Increased investment behind technology in agriculture sector but still sluggish in its adoption

- Slow progress in the use of e-name system even after a period of seven years

Many investors are rushing to invest in agritech with the perception that the Indian agriculture sector is about to be revolutionized in terms of technology, which has led to the recent spate of numerous apps and agtech (agri-technology) companies. To provide a technology framework for farmers to sell their goods online, the central government has created the Electronic - National Agriculture Marketing (e-NAM) system in 2016. The government itself has created an e-NAM system to connect farmers with distant markets.

Out of seven thousand APMCs in the country, 1300 APMCs of 18 states have been able to join the government's e-name app. Thus, there is a need to provide extensive information about e-name to connect farmers of the country to distant markets. Fifty five percent of the country's people are involved in agriculture and allied businesses, but only about fifty lakh farmers are taking advantage of the e-name app. It is already seen that the farmers of the country will not readily participate in any kind of initiative unless sufficient benefits are seen.

Quality, grading, packaging, storage and transportation issues of agricultural commodities also continue to hamper trading through the e-name platform. Buyers are always concerned about claims made by sellers regarding quality, as agricultural products deteriorate quickly, making it difficult to resolve disputes related to quality claims. Along with the center, the states also play a major role in the agricultural system of the country. Political parties with APMC dominance tend to be more dominant.

For the development of the agricultural sector, the government has to take steps to increase the demand and consumption of the country's agricultural people abroad along with the production, for this the e-name platform can also play a role. Through this platform, farmers can sell their high-quality products to faraway places, but a modern system is required to reach them on time. In terms of receiving agritech funding, India surpassed China in 2022 with an investment of $2.30 billion through 31 agreements. In the first six months of the current year, India's Agritech has raised $71.20 million, while China has raised $86.10 million. Agritech companies in India are providing farmers with important information on weather and crops to how to increase agricultural production. India still has a lot to do to provide its information from the application of technology to the end farmer. A recent report said that an investment of approximately 38 to 42 billion dollars is required in the next ten years to bring about a technological revolution in the agricultural sector of the country.

Mechanization in the agricultural sector in the country is seen around 40 to 45 percent, in which machines are being used more in the initial and final stages of harvesting. In the interim phase after sowing, spraying, irrigation and weeding are still largely done manually. One of the reasons for this is that there are many challenges in transporting large machines to fields and hilly areas. Apart from this, the cost of the machine and its maintenance is also a big issue for small farmers.

According to an estimate, fifty percent of the country's farmers lack basic farming equipment. Fifty percent of the farmland is at risk of crop damage due to pest attacks and adverse weather conditions. The contribution of agriculture to our economy remains significant, but a recent study has revealed that the use of technology in the agricultural sector is still in its infancy, while the use of technology in various sectors is witnessing significant growth. The study claims that out of the total farmers in the country, only two percent of farmers are using mobile apps related to agribusiness to get real-time alerts and agri-related activities. The adoption level of tech solutions like Internet of Things is also very low.

After harvesting the crop from the farm to the market place and to the place of consumption due to the lack of necessary infrastructure, there is wastage and deterioration of agricultural commodities which cannot be denied. Due to the lack of cold storage facilities and timely transport facilities from villages to preserve the crops, there is concern about rotting. Continuous efforts are required to prevent spoilage, wastage and rotting of crops through development of technology. Unless steps are taken to prevent various types of crop damage, the e-name system will not allow agricultural commodities to be traded to distant places. India's share of global agricultural production is about 11 percent, but India's share of processed food exports is less than two percent. The main reason for this lies in competitiveness. The cost of production of dairy products in India is one and a half times that of New Zealand, while the cost of production of tomatoes is more than double that of China. Due to the limited use of technology, India, despite being an agriculture minister, is lagging behind at the global level.