Changing Trends In Agricultural Sector With Introduction To AI

Agriculture has been the primary source of livelihood for over 55% of the country's population. This makes it the most important sector of the Indian economy. Of India's rural households, approximately 70% of them primarily depend on agriculture alone for their livelihood. India is the world's largest producer of rice, wheat, pulses, spices, and spice products, with the agriculture sector counting for 18% of the nation's GDP. Government reforms, as well as technology, especially AI, has improved the livelihood of the farming community.

Let's comprehend the Agricultural Sector

Over the years, the agricultural sector has also witnessed a scalable transformation due to various government reforms. There has also been active modernization of processes with the best interest of the farmers in mind. For example, the PM KUSUM scheme for farmers, launched in 2020 by the Ministry of New and Renewable Energy(MNRE) aiming to enable farmers to set up solar power generation capacity on their fallow/barren land and sell it to the grid to provide additional income to farmers.

Another initiative was the launch of the e-Nam portal, using which farmers can access all information through their mobile phones to reduce transaction costs. The trading platform intends to bridge information asymmetry and helps in expanding the market access for farmers so that they can get better prices on their produce.

Industry Transformation & Reasons for Change

In addition to the reforms undertaken by the government to improve the livelihood of the farming community, technology is also playing a crucial role in reshaping the future of the industry. In the wake of numerous technological developments in the agricultural industry, traditional methods are undergoing a massive transformation. There are three goals for agricultural metamorphosis in India -

• Achieving high growth by increasing productivity

• Inclusiveness by focusing on lagging regions, small farmers and women, and

• Practising sustainable agriculture.

Introduction of AI in Agriculture

Climate change poses a real threat to farmers which impacts food security around the world. With the advent of technologies like IoT, SaaS, Big Data and AI as a whole, farmers can sustainably increase their production and income without impacting the natural resources.

The overall objective of adopting smart agricultural practices is to realize greater self-sufficiency and bigger revenues by minimizing the risks of crop failures and increasing the general yield quality. AI is used for yield prediction and optimization. One of the approaches towards digital transformation is the implementation of the Internet of Things (IoT). IoT devices are sensor-equipped tools that are connected to the web. When combined with AI, such smart devices are often implemented to extend yields and productivity, while reducing crop failures.

The implementation of AI solutions has significantly transformed the agricultural sector for the better. Due, in part, to the growing conscientiousness of consumers, the importance of food traceability has come to light. Food traceability helps the consumers with the complete story of the growing, harvesting, as well as production cycle. It ensures food safety, prevents food fraud and also reduces product losses and recalls. In addition to traceability, the digitization of supply chains ensures that farmers continue to gain access to information, and the inputs they need to increase productivity and incomes.

The future outlook

Digitization and use of AI will lead to higher quality crop yield. It will look to increase the wealth of the farmers. They will be able to demand higher prices, have better visibility, and be more in control of their farm-to-sale experience. The implementation of AI in the agricultural sector is proving time and again to create a better world for the Indian farmer and the sector as a whole.

The author of the article is Jitesh Shah, Chief Revenue Officer, CropIn