Amid the gloom comes the good news that Indian agriculture has started attracting foreign investments that will help agri start-ups

A good half year has passed by in a blink of an eye and there is no better time to reflect on the past and assess the future possibilities for the Indian agriculture than this. The past few years have been distressful for Indian farmers with dwindling farm incomes, lack of rainfall or consistent drought-like situations and the resultant financial debts — all of which have posed considerable difficulty to the farming community. There were uncertainties around the elections but now that all doubts have been put to rest, it is time for the new Government to set the course right.

Developing agri start-ups for better use of crops amid all the gloom, one good news is that the Indian agriculture has started attracting foreign investments — agri-focussed accelerator and investor, Pioneering Ventures, has launched its ‘Rural India Impact Fund’, a private equity fund with a targetted corpus of $70 million to provide growth capital exclusively to the companies it has backed so far.

This is one among a series of venture capitalists flocking to Indian agriculture, a trend that can give tremendous boost to the shaky supply chain management and credit facility to the farmers. In fact, the farm-to-fork concept, that comprises a growing number of start-ups in the domain, will receive further fillip and in turn, our farmers will get a more reliable channel to mobilise their produce.

With a new Government at the helm, which received a huge mandate, we are likely to see more incubation happening for developmental and early-stage start-ups even as mid-stage start-ups are likely to receive more funding. The Government must focus on supporting infrastructural needs of the farmers in each State and address key issues such as requirement for loans, availability of growth capital, taxation on angel investment and applicability to mainstream the many schemes, among other things.

Tackling climate change and fulfilling irrigation demands are real issues that must be tackled. In many parts of India, this rapidly aggravating phenomenon has left hundreds of acres of arable land dry and barren. Drought and drought-like conditions have forced several farmers in western and central parts of the country to take adverse steps. Those who are alive are forced to watch standing crops being adversely impacted.

Changes in climate are a significant trend to watch out for this year. An effective climate risk mitigation strategy, comprising better water management, holds the key. Measures include improving irrigation penetration and opting for drip and micro irrigation as well as investing in more serious research to develop crop variants that are resistant to rising temperatures and drought.

Effective climate mitigation is an effort to encourage the adoption of climate change measures and ensure countless benefits to the farming and trading fraternity. The Government is rolling out curated solutions for early warning systems, which are expected to play a vital role in evaluating and reducing the risks of erratic climate changes.

However, farmers may need some help with expertise in water management and optimum utilisation of available water resources that should aim at reducing consumption of groundwater for farming. The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) provides for innovative solutions. But water management and conservation initiatives, such as watershed management and drip irrigation, play an important role in solving the water problem to a large extent. Storing rainwater, also known as rainwater harvesting, can become a reliable source of water.

Government agencies monitoring water usage to maintain national and international standards should empower the farming fraternity by providing the right kind of support to build the right kind of infrastructure. Besides, providing loan waivers and incentives to the farmers, who use water judiciously, should add an extra plus.

Schemes like PMKSY are a great move to bring in more area under irrigated agriculture: In 2017, nearly Rs 1,484 crore was sanctioned under the scheme, which aimed to cover 39 lakh ha of land. The micro irrigation scheme under the PMKSY has added six lakh ha in the current year. This trend needs to be continued as schemes like these are beneficial for small and marginal farmers and in geographies where limited water sources are available.

Apart from these, expansion of agri-insurance coverage, effective claim management, controlling distress sale and the oversupply of agricultural commodities during the peak season and mitigating the agricultural losses in the near future are some of the concerns that the Government needs to address on an urgent basis to enable Indian agriculture flourish.

(The writer is MD of an insecticides company)