The Gaps
54% of Indians are in a state of serious water stress and that number climbs to 80 % in rural areas. The Government of India launched the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with an investment of Rs.50,000 Crore (US$ 7.7 billion) aimed at development of irrigation sources for providing a permanent solution to drought.
But to buy the technology up front and then wait for the subsidy amounts to be transferred after it has been installed is excessively expensive.
1. The long-standing problems of smallholder farmers
Smallholder farmers produce relatively small food volumes on small plots of land.
They primarily produce traditional crops like paddy(rice), maize and wheat which cost less for local consumption, with no premiums ,less value and sold at lower prices as compared to the input cost involved in growing them.
Smallholder farmers have fewer resources and lack scientific and technological knowledge as compared to commercial-scale farmers. They fall behind in the following aspects.
2. Change can be challenging for farmers
Regenerative agriculture can minimize greenhouse gas emissions by rebuilding soil organic matter and sequestering carbon. However, the transition phase often results in higher expenses and lower yields. While farmers may want to change, the perceived risk is high, and adoption is not occurring at a scale fast enough.
It is essential to have an effective model of finance. In September 2021, the government had 35 crop varieties with special traits such as climate resilience and higher nutrient content and The Indian government has initiated a Digital Agriculture Mission for 2021-25 for agriculture projects based on new technologies such as Artificial Intelligence, Blockchain, Remote Sensing, and GIS technology, Drones, Robots, and others.
But over 90% of marginal farmers lack access to scientific and technological knowledge that could provide them with essential data points and allow them to make more informed decisions.
3. Consumers profess to purchase sustainable products, but often don't
Customers are willing to pay a premium for sustainable and organic options; since they are not available at scale and cost significantly more than cheaper alternatives without clearly articulated sustainability benefits, the ultimate demand for such products gets stalled.
