Agrospectrum India Nov 2022

4 AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Volume 03  |  Issue 9  |  November 2022

Publisher & Managing Editor Assistant Editor ( Digital) TOP STORIES
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Biologicals
Chief Editor Hithaishi C. Bhaskar Powerhouse
Dr. Milind Kokje [email protected]
[email protected] Scan the Indigo Ag
Social Media Communication QR Code adds 7 new
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Vijay Thombre Ankit Kankar collaborators
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Manasee Kurlekar
Executive Editor [email protected]
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[email protected] Operations and HR

Associate Executive Editor Asmita Thakar
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AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com AGRO EDIT 5

Foreseeing Agri
Calamities

Availability of fodder appears to be reducing of Rajasthan has dropped by three to six lakh
leading to shortage and subsequent price litres per day. Similarly, Punjab too is facing a
rise, a record nine-year high price. The significant drop in milk production.
wholesale price index of fodder in August 2022
went up 25 per cent than a year back. In actual Fodder is, undoubtedly, an important
price it is reflecting a rise of Rs 6 per kg, from Rs component of the livestock sector. Considering
17 to Rs 23 in a year. that the livestock sector accounts for about 30 per
cent of total income from farming in India, any
The fodder price index has been rising since upward price fluctuation of the ingredients has a
December 2021. The main reason for the shortage major impact. The shortage is also attributed to
is the lesser wheat yield due to extreme weather mechanisation of the agri process as it eliminates
conditions. As a result, straw prices grew from straw as by product.
Rs 400-600 per quintal to Rs 1,100 – 1,700 per
quintal in a year’s time. At some places in north Farm mechanisation is being increasingly
India they have hit up to Rs 2000. The prices of adopted in our country to save cost. As per a 2017
mustard oil cake has also doubled to Rs 3000 per study, the cost of manual harvesting was Rs 5975
quintal and that of green fodder has gone up to Rs per hectare while the cost using the mechanical
20,000 per acre. thresher comes down to Rs 4458. As a result,
more and more farmers will turn to mechanised
Lower wheat yield is not only a problem in threshing. Naturally, it will grow both the
India. As per the US Agriculture Department’s problems - lesser straw will be available for fodder
global projections done in May, world wheat stocks and add to the environmental pollution.
for 2022-23 are expected to drop to a six-year low
to 267 million tonne compounding to the problem. The government had swung into action two
years back to meet the impending crisis head
India is estimated to have a shortage of 284 on. It involved setting up Farmer Producer
million tonne of green fodder and 122 million Organisations (FPOs). However, that hasn't
tonne of dry fodder. The demand is expected helped solve the fodder crisis. Just a few days
to grow further to 400 and 117 million tonne back, the government convened a meeting of
respectively, by 2025. If timely steps are not taken, officials of the Union and State governments to
the shortage will grow and lead to price rise. prepare an action plan.

Hike in the fodder prices has increased the cost The fodder situation is hoped to improve soon
of milk production by 15 to 20 per cent. This has as wheat yield is expected to be better particularly
impacted the milk supply as farmers have reduced due to late season rainfall. Extended rainfall is also
cattle feed use due to the price rise. As a result, expected to ease the situation on the green fodder
milk supply is decreasing, though marginally, front. But that could be a temporary respite.
while the demand is growing. What is needed is a long term plan. As suggested
by experts a better and affordable alternative for
Milk supply has also been affected by the costly ingredients like de-oiled rice bran could
Lumpy Skin Disease (LSD) disease in cattle be considered. Also, almost 14 to 17 per cent
which weakens the animals and reduces milk land could be reserved for fodder cultivation.
production. By mid-September the virus had Bottomline remains - formulating a permanent
affected 16 lakh animals in almost 200 districts and long-term policy-level solution.
in the 10 states of the country, mostly in western
and northern regions. Nearly 75,000 cattle have Dr. Milind Kokje,
succumbed to the disease, with Rajasthan being Chief Editor
the worst affected as 50,000 dead cattle are from
that state alone and mostly cows. Milk production [email protected]

6 CONTENT AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

CONTENT

COVER 17

Do CONTRACT FARMING
Advantages Outweigh Concerns?

Contractual agreements between the farmers and agribusiness companies have gained
immense momentum in many developing countries including India. Besides ensuring
economies of scale, contract farming facilitates access to technology, capital and quality
inputs for the farmers. Consequently, the arrangements hold much significance given that
agriculture accounts for 16 per cent share in India’s GDP against its 4 per cent share in
world GDP and 55 per cent of the country’s population is dependent on it. However, there
are a number of business and legal challenges plaguing the commercial agreements
between the sponsoring companies and the farmers. Enforceability of contracts by
either party is a worrisome aspect that calls for immediate attention from the various
stakeholders. The centre announced the Model Agricultural Produce and Livestock
Contract Farming Act 2018 with a view to address such discrepancies. The primary
purpose was to legi$mate contract farming in India which has been largely based on the
provisions of Indian Contract Act 1872. AgroSpectrum India digs deeper into the contract
farming landscape to uncover the complexities and benefits.

24 Decent Beginning To Necessary
Journey in Livestock

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com CONTENT 7

CONTENT

27 Govt intervention in rice exports: EVENT REPORT
A bane or boon?
The two-day 13th Biennial AgriCorp
Conference ‘22

33 There is a need to move towards
precision-based farming:
Prof. Ramesh Chand

Feed Tech and Dairy Industry Expo 2022

36 “Dairies should implement a
green economy to manage
inflation in the dairy business”

SPEAKING WITH

“The Centre can increase 30 38 13th Agrovision
Way forward to future farming
its focus on strengthening technologies

the institutions of farmers 39

and not the market How Technology Helps
Agri Retailers Build a
institutions per se” Competitive Edge
Vijay Sardana, a renowned Amit Sinha,

techno-legal advisor on agribusinesses Co-Founder, Unnati

REGULARS 40

Editorial............................................................. 05 Challenges of the
Your Views....................................................... 08 Millets Industry
Policy News..................................................... 09 Shubhangi Singh,
Finance News.................................................. 11
Livestock news............................................... 13 Founder, Golden Millets and
Startups News................................................ 15 Ancient Golden Mill
Academic News.............................................. 42
Technology News........................................... 44
Agri-Inputs news............................................. 46
Supply chain news......................................... 48
Let's Talk Agri.................................................. 50

8 YOUR VIEWS AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

TOP VIDEO

Rajiv Mitra,
CEO, Prabhat
Dairy speaks
about way
forwards for
dairy industry in
India

Scan the QR Sridhar Feedback
Code  Easwaran,
Co-Founder, Informative article on Block
Scan the QR Samunnati Chain technology
Code  Financial
Intermediation & The article “Will Blockchain Transform the
Courtesy- ICAR Services Pvt Ltd Agri-sector?” by Dr Shyam Gunnamreddy,
speaks about the Founder & CEO, Samhitha Crop Care Clinics
Scan the QR contribution value published in AgroSpectrum October22
Code  chain finance in issue is very informative and useful for
agriculture sector agripreneurs and modern farmers.

Rahoul Sarabjeet Chopra, Delhi
Sawani,
President, South Interesting coverage on carbon
Asia, Corteva farming industry
Agriscience
speaks about The articles and interview related to carbon
the role of farming industry published in October 22
seed applied issue are very interesting and useful. It has
technology in covered all angles related to carbon farming
agriculture. which is emerging industry in India.

Sharvani Subhedar, Pune

Special issue on Foodgrains

AgroSpectrum should publish a special
issue on foodgrains which will cover new
farming technologies, foodgrain processing,
supply chain management and new market
linkages strategies for foodgrains.

Vibhav Sengupta, Nagpur

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com PPOOLLIICCYY NNEEWWSS 9

Tomar reiterates India’s commitment to
combating agri crises at G-20 Summit, Indonesia

Union Minister of Agriculture and Farmers farmers to respond to current and future
Welfare, Narendra Singh Tomar, presenting crises by improving their access to inputs,
India’s point of view, addressed various technology, and markets. India is committed
sessions at the G-20 meeting in Bali, to furthering the economic well-being of its
Indonesia. Tomar said that the Government farmers by organising small and marginal
of India, under the leadership of Prime farmers into groups, promoting agri-startups
Minister Narendra Modi, is addressing the and investments in agricultural infrastructure,
sustainability challenges facing agriculture launching the world’s largest crop insurance
and food systems and several important initiatives programme, and conducting various activities like
are underway. He said that the Government of India facilitating digitisation of agriculture. The Innovation
is committed to the benefit of small and marginal in Adaptive Agriculture Project has been launched at
farmers and many important schemes are being run the national level, with an aim to develop climate-
for their welfare. Tomar said that India will enable smart farming practices, Tomar added.

Govt launches PM launches National
convergence portal for Logistics Policy
agriculture and food
processing sector The Prime Minister,
Narendra Modi launched
Union Ministers Narendra Singh Tomar and the National Logistics Policy
Pashupati Kumar Paras have launched the (NLP) at Vigyan Bhawan,
convergence module between the Agriculture New Delhi. Concerted
Infrastructure Fund (AIF) scheme of the Ministry efforts were made to ensure
of Agriculture and Farmers Welfare, Pradhan quick last-mile delivery,
Mantri Micro Food Enterprises Upgradation end transport-related
Scheme (PMFME) and Pradhan Mantri Kisan challenges, save time and
Sampada Yojana (PMKSY) of the Ministry of Food money of the manufacturers,
Processing Industries. Through this convergence, prevent wastage of agro-products, and one of
the eligible beneficiaries under the PMFME and the manifestations of those efforts is today’s
PMKSY Schemes availing credit-linked subsidy National Logistics Policy, the Prime Minister
said. The NLP will bring new energy to all
will be able to avail an additional sectors. When parameters, roadmap and
benefit of Interest Subvention timeline for performance come together then
@3 per cent on the interest rate policy plus performance equal to progress
being charged by the banks over emerges, he elaborated. The PM pointed out
and above the 35 per cent of that the total capacity of Indian ports has
subsidy being provided under increased significantly, and the average turn-
the PMFME Scheme. Speaking around time of container vessels has come
on the occasion, Tomar said that down from 44 hours to 26 hours. To promote
this will benefit different sections of the country, export, 40 air cargo terminals have been
including farmers and small-scale entrepreneurs constructed. 30 airports have been provided
of the processing industry. Union Minister of Food with cold-storage facilities and 35 multimodal
Processing Industries, Paras said that this new hubs are coming up in the country. He also
initiative will play an important role in making mentioned the Kisan Rail and Kisan Udan
food processing enterprises successful, especially experiments that were carried out during the
micro-entrepreneurs processing agricultural pandemic. Today 60 airports have the facility of
products, which will act as an inspiration for the Krishi Udan.
agriculture and food processing sector.

10 PY O LUIRC YV INEEWWSS AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

DAFW, NAFED ink MoU to promote
millet-based products
A Memorandum of Understanding was signed Research (IIMR); formation of FPOs specifically
between the Department of Agriculture and for developing a range of millet-based products;
Farmers Welfare (DA&FW) and the National promotion and marketing of millet-based products
Agricultural Cooperative Marketing Federation of through the network of NAFED Bazaar Stores and
India Limited (NAFED) in New Delhi to
boost the initiative envisioned by Prime other institutions linked with NAFED as
Minister Narendra Modi to promote well as installation of millet-based vending
millets towards the celebration of the machines at various locations across
International Year of Millets 2023. Delhi-NCR; dispensing millet-based
DA&FW and NAFED will collaborate products that shall assist in establishing
in key areas like facilitating advisory support to the focus on millet-based commodities. As
manufacturers/processors of millet-based products India is gearing up to bring millet back on the global
to develop value-added millet-based commodities; map, they will build support and organise, promote,
on-boarding of startups, inclusive of start-ups market, and forge effective market linkages for
empanelled with the Indian Institute of Millets millet-based products to maximise the value capture
of millet-based commodities across the country.

Agrinnovate grants a Centre asks Punjab,
non-exclusive license to Haryana, UP and Delhi
Biovet for production of to strive for stubble
‘Lumpi-ProVacind’ burning management

Agrinnovate, the commercial arm of ICAR, has Narendra Singh
granted “Non-Exclusive Rights” for commercial Tomar, Union
production of “Lumpi-ProVacind” jointly Minister, Agriculture
developed by ICAR-NRC Equines and ICAR- & Farmers Welfare
IVRI to Biovet. Dr Himanshu Pathak, Secretary held a high-level
(DARE) & Director General (ICAR) and review meeting with
Chairman, Agrinnovate India Limited (AgIn) the officials of the
said that this technology will definitely meet state governments
of Punjab, Haryana,
the standards of the market Uttar Pradesh, and NCT of Delhi, Officers
and significantly provide a of the Department of Agriculture & Farmers
defence mechanism to control Welfare (DA&FW) and Indian Council
the devastating lumpy skin of Agricultural Research (ICAR), on the
disease. Dr Bhupander Nath actions taken/proposed to be taken for the
Tripathi, Deputy Director management of stubble burning during
General (Animal Science) the 2022 season. Tomar told the officials
highlighted the relevance of the technology and of the states to strengthen and widen the
said that the vaccine could help the company Information, Education and Communication
to start manufacturing as soon as possible so (IEC) activities to make the farmers aware
as to make the vaccine market ready for further that stubble burning leads to loss of soil
dissemination to the farmers helping them to fertility in the long run, like the overuse
overcome the disease. Dr Sreenivasulu Kilari, of urea. He urged the officials to make
Executive Director, Biovet mentioned that the arrangements to take the farmers to the
organisation is glad to avail the license for Lumpi- sites, where the Pusa Decomposer developed
ProVacind and described their experience with by the ICAR is being used for practical
Agrinnovate in the technology transfer process as demonstrations.
exceptional.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com FPI NOALNI CCYE NNEEWWSS 11

Deep Rooted raises $12.5M in Sahyadri Farms
series A round from IvyCap & Accel
bags Rs 310 Cr
Deep Rooted, India’s leading farm-to-consumer (F2C) brand
for fruits and vegetables, has announced that it has raised from European
$12.5 million in Series A funding. The round was led by IvyCap
Ventures with participation from existing investors including investors
Accel, Omnivore, and Mayfield. Deep Rooted provides urban
The first farmer-led company
consumers access to quality fruits in India, Sahyadri Farms Post
and vegetables sourced directly Harvest Care Limited has
from farmers and includes the raised Rs 310 crore (almost
largest network of greenhouses EUR 40 million) growth
in India. Currently operating capital from a group of impact-
in Bengaluru, Hyderabad, and focused investors, Incofin,
Chennai, Deep Rooted has become Korys, FMO and Proparco.
a one-stop shop for fresh produce, Sahyadri Farms helps farmers
offering over 200 varieties of fruits run their businesses in a more
and vegetables. Through its greenhouse network, Deep Rooted profitable and sustainable
can deliver a year-round supply of residue-free produce, using way. Alpen Capital acted as
a fraction of the water and land compared to conventional an exclusive strategic advisor
farms, the company claims. Over the next 12 months, the to Sahyadri Farms for this
startup plans to expand its operations to cover major cities in transaction. The capital
South India, strengthen its technology stack, and proactively received is intended to further
hire across marketing, technology, and business functions. grow the farmers’ company.
Sahyadri Farms plans to
Agribazaar, Yes Bank, RuPay expand its processing capacity
jointly launch Kisan Safalta for fruits and vegetables-based
Card to empower farmers products, set up a biomass
plant to generate electricity
India’s first private sector electronic agri mandi Agribazaar from process waste and
launched India’s first farmer-centric card, the Agribazaar enhance its infrastructure, like
Kisan Safalta Card. The Kisan Safalta Card is a quick and packhouses. Started in 2010
hassle-free instrument that helps farmers meet their pre- and with a group of 10 farmers
post-harvest farm requirements and allied expenses. With who collectively produced
the Kisan Safalta Card, farmers can avail of the financing and exported fresh grapes
facility, when required. The funding to Europe, today Sahyadri
is restricted to buying farm inputs. Farms is servicing over 18,000
The company has partnered with Yes farmers, covering more than
Bank and RuPay for this initiative. 31,000 acres and 9 crops.
The Kisan Safalta Card comes with a
12-month repayment period, which
offers adequate time to clear the
outstanding amount. Each farmer’s
crop yield determines the limit for
the Agribazaar Kisan Safalta Card, the financing scale, and
maintenance expenses. The card amount for marginal farmers
is adjustable, ranging from Rs 10,000 to Rs 50,000. The
maximum limit of the Kisan Safalta Card can be increased
every year after an annual review based on the most recent
crop yield and repayment history of the farmers.

12 FPYIONLUAIRNC CYVEINEENWWESWS S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

UPL acquires BioPrime raises Rs 9 Cr from
Inflexor in Pre-Series A round
26% stake in
Tech-focused VC fund, Inflexor Ventures, is leading the Pre-
renewable Series A round of Rs 9 crore in Agbiotech startup, BioPrime
Agrisolutions (BioPrime). The current round of funding
energy company also saw participation from its existing investor, Omnivore.
Inflexor has invested in 10 companies since November 2020,
Clean Max from its Fund II, companies
including Atomberg, GramCover
Kratos and Kale Logistics. The company
aims to utilise the funds for their
Agro-chemical major UPL SNIPR Biologicals registrations,
Ltd announced that it had advancing the discovery
acquired a 26 per cent stake platform, building a strong IP
in Clean Max Kratos, which is portfolio, increasing production
into renewable energy. Clean capabilities, and expansion. The
Max was incorporated on company mentioned that it works
July 28 with a paid-up capital to transform the way crops are grown to make food more
of Rs 1 lakh. The company, nutritious, and residue-free while restoring soil health using
which is into solar and wind cutting-edge technologies and approaches, always keeping
power generation, is yet to sustainability at the core. BioPrime focuses on discovering
commence operations. UPL the fundamental aspects of plant communication, developing
Ltd mentioned in a regulatory novel biologicals based on trait-modifying microbes and
filing that Clean Max Kratos physiology-modulating molecules.
would develop and maintain
a hybrid 28.05 MW solar and nurture.farm partners with
33 MW wind power project HDFC ERGO to bring 2.3M
under the captive model as farmers under insurance blanket
envisaged under the electricity
laws. The filing also mentioned Bengaluru-based nurture.farm, India’s leading agri-tech
that UPL will initially acquire startup, has partnered with HDFC ERGO General Insurance
2,600 shares of Rs 10 each Company, a leading general insurance company in India, to
(26 per cent stake of paid-up
share capital) in Clean Max further enhance and
Kratos for a consideration expand its insurance
of Rs 26,000. UPL will solutions for the 2.3
further invest, in one or more million farmers on
tranches, about Rs 39.60 its platform. Farmers
crore in Clean Max Kratos face varied types of
maintaining its shareholding risks at every stage
to 26 per cent of the paid-up of the farming cycle.
share capital. The risks range from
weather anomalies adversely impacting their crop production,
personal health risks due to the nature of the work, and price
fluctuations in the commodities market, leading to huge
revenue loss. Most farmers do not opt for insurance due to
expensive premiums and the tediousness associated with
paperwork. Owing to the widespread nature of this issue,
nurture.farm aims to offer its insurance solutions to nearly 2
million farmers in 2022-23, and will continuously innovate to
provide risk mitigation solutions to enhance farmer resilience.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com L I VFEIPNSOATLNOI CCEYK NNEEWWSS 13

ARIAS, Manipal ICAR-NBAGR registers
Business Solutions to 10 new indigenous farm
digitise dairy value chain animal breeds
in Assam
ICAR-National Bureau of Plant Genetic
Extending banking services in the rural hinterland Resources (NBPGR) has registered ten new
of Assam, Manipal Business Solutions (MBS) has breeds of indigenous livestock species in the
partnered with Assam Rural Infrastructure and country. These breeds are -Kathani cattle
Agricultural Services Society (ARIAS) to deepen (Maharashtra), Sanchori cattle (Rajasthan)
financial inclusion in the region, and the grant and Masilum cattle (Meghalaya);
signing ceremony was held in Guwahati in presence Purnathadi buffalo (Maharashtra), Sojat
of, Roshni Aparanji Korati, State Project Director, goat (Rajasthan), Karauli goat (Rajasthan)
ARIAS Society. Under this collaboration, MBS will and Gujari goat (Rajasthan); Banda pig
enable the digitalisation of the dairy value chain in (Jharkhand), Manipuri Black pig (Manipur)
focused districts of Assam. The company will also and Wak Chambil pig (Meghalaya).
offer specially customised financial services to Accession numbers were also assigned to
dairy farmers associated with Dairy Co-operative these breeds by the Bureau. Earlier, the
Societies (DCS) in the dairy value chain. MBS will Breed Registration Committee (BRC) in
work closely with the leading financial intuitions its 10th meeting held on August 31, 2022,
to offer tailor-made products such as cattle loans, approved the registration of these livestock
livestock insurance, personal loans, savings and breeds from different states. After including
investment services, and payments for dairy these breeds, the total number of registered
farmers. These financial services will be delivered indigenous breeds are 212, including 53
through the DCS, and FPOs at the village level to for cattle, 20 for buffalo, 37 for goat, 44 for
reduce credit and transaction costs. sheep, 7 for horses & ponies, 9 for camels, 13
for pigs, 3 for donkeys, 3 for dogs, 1 for yaks,
19 for chickens, 2 for ducks and 1 for geese.

Indian Immunologicals to set up a Rs 700 Cr
veterinary vaccine facility in Hyderabad

Hyderabad-based Indian Immunologicals Limited vaccines in the world. It is further augmenting this
(IIL) announced that the company will invest about capacity by investing in this new greenfield project
Rs 700 crore to set up a new animal
vaccine manufacturing facility in Genome for manufacturing of FMD vaccine and
Valley, Hyderabad, to provide vaccine other animal vaccines. The facility is
security against economically important intended to be state-of-art and fully
diseases such as Foot and Mouth disease integrated biosafety level 3 (BSL-3) for
(FMD) and other emerging diseases. Drug Substance (DS) production. IIL’s
The facility will create employment for intended new facility, in Genome Valley
around 750 people. IIL, a subsidiary of Phase 3, will add another 300 million
the National Dairy Development Board (NDDB) is doses/annum of FMD vaccine to its
already one of the largest manufacturers of FMD capacity. The existing facility in Gachibowli already
has a capacity of 300 million doses.

14 LFYIOVNUEARSNTCVOEI ECNWKESNWESW S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Licious forays into Sid’s Farm unveils first
plant-based meat store-cum-experience
segment centre in Hyderabad
DRDO Township
Licious, a Bengaluru-based D2C food
unicorn, has announced its foray into the Sid’s Farm, a premium
alternative protein sector with the launch
of UnCrave – India’s first D2C plant- D2C dairy brand based
based meat brand. This launch aligns
with the company’s strategy of portfolio out of Telangana,
diversification leveraging its strong core
brand equity. Licious aims to emerge as a announced the
market leader within the first year of launch
itself and create relevance for the larger inauguration and
set of meat-eating consumers who trust
the brand. Developed from plant-based commencement of its
proteins, the offering currently consists
of vegetarian chicken and mutton seekh first-ever store-cum-
kebabs that are rich in protein and free of
all artificial preservatives and trans-fat. In experience centre in
the initial phase, the UnCrave range will be
available in all major metro cities in India. the DRDO Township in
The company said that they had invested
in over 20 months of R&D in-house, to Kanchanbagh, Hyderabad. This immersive retail
develop a range of products that closely
resembles the taste and texture of meat in a destination offers customers the opportunity to
never-before-experienced way.
both purchase and consume Sid’s Farm’s high-

quality, healthy, and pure products in the well-

appointed and carefully designed store. The centre

intends to provide its services to more than 2,000

residents, spread across all ranks and staff, in the

locality. A distinguishing feature of the experience

centre is its product mix which is a combination

of both packaged as well as unpackaged items.

Customers can additionally take advantage of

doorstep delivery from this store should they like

to do so. The unique store-cum-experience centre

will be catering to bulk demands as well and to

this end also offers catering support supplies to

its customers. Quality and customer focus are the

two unchanging pillars of Sid’s Farm operating

code.

BASF, Evonik partner for sustainability in
feed and animal protein industries

German MNCs BASF and Evonik entered into and animal protein. Opteinics is a software solution
an agreement, granting Evonik certain non- launched by BASF in 2021 to measure, analyse and
exclusive licensing rights to Opteinics
– BASF’s digital solution to increase minimise the environmental impact
understanding and reduce the of animal protein, with an emphasis
environmental footprint of the feed on animal feed production. Currently
and animal protein industries. Evonik the software offers modules for pig
integrates the digital ready-to-use and poultry production and can be
sustainability platform Opteinics into integrated with feed formulation
its global feed consultancy services. software. Opteinics for pork has
Combining BASF’s digital sustainability recently been fully verified to conform
solution Opteinics with Evonik’s innovative farm with the ISO 14040 and 14044 LCA
management tools and sustainability services will standards as well as with the UN Food & Agriculture
help customers to produce more sustainable feed Organization Livestock Environmental Assessment
& Performance (LEAP) Partnership guidelines.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com L I VSETPSAOTRLOTI CUKYP NNEEWWSS 15

Sid’s Farm bags ‘Best Agri Startup’
of Telangana award

Sid’s Farm, a premium D2C dairy brand based out of Telangana, was recognised
and felicitated as the ‘Best Agri Startup’ of Telangana. This honour was
bestowed on the company at a well-attended awards ceremony organised under
the aegis of The National Institute of Agricultural Extension Management
(MANAGE), in association with Samunnati, India’s major open-agri network
of smallholder farmers. Dr Kishore Indukuri, Founder, Sid’s Farm received the
award on behalf of his organisation from Shobha Karandlaje, Minister of State,
Agriculture and Farmer Welfare, Government of India. Founded in 2014 with a
passion to provide every family with healthy and natural dairy products that are
free from antibiotics, hormones, preservatives and other harmful adulterants,
Sid’s Farm has a diverse group of individuals who bring unique talents and
perspectives to its roles and responsibilities. The MANAGE – Samunnati
recognises startups dedicated to rebuilding the agriculture development
ecosystem and to supporting farmers through technological innovations.

D2F protective farming WRMS, NIFCO-Nilo Kheri
company GROWiT FPO collaborate to empower
partners with Samunnati onion farmers in Haryana

GROWiT, India’s leading Direct-to-Farmer WRMS, an agriculture and dairy risk management
(D2F) protective farming company, announced company, has recently signed an MoU with NIFCO
a partnership with Samunnati, an open agri – Nilo Kheri Farmer Producer Company in Karnal,
network. The partnership will increase awareness Haryana. Through this partnership, WRMS will
and penetration of protective farming techniques empower the onion farmers of the Rambha region
and products among farmers associated with of the Karnal district by providing them with rule
Samunati and its farmer producer organisations engine-based farm level SecuFarm advisory services.
(FPOs). GROWiT aims to help them get an With SecuFarm, these onion farmers will get farm
increment in yield and per hectare output. This level crop management advisory which will help them
development is part of its larger mission to help improve water management, yield enhancement, use
double farmers’ income by 2030. Samunnati, of climate smart agro chemicals, early detection and
based in Chennai, is India’s leading open agri control of pest attacks, real time weather advisory
network serving the entire value chain with its for timely decision making, and post-harvest market
solutions, including agri commerce and agri linkages. The initiative will begin on 50 acres in
finance. By collaborating with GROWiT, the the Haryana region of Karnal (Rambha), where
company aims to enable its affiliated farmers and smallholder onion growers will receive cutting-edge
the larger ecosystem to become more efficient digital agricultural services from the seed selection
and productive via protective farming, in turn stage to the post-harvest market linkages. Under
increasing its returns. GROWiT recently entered the SecuFarm service, farmers will receive a free-
into technical collaboration with the farm science soil testing service to identify the nutrients missing
centre Krishi Vigyan Kendra, Baramati and will from the soil and appropriate treatments will be
continue to push its efforts towards empowering administered to restore these nutrients.
Indian farmers.

16 SY TOAURRTVUIPE WN ESW S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Dare Ventures, VC arm of Coromandel
invests in drone startup Dhaksha

Dare Ventures, the venture capital arm of Coromandel International has announced its third
investment this year into a differentiated drone startup, Dhaksha Unmanned Systems. The company

plans to use this funding for talent acquisition, R&D and production
scale up. Coromandel has earlier partnered with Dhaksha drones
to undertake several pilot programmes of drone-based nutrient and
crop protection applications. The company intends to soon launch a
first of its kind “Drone-as-a-Service” model in India. Dhaksha, one
of the forerunners in the drone space in India, provides a complete
range of Unmanned Aerial Systems (UAS) technology solutions for
different applications covering agriculture, defence, surveillance and
delivery, among others. Based out of Chennai, the company has over
the years developed expertise in drone R&D, testing, manufacturing,
and customer support. In addition to having developed capability to manufacture battery-operated
drones, Dhaksha is the only company in India to manufacture petrol engine-based drones.

TransUnion CIBIL, Agritech startup
SatSure launch Credit AgNext launches a
and Farm Report new-age E-Spray

TransUnion CIBIL, in collaboration with geo- AgNext Technologies, a leading global agritech
spatial data analytics provider SatSure, has company, has introduced E-Spray, an electrostatic-
launched the CIBIL Credit and Farm Report based pesticide sprayer for 360° crop coverage,
(CCFR). This powerful solution will support zero pesticide wastage and no excessive pesticide
lenders in improving the flow of credit to the dripping. The E-Spray disperses electrostatically
agricultural sector using data-oriented and digital charged atomised liquid spray in a way that
credit assessment capabilities. The CCFR will lead attracts and coils to the leaf or crop itself, while
also recording the user’s geolocation. The E-Spray
to quicker and more astute contains an IoT device that allows users to track
decisions on agricultural spraying activity in real time, allowing a farmer to
lending and will help drive monitor the entire activity such as movement of
speedier and efficient the spraying person with GPS location on the map,
disbursement of credit sprayed area, chemical consumption, start and end
to farmers, agricultural time of spraying, and prevent malpractices. These
sector entrepreneurs, and sprays come in a variety of capacities and can be
businesses. The CCFR easily transported from one location to another,
combines the power of reducing soil toxicity and water contamination.
credit information from TransUnion CIBIL and This E-Spray by AgNext helps in limiting the
crop parameters based on geo-spatial data from presence of pesticides in the crop and maintaining
SatSure to provide a holistic solution to lenders for it to an optimum level.
making credit decisions on agricultural lending. It
offers a digitally-powered and analytics-oriented
ecosystem for agricultural financing and policy
making, helping catalyse the rapid development
of farming and agriculture across India. The CCFR
can also help support regulators, policy institutions
and stakeholders in India’s financial ecosystem
with data analytics.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com S TPAORLTI CU YPCNOEVWESR 17

OADduovtCwaOneNtiTagRghAeCCsoTnFcAeRrMnsIN? G

Contractual agreements between the farmers and agribusiness companies have
gained immense momentum in many developing countries including India. Besides
ensuring economies of scale, contract farming facilitates access to technology,
capital and quality inputs for the farmers. Consequently, the arrangements hold
much significance given that agriculture accounts for 16 per cent share in India’s
GDP against its 4 per cent share in world GDP and 55 per cent of the country’s
population is dependent on it. However, there are a number of business and
legal challenges plaguing the commercial agreements between the sponsoring
companies and the farmers. Enforceability of contracts by either party is a
worrisome aspect that calls for immediate attention from the various stakeholders.
The centre announced the Model Agricultural Produce and Livestock Contract
Farming Act 2018 with a view to address such discrepancies. The primary purpose
was to legi$mate contract farming in India which has been largely based on the
provisions of Indian Contract Act 1872. AgroSpectrum India digs deeper into the
contract farming landscape to uncover the complexities and benefits.

18 CSY TOAUVRERTRVUIPE WN ESW S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Contract farming is not a new practice in What is contract farming?
India and has been in place since the
early 1900s or earlier. During the colonial Contract farming is defined as a
period, cash crops such as tea, coffee, system for the production and supply of
rubber, poppy, and indigo were grown in various agricultural and horticultural produce
parts of the country, mostly through central, under forward contracts between
expatriate-owned estates surrounded by small producers or suppliers and buyers. The
outgrowers. Most such arrangements exploited essence of such an arrangement is the
small peasantry and resulted in indenture and commitment of the seller to provide
alienation in some instances. The ITC introduced an agricultural commodity of a certain
cultivation of Virginia tobacco in coastal Andhra type, at a time and a price, and in the
Pradesh in the 1920s incorporating most elements quantity required by a buyer. However,
of a fair contract farming system and met with the terms and nature of the contract differ
a good farmer response. This was replaced by according to variations in the nature of
auctions in 1984. crops to be grown, agencies, farmers, and
technologies and the context in which
The British East India Company used the they are practised.
contract farming model for the procurement of
crops like jute and tobacco for export to the West, makes a loss when a crop is damaged or when the
and post-Independence some crops were still yield and quality of produce are not good. Contract
grown and procured by both processors and mills farming helps farmers get a fair, fixed return on
under this mechanism. their produce irrespective of market volatility. The
practice has helped farmers scale up, and follow
The first and most significant push for contract modern farming and best practices adopted from
farming in independent India, despite varying around the world,” Vijayaragavan explained.
opinions among many, came in the late 1980s
when PepsiCo was permitted to use the contract The most significant argument against contract
farming model for growing and procuring a farming is that it takes away the ‘farm freedom’
special variety of potatoes for their famous “Lay’s” from the farmer and benefits the business more.
brand. Since then, there has been no looking back. Prakash Singh Badal, Agriculture Economist,
Contract farming as a model has been used by Banaras Hindu University, highlighted similar
several businesses to benefit both the corporates concerns, “Contract or corporate farming may lead
and the farmers. Currently, several businesses to overexploitation of labour as we see in the case
are using the contract farming model in India. of workers in shops across metropolises with very
While PepsiCo uses it for procuring potato in long hours of work.”
Punjab, Adani Wilmar uses it to avail groundnut
and oil palms in Gujarat. There are also several Echoing his thoughts on the stated reservations
brands of tobacco using the model for getting their by the farmers, Rakesh Mohan Joshi, Director,
business needs met. Contract farming is in use in Indian Institute of Plantation Management (IIPM),
the procurement of basmati rice, chili, and some highlighted that agriculture and landholding in
horticulture products as well. rural areas is deeply connected with the people’s
socio-cultural association with their villages. “In
Two sides of the coin view of the stagnant or declining prices across
major agricultural commodities around the
According to Vijayaragavan, Consultant, world, sustainability of agriculture is becoming
National Association for Farmer Producer increasingly challenging. Therefore, farmers' fears
Organisations (NAFPO), while there have been of land grab by the mighty corporates with deep
several arguments against the contract farming pockets deserve serious deliberations on the part
model, the mechanism arms the farmer with of the government and all stakeholders concerned.
a significant advantage and improved risk Though small pieces of such farmland may not
management. “It needs no new research to show be very remunerative, it does facilitate some
that even in a good crop year, prices of farm farm employment,” Joshi added. Vijayaragavan,
produce are highly volatile and can mean losses or however, emphasised that the ground reality is
lower than expected prices/income for the farmer.
There are numerous examples where the farmer

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L I C YCNOEVWESR 19

different with the farmers admitting the fact that Policy support
they get benefit from the professional know-how
and regular checks from the business in contract Agricultural marketing is regulated
farming. by the States’ Agricultural Produce
Marketing Regulation (APMR) Acts. In
More practical challenges order to regulate and develop practice of
contract farming, Government has been
Some lacunae surrounding contract farming actively advocating to the States/ Union
are companies signing an agreement with farmers Territories (UTs) to reform their agri
to grow differentiated crops likely turning them marketing laws to provide a system of
into a sole buyer and farmers into price-takers. registration of contract farming sponsors,
This situation can be exploited by the contracting recording of their agreements and
companies by offering lower prices to the farmers proper dispute settlement mechanism
for their produce. This calls for a necessary for orderly promotion of contract
requirement of proper negotiation and drafting farming in the country. So far, 21 States
of agreements between the two parties, as rightly (Andhra Pradesh, Arunachal Pradesh,
pointed out by Vijay Sardana, Techo-Legal Advisor Assam, Chhattisgarh, Goa, Gujarat,
on Agribusinesses in India. Haryana, Himachal Pradesh, Jharkhand,
Karnataka, Maharashtra, Madhya
While on the one hand, lack of information Pradesh, Mizoram, Nagaland, Odisha,
regarding productivity and land quality by the Punjab (separate Act), Rajasthan, Sikkim,
contracting firms can lead to farmers producing Telangana, Tripura and Uttarakhand)
sub-par crops, there can be instances where have amended their Agricultural
farmers are unable to comprehend contract Produce Marketing Regulation
specifications like the quantity and quality to be (APMR) Acts to provide for contract
produced. All this amounts to market failures farming and of them, only 13 States
in the form of suboptimal production for which (Andhra Pradesh, Chhattisgarh, Goa,
buyers may penalise farmers. Gujarat, Haryana, Himachal Pradesh,
Jharkhand, Karnataka, Maharashtra,
Farmers may also side-sell or leak the technical Madhya Pradesh, Odisha, Rajasthan and
knowledge provided by the sponsoring firms. Telangana) have notified the rules to
“Small and marginal farmers who own around 85 implement the provision.
per cent of the farmland tend to grow vegetables
and cash crops which are highly labour intensive Source: Vikaspedia
and they frequently sell it in the nearby market
for immediate cash income. In no case their Calling it an apprehensive approach,
individual participation in the contract farming Badal noted that introduction of any new legal
system is going to be more remunerative than what framework is also bound to be opposed by the
they are earning now,” cited Prakash Singh Badal. middlemen in the market who mop up 4-6 per
cent of the value of the produce irrespective of
Evaluating the policy measures the prevailing prices. “They supply credit, inputs
and have a personal rapport with the farmers and
In India, contract farming is regulated under therefore, farmers have no option but to carry their
the Indian Contract Act, 1872 with provisions produce to them. This is true for both regulated as
such as the formation of contracts, obligations of well as private markets.”
parties, and consequences in case of any breach. In
addition, the model Agricultural Produce Market The Act has been aimed to integrate farmers
Committee Act, 2003 (APMC) provides specific with bulk purchasers including exporters and
provisions for contract farming, like compulsory agro- industries for better price realisation through
registration of contract farming sponsors and mitigation of market and price risks to the farmers
dispute settlement. and ensuring smooth raw material supply to
the agro industries. However, there are some
With a view to better address the current contradictory clauses in the Act which go against
challenges in contract farming, the union
government came out with the Model Contract
Farming Act, 2018 for its subsequent adoption by
the states.

20 CY O UV ERRV I E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Salient features of Model Contract Farming Act, 2018

• The Act lays special emphasis on protecting the interests of the farmers, considering them as
weaker of the two parties entering into a contract.

• In addition to contract farming, services contracts all along the value chain including pre-
production, production and post-production have been included.

• “Registering and Agreement Recording Committee” or an “Officer” for the purpose at district/
block/ taluka level for online registration of sponsor and recording of agreement provided.

• Contracted produce is to be covered under crop / livestock insurance in operation.
• Contract framing to be outside the ambit of APMC Act.
• No permanent structure can be developed on farmers’ land/premises
• No right, title of interest of the land shall vest in the sponsor.
• Promotion of Farmer Producer Organisation (FPOs) / Farmer Producer Companies (FPCs) to

mobilise small and marginal farmers has been provided.
• FPO/FPC can be a contracting party if so, authorised by the farmers.
• No rights, title ownership or possession to be transferred or alienated or vested in the contract

farming sponsor etc.
• Ensuring buying of the entire pre-agreed quantity of one or more of agricultural produce,

livestock or its product of contract farming producer as per contract.
• Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at

village / panchayat at level provided.
• Accessible and simple dispute settlement mechanism at the lowest level possible provided for

quick disposal of disputes.
• It is a promotional and facilitative Act and not regulatory in its structure.

the very purpose of smooth execution of contract except making the system more transparent and
farming in India. enforcing good trading practices. The government
can make rules and guidelines to promote this
According to the Model Act, there should be a mechanism to give a push to contract farming in a
Contract Farming Development and Facilitation holistic way. The rest of the nitty gritties should be
Authority, which puts contract farming outside left between the two acting parties.”
the ambit of the Agricultural Produce Marketing
Committee (APMC). The clause puts the parties “The centre should come into the picture only
under obligation to register the contracts with an when a dispute redressal is required. Therefore,
agreement recording committee which leads to it should rather focus on creating a cost-effective
additional procedures and costs. This becomes a and faster mechanism to settle any altercation. The
financial strain to small and medium farmers and other objective should be to invest in infrastructure
a good reason to not initiate a legal binding with development to reduce the cost of operation,”
a sponsoring organisation. “I feel this addition is Sardana further added.
not required because this will increase transaction
cost, corruption and avoidable bureaucratic The role of FPOs
hurdles. Who will benefit from such a body is not
clear, in place of this there should be a dispute The biggest challenge any agri-business faces
resolution body to address the grievances in the in large procurement of farm produce is the lack of
shortest time possible without adding cost,” said uniformity in produce. The produce characteristic
Sardana. varies based on farming practice employed, seeds
used, and local climate and soil characteristics.
The Model Act also proposes price protection This heterogeneous nature of produce makes
for farmers by determining a pre-agreed price processing and post-processing activities difficult
which can be counterproductive in terms of and elaborate.
inefficiencies on the part of farmers. While
expressing his scepticism, Sardana said, “No The contract farming model can help
government should interfere in market forces businesses overcome these processing challenges
by working with farmers and helping them follow

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L I C YCNOEVWESR 21

scientific and well-documented best practices and TN - first state to enact
produce a homogeneous variety that require less law on contract farming
post-harvest processing efforts.
Tamil Nadu has become the first
However, nearly 85 per cent of farmers in State in the country in October 2019 to
India are small and marginal with less than one enact a law on contract farming with
acre of land. Mobilising these farmers is a huge President Ram Nath Kovind giving
challenge for businesses in getting the scale of assent to the Agricultural Produce and
land required to carry out contract farming and Livestock Contract Farming and Services
reaping its benefits. This is where Farmer Producer (Promotion and Facilitation) Act.
Organisations (FPOs) can play a vital role in
bringing small and marginal farmers together A six-member body, called the Tamil
to provide a renewed push for contract farming Nadu State Contract Farming and
models. Here it is noteworthy to mention that the Services (Promotion and Facilitation)
Model Contract Farming Act 2018 also talks about Authority, would be formed to ensure
the important contribution of FPOs in facilitating proper implementation of this Act and
contract farming in India. make suggestions to the State government
for promotion and better performance of
According to Vijayaragavan, FPOs have contract farming.
emerged as the institutional mechanism most
preferred by policymakers and development The State government noted that
agencies for farmer prosperity. There are over such agreements would have to be
30,000 FPOs in the country as of date and the registered with designated officers from
government’s push via the Central Sector Scheme the Department of Agricultural Marketing
‘Formation and Promotion of 10,000 FPOs’ has and Agri Business.
further accelerated the momentum.
As part of the law, farmers could get
“In recent years, FPOs have moved beyond support from purchasers for improving
providing farmers with just inputs and have production and productivity by way of
started to add value through aggregation, primary inputs, feed and fodder, technology.
processing, sorting and grading, warehousing, However, any produce, banned by the
and export before the sale of commodities, and Centre or State government or the Indian
access to a large pool of independent, small Council of Agricultural Research, would
& marginal farmers,” he noted. “These FPOs not be covered under contract farming.
are also working towards the introduction
of technology, streamlining aggregation, The State government said that the
processing, transportation, and sale in the agri law would safeguard interests of farmers
sector. Therefore, the participation of FPOs in during times of bumper harvest or
these exercises higher up the agri value and fluctuating market prices. The farmers
supply chains is increasing . The penetration of would be paid at a pre-determined price,
technology in these chains will be a game changer which had been arrived at the time of
in increasing production in India and FPOs are signing agreements with buyers.
best placed to absorb it. There are numerous
examples of success stories to validate this ongoing 500 Metric Tonnes (MT) of special variety rice
participation of FPOs in enhancing productivity,” to Reliance Retail. Such arrangements benefit
he explained further. both farmers and agribusinesses. Thus, the
ability of FPOs to provide businesses with direct
A significant example of how FPOs have and immediate access to a large pool of small
supported contract farming is the participation of and marginal farmers, their aggregated land
FPOs in direct selling of produce to agribusinesses resources, professional management, technology
such as ITC, Adani Wilmar, Britannia, Reliance penetration, and farming best practices provide
Retail among others. It wouldn’t be wrong to for FPOs to play a vital role in scaling up of the
say that these organisations have provided farm contract farming model in India in the days ahead.
markets with adaptability which would be very The Model Contract Farming Act 2018, has also
difficult in procurement otherwise. “An FPO provided for FPOs to engage in contract farming
in Karnataka has signed an agreement to sell

22 CY O UV ERRV I E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

and sign on behalf of its member farmers,” noted Contract farming has a great
Vijayaragavan. potential to bring in the latest
technology and modern
Noting the present state of affairs around scientific practices to the Indian
the functioning of FPOs, Badal cited that the agriculture system that has
government is indeed promoting collectivisation of long been suffering from low
farmers through FPOs for creating a critical mass productivity. Farmers otherwise
of a particular commodity. This gives economy of face difficulty in adopting latest
scale to both the contracting parties. However, a techniques which are capable of transforming
ground level reality shows that a number of hawks Indian agriculture. In view of the small size of land
are now in the business of creating FPOs, sensing holding, contract farming provides an opportunity
huge government subsidies and profitability too. to consolidate small pieces wherein large-scale
cultivation, primary farm processing and logistics
While, at present, there are some challenges to may be adopted.”
FPOs playing a larger role in professional farming Rakesh Mohan Joshi, Director, Indian Institute of
such as lack of immediate access to primary and
secondary processing centres, and cold storages, Plantation Management (IIPM)
etc, the government's recent policy push via
Agriculture Infrastructure Fund (AIF), and the “Introduction of any new legal
Credit Guarantee Scheme, have given FPOs the framework is also bound to be
necessary boost to play a larger role in contract opposed by the middlemen in
farming and the overall agri value chain. the market who mop up 4-6 per
cent of the value of the produce
Why are states important? irrespective of the prevailing
prices. They supply credit, inputs
Agriculture being a state subject, the central and have a personal rapport with
government comes out with guidelines only in the the farmers and therefore, farmers have no option
form of Model Acts such as Model Mandi Act 2003, but to carry their produce to them. This is true for
Model Contract Farming Act 2018 and leaves it to both regulated as well as private markets.”
the state governments for implementation. Many Prakash Singh Badal, Agricultural Economist,
states do not implement it and some have even
scrapped the regulated market system without Banaras Hindu University
creating an incentive for modernisation and
development of private markets.“Modernisation Joshi added, “Effective implementation of any
of supply chain, value addition, mechanisation legislative framework requires commitment of the
and creation of online systems will require huge state governments and consultations with various
investments which only a FPO or entrepreneur stakeholders who have conflicting interests, so
can do. Performance linked interest free loans to as to evade mass resistance and facilitate smooth
either FPOs or entrepreneurs can ameliorate the implementation.”
situation,” said Badal.
As per the data shared by Badal, there are
Implementation of farm processing varies success stories such as Ghekin exports from
across states considerably. Although over 14 states Karnataka, Tamil Nadu and Andhra Pradesh, and
have notified rules for contract farming, there Pepsico Foods in Punjab apart from most of the
have been only a few states such as Maharashtra, Ayurvedic pharmaceutical companies sourcing
Haryana, Punjab, Karnataka, Gujarat, Madhya raw material through contract farming. “This area
Pradesh, Chhattisgarh that have registered for also provides a very lucrative business opportunity
undertaking contract farming. “Maharashtra and for startups rather than opening the field to large
Chhattisgarh have adopted contract farming in corporate houses. Let it be reserved for small and
horticulture products such as lady finger, chilies, marginal industries,” added Badal.
tomato, onion, potato, baby corn, soybean,
pomegranate and sweet-corn whereas cotton The future of contract farming
has been the single most important crop for
contract farming in Gujarat, Madhya Pradesh and It would not be wrong to say that the future
Karnataka,” Joshi said. of contract farming in India depends on the type
of crop, location of the farms and factories, and
Highlighting the significance of state players, the terms and conditions of the contract. There
are high chances of contract farming success in

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L I C YCNOEVWESR 23

products which are perishable in nature. This is In India, most of the contracts in
because the farmers apparently lack the storage farming are forged with an intent
to sell the produce in the open market later. This for exploitation rather than as a
includes products such as milk, flowers, poultry, mode of partnership. This is true
and sugarcane, so forth and so on. The same is true for both the contractors and the
for perishable crops which are difficult to market, farmers in question. Therefore,
thus putting the farmers under obligation to sell it a contracting business which is
off to the contractors itself. verbal and not properly drafted is
always surrounded by unethical trade practices.”
However, if the produce is stable in nature Vijay Sardana, Techo-Legal Advisor,
and has less spoilage along with no processing
required, the contracting arrangements can be Agribusinesses
easily ignored by either party.“Crops such as tea,
coffee, eucalyptus, tobacco which are not harvested “The ability of FPOs to provide
for direct consumption also do not find any takers businesses with direct and
in the open market, thus making it an ideal deal immediate access to a large
for a contracting company. It makes no sense to pool of small and marginal
take up contract farming in wheat and paddy as farmers, their aggregated
there will always be cheaper options available in land resources, professional
the market for both the farmers and the industry.” management, technology
informed Sardana. penetration, and farming best
practices provide for FPOs
Such opportunistic behaviour wrecks contracts. to play a vital role in scaling up of the contract
Sardana continued to explain, “In India, most farming model in India in the days ahead. The
of the contracts in farming are forged with an Model Contract Farming Act 2018, has also
intent for exploitation rather than as a mode of provided for FPOs to engage in contract farming
partnership. This is true for both the contractors and sign on behalf of its member farmers.”
and the farmers in question. For example, farmers Vijayaragavan, Consultant, National Association
tend to sell the intended procurement in the for Farmer Producer Organisations (NAFPO)
open market if they find a higher market price of
the produce after harvest. The same is true for the fear of land grabbing, whereas corporates are
corporates in a reverse case scenario when they concerned about the lack of their protection in case
reject the consignment citing ingenuine reasons. of crop failure and quality issues. The government
Therefore, a contracting business which is verbal has to alleviate such apprehensions by putting in
and not properly drafted is always surrounded by place the appropriate legal framework, effective
unethical trade practices.” communication with all the stakeholders, and
careful and effective implementation of contract
One can’t overlook the fact that contract farming legislations.
farming is present in almost all the states and
has become an irreplaceable part of farming in Badal was of the opinion that corporatisation
India. According to Joshi, “Contract farming has of agriculture could bring new technology with
a great potential to bring in the latest technology spill-over effects since majority of agriculture is
and modern scientific practices to the Indian still devoid of application of modern scientific
agriculture system that has long been suffering developments such as hydroponics, drones,
from low productivity. Farmers otherwise face sensors, laser levelling, protected cultivation, cold
difficulty in adopting latest techniques which are chain and market intelligence and many more.
capable of transforming Indian agriculture. In “Moreover, a number of people are leaving farming
view of the small size of land holding, contract (depeasantisation) and their farm land could be
farming provides an opportunity to consolidate more productive with introduction of technology.
small pieces wherein large-scale cultivation, Therefore, contract farming may not be beneficial
primary farm processing and logistics may be for the small and marginal farmers but certainly
adopted.” medium and large farmers are bound to gain from
this development,” Badal concluded.
But concerns remain. Farmers have
considerable apprehensions especially related to Manishika Miglani
the monopolistic approach of the corporates and [email protected]

24 CY O UV ERRV I E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Decent Beginning To Necessary
Journey in Livestock

Improved production efficiency, commercial culture development, increased

revenue and employment are all possible through contract farming as it provides

credit, technology, inputs, information, extension services, and risk mitigation to

farmers. In addition, the provision of an assured market through contract farming

is seen as an extremely useful benefit. Let us now examine the impact of contract

farming on the livestock sector.

In the 1960s, contract farming emerged in can especially gain from contract farming since it
India's seed production sector throughout allows them to buy milking animals, boost output,
states; by the 1990s, it had spread to other and ride the wave of market-driven expansion.
farm goods in places like Punjab and Farmers' revenues will increase to their full
Haryana, where companies like Pepsi Foods potential, and their exposure to production-related
were cultivating tomatoes, chilies, and potatoes risks, transfer price risks, and output hazards will
under contract. Currently, private domestic and be minimised with the use of contracts.
international enterprises for internal processing
or export mostly dominate contract farming in Elaborating further on this
India. The practice is ubiquitous across crops concept of contract farming,
and livestock, states, and agencies (public,
private, and multinational). The government Narendra Pasuparthy, Chief
of Arunachal Pradesh has recently extended an Farmer, CEO & Founder,
invitation to large corporations like Reliance, Nandu’s said, “Although
Adani, and Patanjali to begin contract farming contract farming in India has
and a buy-back policy in the state. been prevalent for several decades,
a legal framework on farming agreements came
The farmers in our country have to contend into force only in 2020. In the livestock sector,
with a number of issues, including the use this has paved the way for greater investments,
of antiquated equipment and management creation of new markets, and better financial
techniques, weak negotiating positions with security for the farmers. At Nandu’s, we envisage
input suppliers and produce markets, a lack of a promising future for this collaborative
infrastructure and market information, a dearth approach. Since our inception in 2016, Nandu’s
of management expertise, a subpar packaging has been making conscious efforts to build
of goods, and a shortage of funds to raise high- a steady source of livelihood for the farmer
quality livestock. Contract farming can be viewed community. Currently, we have 300 farmers
as a way to entice the private sector to deploy who work exclusively with Nandu’s. Integration
some of its considerable resources to solve farming contracts ensure that our farmers are
these issues. Improved production efficiency, exposed to zero risk – despite the unpredictable
commercial culture development, increased market conditions and other factors affecting
revenue and employment are all possible through production efficiency.”
contract farming as it provides credit, technology,
inputs, information, extension services, and risk Serving the nation’s interest
mitigation to farmers. In addition, the provision
of an assured market through contract farming is The farms contribute their labour and
seen as an extremely useful benefit. infrastructure, while the firms foot the bill
for everything from chocks to poultry feed to
Uplifts small farmers medicines to veterinary care, ensuring the long-
term viability of the farmers' economy. It works
Small farmers who are highly vulnerable to risk out well for everyone involved. Contract farming
has the potential to greatly improve production

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L I C YCNOEVWESR 25

while also safeguarding farmers' interests if it is as small farmers now have access to larger and
implemented properly. new markets, have a wider understanding of
production management techniques and the role
Sharing his views on the subject, of technology to achieve operational efficiency,
Vignesh Soundararajan, and largely, a roadmap to sustainable growth.
Managing Director, Suguna Laying focus on key integrations that will
Foods said, “For greater nurture the community like offering AI-powered
integration and productivity, solutions to determine the quality of pre-harvest
the future of poultry farming is (fish and poultry) and therefore reduce losses,
shifting from backyard farming to low-cost technical solutions, beneficial schemes
organised contract farming. We are certain that that will ensure a regular source of income and
this will pave the way for more acceptability building robust infrastructure solutions for post-
among new businesses and farmers. Experts say harvest that will reduce high-impact risks will be
that contract farming is a game changer and yes, the fulcrum of contract farming.”
by entering into contract farming, the company
takes the risks while the farmers gain from the Tech adoption
ease of operation. With the majority of small and
marginal farmers, contract farming is projected The livestock sector of the country is in dire
to not only ensure consistent output but also need of a technological connect to enhance its
assist farmers make more income.” production to cater to ever increasing demand.
Agreeing with Pasuparthy, Contract farming can provide that technological
Mehal Kejriwal, Co-founder, connect, given the private sector’s increased
Happy Milk opined, “The cattle tech adoption. Companies that join hands with
industry plays a significant role farmers to buy their produce, equip them with
in the Indian economy, but it tech solutions that not only help them to enhance
has to develop even further to their production but also help companies to
meet the needs of the country's keep a close eye on various operations at the
expanding population. Contract dairy farming farm. Smart automation, improved inventory
is a relatively new concept in India's rural management, and data-based decision making
economy, and it entails raising cows, goats, and are all made possible by the plethora of new
sheep on behalf of businesses or governments technologies currently available.
in exchange for payment. The dairy industry in
India is at a critical juncture, and experts say For example, from the initial stages of chicken
it's one of the fastest-growing in the agricultural rearing all the way through the last stages of
and related industries. While India ranks top delivery to the customer, technology has enabled
in global milk production, the country's per meat brands to give full product traceability from
capita milk availability is only about 269 gm/ farm to fork.
person/day, which is significantly lower than
the Indian Council of Medical Research (ICMR) According to Kheti Buddy, a Pune based agri-
recommendation of 285 gm/person/day. There is tech company, agriculture technology in India
also a large gap between rural and urban dwellers has taken enormous strides towards enforcing
with regards to per capita consumption. As a sustainable methods of cultivation, P&L
result, contract dairy farming is an important management, and risk management. With agri-
step in closing these two gaps simultaneously.” tech, farmers are now able to leverage technology
In alignment to the to make informed decisions on the type of crop
aforementioned statements, they wish to cultivate, the newer and improvised
Shan Kadavil, Co-Founder, methods in pest management, and can access
Fresh to Home said, “Contract newer markets to get the maximum return on
farming in India has evolved investment. Agribusinesses can deploy agtech
over the years with the strong platforms such as Farm Management ERPs for
presence of private players and oversight of all the small landholding farmers
government policies that are empowering the and large farmers involved in contract farming
farmers’ community. The future looks promising at different stages of their supply chain. The
contracts that dictate the terms and conditions
and the crop schedules to be maintained can

26 CY O UV ERRV I E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

be drawn out and stored on one unified farm livestock farmers work with poor quality chicks
management platform instead of maintaining and feed which leads to a high mortality rate
separate records for separate farmers. and low productivity which puts their complete
investment at risk. This has a volatile impact on
Speaking further on the topic, Kadavil said, produce quantities, profits and the quality of life
“There has been a paradigm shift in addressing the farmers can afford for their families, despite
the challenges of the agricultural sector and putting in hard work and long hours on the job.”
tech-pivoted solutions are driving long-term
impacts. Any sector that thrives on technology- Lack of awareness is another major issue
powered strategies has shown an upward that is holding back the expansion of contract
trajectory. However, tech-infused solutions farming. Most of the farmers in the rural
alone may not change the entire ecosystem areas are not aware of the benefits contract
but will play a significant role in reducing farming offers them and keep working with the
the risks of production uncertainties and same orthodox methods. Many agents take
market unpredictability. These solutions will advantage of this situation, and act as middlemen
undoubtedly change the fundamental approach between companies and farmers. In return,
towards conservative practices, and eventually these middlemen charge a hefty commission
yield better results and higher returns.” from the farmers. Increasing awareness of
contract farming amongst the farmers through
But some experts feel that this technological Information, Education and Communications
change is secondary to the positive social (IEC) efforts will eliminate the middlemen and
impact of contract livestock farming. “The benefit the entire ecosystem.
biggest change in the ecosystem, as we see it,
is not going to be tech-driven solutions. It’s the Differing from the above statement,
human element. Nearly three million farmers Soundararajan said, “Contract farming provides
depend on the Indian poultry industry, one of various agro-based benefits, and because it is
the fastest growing segments of the agriculture a fast-increasing rural activity, the difficulties
sector in the country, for their livelihood. During have become more limited in nature as it has
the pandemic, countless farmers had to deal expanded and farmers' understanding of contract
with immense economic distress and loss of farming has grown.”
livelihood, as they had no financial security.
Contract farming can provide that security Another prominent issue that can be easily
blanket. The pandemic stress notwithstanding, related to contract livestock farming is unethical
our farmers say that their work today is a lot less breeding practices applied to maintain a smooth
stressful and more economically rewarding. And supply chain. According to media reports,
that has a ripple effect on the entire ecosystem,” intensive farming methods often rely on routine
Pasuparthy added. antibiotic use as a quick-fix solution to keep
stressed and sick animals alive.
Difficulties that are impeding expansion
Addressing the issue, Kadavil opined that
Predictive models developed by the United contracting organisations must adopt stringent
Nations revealed that farmers living below the quality control procedures that will ensure
poverty line benefited greatly from adopting a farmers’ compliance - apart from creating
contract farming strategy. But similar to any awareness among farmers about the advantages
other sector, livestock contract farming has some of adopting good management practices.
hurdles to cross before it fully spreads its wings
across the nation. Long way to go

Elaborating further on these challenges, Though contract livestock farming offers a
Pasuparthy said, “The major challenge for the variety of benefits to the farmers, it still has a
farmers is overcoming the fear of working with long way to go in India. However, the future is
large corporations, like Nandu’s. However, in our looking bright and it has immense potential to
experience, if you are honest and transparent in change this sector. There is a strong need for
your communication, and have the best interest spreading awareness among the farmers and
of the farmers at heart, they see the value in companies need to take the initiative to reach out
your proposition. Most of the independent the farmers directly to see fruitful results.

Nitin Konde

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L IACNYANLEYWS ISS 27

Govt intervention in rice
exports: A bane or boon?

As a temporary measure, in September, 2022, India banned export of broken rice
and imposed a 20 per cent export duty on non-Basmati rice except for parboiled
rice to boost domestic supplies amid a fall in area under paddy crop in the current
kharif season. AgroSpectrum spoke to the industry leaders on pros and cons of
this action, which the government has undertaken for food security concerns of
the country keeping in line with the achievement of SDGs (Goal 2: Zero hunger).

The area under the paddy crop has been unrestricted export of Basmati rice and parboiled
dropping steadily over the last few non-Basmati rice continues to this day. These
years due to factors such as loss of soil restrictions only apply to uncooked (white) and
fertility and water scarcity. To counter broken varieties of rice that aren't Basmati.
the decrease in output, because of this during
the current kharif season and ensure sufficient From what we can gather from official
domestic supplies, India has banned the export sources, the recent changes in India's rice-export
of broken rice and imposed a 20 per cent duty rules has helped to keep domestic prices stable
on the export of non-Basmati rice, other than without impacting the country's ability to ship
parboiled rice. There are four main types of the commodity overseas. The alterations were
rice that are sold internationally. Free and made to assist the animal husbandry and poultry
sectors by lowering the cost of animal feed, which

28 AY NOAULRYVSI ESW S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

has an impact on the price of milk, meat, and and Vietnam.”
eggs. This is also an effort to support the ethanol- Differing from Rao’s opinion, Vijay Setia,
blending programme, which helps to cut down
on expensive oil imports. However, it is still a big Former President of the All India Rice Exporters’
question whether this move is going to achieve Association stated, “Currently, the price of
the desired impact. India is a major exporter of exported Indian white rice with 5 per cent
rice to many countries and it could easily affect brokens is around $340 per tonne, which is
its leading position, paving the way for other lower than the prices of rice from Pakistan
countries such as the US, Pakistan, and Thailand ($380), Vietnam ($395), and Thailand ($430)
to grab top spot. Some media reports suggest that respectively. Indian rice will remain competitive
the export duty on non-Basmati rice and the ban even if taxed at 20 per cent. It's also common
on broken rice could reduce India's rice exports knowledge that some Public Distribution System
by 4.5-5 million tonnes this fiscal year. Another (PDS) grain ends up in India's rice exports.
drawback of imposing a 20 per cent duty on This crackdown may possibly include a ban on
export is that Indian rice shipments will become shipments of broken rice, an inferior grain used
uncompetitive in the world market. primarily as animal feed and also as ethanol
feedstock.”
As per the data of Directorate General of
Commercial Intelligence & Statistics (DGCIS), The government stance
India exported rice to over 150 countries across
the globe in 2021-22. India exported rice worth There has been a rise in global demand for
more than $1 million to 76 countries out of broken rice due to the geo-political scenario
the 150 countries reported in 2021-22, which which has impacted price movement of
indicates the diversification of India's rice export commodities including those related to animal
over the years. India had exported non-Basmati feed. Export of broken rice has increased by
rice worth $2015 million in 2019-20, which rose more than 43 times in the past 4 years (21.31
to $4799 million in 2020-21 and $6115 million lakh metric tonnes (LMT) exported from April-
in 2021-22. Registering a growth of 27 per cent August, 2022 compared to 0.51 LMT in the same
in 2021-22, export of non-Basmati rice was the period in 2019) with a significant jump in 2021-
top forex earner among all agri-commodities, at 22 over last year. In the year 2021, India exported
$6115 million. 15.8 LMT (April-August, 2021) of broken rice.
Prices of broken rice rose significantly in the
Despite these improvements, the Department current year.
of Revenue in the Ministry of Finance has
announced that from September 9, 2022, Meanwhile, the government wants to ensure
onwards a 20 per cent tax will be applied to availability of broken rice to meet domestic
the export of all rice "other than parboiled and requirement under the Ethanol Blending
Basmati rice." This would include shipments Programme: Since Ethanol Season Year (ESY)
of unprocessed, non-Basmati rice, whether the 2018-19, India has allowed grain-based ethanol
grains are whole or broken. However, on the and in ESY 2020-21, the Food Corporation of
same day, a notice was issued by the Directorate India has also been allowed to sell rice to ethanol
General of Foreign Trade within the Ministry of plants for fuel ethanol production. However, in
Commerce and Industry, preventing the export of the current ESY2021-22, against the contracted
broken rice in any form. In other words, only full quantity of 36 crore litres, only about 16.36 crore
grain consignments of raw non-Basmati rice can litres (till August 21, 2022) have been supplied by
be exported, and a 20 per cent duty must be paid distilleries due to low availability of broken rice
on each bag. for ethanol production.

In a recent media outing, B.V. Krishna Rao, Hence the ban and imposition of 20 per cent
President, All India Rice Exporters’ Association duty on the export of broken rice. According to
stated, “More than 60 per cent of India's exports the information provided by the Government of
are rice, both white and brown, which will be India, to ensure adequate availability of broken
impacted by the duty. This tax will make rice rice, it has amended the export policy of broken
exports from India unattractive to foreign buyers. rice with effect from September 9, 2022 from
Potential customers will instead look to Thailand “Free” to “Prohibited” as per Notification dated
September 8, 2022 with certain relaxations

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L IACNYANLEYWS ISS 29

during the period September 9-15, 2022 only Buyers are unable to pay an
for cases where loading of consignment has additional 20 per cent above the
commenced before this Notification, shipping price that was agreed upon, and
bill is filed and vessels have already berthed or sellers are also unable to pay the
arrived and anchored in Indian ports and their levy.”
rotation number has been allocated before this
Notification, consignment has been handed over Himanshu Agarwal, Executive
to the Customs before this Notification and is Director, Satyam Balajee Rice
registered in their system.
Industries
What the exporters think
Currently, the price of exported
According to Indian rice exporters this is not Indian white rice with 5 per
a lucrative move and the country's rice exports cent brokens is around $340
could take a massive hit. They feel that within a per tonne, which is lower than
few months, the duty would cause a 25 per cent the prices of rice from Pakistan
drop in Indian exports at a minimum. According ($380), Vietnam ($395), and
to Himanshu Agarwal, Executive Director, Thailand ($430) respectively.
Satyam Balajee Rice Industries, “Buyers are Indian rice will remain
unable to pay an additional 20 per cent above the competitive even if taxed at 20 per cent.”
price that was agreed upon, and sellers are also Vijay Setia, Former President of the All India Rice
unable to pay the levy.”
Exporters’ Association
As per a recent report by Reuters, several
African countries, including Nigeria, Benin, and More than 60 per cent of
Cameroon, were somewhat protected from a rise India's exports are rice, both
in wheat and corn prices due to India's status white and brown, which will be
as the world's cheapest supplier of rice. China's impacted by the duty. This tax
demand for feed rice might be unmet by the will make rice exports from India
ban on broken rice shipments. In 2021, China unattractive to foreign buyers.
purchased 1.1 million tonnes of broken rice, Potential customers will instead
while other Asian countries and African nations look to Thailand and Vietnam.”
like Senegal and Djibouti purchased brokens
for human consumption. However, in a recent B.V. Krishna Rao, President, All
move to carry out rice exports without paying India Rice Exporters’ Association
the extra duty imposed, the exporters of Andhra
Pradesh filed a plea in the state’s High Court. In November 15.
response to the plea, non-Basmati rice can now The price of shipments skyrocketed after a
be exported from Visakhapatnam port duty-free,
provided a bank guarantee is given, thanks to a sudden shift in policy caught everyone, including
ruling by the Andhra Pradesh High Court. exporters, shippers, and shipowners, by surprise.
Although exporters complained about having
The sequence of events was further trouble covering the cost of duty on rice as it is
explained by media reports that stated that the a low-margin commodity, the government had
government's ban on broken rice exports and extended the deadline for shipping the shipment
the 20 per cent duty on certain varieties of rice to September 30 and further extended upto
caused an estimated 700,000 tonnes to 1 million October 15, 2022. The decision to regulate rice
tonnes of rice to get stuck at ports like Kandla, exports was made to lower prices and with food
Jawaharlal Nehru Port Trust (JNPT), and security in mind, according to the Ministry of
Visakhapatnam. When asked whether shipments Consumer Affairs, Food, and Public Distribution.
for which shipping documents were issued before
Notification of the export duty levy would be Earlier, in response to severe heat waves in
subject to the levy, the High Court declined to March, India banned wheat exports. However,
issue a prompt order. The court also announced such developments will affect India’s standing
that the next hearing would take place on as a globally leading rice exporter, an outcome
which might have unintended long-term
consequences for.

Nitin Konde

30 SYPOEUARK IVNIGE W IST H AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

“The Centre can

increase its focus

on strengthening the

institutions of farmers

VIJAY SARDANA,

and not the marketa Renowned Techno-
Legal Advisor on
Agribusinesses institutions per se”

Post the repeal of the farm laws last year, the centre was tasked with forming of
a committee to give suggestions on making minimum support price (MSP) more
effective, giving more autonomy to the Commission for Agricultural Costs and
Prices (CACP) and pursue measures to strengthen the agricultural marketing
system. So far, the committee has conducted two meetings and created sub-
groups to examine the important issues hindering the business of agriculture. In
an interaction with AgroSpectrum India, Vijay Sardana, a renowned techno-legal
advisor on agribusinesses in India, explains the key dimensions of agriculture along
with the action points that such committees should undertake. Edited excerpts.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com SPPOELAIKCIYN GN EWWI TSH 31

Can you brief us about how MSP marine and software to name a few. Therefore,
works and the role played by when demanding a certain MSP, the farmers
the government for its effective should consider all the legalities involved as
functioning? it’s not a matter of requesting charity from the
government but a simple play of demand and
There are a lot of issues surrounding supply and the resultant global implications.
agriculture, one of them being the remunerative
prices given to farmers. Here we have to How can crop diversification
consider the fact that price is a factor of market be encouraged for better
forces and the government itself cannot agribusinesses?
play around with the same beyond a certain
bandwidth. One classical yet reverse example We can consider the classical example
to explain the case in point is the recent losses of wheat which is one of the controversial
being incurred by petroleum companies in crops and has a surplus production in Punjab,
the event of the government trying to control Haryana, Western Uttar Pradesh and some
it. The Public Sector Units (PSUs), however, parts in Rajasthan and Madhya Pradesh. The
are not impacted by such a move as the losses farmers have been growing this in excess for
are later absorbed by the government through the last 30 years knowing its low profitability
sacrificed losses or recapitalisation. But the in markets. This is because the commission
private players have to bear the brunt in such a agents are paid around 4-8 per cent interest
case, thus being a testament to this theory that by the Food Corporation of India (FCI) for
remains true in the business of agriculture as procuring wheat and paddy. The farmers can
well. instead grow mustard which is in short supply
and can be cultivated under similar climatic
What are the possible ways of fixing conditions as wheat. Its production is far from
the demand-supply imbalance to profitable and hassle-free in terms of less use of
improve the business aspect of water and fertilisers. But crop diversification is
agriculture? Can you also shed light completely being overlooked when it is one of
on the implications in the event of the biggest remedies to solve the business woes
not doing so? of agriculture.

Creating a demand for the crop is important To resolve this, the foremost thing is to
to avoid crashing of prices due to a demand- impart education to farmers to strengthen their
supply imbalance. This is being done by the business and economies of scale of the country
government through the Public Distribution as a whole. Secondly, better coordination
System (PDS) or Food Security Mission, between the farmers and the industry is
which is already a saturated mechanism. required at large to which no state government
The second way is through creation of export is paying any heed. In this respect, the three
opportunities and to provide an outlet for the farm laws were very important for bringing
surplus when the international prices are high. together the farmers and traders to eliminate
The government pursued the latter this year the role of middlemen and foster better
which ultimately led to the crop prices being business growth in the long run. Thus, there
higher than MSP. The major problem arises in is a crisis due to complete lack of education
a reverse case when international prices are low and communication wherein farmers need to
and there is more production in the country. be particularly taught about the economies of
In such a case, the government cannot buy all agriculture and not only about the economies of
the crops at MSP because it lacks the financial production. These two factors work in tandem
resources to do so. And even if the centre is with each other and cannot be left in silos.
willing to somehow deploy resources, the same
cannot be implemented keeping in mind the How can state governments align
rules of the World Trade Organisation (WTO). with the crucial aspect of crop
In the event of not following the regulations, diversification to strengthen
the country can be subjected to reverse agriculture?
pressures and penalties on other exports like
We can evaluate this in retrospect when no

32 SYPOEUARK IVNIGE W IST H AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

state government came out openly to underline The only problem in its implementation
which line of the farm laws were incorrect is the lack of organisations to consolidate this
during the agitation. Secondly, the farm laws mechanism and create alternate channels
created separately by the state governments to of marketing. The missing institutional
counter the centre were much more unwieldy arrangements due to outdated laws of
to be even considered. The drafting was only Agricultural Produce Market Committees
to facilitate the financial favours given to the (APMC) are the next line of deterrents. There
traders who in turn work hand-in glove with the is no relevance of the APMC Act in today’s time
states. when there is e-commerce and the auctioning
can be done through online channels.
Even if the recent committee on MSP
outlines a mandate on crop diversification The panel also talks about giving
(which has happened in the past as well), more autonomy to the Commission
everything will remain ad-hoc without a for Agricultural Costs and Prices
roadmap on the part of the state governments. (CACP). Give us your outlook on the
Simply giving a recommendation without any suggestion.
accountability cannot solve any on-ground
issues. Most of the committee reports are CACP has no competency and is just an
superficial as suggestions are not backed up accounting agency which collates data from
by any feasibility checks and the monetary different agricultural universities and presents
and other resources required to carry out the it as recommendations to the centre. In my
recommended measures. opinion, the government can completely do
away with getting the prices of various crops
The panel is silent on giving legal monitored through CACP. Instead, the state
guarantees to MSP which was one agricultural universities can be advised to come
of the key demands of the farmers out with the crop prices of their respective
during their protests against the now states and inform the consumers to compensate
repealed farm laws. What is your take accordingly to inculcate fair play. This will help
on this key missing aspect? the farmers to understand market dynamics
first-hand and grow high return crops every
On what criteria can a legal guarantee on season. This will be a win-win situation for the
MSP be given considering the variety of crops farmers and the consumers at large.
in the entire agricultural value-chain. Taking
some or leaving a few out of the legal purview Both CACP and MSP are outdated concepts
cannot chart the course of considering such an in today’s time but the government is repeatedly
action. This demand, therefore, has no technical highlighting it to be politically correct.
or legal ground to be taken forward by MSP Therefore, it is not even possible to suggest the
committees for any evaluation. Terming it a closing of CACP as it will become another anti-
legal guarantee goes against the constitution of farmer’s kind of agenda to deal with.
India in terms of violating the right to equity.
Giving farmers an assured price under a legal Agriculture is largely a state subject and the
framework will deter them from understanding state governments themselves are reluctant in
competitive markets and discourage crop being a part of improving this system. Here,
diversification in the longer run. what the centre can do is increase their focus on
strengthening the institutions of farmers and
Rather, there is a need for a creation of not the market institutions per se. These include
direct linkage between the consumers and cooperatives and farmer producer organisations
the farmers. This will apprise the farmers of which will ultimately increase the bargaining
market requirements and enhance their focus power of farmers. This should precisely be the
on growing the items in demand. This will lead sole agenda of any committee set up to look into
to them availing better prices for their crops the issues of farmers.
and the consumers paying a lesser amount since
all the middlemen will be bypassed. This is the Manishika Miglani
basic functioning of a cooperative model and
can be infused in farming to propel growth. [email protected]

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com EPVOE NL ITCRY ENPEOWRST 33

The two-day 13th Biennial AgriCorp Conference ‘22

There is a need to move
towards precision-
based farming:
Prof. Ramesh Chand

The two-day 13th Biennial AgriCorp Chand, Member, NITI Ayog, said that the future
Conference ‘22 saw eminent speakers of agriculture is agritech and for the small and
from across the agricultural spectrum marginal farmers, is FPOs. Vested interests have,
and other stakeholders vital to the in the past, resisted innovation and, therefore,
integrated agri-value chains, provide their agriculture has always been slow to embrace
valuable insight and shared knowledge on the technology and transformation. While the green
topic, ‘Creating an Ecosystem for Integrating revolution narrowed down the gap between
FPOs and Ag-Tech Start-Ups into a Value Chain.’ developed and developing countries, the second
wave of technology has caused the developed
While there has been much innovation across countries to move ahead, while developing
all industries in the last 30 years, agriculture countries have lagged behind.
has been slow to pick it up. Low yield, wastage
and harvest and post-harvest losses have According to Prof. Chand, in the next 10
dramatically affected the sector, leading to losses years, our food production will grow by 3.5 per
for the farmer and driving prices up for the cent, but due to population growth deceleration,
end-consumer. This is where Farmer Producer the domestic demand for food is only growing
Organisations (FPOs) come in, playing a vital role at 2-2.25 per cent. This means that the country
in helping farmers with suitable market linkages. has around 1 per cent surplus food that can be
exported to the international market. This is
The 13th Biennial AgriCorp Conference & where agri startups and FPOs can help bring
Buyer Seller Meet 2022, India’s premier FPO- down the cost of processing, marketing and
Businesses-partnership-oriented conference logistics and bring in the efficiency required to
organised on October 12 & 13 by the Bombay compete in the international market.
Chamber of Commerce and Industry (BCCI)
jointly with Kisan Forum, has been a pioneering However, the last few years have seen the
step towards bringing FPOs, organised retailers, sector opening up to change. Giving the example
startups, fintech companies and state and central of fertilisers, Prof. Chand said that while a
governmental organisations together. majority of it is lost in the air or water while
spraying, by using precision-based fertilisers,
Welcoming the dignitaries, Sandeep Khosla, wastage can be reduced, and efficiency brought
Director General, Bombay Chamber of Commerce in. Further, digitalisation has made it possible to
and Industry elaborated on Bombay Chamber’s remotely transfer knowledge, and startups can
role in providing road maps for a facilitative use this technology to transfer knowledge to the
environment for all stakeholders and map farmer.
strategies to enhance growth and development of
the agriculture sector of the country’s economy. Prof. Chand said, “To grow, farmers should
look at diversifying their produce and not just
Delivering the keynote address, Prof. Ramesh

34 EY VOEUNRTVRI EEWP OS R T AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

look at single options. Further, there is also a and we have decided on an amount of about Rs
need to remove excessive intermediaries and 755 crore for that.”
enable the logistical chain between the producer
and the consumer through just one agent - the The CM also added that various measures and
FPO”. provisions are being made through the Central
and State Governments to promote the Kisan
He also added that, today, with more Company. As per a survey, about six Farmer
knowledge, consumers are willing to pay more for Producer Companies have been established for
certain attributes whether it is wheat which has every one lakh farmers and 45 per cent of the
more protein and less gluten, or better quality total number of Farmer Producer Companies are
and safe produce. Hence, the producer should be registered in Maharashtra and Uttar Pradesh.
able to leverage this willingness of the consumer
to pay more, which can then help double farmer Delivering his address,
income. There is also a need to move towards Maharashtra's Agricultural
precision-based farming.
Minister, Abdul Sattar
Five years ago, 86 per cent of farmers were said “With the support of
marginal farmers - today it has reached 90 per modern technology and digital
cent mark. Small farmers can increase income technology, it is important
by leveraging their crops, this is happening in to deliver these agricultural
pockets now but has to be more widespread. products to the right customers at
FPOs have more scale, low cost and more the right price in time and with good packaging,
bargaining power. and to get the right compensation to the original
farmer.”
If we divide national agriculture into five The subsequent panel discussions post the
segments - rice, wheat, cotton, horticulture, inaugural sessions, saw panellists brainstorm
livestock and dairy and fisheries, the segments on topics such as Integrating Markets with the
that have the most government intervention Production Ecosystem, Accelerating AgTech
are wheat, rice and crops, which have the least StartUp Collaboration with Value Chain Players,
growth. This shows that demand-driven growth Challenges in Aggregation of Farmers into
is much higher than government-driven growth. FPOs, Promoting Platforms for Stakeholders’
Hence, there is a need for farmers and FPOs to Integration across the Value Chain, Ensuring
create a facilitative platform, Prof. Chand added. Value Chain Finance, Leveraging Government
Interventions for Value Chain Integration,
The Chief Minister of Conformity Assessment Frameworks for
Maharashtra, Eknath Establishing Good Agricultural Practices and
Creating Enablers for Agri Value Chains.
Shinde, in his address,
which was readout as he was Ensuring value chain finance
unable to attend the event,
said that this was the first The second day of the 13th Biennial AgriCorp
time that the heads of five large Conference saw participation of industry leaders
FPOs from different states were from agri-warehousing, agri- finance sectors
on the same platform. and government officials who lead agri value
Speaking about the aid that the Government chain integration. The session on ‘Ensuring
has provided to farmers, in the wake of the Value Chain Finance’ was moderated by Manoj
devastating rain and floods which have destroyed Rawat, Managing Director and CEO, Valuefin
crops, the CM Shinde said “The government has India. Panellists Sridharan Easwaran, Founding
decided to give double the amount of National
Disaster Response Force (NDRF) parameters as Member, Samunnati Financial
compensation. Where, earlier, help was given up Intermediation & Services
to two hectares, the government has increased Private Limited; Jinesh
it to the limit of three hectares. Further, the Shah, Managing Partner,
government is also giving financial help of Rs Omnivore; Rajeshwar
4000 crore to about 30 lakh farmers and helping Patil, Deputy General
those farmers who have suffered losses due to Manager, State Bank of
excessive rains but do not sit in the parameters
India Maharashtra and Ashok

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com EPVOE NL ITCRY ENPEOWRST 35

Dhamankar, CFO- Financial Services, UPL emphasised the need to develop a competitive
Limited discussed the challenges in agri finance value chain in agriculture. Tambhale said that
and the way forward for FPOs. the Maharashtra government has involved World
Bank and ADB for agri value chain programmes.
Jinesh Shah opined that farmers should apply He also added that pre and post harvesting
for group benefits when it comes to agri-finance. stakeholders should be actively
FPOs can get benefit farm advisory to market involved for better development
of value chains.
linkages under one umbrella if they are
seeking for group loan/ financial Deepak Shinde spoke
support. about the contribution of
Sridhar Easwaran government schemes in the
emphasised on the importance development of floriculture,
of handholding services by vegetables and horticulture FPOs.
agri-finance in agri value chain
Vijay Kolekar noted that the
finance. He said that while providing use of technology for climate
financial support to FPOs, his firm assesses all
the aspects of FPOs from seed to plate which resilient agriculture will help
includes technology support, processing, traders, the FPOs and FPC (Farmer
and market linkages. Producer Companies) to
mitigate the issues in farming
Ashok Dhamankar said “If due to weather changes.
FPOs maintain their financial Dr Tarannum
records properly, it will be easy Kadarbhai informed the
and convenient to get finance audience that FPOs and FPCs
from private players in the agri should come forward for
value chain. Capital, Character international partnerships for
and Capacity are three important export and farm advisory. FPOs
points for FPOs to get finance.” Dhamankar should take the benefit of various
also spoke about UPL’s plans to foray into agri- schemes to increase farm yield and enhance the
finance. quality of farm produce under the Indo- Dutch
Centre of Excellence.
Rajeshwar Patil shared information about the Sandeep Khosla said that
pilot project of agri-finance with FPOs in Nashik. through the conference and
He said that FPOs can play a vital role in the agri deliberations, the Bombay
value chain if they tie up with banks for finance Chamber has been successful
using various schemes for the agriculture sector. in providing an ecosystem that
will connect every farmer to
Leveraging government interventions one or the other value chain, local,
regional, or National in which challenges faced
The second session on ‘Leveraging by all the stakeholders in the value chain are
Government interventions for value chain equitably addressed.
integration’ was moderated by Chetan Bhakkad, Dr Sudhir Kumar Goel,
Partner, Grant Thornton India. The panellists Former Additional Chief
include Deepak Shinde, General Manager, Secretary (Agriculture and
MSAMB (Maharashtra State Agriculture Marketing) Government
Marketing Board) and Maharashtra Agribusiness of Maharashtra concluded
Network Project (MAGNET); Dasharath the valedictory session on the
Tambhale, Director Agriculture, Agriculture promising note that next year
Technology Management Agency (ATMA); Vijay FPOs will reach a milestone of 10 crore in agri
export with greater technology and finance
Kolekar, Agronomist, Project on intervention in the agri -value chain.
Climate Resilient Agriculture
(POCRA) and Dr Tarannum Dipti Barve
Kadarbhai, Liaison Officer,
Indo-Dutch Centre of [email protected]
Excellence.
Darsharath Tambhale

36 EY VOEUNRTVRI EEWP OS R T AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Feed Tech and Dairy Industry Expo 2022

“Dairies should implement a

green economy to manage

inflation in the dairy business”

“The international dairy groups helping dairy markets improve technology. The use
entering the Indian dairy business of technology in the dairy business is improving
will be called an Indian company the quality of products and the efficiency of the
because the group is buying milk business. To improve efficiency dairies should focus
from Indian farmers and selling products in India on feed management. Nutrition based feed can help
so there is no problem with global or corporate with reducing methane emissions.”
companies. There will be healthy competition
amongst Indian and global players but the global Talking on industry dynamics
players are not going to affect the business of Shirish Upadhyay, partner at
the Indian dairy groups,” said Rajiv Mitra, CEO, food business consultancy
Lactalis Prabhat Group, a Franco-Indian dairy SBM Advisors, said that the
company. He was speaking at the dairy conference next 25 years will belong to India.
in Feed Tech and Dairy Industry Expo 2022 Dairy GDP has increased, and India
organised by Benison Media, from October 12 has the highest livestock population in
to14 in Pune. Dairy experts from various groups the world. Marginal farmers are the main players
participated in the conference. in the Indian dairy business and rural income
is dependent on the dairy business. Breeding,
Speaking on the topic ‘Indian dairy going green feeding and animal production are core issues in
during inflation,’ Mitra, said “due to the COVID-19 the dairy business. Usage of quality semen and
pandemic inflation has increased, and to manage compound feed can help in improving the quality of
inflation in the dairy business, dairies should production. To tackle these issues structural policy
implement a green economy.” is required.
“The dairy industry should take measures
A green economy can help in reducing which can improve the income and
production costs and double profits. While we have efficiency of a farmer because
inflation, a green economy is always affordable. the farmer is the main pillar of
When a dairy is implementing a green approach, if the dairy industry,” said Jofi
it increases milk production there is no increase in Joseph, Managing Director,
methane emission. A green economy will also help Promethean Power Systems
in increasing efficiency which will help in managing that manufactures refrigeration
inflation. systems for cold-storage and milk chilling
applications. He spoke on the sustainability
Regarding milk production, Mitra said that of Indian dairy. There needs to be a focus on
in India, every 15 years dairies are doubling milk increased technology adoption and supply
production, and if this continues consumer demand chain management for sustainability. Increasing
and milk production will go hand in hand. efficiency in farm management, focusing on animal
health and feed management can increase the
Sharing his views Shiva Mudgil, productivity of farmers by 30 to 40 per cent.
an industry expert said “The Expressing her views on sustainable marketing
Indian dairy business is going Richie Agarwal, an end-to-end dairy
very strong. The e-commerce
market is helping dairies to reach
households. Private investment is

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com EPVOE NL ITCRY ENPEOWRST 37

value chain expert said that In a free range farm, cows can move around the
sustainability has to be maintained farm, for feeding and milking. Implementation of
at a lower cost. Consumers should this farm management method has declined the
be at the centre of the marketing percentage of diseases.
policy. The use of technology for
Dung management in the dairy industry has
buying dairy feed as well as buying the potential to make the dairy
and selling products help in sustainability. The sector sustainable and profitable.
use of social media is also an important aspect of Management of cow dung has the
sustainable marketing. potential to fulfil 50 per cent of
the indigenous LPG requirements
“Due to the infectious lumpy skin disease the of households. Rajesh Singh,
Indian dairy business will be affected slightly, Manager, National Dairy Development
and the next 5 to 8 months are Board (NDDB) said in the seminar on
crucial. Dairies should preserve ‘Sustainability and Profitability.’ He added,
milk powder,” said Dr Chetan “National Dairy Development Board (NDDB) has
Narake, Director, Gokul taken the initiative and launched NDDB Mrida
Milk in ‘Dudh Parishd’ a seminar Limited, a wholly owned subsidiary company to
organised during the dairy industry take forward manure management initiatives
expo in Pune. He said, “Lumpy disease has affected across India.”
21 per cent of milk production in Rajasthan, it is
going to affect other parts of India. To survive this NDDB has launched the ‘Sudhan’ trademark for
dairies should preserve milk powder for the future.” manufacturing bio-slurry-based organic fertilisers.
For manure management, cooperative committees
During this session, Dr Narake also mentioned can be formed at the village level. Various dairy
challenges in the Indian dairy industry. He said cooperatives are also doing manure management
there is no centralised data of livestock and one for sustainable and profitable business, Singh said.
cannot predict how much dairy production will
be affected due to lumpy skin disease. The Indian Talking on sustainability with the profitability
dairy industry is still an unorganised sector, and of the poultry industry, A.N. Shetty, CEO, Nanda
organised structure is important for sustainability. Group Companies, an animal feed manufacturing
Instead of milk production, Indian dairies should firm, said “Poultry farmers can reduce costs by
concentrate on other products of milk. adopting sustainable business practices. The usage
of solar energy systems in poultry farms saves 20 to
Girish Chitale, working 30 per cent of energy. Nanda Group has installed
partner at the food and dairy solar energy systems in various farms across
Karnataka and Maharashtra.”
player, Chitale Group said,
“Farm management, fodder Atul Mittal, Business Development
management and genetics are the Director, Sistema Bio, a Pune-based
three important things in the dairy biogas company said that for profitability and
business. Unfortunately, these things sustainability with a reduction of carbon footprints
are lacking in Indian dairy management. Genetic dung management is important. Sitema Bio is
improvement is important in India to improve the helping farmers with equipment for small and
quality of products. Chitale group is the first in medium-level biogas plants. Sistema Bio has
India to have implemented the use of sorted semen. equipped 30,000 biogas plants in the country.
The benefit of this - nine animals are female out of The Feed Tech and Dairy Industry Expo 2022
every 10. Chitale Group generates 6 to 7 lakh units was inaugurated on October 12 in
of sorted semen every year. the presence of Shivanjali Naik
Shantaram Gaikwad, Nimbalkar, Director, Govind Milk;
General Manager, Govind Keshar Pawar, Chairman of Katraj
Milk explained the concept Dairy, and C. Vasanthkumar,
of a free range farm (‘wº$ g§Mma). Chairman of Poultry Breeders
He said, in India farmers in Punjab Welfare Association.
are implementing this method of
farm management, due to which production of milk Shraddha Warde
has increased and methane emission has declined.
[email protected]

38 EY VOEUNRTVRI EEWP OS R T AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

13th Agrovision

Way forward to future farming technologies

13th Agrovision, Central India's largest agricultural event which will be held in

Nagpur from 25th to 28th November will focus on the Future Farming - feed, food,

and fuel-integrated technology via research.
The event is expected to see participation
from around 400 exhibitors including formulation of recommendations. These conferences
medium and small enterprises and well- also assist farmers, particularly those who, in
known agri companies besides Agricultural addition to farming, have allied business such as
dairy, processing and fishing to grasp the perspective

Universities and Research Institutes, Central of the panel of experts and use them to develop

and State Government agencies, PSUs, NGOs, their enterprises. The 13th Agrovision will hold the

Agricultural Boards, banks and over 3 lakh farmers conferences on topics such as Dairy Development in

from Maharashtra, Chhattisgarh, Madhya Pradesh, Vidarbha, Scope for Inland Fisheries in Vidarbha and

Punjab, Assam, Arunachal Pradesh, Rajasthan Supply Chain Management of agri products.

and from other states. Started 12 years ago under

the leadership of Chief Patron Nitin Gadkari, Strong support
Union Minister for Road Transport and Highways,
The Advisory Council members of Agrovision

Agrovision provides a platform for knowledge include Ravi Boratkar, Organising Secretary; Ramesh

exchange movement. The 13th edition of the Mankar, Organising Secretary; Girish Gandhi,

Agrovision aims to answer food security challenges Convener and Dr C D Mayee, Chairman Advisory
without depleting the planet’s biological and natural Council. The 13th Agrovision also has an expert

resources, through workshops, conference and expo. committee that comprises members from various

sectors of agriculture such as Dr Meenesh Shah,

Workshops for farmers Chairman, NDDB; Dr Vilas Bhale, Vice-Chancellor,

Free interactive workshops are organised for Dr Panjabrao Deshmukh Krishi Vidyapeeth, Akola;

farmers during the 4-day event. Experts from Dr Ashish Paturkar, Vice Chancellor, Maharashtra

research organisations like Indian Council of Animal and Fishery Sciences University (MAFSU),

Agricultural Research (ICAR), Indian Agricultural Nagpur; Dr Dilip Ghosh, Principal Scientist at

Research Institutes (IARI), agricultural universities, ICAR- Central Citrus Research Institute; Dr Y G

senior officers from various government departments Prasad, Director, ICAR - Central Institute for Cotton

and commercial sectors are invited to educate Research, Nagpur; Madhav Shembekar, Founder,

farmers on various agricultural challenges, new Ankur seeds; Dr B S Dwivedi, Director, ICAR-

technology and farming methods. The 13th edition NBSS&LUP, Nagpur; Dr P G Patil, Director, ICAR-

of Agrovision will witness workshops on safflower Central Institute for Research on Cotton Technology

and linseed cultivation and value addition, turmeric (CIRCOT); Shivkumar Rao, Director, R & Y Logistics;

and ginger cultivation and processing, vegetable Capt. Dr L B Kalantri, Ex-Director of Sericulture,

seed production, bamboo production and utilisation, government of Maharashtra, and Dr Sujata Saxena,

banana and orange-export quality production, Principal Scientist at ICAR- CIRCOT.

sericulture, goat farming, poultry, bee keeping and Agrovision is supported by Purti group, Vidarbha
fisheries- opportunities for Vidarbha region. Economic Development Council (VED), National

Horticulture Mission (NHM), Crop Care Federation

Conferences of India (CCFI), Soybean Processors Association of
India (SOPA), National Seed Association of India
Agrovision organises one-day conferences every

year on current issues of importance related to (NSAI), National Small Industries Corporation

agriculture. The conference aims to bring together (NSIC), Maharashtra Economic Development

policy makers, industry, agripreneurs, and experts Council (MEDC), Federation of Indian Micro & Small

to deliberate on the key issues leading to the and Medium Enterprises (FISME).

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com PTOELCIHCNYONLEOWGSY 39

How Technology Helps

Agri Retailers Build a

AMIT SINHA, Competitive Edge

Co-Founder, Unnati

Agriculture, as we all know, is crucial bridge the gaps while ensuring quality control.
to our sustenance, as it forms the
foundation of our lives. Today, we cannot Increasing competition and gaining a
fathom an existence without agriculture, wider reach
the primary source of our food, and given the
growing population, the food requirements are In recent years, agri retailers have witnessed
only increasing further. India, a majorly agrarian cut-throat competition in the market from both
economy and an emerging market, is among the online and offline players in the segment. Besides,
top four food-producing countries in the world. internet proliferation is at an all-time high,
However, despite over half of the country’s especially in non-metros and rural regions, and
population being involved in agriculture, the sector farmers are now becoming more tech-savvy with
was one of the slowest in technology adoption increased awareness. They compare products
compared to others. from multiple retailers before purchasing. This
means that agri-retailers will have to innovate,
Today, with technology being an integral part of increase their reach, and gain more knowledge
the agri ecosystem and agritech startups bringing about complex products to stay ahead and thrive
innovative solutions, the agriculture sector has in the competitive market. To help increase their
registered impressive growth in a short period. But reach and network and solve these challenges at
for agri retailers, the scenario isn’t quite the same the grassroots level, agri-tech startups are offering
since they are plagued with challenges, and as is innovative, tech-powered solutions. For instance,
the case with most issues in the modern world, right from helping retailers take their business
technology can be a game-changer. Here’s how. online to expanding their network of customers,
farmers, and wholesale markets, data-driven
The gap in supply chain integration analysis and AI-powered tools used by agri-tech
startups are offering strong market linkages to
Agri retailers make up a vital cog in the agri retailers.
agricultural ecosystem. They are the primary source
of supply for farmers in terms of seeds, nutrients, The bottomline
equipment, and crop protection products, among
others, so when retailers face challenges, it impacts Technology has almost become an all-
the entire ecosystem. Today, there is skyrocketing encompassing, one-stop solution for agricultural
demand for consistently high-quality food, challenges and gaps in the ecosystem. Especially
alongside the growing demand for overall food with fintech-powered agriculture platforms, agri
production. However, this poses challenges for retailers can receive end-to-end support and create
supply chain integration, creating inefficiencies. a holistic ecosystem with data-driven strategies.
Lack of storage space, improper care and negligent With startups in the sector working relentlessly to
post-harvest management are some of the factors create a robust agriculture ecosystem and boost its
coming into play to create discrepancies in supply contribution to the GDP while facilitating better
chain integration. With technologies like AI, ML, living standards for farmers and retailers, change
IoT, and Data Analytics, we can automate and for the better is inevitable, and technology is
digitise processes to make them more efficient and leading that transformation.

40 MY OI LULRE TVSI E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Challenges of the

Millets Industry

SHUBHANGI SINGH,

Founder, Golden Millets and
Ancient Golden Mill

Post-pandemic we saw a paradigm shift in millets: while transporting our ragi grain from
consumer choices and behaviour. People Chhattisgarh to Delhi, our truck was held back by
have changed, and the government is forced the border committee because they thought it was
to act for better food quality, agricultural mustard seeds and wanted us to pay green tax. Our
practices, technological advances and developing team had to share articles from the internet, and
systems for ease of doing business. But what is the videos from YouTube to prove that it was raw finger
need of the hour that connects all these in one piece millet and that the coming year will celebrate millets.
and makes it the future plan? Millets are the next
big thing. More than 70 countries along with India Farmers’ reluctance
signed a Memorandum of Understanding (MoU) at
the UN on March 5, 2021 to initiate a revolution of As we look at farmers' choice for crops, it's
food by declaring 2023 as the “International Year clear that they want to grow only cash crops, or the
of Millets”. It has opened new gates for nutrition, ones in demand. In India some rural areas they
farming, and businesses too. As we step closer to still divide their lands into three parts. One to grow
2023, we observe a visionary shift to good food and feed for animals, another to sell for livelihood and
a healthy lifestyle. Modern day needs are much the last to feed their family. For their own family
more complicated; so is innovation and demand requirements, they are still choosing millets because
for new products and the connected studies, they know it gives more energy to work in fields,
technologies and deep research. As governments fights diseases and helps them stay healthy. But
focus on making new policies and the world they say “it's not a cash crop” which brings us to our
prepares to bring our ancient grains back to our next point.
plates, we still face many challenges. Let's discuss a
few and try to find the solutions. Government support

Lack of awareness Over 70 countries that signed the MoU for
International Year of Millets (IYoM), 2023 have
Our ancestors knew how important these super started taking actions, making amendments
cereals were therefore they mentioned them in the in policies, and implementing campaigns for
scriptures across the world in various religions. But awareness. Similarly, in India too we find
as the green revolution got support from leaders and many initiatives from state governments such
economic growth became important, other crops as conferences, collaborations with multiple
like wheat and rice slowly and steadily became our stakeholders, setting up Farmer Producer
first choice. As generations passed awareness of Organisations (FPOs) and NGO training etc.
these nutri-cereals almost vanished from our books
and then from our memories, but our DNA still All millets are slowly getting recognised by
recognises them. Therefore, they are again being private labels and other startups. This road seems
suggested by nutritionists, and dieticians for child to be littered with a lot of hurdles because millets
nutrition, unhealthy lifestyle, weight loss, celiac are still not declared as a cash crop. Government
disease and to address many more issues. agencies like Food Safety and Standards Authority
of India (FSSAI), Agriculture Ministry, Ayush
Recently, we had an incident which gave us an Ministry, and Invest India are communicating with
insight into how little is commonly known about organisations and have launched various schemes
for the ease of doing business related to millets.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com P O L I CMYI NL LEEWTSS 41

Preparatory Steps Taken by India for IYoM

According to the Ministry of Agriculture and Farmers Welfare, following are the steps taken by India
for the IYoM 2023.
 A core committee has been formed to manage millet-focused startups and their growth. The Indian

Institute of Millet Research (IIMR) has been made a Nodal Institute for keeping track of all the policies,
activities and communication. About 200+ startups have sent applications for becoming members of
the association.
 The Ministry of Agriculture is working hard to collaborate with modern trade, private labels, FMCG
distributors, and exporters to promote millets at their own level.
 One District One Product (ODOP) is an initiative which has recognised 4+ regions for millets and is
continuously pushing the concerned state governments to assist.
 The Odisha MIllet Mission is an epitome for a state-based movement for millets. They assigned an MSP
to ragi and procured it on a mass scale from farmers, thus ensuring that the farmers get benefitted.
 The Rajasthan government has launched a scheme to promote millets.
 Consultations on how to promote millets production and supply in the country have been held with
different States, Processors, Chefs/ Nutritionists, and Farmers
 Six Task Forces have been constituted to ensure on-ground implementation.
 Events like National millet conferences, Conventions, and Millet culinary fests are being held to
promote the benefits and easy use of millets.
 The FSSAI with the EAT Right mission is working to increase the awareness of millets on a national
level. Workshops, and cooking training for anganwadi centres are held by collaborating with startups
like ours.

Challenges with millets as a Business The Global market

Ease of doing business for millet-based value- Millets are much more than quality feed. The
added products needs a lot of attention. Strategic world is starting to understand the unique essence
planning and channel integration balances the of these ancient grains and is taking actions at the
supply and demand scenario for products. But even customer level. In the USA recently, sorghum was
with a lot of knowledge and experience, many big accepted as a staple diet in children’s lunch boxes.
brands are not launching millet-based value-added The International Crops Research Institute for the
products for the mass market. Semi-Arid Tropics (ICRISAT) is collaborating with
small communities in Africa to promote local-
Why is there no mass market? grown millets like teff and fonio. The UN imported
millet- based products into Russia and countries
Big players in the market are all conducting in need.
R&D on millets to develop unique products in the
ready-to-eat and ready-to-cook segments but the The Indian market
majority shall launch only in some segments or
target groups because of the health food and price Currently, millet consumption is booming
sensitivity factors. in India due to resurgent interest in ancient
knowledge. In response to changing consumer
Research-based product development perception, brands are implementing new
strategies to produce millet-based products as a
A tasty product sells itself. These days when part of their portfolio. The number of people who
palatability and sensory evaluations are so recognise millets as a healthy, environmentally-
important, customer feedback can change the friendly grain is increasing. Besides being a
game. Most of the private labels do a customer healthier choice than typical grains, millets are
feedback-based research for months and also environmentally-friendly. As the market
then conclude about launching the product. is getting consciously aware of the forgotten
But startups lack funds, resources, time and benefits of millets it is being chosen as a focus
experience to analyse important key factors that area by startups and private companies.
makes a product saleable.

42 AY COAUDREVMI EI AWNSE W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Tomar addresses ICRISAT develops
Jawaharlal Nehru high-yielding,
Agricultural drought-tolerant
University, Jabalpur groundnut variety

The 59th Foundation Day India’s first ‘Spanish type’ high oleic groundnut
has been developed by researchers at
function of Jawaharlal International Crops Research Institute for the
Semi-Arid Tropics (ICRISAT) in partnership with
Nehru Agricultural the Junagadh Agricultural University. The new
variety is advantageous as compared to the initial
University, Jabalpur was varieties (Girnar 4 and 5) of the ‘Virginia-type’.
“The new groundnut line being high yielding,
held online and the chief drought tolerant, and resistant to foliar diseases
will help increase the income of farmers and
guest, Narendra Singh traders in India and enhance export opportunities
for Indian groundnut. The growing demand for
Tomar said on the occasion groundnut oil in the pharmaceuticals and personal
care sectors has further boosted its share in the
that if Madhya Pradesh global market, which is expected to account for
$3.28 billion by 2029,” said Dr Janila Pasupuleti,
has emerged amongst the leading states in the Cluster Leader, Accelerated Crop Improvement,
ICRISAT. The new variety GG40 (ICGV 16668)
field of agriculture today, the role of Agricultural was developed by a team of groundnut breeders
at ICRISAT in partnership with Main Oilseeds
University, Krishi Vigyan Kendras and the Research Station (MORS) Junagadh Agriculture
University (JAU), Gujarat. The new line departs
Indian Council of Agricultural Research lies at its from conventional breeding techniques and was
bred through marker-assisted backcrossing.
strong foundation. Tomar said that the Jabalpur

Agricultural University is known across the

country as an Institute of Excellence and this is a

matter of pride for the people of the state working

in the agriculture sector. Ever since this university

was established in the year 1964, it has made a

great contribution to advancing and upgrading

the agricultural sector in the state. Madhya

Pradesh has repeatedly received the prestigious

Krishi Karman Award in the field of agriculture.

Tomar said that farmers have to depend on nature

in spite of the availability of sufficient resources.

ICAR-CMFRI releases 5 lakh hatchery-
produced pearl oyster spat in Gulf of Mannar

Tuticorin Regional Station of the ICAR-Central coming years to uplift their economic status.
Marine Fisheries Research Institute (CMFRI), Also, two cages of different sizes with settled
Kochi sea-ranched 5 lakhs hatchery-produced spat were deployed for the regular monitoring
pearl oyster (Pinctada fucata)
spat of 5 mm size in select areas of sea-ranched pearl oyster spat for
in the Gulf of Mannar. This stock its growth at this location. Tuticorin
replenishment measure was is popularly known as “Pearl City”
initiated by the Shellfish Fisheries as it served as a capital of pearl
Division, ICAR-CMFRI aimed at production and trade centre from
restoring the depleted population time immemorial until 1961 when the
of pearl oysters in the region. pearl fishery was completely banned
District Collector K Senthil Raj inaugurated by the Department of Fisheries
the sea ranching near ‘Tharaipaar’ close to for the protection of dwindling pearl oyster
Tsunami Nagar, Thoothukudi in Tamil Nadu. stocks. The Tuticorin Regional Station of ICAR-
This activity should enhance the livelihood of CMFRI, due to the huge demand for marine
coastal fishers including fisherwomen in the pearls, initiated research work on cultured pearl
production and perfected the technology in 1973.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com A CPAOD LEIMCIYA NNEEWWSS 43

ICAR organises National Bureau of Fish
‘KRITAGYA 3.0’ National Genetic Resources discovers
level Hackathon on crop new catfish species
improvement
The ICAR-National Bureau of Fish Genetic
The Indian Council of Agricultural Research (ICAR) Resources (NBFGR), Lucknow has discovered
a new catfish species of the genus Pangasius
hosted Hackathon 3.0 “KRITAGYA” to promote (Valenciennes, 1840), in the river Cauvery, in
peninsular India and named it - Picaria. This
“speed breeding for crop improvement” in association discovery is a new opportunity for future research
on the conservation of the species and evaluation
with its National Agricultural Higher Education of the genetic resources of the new fish for its
characteristics and utilisation potential. The
Project and Crop Science Division. This initiative researchers used extensive morphological analysis,
skeleton radiography, and advanced molecular
aims to help the crop sector achieve the markers combined with species delimitation
computational techniques to conclude that the
desired immediate results by fostering Pangasius specimens from the river Cauvery are
distinct from other species of the genus Pangasius
employability, entrepreneurship, and named them- Picaria. The species is described
based on specimens collected through exploration
innovation, and problem-solving skills. of the river from Mettur dam, and upstream
of Shivanasamudra falls, Chamarajanagar,
Additionally, it will encourage the nation Karnataka. Pangasius Picaria is named after the
parent organisation Indian Council of Agricultural
to adopt more technologically advanced Research (ICAR) and uses its abbreviated form.

solutions. The applicants were required

to present potential solutions to very

specific problems with crop improvement, for

instance, less expensive and more efficient materials

for rapid generation advancement facilities, accurate

and convenient diagnostic tools for illnesses, insect

pests, and produce quality. The event invited and

supported those who submitted proposals for novel,

unconventional, and disruptive approaches to

solving problems by utilising crop science-related

technologies or methods. Speed breeding for crop

improvement was the main topic of the problem

statements and solutions.

ICAR-NRCP Solapur unlock genetic mysteries
of Indian pomegranate Bhagawa

The ICAR-National Research Centre on P.G. Patil and Dr R.A. Marathe. The reference-
Pomegranate (NRCP) team at Solapur, quality genome assembly of the ‘Bhagawa’
Maharashtra has announced the release of developed by ICAR-NRCP under the aegis of
Reference Quality Genome Assembly of Indian the Indian Council of Agricultural Research,
pomegranate cv. Bhagawa. They have been New Delhi is a huge reservoir of publicly
able to identify all the bases of DNA material accessible genomic resources for pomegranate
in perfect sequence in the process unlocking researchers across the globe and will provide a
several genetic mysteries such as identifying great impetus to the pomegranate improvement
particular genes responsible for sweetness, seed programme in India. The genome sequencing
softness, or colour of the fruit, those responsible experiment was executed at Nucleome
for disease and pest resistance, and those for Informatics, a Hyderabad-based genomics
the enlargement of the fruit size, among others. lab. Nucleome is the only laboratory from Asia
The team involved in this landmark which is affiliated with the world’s largest and
research comprised Dr N.V.
Singh, Dr P. Roopa Sowjanya, prestigious genomics programme ‘The
Dr Shilpa Parashuram, Dr Vertebrate Genome Project’ to sequence

70,000 vertebrate genomes.

44 TYEOCUHRNVOI EL OWGSY N E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Syngenta unveils
Interra Scan soil health
mapping service

Syngenta has unveiled one of the world’s highest-

resolution soil mapping services, Interra Scan,

at Fields of Innovation 2022, Europe’s premier

agricultural innovation event. The Interra Scan

IoTechWorld Avigation service, which offers precision soil analysis to help
targets sale of 1,000
drones in 2022-23 growers and agronomists optimise crop nutrition

Leading agricultural drone manufacturer and soil health, will
IoTechWorld Avigation has revealed that it is
aiming for multi-fold growth in both value and be initially available
volume terms in the current fiscal. The Gurugram-
based company is targeting to sell more than 1,000 to continental and
kisan drones during 2022-23 and is eyeing to
capture a good share of the market, estimated to be Eastern European
Rs 5000 crore by 2025-26. The company noted that
it is working to make all components indigenous growers. Interra
within one to two years and is also developing
village-level entrepreneurs and service partners to Scan offers high-
increase employment. The company has launched
a bike-back drone model and new Lithium Ion resolution soil
batteries to reduce the cost of operating and
increase the mobility of drones. ICAR, KVKs, and mapping for up to 27
state agri universities have procured drones from
the company so that they can give demonstrations layers of information,
and educate the local farmers.
providing growers with precise information on

soil health. Interra Scan produces high-resolution

maps accessible by growers’ computers via the

Interra Scan platform. Its detection technology

provides mapping of all common nutrient

properties including pH, soil texture, organic

matter, carbon, and cation exchange capacity,

as well as elevation and plant water availability

– all together, it offers over 800 data reference

points per hectare. The company noted that it is

the equivalent of a complete medical check-up for

humans, but for soil.

Directorate of Cashew Research demonstrates
drone tech for cashew cultivation

The ICAR-Directorate of Cashew Research experimental station of ICAR-DCR, Puttur.
(DCR), Puttur, organised a “Drone Technology During the demonstrations, Dr T. N. Raviprasad,
Demonstration” for spraying of agricultural Director (Acting), DCR highlighted how drone
chemicals funded by the central
sector scheme, Department of technology is more important for
Agriculture & Farmers Welfare, management of perennial tree
implemented through Agricultural crops like cashew, in which manual
Technology Application Research and mechanical means of crop
Institute (ATARI) (sub-mission on management are quite challenging.
agricultural mechanisation) with The adoption of agricultural drones
an aim to create awareness about will benefit farmers by increasing
drone applications in agriculture crop management efficiency and
among the farmers, extension workers and reducing production cost. The
other stakeholders. The demonstrations were programme was attended by scientists, technical
conducted at Kemminje farm and Shantigodu staff, nursery staff and skilled support staff of
ICAR-DCR and scientists of CPCRI, Kasaragod.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com T E C H NPOOLLOI CGYY NNEEWWSS 45

BASF fixes traceability gap in cotton value
chain with ‘Seed 2 Sew’ blockchain platform

BASF Agricultural Solutions has their existing Certified Sustainability
initiated a ‘Seed 2 Sew’ pilot FiberMax cotton programme and
project to establish a blockchain other local players along the
platform as a response to one of cotton value chain in Greece –
the most complex supply chains the largest cotton-producing
– cotton production. Classically, country in Europe – to guarantee a
the traceability within the cotton professional and transparent system
value chain has been limited from
ginning to end fabric. Farmers have of supplying sustainable cotton to the
often been left behind due to a lack of fashion industry. It follows the journey of
applications, infrastructure, and technology a cotton garment starting from BASF seed all
to record and certify their inputs. This leads the way to retail. All the partners are within a
to an information and trust gap in the textile 250 km radius from Komotini to Thessaloniki,
industry. To close this gap, BASF Agricultural Greece, which additionally reduces the
Solutions has partnered with five farms in carbon footprint of manufacturing the cotton
garments.

Corteva to introduce Crop monitoring and
‘Seed Applied Tech’ for assessing soil health with
rice and corn in India drone tech is a boon:
Director, NRCSS
Corteva Agriscience, a global pure-play agriculture
company is planning to launch the “Seed Applied To promote drone technology and popularise it
Technology (SAT)”, seed treatment solutions for the for spraying purposes and precision agriculture,
rice and corn crops in India which will be extended a demonstration was organised at ICAR-National
to other crops subsequently. In India, the SAT Research Centre on Seed Spices (NRCSS), Ajmer.
product is currently under registration process with Dr S N Saxena, Director, ICAR-NRCSS briefed
on the benefits of emerging drone technology
Central Insecticides Board for spraying pesticides, insecticides, and liquid
& Registration Committee fertilisers. He emphasised that the technology could
and the company has also be extended for crop monitoring and assessing
initiated field trials with soil health. He also said that this could be a boon for
rice farmers. The company seed spice and seed spices-based fruits and vegetable
has launched the SAT growers. Dr D S Bhati, Head, Krishi Vigyan Kendra
product in Thailand and (KVK) Ajmer stated that the technology is excellent
China and set to be rolled for young farmers and agriculture graduates and
out in Indonesia, will be for their employability. Additionally, because it uses
paddy and maize crops. Corteva’s seed treatments contactless spraying technology, it will assist in
involve the application of chemical or biological eliminating the adverse effects of spraying pesticides
substances, such as fungicides or insecticides, and insecticides on farmers during spraying.
directly to the surface of a seed, safeguarding the
seeds and seedlings against insects, fungal diseases,
and soil-borne pathogens. As yellow stem borer and
brown plant hopper and leaf folder infestation are
common in rice cultivation Corteva’s seed-applied
treatment is a convenient solution that protects
rice seedlings from damage from this infestation
and has demonstrated very good performance.

46 AY GO RU IRI NV IPEUWTSN E W S AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Indian Fertiliser Companies sign MoU with
Canpotex, Canada

India’s fertiliser companies- Coromandel through long-term partnerships with resource-
International, Chambal Fertilisers and Indian rich nations. Given India’s high dependence
Potash Limited signed an Memorandum on imports of raw material and fertiliser
of Understanding (MoU) with Canpotex, minerals, these partnerships provide
Canada, which is amongst the largest secured availability of fertilisers
suppliers of Potash globally, exporting and raw materials over a period of
around 130 Lakh Metric Tonnes (LMT) time and also offer price stability
of product annually. The MoU was in volatile market conditions. This
presented to Dr Mansukh Mandaviya, supply partnership is expected to
Union Minister of Chemicals and Fertilisers. improve the fertiliser availability within
“The MoU will reduce both supply and price
volatility and ensure the stable long-term supply the country and reduce supply side and price
of Potassic fertiliser to India. The government vulnerabilities,” said Dr Mansukh Mandaviya. He
of India has been encouraging the domestic added that this MoU will lead to “strengthening
fertiliser industry to establish supply linkages of our mutual relationship and furthering bilateral
relations between the two countries”.

Madhya Pradesh allots Natco launches
885 Ha land for NSC’s Chlorantraniliprole foliar
organic seed farm insecticides in India

The Union Minister of Agriculture and Natco Pharma Limited has announced the launch
Farmers Welfare, Narendra Singh Tomar, of two Chlorantraniliprole (CTPR) pesticide
laid the foundation stone of an organic formulated combination products under the
seed farm of the National Seed Corporation brand names NATVOL: Chlorantraniliprole
(NSC) at Morena, Madhya Pradesh. Upon its 8.8% + Thiamethoxam 17.5% SC; and NATLIGO:
completion, new organic seeds of oilseeds will Chlorantraniliprole 9.3% + Lambda-cyhalothrin
be available to the farmers of Madhya Pradesh. 4.6 % ZC. Both products are broad-spectrum, foliar
With this farm, farmers will be introduced to insecticides used across a wide range of crops.
modern techniques and will get high-yielding Syngenta markets these combination products
seeds, improving their socio-economic status. under the brand names Voliam Flexi and Ampligo.
Tomar said that the central government The estimated market size of the CTPR combination
decided to establish a farm in Morena for the products stands at around Rs 800 crore in India.
production of organic seeds by improving the Natco Is the first company, after Syngenta, to launch
land in the rugged area. For this, the state CTPR combination products in India. It follows
government has allotted 885.34 hectares on the heels of the indigenously manufactured
of land in four villages namely Gadora, CTPR formulation 18.5% SC launched by Natco
Jakhauna, Rithora Khurd and Gorakha to the recently under the brand name NATGEN. Natco
Union Ministry of Agriculture. This land is has challenged FMC Corporation for revocation of
a rugged area of Chambal and farming was their patents for these combination products that
not possible due to the ravines in the area. As are marketed by Syngenta, and the case is pending
NSC is committed to providing quality seeds before the High Court of Delhi. Natco is committed
to the farmers and is producing and making to bringing high-quality agrochemical products at
available 15 lakh quintals of quality certified affordable prices to farmers across India.
seeds to the farmers, the Agriculture Ministry
has entrusted the responsibility of developing a
farm in Morena to the NSC for the production
of organic seeds.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com A G RPI OI NLPI CUYT NNEEWWSS 47

Safex Chemicals acquires UK-based Briar
Chemicals for £73M

Safex Chemicals India Limited (Safex), in step with the substantial growth of
a fast-growing Indian agrochemicals the worldwide agrochemicals market,
company, has announced the acquisition which is set to increase in value by over
of Briar Chemicals (Briar), UK’s leading 11 percent from $62.3 billion in 2022
agrochemicals Contract Development to $69.4 billion in 2026. Founded in
and Manufacturing Organisation 1991, Safex Chemicals India limited is an
(CDMO) provider, from the pan- agro-chemical company with more than
European alternative investment firm 500 employees and a network spanning
AURELIUS Equity Opportunities. Safex 10,000 distributors. It’s operations are
is backed by ChrysCapital, one of India’s stretched across 17 states with the purpose
largest private equity firms, which owns of achieving Farmer’s dream i.e. healthy
a significant minority stake in the business. Briar crops. With its uncompromising commitment
is Safex’s first overseas acquisition and forms part towards work, the company has grown 13 times in
of the company’s strategy for global expansion last 10 years.

Sonalika captures Mahindra’s domestic
15% market share in tractor sales hit 21%
Sept 2022 growth in Sept 2022

India’s leading export tractor brand, Mahindra & Mahindra Ltd’s Farm Equipment
Sonalika Tractors has recorded the highest Sector (FES), part of the Mahindra Group, has
ever monthly sales of 18,619 tractors and announced that its domestic tractor sales were at
captured an estimated 15 per cent market 47,100 units for September 2022 as against 39,053
share in India with 26.2 per cent growth in units during the same period last year. This is the
September 2022, placing them third in the company's highest ever sale in a month. The total
market. The company has also recorded the tractor sales including domestic and exports during
highest-ever monthly production of 15,563 September 2022 were at 48,713 units, as against
tractors including a record daily production 40,331 units for September 2021. Exports for the
of 702 tractors rolled out during the month. month stood at 1,613 units. Demand remained
During the hiring spree announced by the strong during the month of September owing to
company for ITI students in July 2022, a festive boost, which the company expects to
Sonalika has so far recruited over 2000 continue in October as well. With the Kharif crop
students as channel partner workforce harvest starting soon and crop prices holding firm,
across India. the sentiment is positive. Above normal monsoon
has improved the reservoir levels, leading to high
moisture content in the soil, which is very positive
for higher food grain production in the upcoming
Rabi season, the company noted.

48 SY UOPUPRLVYI ECWH ASI N AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

NABARD launches Agri Export Facilitation
Centre in Jodhpur

National Bank for Agriculture and Rural business opportunities in conjunction with
Development (NABARD) has sanctioned an agri- the Spices Board, Agricultural and Processed
export facilitation centre (AEFC) at Jodhpur Food Products Export Development Authority
under its Farm Sector Promotion Fund to (APEDA), and Rajasthan State Agricultural
create an ecosystem and facilitate export of agri Marketing Board (RSAMB) to achieve the
commodities from Rajasthan. The AEFC will objectives under Agriculture Export Policy 2018
be implemented by South Asia Biotechnology and Rajasthan Agro-processing, Agri-business &
Centre, Jodhpur in collaboration with local Agri-export Promotion Policy, 2019.
organisations, FPOs, aggregators, processors
and agri exporters from Jodhpur, Rajasthan. The
AEFC will be developed as a platform to provide
instant services and guidance on agri-export,
train, mobilise and empower key stakeholders to
harness the agriculture sector, develop capacities
and address the need of agri-exporters, facilitate
visits of experts and create an interface with key
stakeholders in agri-export sector for improving
the ecosystem of agri-export from Rajasthan. The
AEFC will incubate potential agri-entrepreneurs,
hand hold FPOs and agri exporters and facilitate

Haryana, Birmingham University to execute
sustainable cold chain system

Haryana and the University of Birmingham have experts, investors, agri-food business, farmer
signed a Memorandum of Understanding (MoU) cooperatives, and energy or logistics providers
to develop the Haryana Centre of Excellence on to deliver sustainable cooling. The UK-Haryana
crop post-harvest management and sustainable Centre for Post-harvest & Cold Chain will be a
cold chain during the global summit organised big leap towards developing and demonstrating
by the Centre for Sustainable Cooling (CSC) in post-harvest technologies that will enhance the
Birmingham. The Haryana Centre of Excellence shelf life of perishable produce. The centre will
will conduct state-of-the-art applied research not only cater to the needs of farmers but also
and provide capacity building and training, an researchers and entrepreneurs. It also follows
innovation and business hub and technology an MoU signed earlier this year with Telangana
testing/demonstration centre. It will connect for a Telangana Centre of Excellence.

AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com SPUOPLPI CLY CNHE WA ISN 49

GREENEST exports India’s UPL’s post-
first plant-based meat
shipment to the USA harvest

Agricultural and Processed Food Products Export Development business,
Authority (APEDA) has announced that GREENEST, India’s
pioneering plant protein food brand has shipped India’s first DECCO acquires
plant-based meat export consignment to the USA from Gujarat.
The 5,000 kg consignment consists of GREENEST products TeleSense

(plant-based mini samosas, hot and spicy UPL Ltd, a global provider
strips, momos, spring rolls, nuggets, grilled of sustainable agricultural
patty, and other vegan products). GREENEST solutions, announced that
is a pioneer in plant-based protein products its post-harvest business,
and is backed by investors like Better Bite DECCO, through a subsidiary
Ventures (a New Zealand based dedicated has acquired the business of
Alt Protein VC fund), healthcare-focused VC TeleSense, the world’s leading
Magnetic, and Sachid Madan (the former provider of remote monitoring
Chief Executive of ITC’s frozen snacks solutions for crop storage and
business). The company said that they had been receiving transportation, to advance its
many interested queries from foreign markets for high quality mission to reduce food waste
and healthy plant-based foods and GREENEST is happy to and support food supply chain
take the lead in this endeavour from India. sustainability. TeleSense will
join DECCO in the OpenAg
Indian agri and processed network, a platform pioneered
foods exports climb 30% in by UPL, committed to
Apr-July 2022 Reimagining Sustainability for
global agriculture. DECCO is a
According to the provisional data released by the Directorate global leader in providing post-
General of Commercial Intelligence and Statistics (DGCI&S), harvest solutions to reduce food
the overall export of agricultural and processed food products waste and enhance the freshness
increased to $9598 million in April-July 2022 from $7397 of fruits and vegetables across
million over the same period of the last fiscal. The exports of the food supply chain. The
agricultural and processed food products rose by 30 per cent acquisition of TeleSense
in the first four months of the current Financial Year 2022- follows a successful strategic
23 (April-July) in comparison to the corresponding period of collaboration formalised
FY 2021-22. For the year 2022-23, an export target of $23.56 between UPL and TeleSense
billion has been fixed for the agricultural and processed food in January 2021. It continues
products basket and an export of $9.59 billion has already been DECCO and the wider OpenAg
achieved in the first four months of the current fiscal. Basmati network’s ongoing commitment
Rice exports witnessed a growth of 29.13 per cent in the first to investing in and scaling
four months of FY 2022-23. The export of meat, dairy and technologies that improve
poultry products increased by 11.69 per cent and the export food security, advance the
of other cereals recorded a growth of 22.26 per cent in four sustainability of the sector, and
months of the current fiscal. reinforce farmers and growers’
resilience.

50 LYEOTU’ SR TVAI ELWK SA G R I AGROSPECTRUM | NOVEMBER 2022 | www.agrospectrumindia.com

Leveraging Logistics Sector to Propel

India's Economy to $5 Trillion
On September 21, the Union Cabinet,
approved the National Logistics Policy that was valued at Rs 15.1 lakh crore ($190 billion) and
lays down an overarching interdisciplinary, touched around $215 billion in 2020.
cross-sectoral, multi-jurisdictional and
comprehensive policy framework for the logistics The National Logistics Policy formulated by
the Commerce and Industry Ministry will improve
India’s trade competitiveness, create more jobs,
sector. On September 17, Prime Minister Narendra improve India’s performance in global rankings
Modi launched the National Logistics Policy and and pave the way for India to become a logistics
said that India had taken yet another important hub. The Department of Commerce has set up a
step towards becoming a developed nation. The logistics division on July 7, 2017 and was given
Policy will bring down logistics cost, give a boost the responsibility of the Integrated Development
to international trade and benefit all stakeholders of Logistics Sector. The Special Secretary to the
including farmers and consumers. The Policy is Government of India has been at the helm of the
aimed to save time and money to manufacturers, division and assigned the responsibility for the
reduce transportation related problems as well as development of an action plan to facilitate the overall
prevent/ reduce wastage of agricultural produce. development of the logistics sector through policy
The Policy will be implemented through a changes, procedure improvements, identification of
Comprehensive Logistics Action Plan (CLAP). The bottlenecks and gaps, and adoption of technology.
interventions proposed under the CLAP are divided The unorganised sector amounts to 99 per cent of
into eight key action areas:(i) Integrated Digital the logistics sector that includes owners of less than
Logistics Systems (ii) Standardisation of physical five trucks, brokers or transport companies' affiliates,
assets and benchmarking service quality standards small-scale warehouse owners, customs brokers and
(iii) Logistics Human Resources Development and freight forwarders, among others. The global indices
Capacity Building (iv) State Engagement (v) EXIM reflect the progress and developments in trade-
(Export-Import) Logistics (vi) Service Improvement related logistics over the years. The development of
framework (vii) Sectoral Plan for Efficient Logistics the logistics sector is also reflected by the fact that
(viii) Facilitation of Development of Logistics Parks. India scored 90.3 per cent in the United UNESCAP’s
The Finance Minister, Nirmala Sitharaman, Global Survey on Digital and Sustainable Trade
presenting the Union Budget 2020-21 had pointed Facilitation conducted in 2021, which is an
out that the Policy will create a single window exceptional improvement from the score it secured
e-logistics market and focus on generation of in 2019 of 78.5 per cent, brought about by gains in
employment, skills and make MSMEs competitive. the scores of five important indicators. The score has
India’s logistics sector is very complex with more shown a consistent improvement, with scores of 63.4
than 20 government agencies, 40 Participating per cent and 67.7 per cent secured in 2015 and 2017,
Government Agencies (PGAs), 37 export promotion respectively.
councils, 500 certifications, 10,000 commodities, India’s logistics are estimated to account for
and a $160 billion market size. It also involves a 12 about 14.4 per cent of GDP. With these Policy
million employment base, 200 shipping agencies, initiatives, India intends to raise its ranking in the
36 logistics services, 129 Inland Container Depot Logistics Performance Index to 25 and bring down
(ICDs), 168 Container Freight Stations (CFSs), 50 IT the logistics cost from 13 to 8 per cent of GDP,
ecosystems; banks and insurance agencies. Further, leading to a reduction of approximately 40 per cent,
81 authorities and 500 certificates are required for within the next five years. This would guarantee the
EXIM. logistics industry acts as a growth engine and a major
The logistics sector provides livelihood to more factor in upgrading India to a $5 trillion economy.
than 22 million people and improving the sector
will facilitate a 10 per cent decrease in indirect Narayan Kulkarni,
logistics cost leading to the growth of 5 to 8 per Editor
cent in exports. In 2019, the Indian logistics sector [email protected]