Connect with:
Thursday / March 13. 2025

logo
mobile-logo
Home2022 (Page 56)
Agrotech, Foodgrains, Interaction, Water

By R Sabarinathan, Global Rice Agronomist, Netafim Ltd.

Scented (Basmati) rice, a unique product of the Indo-Gangetic Plain, is known for its aromatic quality and high economic value. It generates about three times higher prices than coarse rice. Approximately 20 per cent of the land used to cultivate rice grows scented rice in India, and northwest states account for more than 90 per cent of its total production. India contributes around 65 per cent of the total global supply of scented rice. The sustainability of the Basmati rice production in India has become a significant concern due to alarming water table depletion, growing food demand, stagnating, or declining productivity growth, and diminishing economic returns.

Traditionally, rice is a water-intensive crop and requires water for three primary purposes – preparing land (puddling), continual seepage, percolation, and growing the produce. The farmer growing Basmati rice has to keep the area spread continually flooded, which results in substantial unproductive water losses (up to 80 per cent) for reasons other than rice cultivation. The crop demands high water investments, labor, pre-crop preparation, and fertilizers. Despite these investments, farmers don’t get the expected returns because water inefficiency resulting lower crop yield, and reduced crop quality affects their profits.

Globally, India is one of the top basmati and non-basmati rice exporters. According to the statistics, in 2020-21, India’s rice exports (Basmati and Non-Basmati) rose by a massive 87 percent to 17.72 million Tonne (MT) from 9.49 MT achieved in 2019-20. In terms of value realization, India’s rice exports rose by 38 per cent to USD 8815 million in 2020-21 from USD 6397 million reported in 2019-20. In terms of volume of Basmati rice exports in 2020-21, the top ten countries – Saudi Arabia, Iran, Iraq, Yemen, United Arab Emirates, United States of America, Kuwait, United Kingdom, Qatar, and Oman have a share of close to 80 percent in total shipments.

To achieve sustained growth in farmers’ income and continue dominating the global export market for scented rice, ensuring scientific and egalitarian water application in agriculture and minimizing wastage of water is paramount. The Indo-Gangetic plain (IGP) is an environmentally susceptible, communally momentous, and economically tactical sphere of India where landscape, groundwater, and soil fertility are threatened by climate change. The expensive land preparation, wastage of water through flooding, and the inefficiency of conventional techniques add to rice growers’ hurdles. Under these emerging scenarios, the farmers must focus on efficient alternative approaches for water use and start implementing drip irrigation for rice cultivation. Currently, the total area of rice under drip irrigation is around 500 Ha in India. Undoubtedly, it becomes imperative to introspect and overhaul agriculture practices in rice cultivation while acknowledging the efficiency that these upgrades would bring into the system.

Drip irrigation reduces water use through a precise water supply to the crop. So, for the one kilo of rice that the farmers used to grow in 5000 liters of water conventionally, they now need only 1500-1600 liters. They achieve a higher crop yield on a large scale in lesser water. Drip irrigation allows farmers to choose any desired close spacing crop after rice in crop rotation. They can also shift from low-income crops to high-income ones after cultivating rice. In paddy farming, rice roots remain submerged. They consume heavy metals and increase the arsenic in the harvest, thereby reducing the crop’s market value. However, drip irrigation helps reduce the arsenic uptake by around 90% and further results in a high-quality and marketable crop growth.

The farmer community could reduce labor costs with drip irrigation, achieve water efficiency, increase crop yield, and improve crop quality. All of these factors reduce investments and increase profits. Additionally, Paddy cultivation produces around 10 per cent of methane gas emissions globally. But, even if only 10 per cent of paddy rice cultivators upgrade to drip irrigation, the world will be able to reduce methane emissions equivalent to those of a staggering 40 million cars. Controlled application of water and fertilizer has increased the productivity of the crops by 50 per cent. All these boost farmer income levels by more than 40 per cent.

The backbone of the success of drip irrigation in rice cultivation is awareness generation and practical training amongst small and marginal farmers in potential states. Studying the current drip-irrigation programs, Indian rice growers must adopt the technology at full scale with proper and accelerated execution. Continuing to tread the path of adopting suitable technology will make doubling farmers’ income an achievable goal.

By R Sabarinathan, Global Rice Agronomist, Netafim

Environment, Supply Chain

The two companies said the partnership would allow hemp farmers to take advantage of PanXchange’s deep knowledge of commodity trading

PanXchange, the industry market structure solution and benchmark price provider for US hemp, and the Washington DC-based National Industrial Hemp Council of America announced that they have signed a memorandum of understanding (MOU) that will support the growth of financial incentives for carbon sequestration for the US industrial hemp market.

Julie Lerner, founder, and CEO of PanXchange commented, “Partnering with a strong hemp membership and advocacy organisation like NIHC will help grow industrial hemp markets and related climate-smart agricultural practices across the supply chain.”

The two companies said the partnership would allow hemp farmers to take advantage of PanXchange’s deep knowledge of commodity trading and the potential impact of implementing climate-smart practices specifically for hemp growing and processing.

PanXchange is rolling out a transparent carbon program that provides farmers a viable path toward financial rewards for implementing regenerative agricultural practices. Moreover, Lerner explains that the PanXchange program gives farmers full ownership of the carbon credits earned and full agency to market the credits directly to buyers through its online trade platform.

The company already has 31,000 acres of croplands committed to the program for the 2023 crop year.

“Carbon sequestration and the voluntary carbon market are part of hemp’s renaissance and will be an important part of North American agriculture. This partnership will be a value-add for American farmers who choose to grow hemp.  Producers and the companies using these raw goods will also benefit alongside American consumers who will ultimately fulfill the promise of hemp’s potential to power our climate-smart economy,” said Patrick Atagi, President and CEO of the National Industrial Hemp Council of America.

The two companies said the partnership would

Agrotech, Trade

The company is now fully prepared to remain ahead of the competition market and expand its compact tractor range with launch of 3 new models in up to 30 HP segment in Turkey

Solis Yanmar, the flagship brand of International Tractors Limited, has been significantly expanding its market presence not just in India but across the globe. The company is now fully prepared to remain ahead of the competition market and expand its compact tractor range with launch of 3 new models in up to 30 HP segment in Turkey. Equipped with proven Japanese technologies, the tractors will further raise performance bar in the local tractor market. The company also recently unveiled the Solis 75 HP CRDi tractor in the Izmir & Konya National fairs held in February & March 2022 respectively.

Solis Yanmar has a strong product offering in less than 100 HP segment with more than 10 models and 20+ variants for the Agricultural & Compact tractor category. Solis Yanmar has established a robust presence in entire Turkish market with 50+ dealerships & close to 100 sales points across the country. The company also has 200+ dedicated service centres linked to these dealers to serve its end customers.

Sharing his thoughts on the growing market performance, Raman Mittal, Joint Managing Director, Solis Yanmar, said, “We feel delighted to share that we are the fastest growing tractor brand in Turkey while strongly holding No 1 tractor exports brand position. The Turkish market has a huge demand for tractors between 30-90 HP making our Solis 50 & Solis 90 to be the star products for us. Our S26 model has 88 per cent market share in calendar year of 2021 and overall we have captured 8 per cent market share in Turkey. We also recently unveiled the 75 HP CRDi tractor in the Izmir & Konya National fairs held in February & March 2022 respectively which was much appreciated. We are now expanding our compact tractor range in up to 30 HP with launch of 3 new models with Japanese technologies to address the niche segment and take Turkish tractor market by a storm.”

The company is now fully prepared to

People

Jon Parr, President, Global Crop Protection, to retire in September 2022 after 35 years of service

Syngenta Group has announced succession plans for its leadership team. Jeff Rowe, currently President, Global Seeds, will take over the leadership of Syngenta Crop Protection, effective July 1, 2022. His former role will be assumed by Justin Wolfe, currently Regional Director North America Seeds.

Jon Parr, President, Global Crop Protection, will retire on September 30, after a 35-year tenure at the company, including the last seven years as head of the global crop protection business.

“During Jon’s tenure, Syngenta Crop Protection has grown back into the global market leader and has become a leader in biologicals and innovation,” said Syngenta Group CEO Erik Fyrwald.

Jeff Rowe was instrumental for the successful turnaround of the Seeds business, with outstanding growth and return to profitability. Most recently, he has spearheaded Syngenta Group’s efforts into regenerative agriculture and soil health.

Justin Wolfe’s leadership and focus on strong commercial execution were key to significant business growth and market share gains in North America.

With increasing ambitions for Syngenta Group’s Vegetable Seeds and Flowers business, Matthew Johnston will continue in his current global role as Head of Vegetable Seeds and Flowers.

Under Jon Parr’s leadership in the past seven years, the Syngenta Crop Protection business grew 50 percent.

Jon Parr, President, Global Crop Protection, to

Agro chems – Chemicals, Organic

ICL has signed a long-term agreement with IPL to supply Polysulphate through 2026, with a renewal option

ICL, a leading global specialty minerals company, recently announced that it has signed a long-term agreement with India Potash Limited (IPL) to supply Polysulphate through 2026, with a renewal option. The five-year term is for an aggregate amount of 1 million metric tons, with quantities increasing for each year of the agreement. Each shipment will be a minimum of 25,000 tons and equally distributed across the calendar year, with prices and payment terms to be fixed between IPL and ICL from time to time.

The availability of Polysulphate is expected to help boost the Government of India’s organic agriculture program. Polysulphate is available in its natural state and is mined, crushed, screened and bagged, with no additional chemical separation or other industrial processes – unlike blended or compound fertilisers – and has the lowest carbon footprint available globally. Polysulphate is a cost-effective answer to crop nutrition, as it contains four key plant nutrients: sulfur, potassium, magnesium and calcium, which are steadily available to plants along the crop cycle.

ICL has signed a long-term agreement with

Horticulture, R&D

It aims at providing a larger market for domestic Wine producers in Maharashtra.

The ICAR-National Research Centre for Banana, Tiruchirapalli, Tamil Nadu has licensed and transferred the Banana Wine and Vinegar Making Technology to the Surachita Agro Producer Company Ltd., Solapur, Maharashtra.

In her address, Dr. S. Uma, Director, ICAR-NRC for Banana, Tiruchirapalli emphasized that converting the ripe Bananas into alcoholic beverage will not only help to reduce the fruit wastage in the supply chain; but, also enable the doubling of farmers’ income by tertiary processing, create jobs and enhance investment opportunities.  Ratnadeep Mohan More, Chief Executive Officer, Surachita Agro Producer Company Ltd., Solapur accentuated that the technology from the ICAR-NRC of Banana will be used to produce Banana Wine and Vinegar that will provide the consumers with the options to choose only Grape Wine or Apple Cider Vinegar for consumption. He stressed that the over-matured Bananas at the field and produce rejected during the export finds a new way for further utilization.

Dr. P. Suresh Kumar, Principal Scientist, ICAR-NRC for Banana, Tiruchirapalli & Inventor of the Technology briefed that in a recent move that is aimed at providing a larger market for domestic Wine producers, the State Governments like Kerala and Maharashtra are revising their state Policies to utilize the native grown crops. The Banana is a good choice for Wine production because of its high concentration of polyphenols and antioxidants with high sugar content, Banana wine does not require additional sugar.

Dr. K.N. Shiva, Principal Scientist, ICAR-NRC for Banana & Co-inventor of the Technology underlined that the Banana Wine can be produced by the fermentation without addition of alcohol or synthetic flavors. Similarly, in place of synthetic Vinegar, Banana Fruit based Vinegar has good market potential.

It aims at providing a larger market

Agro chems – Chemicals, Company News, India, Sugar industry

This is part of the shift in the company’s business model to sustainable agriculture

Agrochemical major, UPL signed an MoU with Shreenath Mhaskoba Sugar Mill in Pune for a sustainable sugarcane production programme and reach 4,000 farmers in 70 villages. Globally, biosolutions is Rs 4,000 crore business and in India, this is Rs 400 crore business. This is part of the shift in the company’s business model to sustainable agriculture. The company has plans to launch 30 new products in the next 24 months.

As part of these initiatives, UPL announced the commercial launch of their patented Zeba Technology for sugarcane farmers. According to Shroff the Zeba Technology would lead to a 20 per cent savings in water and reduce the use of fertilisers which would reduce the overall costs for the farmer and improve their production and income. The sugarcane crop requires the major consumption of resources like water, inputs, electricity, labor, and fuel. Despite high consumption, the return on investment to each stakeholder is low with a poor yield.

The company had been working on several pilots with farmers and they had seen savings of 600 crore litre of water and 500 MT urea of fertilisers while increasing yield by 15 per cent over 10,000 acres of land through optimum utilisation of natural resources and use of the Zeba Technolgy.

Company has mentioned that it is in process of talking to five to six sugar mills and hoped to add them to the programme in the next 30 days. The target was to scale up and reach a million acres in two to three year.

This is part of the shift in

Agrotech, Packaging & Labelling, R&D

 These films are much thinner as compared to the other protein or plastic films are better alternative to isolated protein films

 A research group from the physical sciences division of Institute of Advanced Study in Science and Technology (IASST), Guwahati, have developed ultra-thin heteroprotein films with excellent thermal, mechanical and pH stability which can pave the way for expanding applications of thin films in biomedical and food packaging industries. These films are much thinner as compared to the other protein or plastic films. They are soft and thin and have the advantage of being more flexible than the other films.

In the recent past, several modifications of these protein films with the help of suitable heteroprotein complexes were reported by different research groups. These complexes were usually developed from bulk solutions.

A research group from the physical sciences division of Institute of Advanced Study in Science and Technology (IASST), Guwahati, an autonomous institute under the Department of Science and Technology, has successfully developed ultrathin monolayer protein films consisting of two globular proteins: bovine serum albumin (BSA) and lysozyme (Lys). They used the technique called using Langmuir-Blodgett (LB) technique which gives the films thickness in the order of nanometer. His research work is led by Dr. Sarathi Kundu, Associate Professor, along with Raktim J. Sarmah, SRF, a Ph.D. student developed a monolayer heteroprotein film – the first one using this technique. They explored the different structures and morphologies of this complex films at variable pH conditions to explore its stability and related properties.

Films of such protein complex of BSA and Lys can be useful for fabricating highly stable biodegradable thin films of different protein complexes for expanding its applications in the area of thin-film technology. Diverse physicochemical methods such as parameter alteration or incorporation of different fatty acids or polyol moieties (glycerol, starch, gelatin, etc.) into this protein complex can make the film free standing for diverse applications. This research work was recently published in the esteemed journal of Food Hydrocolloids under the reputed Elsevier publishers.

 These films are much thinner as compared

Cold Storage, Finance, Start ups

The new funding will be used for expanding our product range, manufacturing capacity and boosting exports.

Climate-smart deeptech startup Ecozen announced that it has raised Rs 54 crore of additional funding as the first tranche of a planned Rs 200 crore Series C round. The new funding round was led by Dare Ventures, the venture capital arm of Coromandel International, with participation from existing investors Caspian and Hivos-Triodos Fonds (managed by Triodos Investment Management) through equity. Northern Arc, UC Inclusive Credit, Maanaveeya, and Samunnati also participated with debt funding. Early investors in Ecozen include IFA and Omnivore.

Ecozen develops climate-smart deeptech solutions and core technology stacks to deliver a sustainable future, including motor controls, IoT, and energy storage. Applying these technology stacks to the agricultural sector, Ecozen has revolutionized cold chains (Ecofrost) and the irrigation industry (Ecotron), substantially improving the income of 100,000+ farmers and enabling the generation of over 1Bn units of clean energy(kWh).

Ecozen sees a significant opportunity in applying its technology stacks and introducing climate-smart solutions for sectors beyond agriculture, notably electric vehicles. The company expects the market size for its innovative technology stacks in India will grow to USD 25 billion by 2025. In the coming years, Ecozen will launch multiple products which build on its deeptech expertise in thermal energy storage, motor controls, IoT, and analytics.

Commenting on this latest fundraise, Devendra Gupta, CEO and Co-Founder of Ecozen, said, “We are thrilled to partner with Dare Ventures and other new and existing investors, as we accelerate our growth and bring climate-smart deeptech solutions to new sectors of the economy. The new funding will be used for expanding our product range, manufacturing capacity and boosting exports. Expanding beyond India and beyond agriculture will enable us to expand our market potential multifold and grow exponentially while ensuring sustainability.”

Commenting on their investment, Sameer Goel, Director, Dare Ventures Ltd. and Managing Director, Coromandel International Limited, said, “We are focused on businesses with positive and long term on the ground impact and Ecozen through its innovative deep tech products is well aligned with our vision. With a keen focus on sustainability, we believe their core technology stack will significantly impact sectors beyond agriculture as well.”

The new funding will be used for

Agrotech, Nature, Start ups

The THRIVE Global Impact Challenge seeks innovative start-ups advancing a net-zero future for agriculture.

On the hunt for the most innovative, global companies creating the biggest impact in driving toward a net-zero future for agriculture, SVG Ventures|THRIVE – and partner ICL Planet Start-up Hub – have launched the Global Impact Challenge.

The urgency of the climate crisis is more apparent than ever, and disruptive innovation is key to creating a more sustainable, prosperous, inclusive, healthy and equitable future.  The world is already feeling the effects of climate change on a global scale and combating this crisis requires urgent and immediate attention.  It is, by far, the defining issue for current times.  THRIVE is passionate about playing a significant role in spurring the collective change needed to tackle this crisis, which led to the creation of the Global Impact Challenge.

The THRIVE Global Impact Challenge is a global search for the most innovative startups who are advancing a net-zero future for agriculture. The Challenge will focus on three core themes, each central to supporting the transition to net-zero.

The Challenge themes, which align with the UN’s Sustainable Development Goals, are focused on the following areas:

Soil health and biodiversity

Increasing food security

Reducing and offsetting GHG emissions

The launch event was hosted in Tel Aviv, Israel in partnership with ICL Planet Startup Hub, THRIVE’s headline partner for the Challenge.  Additional premium partners for the challenge include Bayer, BASF, Driscoll’s, Kubota and Valmont.

“Climate action is a task for all of us and disruptive innovation is key to accelerating global efforts towards a net-zero future for agriculture,” says John Hartnett, Founder and CEO of SVG Ventures|THRIVE. “We believe entrepreneurs hold the key to a sustainable future.”

“At ICL Planet, we are committed to creating responsible solutions for humanity’s sustainability challenges in the global food and agriculture markets,” notes Hadar Sutovsky, ICL, VP External Innovation and GM of ICL Planet. “By partnering on this challenge, we can create sustainable solutions and a secure future for communities around the world.” Applications are now open and will be accepted through September 15, 2022. Six companies will be selected to attend the THRIVE | Forbes Global Sustainability Summit in November of 2022 and to pitch their solution for the opportunity to secure a spot in THRIVE’s award winning Global Accelerator Program.

The THRIVE Global Impact Challenge seeks innovative

Company News, Finance, Start ups

 WRMS will use the fresh capital to develop and implement the yield guarantee solution to improve the resilience of 100,000 smallholder farmers in India against climate risks.

 InsuResilience Solutions Fund (ISF), managed by the Frankfurt School of Finance & Management (FS), and financed by KfW Development Bank, signed a grant agreement with Weather Risk Management Services (WRMS), an agriculture risk management company, and INGEN Technologies, a data provider of weather stations, to co-fund the project development and implementation of the yield guarantee solution. The project aims to improve the resilience of 100,000 smallholder farmers in India against climate risks and incentivize smart agricultural risk management practices, as well as to scale up the yield guarantee solution for crops such as cotton, chili, paddy, wheat and potato.

Weather Risk Management Services (WRMS) offers SecuFarm – the world’s first smart and sustainable farming solution for smallholders to provide them with farm level yield guarantee and an assured income. The solution guarantees farmers a benchmark yield provided they follow the Package of Practice (PoP) shared with them on the SecuFarm app. If the actual yield is still below the benchmark yield due to any extreme weather attack or crop disease, the farmer is compensated by WRMS, in proportion to the shortfall. This innovative concept allows incorporation of the necessary farm level risk reduction measures in the insurance product design offered by insurance companies and incentivizes smart and sustainable farming practices. This in turn allows to offer premium discount or a higher guaranteed yield to farmers who take the necessary farm level risk management measures. Fees for the yield guarantee are paid by the farmers (without subsidies). On this agreement, Anuj Kumbhat, Founder & CEO, WRMS said, “At WRMS, our aim is to build resilience of smallholder farmers by giving those equal opportunities to thrive. With this new association with InsuResilience Solutions Fund, we are now ready to further ramp up our SecuFarm services to the next level and support the smallholders to our maximum extent. With support of ISF, our focus will be on reaching out to over 100,000 smallholder farmers and building digital SecuFarms to create a larger economic, social and environmental impact”.

 WRMS will use the fresh capital to

Interaction, Opinions

Amidst the unfortunate and humbling realities of the Russia- Ukraine war, Indian farmers find new markets and better prices for their produce. India’s support to various countries for averting a food crisis during this time will play a critical role in establishing a solid foundation for long-term trade relations.

By January 2022, the world economy was looking forward to scripting a stronger recovery. However, the Russia-Ukraine war escalated global uncertainties to a whole new level. In the integrated, globalised economy, the warring nations have severely hurt many countries in Europe, the Middle East, Africa and Central Asia with no geopolitical interest in the conflict. Many of these nations are
developing, with strong import dependencies on Ukraine and Russia. Russia and Ukraine are major exporters of some of the key food products to the world. Ukraine accounts for 40 per cent of global seed oil exports (especially sunflower oil), fuelling high inflation in cooking oil in India and around the world. Ukraine also contributes 13 per cent of corn exports, and additionally, Russia exports 14 per cent of fertilisers. But nations are getting impacted the most due to a shortage of wheat exports, a staple and essential food grain around the world. Both countries collectively share over a quarter of total wheat exports globally. Some economies import 75 per cent of their wheat consumption from these two countries. This is creating a significant problem, especially for resource deficient nations.

The Global Response to the Wheat Crisis

Ukraine and Russia cumulatively were expected to export 14 million tonnes of wheat from March to June, which has completely halted. As a result, the world is looking toward India to support the affected nations by exporting as much wheat. India stands eighth amongst the top 10 exporters of wheat. Barring Ukraine and Russia, it is preceded by the European Union, the United States, Canada, Australia, and Argentina. According to the Food and Agriculture Organisation (FAO), wheat inventories in Canada and the USA are affected by reduced harvest in FY2022. While Australia has already exhausted its maximum shipment capacity, Argentina largely focuses on inflation challenges at home. Another major factor is that wheat is a winter crop in many countries, unlike India, where it is a summer crop.

At the forefront of addressing the Global Food Crisis

Amidst the unfortunate and humbling realities of the Russia -Ukraine war, India finds herself in an important position staring at some potential opportunities. This time it is to address an evolving humanitarian and food crisis, especially concerning the shortage of wheat. Although India holds a lower spot in the wheat export rankings, we are at the forefront of addressing the International Food Crisis. Despite some unique challenges at home, the Indian government again heeds its guiding spirit, “Vasudhaiva Kutumbakam” or “The World Is One Family”. India has repeatedly echoed and promoted this cultural ethos by exhibiting its magnanimous support to countries worldwide in the hour of need and as a principal and leading virtue in addressing and resolving the international crisis. Apart from the global scenario, several domestic factors are helping India export wheat to other countries. First, the strong and visionary statesmanship at the Centre under Prime Minister Narendra Modi allows India to take necessary measures to maximise the opportunity. With an annual production of over 107 million tonnes, India happens to be the world’s second-largest wheat producer. Although 80 per cent of the wheat produced is consumed domestically, we have consistently recorded bumper crops. Hence, the government is storing wheat under a mammoth public stockholding programme for its food security purposes, which also feeds into various food programmes.


Benefits from Wheat Exports
India’s prudent and visionary move to capitalise upon the opportunity has several benefits for the country and, most importantly, our farmers. The following are some of the key benefits for India in investing its resources to mitigate the wheat crisis.

Farmers – the biggest beneficiaries

The price of wheat is rising globally due to International shortages, and it is the farmers who will benefit
the most. For the first time, Indian farmers are getting access to international markets. They will be selling wheat to trading companies and private players well above the minimum support price.
The opportunity positions them well for a bumper earning for their produce which they duly deserve.

Digitalised trade

Due to technological advancements and global uncertainties, international trade depends upon the digital medium to conduct trade. Consequently, Indian players and farmers are receiving requests digitally. Moreover, it brings greater transparency to the system, with stakeholders knowing what they will get. It also creates avenues to strengthen the entire value chain, from cultivation to purchase to
exports, by adopting resilient food systems.

International learnings

As various markets open for India, all the players in the value chain are up for tremendous learning. The quality, grade, and type of food crop accepted in various countries; their trading regulations,
policies, and trends; unique challenges and demands; and so on. As India envisions boosting its exports incrementally, the experience of selling to newer markets will prove invaluable in designing future export strategies.

Export Strategy at Play
Having taken a micro-level account of the country’s wheat reserves, the Central Government has reassured the people and stakeholders of having healthy volumes, even after exporting wheat. The rumours hinting toward shortages within the country have been dismissed unanimously by all key government bodies and agencies. As of April 1, India sits on 18.99 million tonnes of wheat reserves in government godowns, which is more than 2.5 times of minimum operational-cum-strategic reserve requirements. The Centre holds enough grain reserves to be distributed through the Public

Distribution System (PDS) and other food programmes
India has already exported a record 1.4 million tonne of wheat in April. The Government is further keen on taking all necessary steps to make the most of the opportunity. Major wheat importers like Egypt have already agreed to import from India. Additionally, the government is sending trade delegations to over nine big wheat importing countries as it endeavours to meet its grain export targets for the fiscal year. The Centre is also making substantial efforts to educate the wheat farming community across Haryana, Punjab, Madhya Pradesh, Uttar Pradesh and Rajasthan. The focus is to ensure that high- grade, export quality wheat is shipped to other nations to make a strong statement about Indian wheat in the global market. Equally important has been the role of the private sector players like Agribazaar, which is the first amongst private companies to finalize an export deal facilitated electronically. As per the agreement, the electronic mandi will be exporting 50,000 metric tonnes of
wheat worth Rs 125 crore to Turkey. Last but not least, this opportunity of shipping wheat to other countries is not merely a trade opportunity. The impact of the Ukraine and Russia wars will be long- term. India’s support to various countries for averting a food crisis during this time will play a critical role in establishing a solid foundation for long-term trade relations. The opportunity will help us capitalise on newer markets and boost our exports and strengthen India’s leadership position in the world.

Amidst the unfortunate and humbling realities of

Interaction, Opinions, Sustainability

Indian agriculture needs to adapt innovations to become sustainable and profitable for farmers. There are multiple challenges facing Indian agriculture including climate change, water stress, and deterioration of soil health, price volatility and farmer’s lack of motivation to continue farming. Climate risks are more pronounced in the form of high temperatures, flash floods, delayed / erratic monsoon, shifting cropping patterns, depletion of water table, nutrient deficiency in the soil adversely impacting productivity and farm incomes.

There are estimated to be about 150 million farmers in India with the majority of them (more than 85 per cent) owning less than two hectares of farmland. A farmer with average land holding of about one hectare earns gross income of about Rs 120,000 to meet his personal, family and occupational needs. Farmers are often left with little surplus for productive investment in new age solutions.
As demonstrated by about 1300 plus agritech startups, innovations can go a long way in improving farm economics with improved yield, reduced cost of inputs and empowering farmers to de-risk against commodity price fluctuations, monsoon failures, yield loss etc. The growing breed of agri-entrepreneurs is working towards improving farmer access to markets, quality inputs, institutional credit, and insurance to derisk farming.

Indian startups are building models to derisk farming through following six interventions:

Demand driven and tech enabled aggregation and distribution of farm produce from point of collection to consumption (examples:Bigbasket, Innoterra, WayCool, Suri Agrofresh, Agrowave, Hesa, DeHaat, SuperZop, Agribolo, SMP Agro, Licious, Captain Fresh, Numer8, AquaConnect, Mango Dairies, Oxecart, Greenikk, Krishi Sahyog, Agrigator). Majority of models are B2B targeted at
institutional buyers, modern trade, Horeca, though direct to consumer models (D2C) are also picking up especially during pandemic.

Building near-farm storage, warehouse and processing units to reduce food loss with access to post-harvest finance and market linkage through digital and physical modes (examples: Our Food, S4S Technologies, Agri Bazaar, Arya.ag, Origo, Ergos, Promethean, Inficold, Whrrl). Micro-warehousing and farm level processing is likely to gain momentum with increasing demand for value added foods.

Optimise the use of agricultural inputs and enable delivery to farmers based on farm and crop diagnostics (examples: Agrostar, BigHaat, Behtar Zindagi, Unnati, Gramophone, Freshokartz, Plantix, Hesa, EF Polymer, Bharat Rohan). The last mile delivery and need for multiple compliances to store and sell agri inputs are some of the bottlenecks to scale.

Reduce labour cost and dependence through mechanisation through the pay-per-use model and innovative mechanical tools (examples: Sickle innovations, Distinct Horizon, Kamal Kisan,
Mera Tractor, Cellestial Tractors, Tractor Junction, Khetibadi, Flybird, Toolsvilla). There is a huge opportunity in building smart affordable multipurpose mechanical tools at one end and on the other end to build high end robotics and computer vision models to bring efficiency in doing multiple farm operations.

Farmer advisory and data driven crop monitoring / precision farming to reduce cost of production and crop loss: Farm advisory using data collected from the farm on soil, crop and weather using AI/ML tools is becoming mainstream, though monetisation of such models are still evolving (examples: SatSure, RMSI, CropIn, Mantle Labs, Stellapps, Krishi Tantra, AgRisk, Skymet) Agri fintech to reduce the cost of capital and make insurance available to farmers: Data and digitisation is the precursor to innovative farmer and value chain financing models which typically enables farmer KYC, onboarding, and digital tools for risk assessment. Many of these models continue to be phygital. Some of them are now building and distributing insurance products. (Examples: Samunnati, Agrifi, Jai-Kisan, GreyMatter Technologies, IBISA, Gramcover).

These models have been catalytic in improving farm economics to the tune of Rs 10,000 to Rs 50,000 per hectare, depending on the crop through reduction in input, labour, water cost and improving incomes through buyer discovery and value addition. With the number of agritech startups likely to touch 10,000 in the next few years, it is possible that almost 80-90 per cent of farmers in India will have access to these solutions in time to come.

Indian agriculture needs to adapt innovations to

Finance, Interaction, Opinions, Warehousing

Agriculture commodities business is a high volume and low margin business and is often accompanied by moderate to high level of risk. The economic returns of warehousing activity are highly vulnerable to the Production Risk, Market Risk and Regulatory Risk. The utilisation of the warehousing space largely hinges on the Production of Crop, Expected Price Outlook of Agri Commodity, Export Prospects, Domestic Demand, Government Procurement and Regulatory Guidelines. Here’s a closer look at the current scenario and some measures that could help mitigate the risks involved.

Agri warehousing business is fraught with high degree of Operational Risk, Quality Risk, Quantity Risk, Market Risk and Regulatory Risk therefore it requires constant monitoring and surveillance. One of the biggest challenges in Agri warehousing business emanates from the fact that numerous warehouses are spread across the remote parts of the country, which are not economically viable due to underutilisation and increased cost of construction driven by high land price, surge in cement and steel price. At the same time, warehouses situated at remote locations are exposed to the fraud risk because of the movable nature of the Agri commodities. Additionally, the commodities kept in the remote warehouse locations are further vulnerable to the risk of theft, burglary and also prone to the delayed remedial action in the event of fire, flood or natural calamity related incidents.

Agriculture warehousing being predominantly an unorganised and low-cost sector, professional practices, systems and procedures are still at nascent stage making it challenging for organised, professional players to survive because low entry barriers which has brought down margins with increased risks and created an adverse Risk to Reward ratio in the business. Agriculture being a seasonal activity, the harvested Agri commodity stored in the warehouse, which is utilised over the period that blocks significant working capital of the producer. Traders or Processors, who in turn necessitates these entities to avail finance against the value of these underlying Agri commodity from the financial institutions. Agri commodity finance has transformed in the last few years and with the advent of Collateral Management Business because of which banks and other financial institutes have ventured into this business aggressively. Commodity Finance products got impetus in 2004-05 and was mainly driven by 2-3 large private sector banks and now this business has spread across more than 50 financial institutions and banks. Commencement of Future Trading has further paved the way for demit funding for banks/financial institutions and now with the introduction of option in Exchange and with the setting up of National E-Repository Limited (NERL), which is a national level market infrastructure institution that records and stores Warehouse Receipts in an electronic form (e-NWRs), under the aegis of Warehouse Development and Regulatory Authority (WDRA), will further play important role in deepening the Agri commodity business. However, this is yet to get fillip.

The loans against Agri commodities are typically short term and self-liquidating in nature. The collateral manager guarantees the banks about the quality and quantity of the Agri commodities, provides price information required for margin call and also aids in disposal of the commodities, if necessary. The last few years of subdued agricultural growth and economics has increased counterparty risks with rising incidents of fraud, especially for all players in the collateral management business. This industry is manpower intensive and the industry due to its low-cost profile and less organised nature, has a significant challenge in attracting talent with the right skills, integrity and value systems especially at field level. The banks and financial institutes transfer the risk of quality and quantity of underlying commodity through the Collateral Management (CM) agreement by paying services charges to the Collateral Manager. Therefore in the event of any short fall incident arising on account of infidelity of employees, liability to make good losses to the bank /financial institution sometimes crystallises on the CM agencies.

CM business is fraught with high degree of operational risk

Additionally this industry is manpower intensive and CM companies remain dependent on the effective supervision of storage and monitoring of inflow and outflow of commodities and the risk reward ratio is very slender therefore this business requires constant monitoring and surveillance.

Another challenge in providing CM services emanates from the logistics complexities of securing numerous warehouses spread across the remote parts of the country and safe custody of commodity as usually commodity is stored in the warehouse/cold storages owned by the third party therefore possibility of undue influence of the warehouse owner/cold storage owner cannot be totally ruled out.
In Agri commodity finance business downward volatility of prices erodes the margin of the client and in such a situation delayed disposal of the commodity may snowball into financial loss to the financial institution/ company.

Further, transfer of risk to the insurance company is limited due to the reduction in the quantum of sum assured coupled with surge in the insurance premium cost.

• Extensive risk profiling of client based on the past antecedent of the client, analysis of financial standing.
• Exposure capping based on the client rating, commodity concentration and geography concentration.
• Continuous streamlining of the operating process and issuing detailed standardised operating process and ensuring its adherence to ensure the security of the underlying commodity.
• Several levels of audit checks based on the risk profile of warehouses/godowns.

The current collateral management processes in India are evolving and now shifting more towards technology-driven monitoring which plays an important role in the management of the thinly spread structures. The system not only ensures that the issuance and release of the warehouse receipt are centralised, but also keeps all relevant personnel updated in real time on the status of the collateral. The use of CCTV cameras is also an important element to initiate corrective action and downsize the likely quantum of risk.

Agriculture commodities business is a high volume