Lok Sabha Question No. 5317 (UNSTARRED), answered on 2022-04-05
Subject: Agri-fintech Companies
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Manoj Kumar Tiwari

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION No. 5317

TO BE ANSWERED ON 05 th  APRIL, 2022

## AGRI-FINTECH COMPANIES

## 5317.    SHRI MANOJ TIWARI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एंव कसान कयाण मंी be pleased to state:

- (a) whether the Government has any proposal to promote Agri-fintech companies in the near future;
- (b)  if so, the details thereof;
- (c)  If not, the reasons therefor; and
- (d) whether any efforts have been made to introduce new technologies in the Agriculture sector?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष

एंव

कसान

कयाण

मंी

(SHRI NARENDRA SINGH TOMAR)

- (a) to (c): The  Department has constituted a  High  Level  Task  Force,  which  is  in  the process  of  finalizing  'India  Digital  Ecosystem  of  Agriculture  (IDEA)  report.  Task  Force invited comments from subject experts, farmers, Farmer Producer Organizations (FPOs) and general public and considered them. Based on this, the Department is in the process of  finalizing  a  framework  for  creating  Agristack  in  the  country,  which  will  serve  as  a foundation  to  build  innovative  agri-focused  solutions  leveraging  digital  technologies  to contribute effectively towards increasing the income of farmers and improve efficiency of the  Agriculture  sector  in  the  country.  Once  finalized,  this  can  serve  as  a  foundation  to build  innovative  agri-focused  solutions  leveraging  technologies  to  contribute  effectively towards  increasing  the  income  of  farmers  and  improve  farm  efficiency/efficiency  of  the Agriculture sector in the country.

In  this  regard,  leading  Technology/Agri-tech/Start-Ups  companies  were  identified and invited to collaborate with the Government of India and develop Proof of Concepts (PoC) based on data of select Districts/ Villages. A public call through the Department's website  was  issued  inviting  proposals  for  Memorandum  of  Understanding  (MoU). Companies were invited to sign MoU on purely pro bono basis and develop the PoCs. These PoCs will help in understanding the uses of Agristack and service & solutions that can be built using available data and some of them, if found beneficial to the farmers will be  scaled  up  at  National  level.  In  this  regard,  the  Government  has  signed  MoU  with leading  Technology/Agri-tech  Players  &  Start-ups  for  working  on  Proof  of  Concepts (PoCs) in the select Districts/Villages.

(d): Several initiatives have been taken to introduce new technologies in the Agriculture sector. A list of the same is attached at Annexure.

## Annexure

## Initiatives  undertaken  by  the  Government  to  introduce  new  technologies  in  the Agriculture sector:

Government encourages the use of technology and innovation in the agriculture sector in the  country  through  various  schemes  such  as  National  e-Governance  Plan  in Agriculture (NeGPA), Sub Mission on Agriculture Mechanization (SMAM), Rastriya Krishi Vikas Yojana (RKVY), Promotion of Agriculture Mechanisation for in-situ Management of Crop Residue, National Mission for Sustainable Agriculture (NMSA), Pradhan Mantri Krishi Sinchai  Yojana  (PMKSY),  PMFBY,  ATMA  Scheme,  Technology  Mission  on  Coconut (TMOC) etc. The details of the some of the activities for the use of technology under the various scheme is as under:

- i. The Department has constituted a high level Task Force, which is in the process of finalizing a report on India Digital Ecosystem of Agriculture (IDEA) which would lay down the architecture of Digital AgriStack with unique ID for farmers, and standards for interoperability between various data streams in the Agristack. This would open up possibilities for developing services and solutions.
- ii. To  promote  make  in  India  innovation  in  farming  technology,  the  Government promotes  startups  in  agriculture  sector.  To  nurture  agri-entrepreneurs  50  Agri Business  Incubators  have  been  established  in  different ICAR  Institutes  and Agricultural Universities. So far, a total of 1617 Start-ups including 818 by DARE/ ICAR  and  799  by  DA&FW  have  been  developed  so  far.  Hackathons  are  also organised involving Students/ Scientists/ Entrepreneurs and Innovators to encourage  development  of  agricultural  technologies  and  innovations.  As  part  of Make in India initiative, ICAR Institutes developed 117 new machines/ equipments during  last  7  years.  A  total  13,78,755  farm  machines  prototypes  have  been provided  to  farmers  during  2014-21.  The  cost  effective  and  energy  efficient improved equipment has resulted in saving of costly inputs (seeds, fertilizers, fuel, chemicals, water, electricity) up to 20-40% ensuring higher productivity and reduced losses.
- iii. The Government supports farmers for adopting farming related technologies under various  schemes.  Most  of  the  schemes  are  implemented  through  the  respective Sate Governments. The total funds allocated for 18 major Agricultural Technology related  schemes  during  2020-21  were  11329.31  crores  and  the  expenditure  was 10758.30 crores.
- iv. For  promoting  new  technologies  under  National  e-Governance  plan,  Government provided funding support to the tune of Rs. 30 crores to the States during 2020-21 and 2021-22.
- v. The technology in use include high yielding, stress tolerant, nutrient fortified and/or processable  varieties  of  field  and  horticultural  crops,  improved  breeding,  feeding and health management technologies in livestock, poultry and fisheries sector. At present, a total of 1330 field crop varieties are indented by States and total of 1.15 lakh quintals of breeder seeds is produced and supplied every year. Micro irrigation has been adopted by the farming community of the country on a large scale and a total  of  12.5  million  ha  has  been  brought  under  micro  irrigation  in  the  country  till date. Government provides subsidy for the adoption of new varieties/ technologies under various schemes. The amount of subsidy varies from Scheme to Scheme. In the scheme for Promotion of Agricultural Mechanization for in-situ Management of Crop  Residue,  a  subsidy  of  50%  was  given  to  the  individuals  and  80%  for community purchase of related farm machinery. Subsidy for the establishment of sprinkler  system  is  75%  and  that  for  construction  of  polyhouse  through  State Governments is 50%. For construction of plastic lined pond, Government gives 50% subsidy.
- vi. Krishi Vigyan Kendras (KVKs) and Agricultural Technological Management Agency (ATMA)  at  district  level  undertake  training,  demonstrations,  exhibitions  and  skill development programs etc. provide information to the farmers, farm women, and rural  youth.  During  2014-2021,  91.43  crores  advisories  were  provided  to  the farmers  by  KVK's,  a  total  of  100.05  lakhs  farmer  and  9.50  lakhs  extension personnel were trained by KVKs. Besides 2.44 lakhs on farm trials of new improved technologies  were  conducted  at  farmers'  field  by  KVKs.  A  total  34.06  lakh technology demonstrations were also organized by Agricultural Technology Management Agency (ATMA) during the last 7 years. State Agricultural Universities (SAUs)  and  ICAR  Institutes  are  also  involved  in  the  transfer  of  new  technology. Mass media and ICT based tools like mobile SMS, Videos, Mobile Apps etc. are also used to provide information to farmers on large scale. Kisan Call Centre, Agriclinics and Agribusiness  management  centers,  DD  Kisan  channel, M-kisan, Farmers  portal established by the Government  also  disseminate the latest information to the farmers.
- vii. Government  is  actively  encouraging  and  promoting  various  innovations  in  the Agriculture sector through different schemes/programs  like digital agriculture mission, Kisan Drones, E-NAM, Agri-startups, mechanization, solar pumps, microirrigation, bio-fortification etc. The input efficient technology like use of laser guided land  leveler  for  increasing  water  use  efficiency,  roto-till-drill  and  zero  till  drill  for sowing  wheat  under  no  tillage  conditions,  Broad-  bed-furrow  seeder  for  farming broad bed and seeding on bed, ridge-furrow seeder for sowing soybean on ridges etc.  have  increased  farmers  efficiency  and  income.  To  encourage  sustainable development and reducing input costs, natural farming is promoted in the country through Research Institutes, Agricultural Universities and Krishi Vigyan Kendras.
- viii. Sub  Mission  on  Agricultural  Mechanization  (SMAM)  is  being  implemented  w.e.f April,2014  through  States/UTS  Governments.  The  scheme  aims   at  'reaching  the unreached' by bringing to the  small and marginal farmers  in the core and giving the  benefits  of  farm  mechanization,  by  Promoting  'Custom  Hiring  Centers'  , creating  hubs  for  hi-tech  &  high  value  farm  equipments,  distribution  of  various agricultural equipments, creating awareness among stakeholders through demonstration  and  capacity  building  activities,  and  ensuring  performance  testing and certification at designated testing centers located all over the country.
- ix. A special Scheme to support the efforts of the Governments of Haryana, Punjab, Uttar Pradesh and the NCT of Delhi to address air pollution due to stubble burning and to subsidize machinery for the farmers for in-situ management of crop residue, a new Central Sector Scheme on 'Promotion of Agricultural Mechanization for InSitu Management of Crop Residue in the States of Punjab, Haryana, Uttar Pradesh and NCT of Delhi (CRM) has been introduced wef 2018-19.
- x. The  Coconut  Development  Board  implements  'Technology  Mission  on  Coconut' (TMOC) from the year 2001-02, which envisages development of technologies for management of insect pests and disease affected gardens, product diversification and  market  promotion,  its  demonstration  and  promotion  for  adoption,  in  coconut sector, excluding coir. The Board also implements a scheme  'Technology Demonstration & Quality Testing laboratory' under which CDB  Institute of Technology  (CIT)  involves  in  product  development,  quality  testing  and  imparting trainings on various coconut based products.
- xi. Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)/Restructured  Weather  Based  Crop Insurance  Scheme  (RWBCIS):  -  The  scheme  was  introduced  in  the  country  for implementation  from  2016-17.    The  scheme  is  a  multi-stakeholder  in  terms  of implementation. Proper implementation and management of the Scheme requires innovative technology interventions, adoption of IT based new monitoring methods, extensive specially to facilitate the States to do regular evaluation. To bring more transparency use of technology including Remote Sensing Technology, Smartphones, Drones, crop insurance apps for reporting estimation of crop losses to ensure early settlement of claims has also been utilized in implementation of the scheme.    There  is  a  centralized  web-based  integrated  digital  platform  namely National  Crop  Insurance  Portal  (NCIP)  used  to  speed  up  service  delivery,  unify fragmented databases, achieve a single view of data, eliminate manual processes and subsequently provide faster insurance services to farmers. For better transparency  of  yield  calculation  process,  CCE  Agri  app  has  been  developed  to make the entire process paperless and real-time. All data captured through the app is time-stamped and geo-tagged.

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