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Hariharan Subramanian

Challenges with technology adoption by Indian small farmers

Updated: Sep 26, 2022




Small farmers constitute a major segment of Indian agricultural sector. For many of them, agriculture has been a family traditional occupation and this is the only thing that they've know in their lifetime.


Not disputing the effectiveness of traditional knowledge and expertise, latest technology can greatly benefit this segment to address contemporary challenges in agriculture.


For a successful culmination of traditional agriculture practices and the latest technology, the first challenge is that the technology should make its head way into the mainstream agricultural practices, and this does seem like a challenge.


This article focuses on typical challenges in the adoption of latest technology among small farming segments in India.

 


Segment characteristics


Indian small & marginal farmers segment is typically defined as,




- Farmers with 1 to 5 acre of land. (ref-1)


- Average annual agricultural income of Rs.1,70,000 (ref-2)


- This segment is normally ready to adopt new methods and technologies if it really address their current day-to-day problems.


Why this segment?



- Constitutes about 85% of Indian farmers.


- Traditional Indian agriculture society should not only survive but thrive in this competitive world. Technology adoption by this segment, especially en masse, will help them be a part of agricultural growth and help avoid it becoming an option viable only for large scale farming giants.


- This in turn will help prevent mass urbanization.

 

We look at 5 major challenges for the technology adoption and a possible solution.

  1. Affordability

  2. Practicality

  3. Guarantee of returns

  4. Complexity

  5. Mindset

 

Challenge 1: Affordability


Affordability and there by the economic viability rules at the end of the day, and is a major hurdle for technology adoption among small small farmers.



A typical yardstick is a simple factor of a % of farmer's annual income they will be willing to spend on technology adoption.


With an annual income of about Rs. 1,00,000, any technology adoption of more than Rs 40,000 is a major risk for them.



 

Possible solution:


Affordability be a key part of the strategy while building the solution.


- Consider Economy-of-cost throughout entire solution building, all the way from solution research to final product.


- Economy-of-scale might seem to be a possible answer, but is a slippery slope. It can only complement, but never replace the need for cost awareness.



 


Challenge 2: Practicality


In order for a solution to be widely adopted, it should offer a meaningful and practical solution to a currently existing problem at the grass root level.


If the farming community cannot directly relate to the problem being addressed by a solution, the chances of adaptability decreases a lot.


For example, it is risky to assumes farmers have uninterrupted internet connectivity on the fields, which may not be the case always.





- Solution should address day-to-day ground level clearly visible challenges.



- Solution to be easily supportable. If not, it may just end up as replacing one challenge with another.


- Solution to be simple and require limited learning curve.




 

Possible solution:


A typical day in a farming community is filled with numerous challenges. They are simple and there by may overlooked overlooked easily.


For example, labor shortage is one such challenge. A solution will loose its viability if it assumes the availability of labors.



- Pick practical problems that is near and dear to the farming community.


- Applying 80-20 rule, address simple challenges with greater benefits for farmers.






 



Challenge 3: Guarantee of returns


It is not prudent to expects farming communities to invest without any guarantee on the returns will never take off. An anticipated returns may not cut-it for small farming segments.


What we need is guaranteed returns.



- Does technology adoption and the investments yield any guaranteed returns?



- Is the returns viable for small farmers community, or does it only cater to large farmers?





 

Possible solution:


Farmers do not buy the solutions offered, but buys the 'Guaranteed return on investment'.




- Analyze a solution from all aspects of for guaranteeing the returns. This may require extensive analysis far and beyond the problem space and definition.


- Analysis should be substantiated by relevant field tests & trials.




 

Challenge 4: Complexity


Solution needs to keep in mind the level of expertise needed to adopt and what it demands on the small farming communities. In other words, the solution needs to be simple to gain adoption.


- One should assume this segment to be technically non-savvy, and even a slight sense of complexity will impact adoption.


- A solution may solve a complex problem internally, but the farmers need not be burdened with those complexities.


- The solution should reach out to the farmers and not the other way around.




 

Possible solution:


Build the solution with simplicity in mind.


- Present a low touch adoption process so that farmers can use or fix issues without dependency.


- Package the solution so that all complexities are obfuscated


- If that is not possible, try mitigating by effective training & self guided steps.


 

Challenge 5: Mindset


It is hard to penetrate a mindset, and it is safe to assume farmers will have an affinity towards traditional approaches.


Small farmers segments normally has an affinity towards traditional farming practices. It is safe to assume that it would be hard to penetrate that mindset.




- Adopting changes is a challenge for any society. This may be much magnified when it comes to generational farmers.


- There is always stigma attached to technology adoption, either it is too complex or it is only for the large farmers.




 

Possible solution:


Take precautionary steps to break into the mindset barrier as soon a possible during solution adoption.



- Demonstrate a Visible value addition to overcome these biased mindset.


- It is critical that value is established during early stages of solution adoption.




 

To conclude, above factors play vital role in mass adoption of any Agritech solution by 'Indian small farmers', in spite of the technical superiority of the solution.


 


References


  1. https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=4190#:~:text='Small%20Farmer'%20means%20a%20farmer,2%20hectares%20(5%20acres).

  2. https://www.business-standard.com/article/current-affairs/farmers-average-income-grew-1-3-1-7x-between-fy18-and-fy22-says-sbi-study-122071700679_1.html







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