Connecting farms to folks: Linking agri-tech to FPOs can create worth

Their success is determined by getting farmers to provide these to their specs!

By T Nanda Kumar

Covid-19 has reworked the market. My grocer of three a long time, in my small hometown, operates through a smartphone and says ‘you may order on WhatsApp’. He residence delivers stuff and collects funds via any United Funds Interface (thank RBI) choice. He accepts money, like earlier than, however prefers digital transactions.

A farmers’ group close to Bangalore gives grapes, guavas and mangoes for residence supply ‘direct from the farm’. Recent high quality produce, paid for digitally and delivered on the doorstep. It isn’t the large guys, however the farmers and small merchants who’re altering the market. Welcome to the brand new ‘Phygital’: Digital finance & commerce, bodily supply: ‘WhatsApp’ for small teams, ERP for Amul or Large Basket! Every in their very own area out there.

The central authorities just lately initiated vital reforms within the agri-market ecosystem with three new legal guidelines, simply understood as EC Act modification, ‘mandi bypass regulation’ and the contract farming Act. These legal guidelines have given freedom to the farmers to promote their produce wherever within the nation. However what use is such freedom if they don’t seem to be technologically and financially empowered to get a greater worth? In fact, there are new initiatives in infrastructure funding, forming farmers’ collectives and ease of doing enterprise. However, can farmers use this chance for his or her prosperity?

Commerce goes digital, so are funds! Small merchants are utilizing digital platforms, and farmers’ teams are studying to entry markets utilizing digital applied sciences. Covid-19 has introduced irreversible adjustments in the way in which meals markets function. Smartphones have turn into an necessary instrument for sellers and consumers throughout India. Small merchants and farmers have mastered the usage of numerous ‘apps’, which offer worth to them. Farmers’ teams have made valiant efforts to attach with shoppers throughout lockdowns. The variety of such teams and the volumes had been small, however the effort have generated confidence.

The ‘meals’ market is witnessing attention-grabbing adjustments too. The shift from trendy, high-sugar, high-salt processed meals to conventional, home-made, secure, wholesome, and wellness meals is clearly seen; this accords a brand new alternative for farmers to seize increased worth.

Since extra meals is getting cooked at residence, higher ‘high quality’ recent, frozen and processed elements have turn into a necessity. ‘Selfmade’ has led to ‘premiumisation’ of agri-produce and meals elements. ‘Protected’ meals has all the time been a precedence on the prime finish of the worth chain. It has acquired wider help now from the center and lower-income consumers. ‘Protected’ shouldn’t be restricted to FSSAI requirements: it has perceptive variations throughout market segments. Protected will be perceived as part of a big high quality system or seen as pesticide or antibiotic-free, or as high quality on the retail level. Given the brand new shopper worries on meals security, we’d see much less of ‘moist’ markets for poultry and fish, extra of pasteurised milk and extra of chilly chain stores.

‘Wholesome’ has many layers, however the traits level to a return to conventional meals with extra fibre, pure anti-oxidants, nutritional vitamins et al. ‘Wellness’ is an attention-grabbing new section which is prone to develop quick. The just about instant recognition of ‘haldi doodh’ ( ‘turmeric latte’ for the city elite) and elevated emphasis on spices like ginger, garlic, pepper, basil and many others, is an thrilling dimension. Spices Board had tried to advertise these within the 1990’s as ‘grandma’s treatments’ (nutraceuticals) with restricted success. Three a long time later, this has turn into the pattern!

The market is indicating that it’s prepared to pay increased for ‘higher high quality’ and for ‘direct from farm’ produce! An city area of interest market at this stage, however nonetheless a giant alternative. Massive meals corporations have picked up the traits already, and new merchandise are getting launched. A reference to Ayurveda is the icing on the cake. Their success is determined by getting farmers to provide these to their specs!

Farmers shouldn’t let go of this chance and will join with the brand new high-value section, change manufacturing processes to fulfill the specs and command the next worth.

That is the time for farmers to collectivise and make use of digital platforms to promote direct to shoppers (changing markets like ‘rythu bazaar’ and savvy ‘uzhavar santhe’ to ‘phygital’ is an choice) or to attach with the brand new ag-tech corporations or hyperlink up with giant chains. The hot button is the aggregation of the proper with digital connect with the market. Am I saying ‘eNam’? Not essentially.

The traits out there open up a worthwhile area for Farmer Producer Organisations of ‘measurement’ (emphasis mine) who perceive the market and tailor their operations (Kurien’s well-known phrases: no Bombay market, no Anand!), and never stay sellers of extra produce! There are over 7,000 FPOs registered at current, and plans are so as to add 10,000 extra. Massive numbers with low turnover won’t make any dent out there, nor will it seize sufficient worth. Most of those are ‘produce aggregators’ looking for a market; not market savvy producers catering to high-value demand. FPOs should study to turn into huge in a single commodity (success tales in milk, grapes, bananas) and/or stay ‘targeted’ in the marketplace for city shoppers. One of the best ways ahead for FPOs is to attach with the ag-tech start-ups: there are about 400 of them, principally within the post-harvest, aggregation & distribution area! Connecting with enter corporations will even assist them change processes and get tailored options.

Undoubtedly the market is altering, creating new alternatives for farmers to extend their share of worth. A technique primarily based on demand to extend incomes of farmers requires a cautious understanding of the totally different layers of the market. It isn’t concerning the variety of FPOs, it’s about taking a justifiable share of the amount and worth out there. Keep in mind, Anand succeeded as a result of they took the Bombay market, however ‘completely butterly’ Amul regarded past Mumbai.

Authorities has created an enabling atmosphere, farmers’ collectives and Ag-tech start-ups should create worthwhile partnerships. There’s a market past APMCs.

The creator is Former secretary, meals & agriculture, Authorities of India & former chairman, NDDB

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