PRECISION

AGRICULTURE AND
POTENTIAL MARKET
IN INDIA
WHITE PAPER: RESEARCH INSIGHTS
 There is a new green on the block, the
digital green. A rather quiet revolution is
happening in the field of agriculture i.e.
precision agriculture (PA). In today’s
Internet of Things that rules the roost,
precision agriculture (PA) is a fitting
example of how diverse universes such as
a farmland and software can be brought
together through ICT.

When it comes to farming, yield,

productivity and cost of cultivation are as
good as the decision a farmer takes with
the given data on the field. Now, what if
the farmer gets to see all the data from
his field and also gets help to take an
informed decision? This is where ICT can
help achieve the much needed boost of
productivity in the Indian farmlands.

This paper examines PA methodology of

Tech Mahindra, prominent case studies in
India, PA technologies available in the
global market along with opportunities,
barriers and key strategies to take them
to the Indian market.

What exactly is precision agriculture? At the soil level, we measure the impedance rate
of the soil, moisture, water retention, NPK values
PA is farm management; typically the varied nature and nutrient migration. At the crop level, we
of the terrain of a farm would mean managing measure chlorophyll, susceptibility, plant level
these with accuracy, which result in reduced inputs temperature and humidity. And at above soil level,
and costs subsequently growing more food. we measure the weather conditions such as
A farmer needs to take 40 odd decisions over a ambient temperature, humidity, dew point
crop cycle, from pre-harvesting to post-harvesting rainfall, etc.
phases. Precision farming helps a farmer reach an
informed and a scientific decision in each of these The outcome of the solution is to record the
40 odd decisions he makes. different aforementioned critical attributes from
the field and with the help of Big Data and
We, at Tech Mahindra have understood the Analytics predict, prescribe and warn the farmer
challenges of today’s farmer and have innovated of the inputs, diseases and weather conditions
a home grown solution - Farm Sensor®. Farm that help him take accurate mitigation or
sensor® measures critical farm attributes at remediation; right when it is needed.
3 different levels of a farm namely, the soil, the
crop level and above the soil level.
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Productivity Difference in precision and
non-precision farming

70.00% 63.86%
60.00%

50.00%

40.00%
33.71% Tomato
28.14% 30.15%
30.00% Brinjal
20.48%
20.00%

10.00% 7.68%

0.00%
Total difference in output Output difference due to Output difference due to
technology inputs used

At the global market, PA solutions abound at A study was undertaken to understand the impact
different levels of the value chain. PA market of precision farming on resource-poor regions and
comprises of technologies such as guidance underprivileged farmers. Specifically, the study has
systems, remote sensing, and Variable Rate looked into productivity, income, employment, and
Technologies (VRT). Guidance systems are divided adoption behavior of technology in agriculture. The
into GPS (Global Positioning Systems) and GIS study, conducted in the Dharmapuri district in
(Global Information Systems). Remote sensing is Tamil Nadu, India, has collected data on precision
segmented into hand-held and satellite based and non-precision farming through the interview
sensing. VRT is segmented into variable rate schedule during the year 2007. The study has
fertilizer, variable rate pesticide, and variable revealed that adoption of precision farming has led
rate seeding. to 80 per cent increase in yield in tomato and 34
per cent in eggplant production. Increase in gross
The lack of awareness and absence of dedicated margin has been found as 165 and 67 per cent,
education of PA among the farming sector is by respectively in tomato and eggplant farming. The
far the major pain point for the market. Other contribution of technology for higher yield in
issues include lack of standards and data precision farming has been 33.71 per cent and
management revolving around the PA industry. 20.48 per cent, respectively in tomato and
eggplant production. The elasticity of 0.39 for the
When it comes to India, issues of agricultural adoption in tomato and 0.28 in eggplant has
sector range from low per capita productivity, indicated that as the probability of adoption
absence of skilled labor, high cost of cultivation to increases by 10 per cent, net return increases by
insufficient soil management. With close to 200 39 per cent and 28 per cent in tomato and
million farmers in India, the need of the hour is to eggplant cultivation. Lack of finance and credit
reach viable and cost effective solutions to the facilities have been identified as the major
Indian market. constrains in non-adoption of precision farming.
The study has suggested that providing of
subsidies for water-soluble fertilizers and pump-
sets will increase adoption of precision farming.
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 Constraints in Adoption of Precision Farming
Mean Garrett's Score

73
65
54 53 51
44 42 41 41
27

Some of the key challenges that need to be • BIS Research estimates the global market size
considered while taking PA to the Indian market for precision agriculture to grow over $6.34
are briefly shared below, quoting from Tata’s billion by 2022 at an estimated CAGR of
case study: 13.09% from 2015 to 2022. The trends
suggest that with U.S. at the forefront,
• Conceptualizing ICT platforms have to be done North America will continue with its dominance
after consulting the users. Agricultural during the forecast years. Also, with the
practices are crop specific and region specific. world’s most populous countries China and
ICT platforms have to be specifically customized India, APAC will emerge as the fastest growing
for user needs region in the market at a CAGR of 18.29%
from 2015 to 2022
• Development of ICT platforms have to be done
in a phased manner so that the project grows • In conclusion, Indian market is quite ready for
in an evolutionary manner. Starting the project introducing PA and the time is ripe with the
in a pilot phase and then validating and government releasing a farmer-friendly budget
expanding it, is the best way for making sure for 2015. The only caution would be to select
that a project concept works in real life progressive states in which adoption of PA is
easy to start with
• The crucial aspect of ICT in rural areas is that
the contact person should develop a working • The way forward is to develop cost-effective
relationship and trust at the grass root level solutions keeping in mind the challenges an
Indian farmer faces in the real world. Soil
• Designing ICT platforms for agricultural management, productivity challenges and
systems have to be done very systematically. optimizing inputs are just a few challenges that
Relationships have to be developed with the can make a difference to the science of food
users and platform holders production in one of the oldest democracies of
the world

4
Source of Information/ Reference:
• Market Source: ASD reports (http://www.hortibiz.com/hortibiz/nieuws/precision-farming-to-become-a-634bn-
industry/)

• Dharmapuri study source: Ideas (https://ideas.repec.org/a/ags/aerrae/47892.html)

• Source of Tata case study: http://planningcommission.nic.in/reports/sereport/ser/stdy_ict/12_tatakisan.pdf

• Market data: http://www.marketsandmarkets.com/Market-Reports/precision-farming-market-1243.html

• Source for Challenges: http://www.hortibiz.com/hortibiz/nieuws/precision-farming-to-become-a-634bn-industry/

• More reading on PA:

• http://www.nortonrosefulbright.com/knowledge/publications/120848/precision-agriculture-on-the-global-stage

• http://www.navipedia.net/index.php/Precision_Agriculture

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industries that drive economic growth, enjoying a
leadership position in tractors, utility vehicles,
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