity and harms the environment. Preserving diversity is very important. Traditional knowledge will help here, and the technology of backward and forward linkage helps us do better. Agriculture is full of abundance, and scarcity comes from economics and the price of things. This problem can be solved by technology.
Empowering smallholders effectively
With landholding size so small in India, it is important to support them with aggregation. There are many players who are working on it and helping farmers to get the best price for the produce, making them aware of the procuring sources. It is difficult for small farmers to use technology. The app should be easy for them to understand. If it is storage-based and finance-based, it can do wonders. The rates may go down during seasons as the output is high. The farmer should be able to hold and sell the farmers based on the demand at all levels. Buying machinery may not be a viable option, but if someone has machinery that can be used on their farms on a pay-per-use model, it will work out economically. Many universities and KVKs can help farmers get connected to buyers, cultivate multiple crops, and thus reduce the risk. There are lots of solutions available.
Contact details
Prathimesh Kant
CTO of Agribid India Pvt. Ltd., in Bengaluru, Karnataka
Mob: 99805 27914
Email: prathmesh.kant@agribidindia.com