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UPL’s Sagar Kaushik predicts India’s shift to value-chain agriculture economy : Agrovision 2025

In an exclusive AgroSpectrum interview (Agrovision 2025 ), Sagar Kaushik, President – Global Corporate & Industry Affairs at UPL, argues that India’s agri-input market has entered a decisive structural reset driven by the rise of integrated value chains and a shift from volume-led to value-led farming. He notes that farmers are no longer buying standalone products but investing in full-stack farming solutions as FPO leaders, precision growers, and digital advisory ecosystems redefine ROI and influence.

Kaushik believes drone adoption reflects India’s push toward precision agriculture, but insists affordability—not technology—will ultimately determine scale, even as UPL’s 4,000-plus Falcon rigs bridge the transition. He highlights a dramatic shift in farmer engagement, with digital agronomy reducing dealer-centric information asymmetry and accelerating adoption of differentiated chemistries and biologicals. Looking ahead to 2030, he predicts India will be shaped by industrialized crop systems—from ethanol-linked corn and sugarcane to processing-driven horticulture—marking the country’s irreversible move toward a value-chain-driven agricultural economy.

India’s agri-input market is shifting fast — monsoon volatility, smaller farms, rising digital adoption. What’s the single biggest structural change driving new product demand and farmer buying behaviour today?

The single most powerful catalyst today is the establishment of robust agricultural value chains. India is moving away from a legacy dominated by captive farming and bulk grain production, and is steadily evolving into a diversified, horticulture-driven, cash-farming economy. The rise of organised food processing, export-linked horticulture, farm-to-market traceability, and industry-grade crop utilisation has fundamentally reset the operating logic of the sector. Farmers are no longer optimising for sheer acreage or volume; they are optimising for value per acre, quality, and industrial relevance.

This shift has ignited changes upstream. Germplasm innovation has accelerated because farmers now seek varieties aligned with processing requirements and consumer-facing quality standards. Productivity is rising not merely because of higher input usage, but because value chains demand consistency, uniformity, and predictable outcomes.

Input efficiency has improved across categories—from chemistries to biologicals to nutrition—because farmers are more conscious of return on every rupee invested. Unlike previous decades, these efficiency gains are translating directly into farmer profitability. The benefits are no longer diffused across intermediaries; value chain alignment ensures that farmers experience tangible upside when they adopt advanced inputs and management practices. India’s agri-input market is not simply growing; it is maturing into a value-driven ecosystem.

Farmers now evaluate products by ROI-per-acre, not brand. How are you integrating agronomy, advisory, and performance guarantees into your commercial model?

The ROI equation has changed dramatically because the influencers within the farming community have fundamentally changed. A new class of farmer leaders, FPO heads, progressive growers, and season-long practitioners of precision agronomy has emerged as the strongest force driving adoption. These individuals are shaping the purchasing behaviour of entire micro-ecosystems. Their approach is outcome-driven, not input-driven, and they demand much more than a product—they demand a farming solution.

Government interventions at both central and state levels continue to play a critical role, but what has shifted is the farmer’s own accountability. Farmers are considering themselves responsible for the result, not just the effort. This behavioural change has forced the industry to move beyond the historical paradigm of selling a product for a single stage of the crop cycle. The new expectation is integration—technology, advisory, products, diagnostics, and season-long protocols bundled into comprehensive farming programs. The guiding principle is clear: progress lies in moving from individual crop interventions to cohesive technology platforms and system-level solutions. Farmers are no longer buying fungicides or biostimulants; they are buying predictability.

Agtech tie-ups — drones, satellites, AI fertigation models — are everywhere. Are these actually lifting sales productivity and farmer retention, or still more branding than business?

Drone-led agriculture represents India’s aspiration for precision farming, but it is simultaneously a reminder of the economic realities that govern adoption. The technology is cutting-edge, and its potential to deliver targeted, precise, and environmentally responsible application is enormous. However, the actual impact today is significantly lower than its theoretical potential simply because affordability continues to be the decisive barrier. For drone spraying to achieve mass scale, cost curves must shift meaningfully.

UPL has invested heavily in mechanised precision spraying ahead of the drone wave, deploying more than 4,000 Falcon large-scale spraying machines across the country. These machines currently carry the load of precision application at scale because they are economically viable for a larger segment of the farming population. Drones, while powerful, remain aspirational for many growers. India is in a transitional period where machines like the Falcon fleet and drone technologies coexist, but as costs reduce, drones will begin to take over many of the tasks currently performed by ground rigs. The direction is clear: precision is inevitable. The pace will be set by affordability.

Dealers still influence ~70 per cent of purchase decisions. How are you modernising this legacy channel — credit, digital tools, data, loyalty — without diluting your direct-to-farmer strategy?

Digitalisation has fundamentally transformed the architecture of extension services. UPL’s progress with platforms such as Nurture.com is evidence of how quickly advisory ecosystems are evolving. Digital centres staffed with trained agronomists now operate as continuous engagement hubs, offering farmers season-long guidance rather than episodic, visit-based support. This is a structural departure from traditional extension models.

The impact on dealer dynamics has been profound. Dealers remain crucial for distribution, but their role as primary providers of agronomic information has diminished. Farmers increasingly rely on digital diagnostics, remote advisory, real-time pest alerts, and structured crop programs provided directly by the company. This has reduced information asymmetry dramatically. UPL’s orientation has shifted to solution-led engagement, emphasising science-driven, protocol-based farming instead of transactional product sales. The result is deeper trust, higher adoption of advanced inputs, and better compliance with complete crop programs.

Indian markets remain highly price-sensitive. How does UPL balance value creation with affordability across portfolio segments?

Price sensitivity is real, but it does not negate the demand for differentiated solutions. The core principle of portfolio management remains unchanged: value creation increases when products do more than the basics. UPL’s strategy is built on harmonising three distinct portfolios.

First is the differentiated chemical portfolio, designed not only to control disease and pests but also to influence abiotic stress parameters, giving the farmer a broader safety net in unpredictable climate conditions.

Second is the rapidly growing biological portfolio, especially relevant as farmers experience more heat stress, moisture stress, and soil fatigue. Biologicals have emerged as resilience enhancers rather than mere supplements.

Third is the utility portfolio, which continues to serve millions of small farmers who often begin with basic solutions and transition into more advanced offerings as benefits become visible.

These three portfolios work in tandem to create an escalator of adoption. Farmers enter through utility products, experience the incremental advantages offered by differentiated chemistries, and eventually integrate biologicals and advanced programs when they see measurable gains in resilience and output. The strategic goal is not to push products but to optimise the portfolio so that farmers can address biotic and abiotic challenges through integrated, affordable pathways.

By 2030, what does the winning Indian agri-input company look like — product powerhouse, full-stack agronomy platform, or climate-risk solutions provider? What capabilities must be built today to outpace global entrants?

India’s agricultural landscape by 2030 will be defined by industrialised crop systems, end-use aligned acreage, and tightly integrated value chains. Ethanol from corn and sugarcane represents the new frontier of industrial agriculture. The speed at which farmers have shifted to these crops demonstrates a market that responds quickly when downstream demand is clear and remunerative. When crops become industrialised—whether for ethanol, starch, feed, or specialised processing—the farmer’s profitability becomes structurally embedded.

Vision 2030 will be characterised by more organised crop flows, stronger linkages between processors and growers, and a far deeper integration of technology across the entire chain. Government responsiveness has been a major enabler of this transition, adapting policies rapidly around critical farmer needs—from crop diversification incentives to processing-linked procurement models. The next decade will cement India’s transition from a volume-based producer to a value-chain-driven agricultural economy.

— Suchetana Choudhury (suchetana.choudhuri@agrospectrumindia.com)

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