Digitisation of agriculture refers to the integration of digital technologies into farming practices. This includes the use of data analytics, Internet of Things (IoT), drones, artificial intelligence (AI), etc., to optimize farming operations, increase efficiency, and enhance crop yields.
Significance of digitisation of agriculture in India:
• Access to information: Digital platforms provide farmers with access to real-time information on weather forecasts, market prices, government schemes, etc. enabling them to make informed decisions.
o For example, weather forecasting apps Meghdoot, Mausam, etc., help farmers in making informed decisions regarding sowing, irrigation, etc.
• Precision agriculture: Technologies such as drones, satellite imaging, and IoT sensors enable precision agriculture practices. This optimizes input usage, minimizes waste, and improves yield and quality.
○ For example, IBM AgroPad enables real-time, on-location, chemical analysis of soil or water sample using AI.
• Market linkages: Digital marketplaces and e-commerce platforms connect farmers directly with buyers, thereby eliminating intermediaries and improving price realization.
○ For example, the e-NAM platform integrates agri-markets across the country through a common online market platform providing better price discovery and timely online payment.
• Supply chain efficiency: Digital platforms streamline agricultural supply chains by enabling seamless coordination among farmers, input suppliers, processors, distributors, and retailers.
○ For example, Apna Godam is a Jaipur-based agri-tech warehousing start-up that uses an app for providing warehousing facilities and online commodity financing to farmers all across India. Challenges in digitisation of agriculture in India:
• Digital literacy: Many farmers are hesitant to adopt new technologies due to lack of digital literacy. This situation is compounded by rising cases of digital fraud, which erodes trust in digital solutions.
• High initial cost: The initial investment required for digital technologies is often beyond the reach of small and marginal farmers, making it challenging for them to embrace digitisation.
• Fragmented landholdings: The small size of farm holdings poses a challenge to the scalable implementation of digital technologies like drones in agriculture.
• Early stage of agritech startups: Agri-tech start-ups are still in their nascent stage with only about 1% market penetration. Further, they struggle in securing funding and establishing a reliable customer base.
• Rural infrastructure: Lack of infrastructure in rural areas, such as reliable electricity and internet connectivity, hinders the adoption of digital tools.
In this context, further measures are required to enhance digital literacy, improve infrastructure, and provide targeted support to small and marginal farmers. To achieve successful digitization of agriculture, the G20 Delhi Declaration has committed to promote responsible, sustainable and inclusive use of digital technology by farmers and an ecosystem of agri-tech start-ups.