You might think farming is all about mud, manure, and muscle. But guess what? Things are changing fast!
Power of ‘IoT' (Internet of Things) is what the millennium kids say to changes influenced by technology and it is turning our farms into smart, high-tech hubs.
Let’s see how this IoT magic is working out in vast agricultural landscape and for millions of smallholder farmers accross the nation. (In 10 points: G10 style))
I) Focus:
India, a predominantly agrarian economy, is undergoing a significant transformation with the integration of technology into its farming practices. This technological revolution, often termed 'Agritech', is addressing the challenges of low productivity, income instability, and environmental concerns faced by millions of Indian farmers.
Ii) Key Areas of Technological Impact so far:
A) Precision Agriculture & Biotechnology
This involves using technology to optimize farming practices and also enhancing crop yields and resistance to pests and diseases.
1) Soil and Crop Monitoring:
Sensors, drones, and satellite imagery provide real-time data on soil conditions, crop health, and weather patterns. This helps farmers apply water, fertilizers, and pesticides precisely, reducing wastage and increasing yields. Example: Companies like DeHaat, though not yet listed, are using drones and AI-powered analytics to provide farmers with hyperlocal weather forecasts and crop recommendations.
- Please note: DeHaat provides farmers with access to over 3,200 agricultural inputs, combined with AI-based customised crop advisory on pest and disease management, delivered via mobile app and call centres.
- The platform also aggregates over 30 crops from farmers on their network and directly supplies it to over 600 commodity bulk buyers, including retail chains, e-commerce players, FMCG giants, and SME food processors.
- In the last six months, DeHaat has also integrated financial services into its list of offerings.
2) Hybrid Seeds:
Improved seed varieties are leading to higher productivity.
3) Genetic Modification:
While still in its early stages, GM crops hold the potential to address food security challenges.Example: Monsanto India (NS:MNSN), now part of Bayer (ETR:BAYGN), was a major player in the hybrid seed market until its acquisition
B) Digital Platforms:
These connect farmers to markets, knowledge, and financial services.
1) Market Linkage:
Platforms aggregate demand and supply, enabling farmers to get better prices for their produce.
2) IoT apps :
Banking and digital payment platforms via mobile apps are making it easier for farmers to access credit and insurance. Example: Companies like Paytm (NS:PAYT) and Google (NASDAQ:GOOGL) Pay are offering various financial services to rural India, including digital payments and credit
3) Knowledge Sharing:
Online platforms provide farmers with access to best practices, agricultural advisories, and market trends.
- Please note (For Farmers):
- Both public and private sector institutions/companies have come up with different digital platforms to provide advisories to farmers through video conferencing by connecting them with scientists or domain experts on agriculture and livestock operations.
- The Indian Council of Agricultural Research (ICAR) has tied up with Common Service Centres (CSC) under the ministry of electronics and IT to provide advisory services including technical support to farmers.
- Currently, over 2.15 lakh out of 2.50 lakh ‘panchayats’ in the country are ready to provide agri advisories to farmers through Krishi Vigyan Kendra (KVKs) – centres under ICAR which provide extension services to farmers. Total 628 KVKs have been enabled for the digital advisory services through video conferences
- Under agri clinics model, farmers can visit their nearby CSC and consult scientist of ICAR through video conferencing on various issues regarding crops, soil, seeds, fertilisers and farm practices. In case of pest or other infection in the crop, scientists can provide advisories after looking at picture of infected plants.
- Private companies such as Bayer Crop Science and ITC Limited too have joined hands to provide on-farm digital advisories to farmers through ITC’s e-Choupal 4.0 platform
4) Financial Inclusion:
Digital payments and credit facilities are being extended to farmers, improving their financial health.Example: Companies like ITC, listed on the Indian stock market, have launched platforms like e-Choupal to connect farmers with markets and provide agricultural inputs
C) Automation and Mechanization:
This reduces labor costs and increases efficiency.
1) Farm Machinery:
Advanced tractors, harvesters, and other equipment are improving farm productivity. Example Mahindra & Mahindra, a leading tractor manufacturer, is listed on the Indian stock market and is a major player in farm mechanization
2) Robotics:
Autonomous robots are being developed for tasks like weeding, harvesting, and plant monitoring.
3) Digitization
Ushering in an Era of 24x7 Connected Tractor Technology: The key brands and their positioning statements
- Mahindra – Technology se Tarakki
- Swaraj - Mera Swaraj
- Gromax Trakstar – Badal de Life ka Track
D) Supply Chain Optimization:
Blockchain:
Ensuring transparency and traceability in the supply chain, blockchain is gaining traction in the agritech sector.
Real-time Tracking:
Technology is enabling real-time tracking of agricultural produce, reducing wastage and ensuring timely delivery. Example: Companies like Agribazaar are using technology to connect farmers directly with buyers, eliminating intermediaries and improving price discovery.
E) Market Intelligence:
Price Forecasting:
Technology-driven platforms provide farmers with real-time market price information, helping them make informed decisions.Example: Several agritech startups are offering market intelligence tools to farmers, enabling them to sell their produce at better prices.
III) Impact on Farmers
- IncreasedProductivity:
Better resource management and timely interventions lead to higher crop yields.
- Reduced Costs:
Precision agriculture helps optimize input usage, cutting down on expenses.
- Market Access:
Digital platforms connect farmers directly to buyers, eliminating intermediaries and ensuring better prices.
- Risk Mitigation:
Weather forecasts and crop insurance reduce the impact of adverse weather conditions.
IV) Challenges and Opportunities
While technology holds immense promise, challenges like digital literacy, internet connectivity, and infrastructure need to be addressed. However, the potential benefits are enormous. India has the opportunity to become a global leader in agritech, ensuring food security and improving the livelihoods of millions of farmers.
- Note (for Investor): The agritech landscape is rapidly evolving, and new companies and technologies are emerging constantly. presenting a massive opportunity to increase agricultural productivity, improve farmers' incomes, and ensure food security for a growing population. As technology continues to evolve, we can expect even more innovative solutions to emerge, transforming Indian agriculture into a globally competitive sector. Hence It's essential to stay updated on the latest developments in this dynamic sector.
V) Stock Market Companies Driving the Agritech Revolution
While the Agritech startup ecosystem is booming, several established companies are also playing a crucial role in transforming Indian agriculture.
A) Major or large listed Companies
- ITC:
Besides its e-Choupal initiative, ITC is involved in various agribusiness activities, including food processing, agri-inputs, and rural development.
- Mahindra & Mahindra:
A leader in farm mechanization, the company offers a wide range of tractors and implements, focusing on developing autonomous and electric tractors, as well as providing other farm equipment and financing solutions.
- UPL (NS:UPLL):
A global leader in agrochemicals, UPL is focused on providing sustainable solutions to farmer to become A global leader in agricultural solutions, UPL is leveraging technology to develop sustainable and high-performance crop protection products. The company is also investing in digital agriculture platforms.
- PI Industries (NS:PIIL):
This company is a leading custom synthesis and research-based development manufacturer of agrochemicals is collaborating with few global agritech companies to develop new and innovative crop protection solutions.
B) Other listed companies (sub sector)
1) Input Providers
- Coromandel International:
A major player in the fertilizer and crop protection market.
- Bayer CropScience (NS:BAYE):
Offers a wide range of crop protection products and solutions.
- Sumitomo Chemical India:
Provides crop protection chemicals and intermediates. Chambal Fertilizers: A major producer of fertilizers.
- BASF India (NS:BASF):
Offers a range of agricultural products, including crop protection and soil management solutions.
- Gujarat Narmada Valley Fertilizers & Chemicals (NS:GNFC):
A leading producer of fertilizers and industrial chemicals.
- Fertilizers & Chemicals Travancore:
A major player in the fertilizer industry. Insecticides India: Offers a range of insecticides and other crop protection products.
- Rallis India (NS:RALL):
Offers a range of crop protection products and services.
2) Machinery and Equipment
- Escorts (NS:ESCO) Ltd:
A leading player in the farm equipment industry, Escorts is working on developing advanced agricultural machinery.
- Jain Irrigation (NS:JAIR) Systems:
A global leader in micro-irrigation, plastic pipes, and agro processing, Jain Irrigation is leveraging technology for efficient water management.
3) Seeds and Biotechnology
- Kaveri Seed (NS:KVRI) Company:
A leading seed company in India, Kaveri is focused on developing high-yielding and climate-resilient seed varieties.
- Nath Bio-Genes:
A biotechnology company focused on developing high-quality seeds and plant-based products. Dhanuka Agritech: Focuses on seed production and crop protection.
4) Agri-Commodities and Processing
- Adani Wilmar (NS:ADAW):
While primarily known for edible oils, Adani Wilmar is also involved in the agri-value chain, including procurement, processing, and distribution.
- Venkys India:
A leading poultry and animal feed player.
- Bombay Burmah Trading Corporation:
Has interests in various sectors, including agriculture.
- Simran Farms:
Engaged in agricultural and allied activities.
- Tierra Agrotech:
Involved in agriculture and allied activities.
- Indo US Bio-Tech:
Engaged in the production and marketing of bio-tech products.
- Apis India:
Engaged in the production and marketing of honey and bee products.
- Naturite Agro Products:
Engaged in the production and marketing of agro-based products.
- Jayatma Spinners:
Engaged in cotton spinning and textile manufacturing.
- Saptarishi Agro Industries:
Engaged in the production and marketing of agricultural products.
- Tarai Foods:
Engaged in the processing and marketing of food products.
- Harrisons Malayalam:
A diversified company with interests in agriculture and plantations.
- Please Note:( for Investor) This list is not exhaustive, there are a lot of stocks which are part of SME apart from listed on NSE & BSE, Hence It's essential to conduct thorough research before making any investment decisions. For example
- Times Green Energy:
Engaged in renewable energy and agriculture-related activities.
- Tide Water Oil:
Provides lubricants and other agricultural inputs.
VI) Startups Making a Difference
India boasts a thriving agritech ecosystem with numerous startups and established players making significant contributions. Here are some additional companies to consider:
1) Agri-Input and Services
- AgroStar:
This company offers a comprehensive platform for farmers, providing agricultural inputs, advisory services, and market linkages.
- DeHaat:
Focusing on rural India, DeHaat provides a range of agricultural inputs, financial services, and advisory to smallholder farmers.
- Krishi Vigyan Kendras (KVKs):
These government-run institutions use technology to transfer agricultural knowledge and best practices to farmers.
2) Supply Chain and Market Linkage
- Ninjacart:
This B2B platform connects farmers directly with retailers and wholesalers, reducing supply chain inefficiencies.
- Waycool:
A full-stack agritech player, Waycool offers procurement, processing, warehousing, and distribution solutions.
3) Technology-Driven Farming Solutions
- Fasal:
This company provides hyperlocal weather forecasts and crop advisory services to farmers.
- DroneAcharya:
Focusing on drone technology, this company offers drone-based services for agriculture, including spraying, seeding, and surveying.
- Farmart:
A micro SaaS-led platform helping large food businesses source quality produce efficiently.
4) Livestock and Dairy
- Stellapps:
This company provides digital solutions for the dairy industry, including milk quality testing and farmer management.
5) Other Notable Mentions
- IIML:
A subsidiary of Indian Immunologicals, IIML is involved in the production and marketing of animal health products, leveraging technology for disease management and prevention.
- Gramophone:
Offering a mobile platform for farmers to access agricultural information, market prices, and inputs.
- E-Agri:
A digital platform connecting farmers with buyers, providing market information, and offering agricultural inputs.
VII) Global Giants with a Footprint in India
- John Deere:
A global leader in agricultural machinery, John Deere offers a range of equipment and technology solutions to Indian farmers.
- Monsanto(NYSE:MON) (now Bayer):
A major player in seed technology and agricultural biotechnology, Bayer continues to invest in research and development for Indian agriculture.
Disclaimer:
1) This list is not exhaustive, and the performance of these companies can fluctuate. While these companies are involved in the agriculture sector, their core businesses might not be exclusively focused on technology-driven agriculture solutions. The extent of their involvement in agritech varies.
2) It's essential to conduct thorough research or consult with a financial advisor before making any investment decisions.
3) The article is for educational purposes. The analysis and theory were drafted by the following: G10 and with the help of Gen Z and X Gen students who are part of Justified 2 Know (J2K) community for learning purposes.
VIII) Conclusion
The Indian agritech landscape is rapidly evolving, with new companies emerging regularly. These companies often focus on specific segments of the agricultural value chain, such as inputs, supply chain, or technology solutions. The success of these companies depends on factors such as technology adoption by farmers, infrastructure development, and government policies.
Imagine knowing exactly when to water your crops, which part of your field needs more fertilizer, and even predicting when pests might attack. Sounds like magic, right? Well, it’s actually science and technology. With sensors, drones, and clever software, farmers can now get super detailed information about their fields. This helps them make smart decisions, save water and money, and grow more with less effort.
So, the next time you bite into a juicy orange or munch on a crispy apple, remember the farmer who grew it. Chances are, they used a little bit of IoT magic to bring that food to your doorstep. It’s a win-win for everyone – farmers, consumers, and our planet
IX) FAQs About technological Farming a k.a Digital Farming
- 1.What is Digital Farming?
Digital farming is using technology to improve farming practices. This includes using tools like drones, sensors, and software to collect data about crops, soil, and weather. This data helps farmers make better decisions about planting, fertilizing, and harvesting.
- 2.How Does Digital Farming Benefit Farmers?
Digital farming can help farmers in many ways: Increased yields: By understanding their crops better, farmers can produce more with less. Reduced costs: Using technology efficiently can save money on water, fertilizers, and labor. Better decision-making: Data-driven insights help farmers make informed choices. Environmental protection: By using resources wisely, farmers can reduce their impact on the environment.
- 3.What kind of Technology is Used in Digital Farming?
There are many technologies used in digital farming, including: Drones: For capturing images and data of crops. Sensors: To monitor soil moisture, temperature, and other conditions. GPS: For precision farming and equipment guidance. Farm management software: To analyze data and make plans. IoT devices: For connecting farm equipment and collecting data.
- 4.Is Digital Farming Expensive?
The initial investment in digital farming technology can be high. However, the long-term benefits, like increased yields and reduced costs, can outweigh the initial expense. Many governments and organizations offer subsidies and training to help farmers adopt digital technologies.
- 5.Does Digital Farming Require Special Skills?
While a basic understanding of technology is helpful, many digital farming tools are designed to be user-friendly. Many farmers are learning new skills through training programs and workshops.
- 6.Will Digital Farming Replace Traditional Farming?
No, digital farming is a tool to enhance traditional farming practices. It’s about using technology to make farming more efficient and sustainable. Many farmers combine traditional knowledge with digital tools for the best results.
X) If you like to delve deeper into a specific area of Agritech here is some extra
Sources and related content
How agtech is poised to transform India into a farming powerhouse - McKinsey
www.mckinsey.com
How are AgriTech Startups Revolutionising Farming Practices in India
www.startupindia.gov.in
Precision Agriculture: Benefits and Challenges for Technology Adoption and Use | U.S. GAO
www.gao.gov
Covid gives digital push to agri-advisory service and marketing of farm produce |
India News timesofindia.com and indiatimes.com
ITC e-Choupal - Rural India's largest Internet-based intervention
www.itcportal.com
India's farmers are on the cusp of an Agritech revolution: AgriStack
www.weforum.org
Farm Intelligence - DeHaat
agrevolution.in
Mobile Applications Empowering Smallholder Farmers: An Analysis of the Impact on Agricultural Development - ResearchGate
www.researchgate.net
(PDF) KRISHI VIGYAN KENDRAS (KVKS): THE AGRICULTURAL KNOWLEDGE HUB CENTRES IN INDIA - ResearchGate
www.researchgate.net