Information and Communication Technologies (ICTs) in Agriculture Indian Private Sector Perspective

Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

India Brief profile

GDP PPP USD 2.3 trillion GDP Exchange rate USD 475 billion Per capita GDP PPP USD 2,200 Exchange rate USD 475

Economy

25%

13 largest overall consumption centers

Services

24% 51%

Industry

Agriculture

Size and Structure of the Indian Economy

180 160 140 120 100 80 1993-94 2001-02 Index value (base 1993-94=100)

The economy has grown at a CAGR of 6.15% pa during the depicted period and is worth USD 475 billions
USD billions

475

295
community,social & personal services financing,insurance,real estate & business services transport,storage & communication trade, hotels & restaurant construction Elect. gas & water supply Manufacturing Mining and Quarrying Agriculture

100%
12% 12% 7% 13% 5% 2% 16% 3% 15% 5% 3% 17% 2% 31% 24% 14% 13% 8%

1993-94

2001-02

At current prices

Data Source: CSO

0%

The share of agriculture has dropped from 31% to 24%

4

1993-94

2000-01

Agriculture is the slowest growing sector in the economy

Agriculture

2.6%

Growth Rates
4.7%

Mining and Quarrying

TOTAL GDP

6.2%

construction

6.4%

Elect. gas & water supply

7.0%

Manufacturing

7.3%

financing,insurance,real estate & business services community,social & personal services

7.6%

8.1%

trade, hotels & restaurant

8.4%

transport,storage & communication

8.8%

Period: 1993-94 to 200-01

Data Source: CSO

Price is a key driver of demand

180 170 160 150 140 130 120 110 100 90 1993-94 2000-01

WPI of Food Articles WPI of All commodities WPI of Primary Articles WPI of Non food Articles WPI of Manufactured products

source RBI

The fast growing segments have lower inflation. Food articles have seen the highest inflation rates
6

Within agriculture sector also, Price is a key driver of demand

180 170 160 150 140 130 120 110 100 90 1993-94 1999-00

WPI - Food Articles WPI - All commodities WPI - Foodgrains WPI - Fruits & Vegetables WPI - Milk WPI - Eggs, fish and meat WPI - Oilseeds WPI - Edible Oils

Sectors that have seen lower inflation have grown faster Milk, broiler meat, etc. Foodgrains have seen slowest growth.

Price is not the only factor. Changing consumption pattern is also a major factor
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Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

Agriculture Extension
The three key arms of the agricultural extension network are Public Extension Services State Government, line departments operated extension State Agriculture Universities based Extension ICAR Extension, Agriculture Technology Information Centre (ATIC), Institute Village Linkage Programme (IVLP Private Extension Services Community Based Organization, Para Extension Workers, Input Suppliers/ Dealers, Corporate Sector Mass Media & Information Technology Print Media Vernacular Press Radio, Television, Private Cable Channels- Satellite Communication Electronic Connectivity through Computers, NICNET, Internet, V-SAT etc Farmer Information Advisory Centres (FIAC) Public & Private Information Shops
9

Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

10

NEEDS OF THE TARGET COMMUNITY

The services provided to the farmers must encompass all his needs (many of the needs are interdependent and if only some are being met, there will be no takers since complementary needs must also be met)

The Circle of Fulfillment

Insurance

----

Knowledge Knowledge

Credit Facilitation Credit Facilitation

Total Solutions to the Farmer Enhanced Incomes

Information

Input Facilitation Input Facilitation

Output Facilitation

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Knowledge and Information needs

1. Farmers need to know What to grow? When to grow? How to grow more? How to store & preserve? When to sell? Where to sell? What price to sell at? Farmers who understand market trends and market opportunities have a better chance of succeeding than those who do not

IASL Survey in UT, UP and MS

12

Information needs
2. Government policy and notices regarding agriculture 3. Usage of fertilizer for higher productivity. 4. Crop Diseases, preventive measures and in case of disease curative measures. 5. Irrigation details like means, timing, quantum. Information on water conservation through advanced irrigation technology like Drip etc 6. HYV seeds: exact know how on usage in terms of selection, quantity sown per hectare. 7. Education on what needs to be done at the pre-harvest stage and post harvest stage to ensure productivity and quality with minimum losses.

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Information needs

8. Advice on crop rotation to maintain soil quality so that the crop productivity could be increased and not negatively impacted as has happened in case of sugarcane in many parts of the country. 9. Advice on fruits and vegetables because these are perishable in nature but provide good opportunities for profit due to a great demand in domestic as well as world markets. 10.Advice on the Vegetable crops to be sown, timing of sowing, varieties to be used, areas for growing particular crops, irrigation requirements, preventive measures from diseases, which pesticide should be used, pesticide usage, storage facilities available, measures to be adopted for increased keeping quality during storage.

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Some Latent Needs not articulated Lack of knowledge about a basic input like water: 1/3 of India every year goes through a situation like drought. There is lack of knowledge regarding low cost water harvesting/ recharging techniques, low cost conveyance, low cost storage, filtration and judicious use of scarce water resources on the farm using low cost technologies

15

Some Latent Needs not articulated Lack of knowledge of seed varieties, plants. There are many plants species /herbs which can fetch high income for small holders. Similarly there are improved seeds and varieties of commercial crops which small farmers are not aware of and if there is some awareness there is lack of knowledge about the availability of the same at the right time and place

16

Some Latent Needs not articulated Lack of knowledge of Appropriate Technologies: There are many agencies working in the field of appropriate rural technologies/ products, which can be very useful for small and marginal farmers. Appropriate and affordable inputs in their production system can raise their income. But most of the farmers are not aware of it. Also there is lack of availability of some of the technologies in the market

17

Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

18

ICT VALUE PROMISE

Expertise, excellence and knowledge that exist in pockets across the country and overseas

Farm Extension ICT enablers

Rural connectivity and allied infrastructure services providers Transaction based initiatives such as those of ITC, Tata Kisan Kendras, NDDB, EID Parry, etc. Pure Information services providers such as ikisan, commodity India, agriwatch, indiaagronet, etc Knowledge networks and knowledge banks such as Honey Bee, Harit Gyan, Indian Society of AgriBusiness professionals, etc Entrepreneurs operating as partners in the form of kiosk owners, franchisees, in the districts and talukas Issues coming in

The farming community scattered throughout the country

Solutions/ experiences going out

19

ICT VALUE PROMISE

University and research institutions knowledge bank University and farmers past interactions Individual Experts involved in specific areas Corporate knowledge and farmers FAQ Other sources of best practices Market intelligence service providers Print and broadcast content providers Digitized sources of best practices and market intelligence
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Govt. Extension service providers Searchable and intelligent query based database Cooperatives Private Sector extension service providers NGOs Rural internet Kiosk operators Others FARMING COMMUNITY Large, small and marginal

Digitization and other ICT media friendly forms

Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

21

ICT Initiatives in Agriculture

Type of Initiative Initiatives studied Key features

1. Rural connectivity and allied services 2. Private and cooperative sector transaction related initiatives 3. Information services

Drishtee, N-Logue

Technology back-end, services in collaboration with other categories Market place, procurement ERP, Knowledge dissemination and training

ITC e-chaupal, EID Parrys corners, NDDB, Tata Kisan Kendra, Mahindra Shubhlabh Services Agriwatch, DMI, commodityindia, Oilmandi. Eagritrader, Samaikya Gyandoot, Warna wired village, Tarahaat, Village Information Kiosks ISAP, Harit Gyan,, Honeybee Network, GAU Satellite Krishi Gosthi, Information village research project

Dynamic data such as prices, commodity trends, weather, etc. Agriculture, rural health, education, e-governance, etc. Problem solving, expert services, advisory services, technical information services

4. Multiple rural services

5. Knowledge networks and knowledge banks

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THE OTHER ENTITY - ENTREPRENEURS

Nearly all the initiatives reach the last mile through a local entrepreneur, who invests in, runs and manages the dissemination centers/ kiosks Typical profile Graduate and above, with good understanding of local issues and needs Typical Starting Investment Rs 70,000/- to Rs 200,000/- depending on type of project Typical monthly revenue requirements to be sustainable Rs 15,000/- to Rs 50,000/- depending on type of project Typical services Agricultural knowledge Agricultural Information E-governance Education content and delivery Transactions buying and selling

23

Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

24

THE ICT INITIATIVES IN PLACE

Harit Gyan Drishtee 200+ kiosks in Haryana, UP, MP and Bihar Two centers in Meerut and Barabanki

N-Logue Mainly in TN, AP, MP, Maharashtra

EID Parry Mainly in Cuddalore Dist TN

contd.
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D rish te e .c o m
Typ e o f o rg a n iza tio n Inve stm e nts m a d e so fa r Se rvic e s o ffe re d Priva te Ltd . A sta n d -a lo n e sta rt-up p ro je c t Estim a te d to b e a b o u t U SD 2 50 ,0 0 0 e -g o v e rn a n c e se rvic e s (g o ve rn m e nt to c itize n ), rura l e xte n sio n (a g ric u lture , h e a lth), se rvic e s (e d uc a tio n , jo b ty p in g , e -m a il, e tc .). O the r lo c a tio n sp e c ific info rm a tio n / c o m m u n ic a tio n se rvic e s D istric t a nd b lo c k le ve ls. Sta te d o b je c tive c o nn e c t Ind ia villa g e b y villa g e Th ro u g h kio sks se t up b y ind ivid ua l e ntre p re n e urs G e n e ra l p o p u la tio n in villa g e s. This in c lu d e s fa rm e rs a n d o th e r e c o n o m ic c la sse s Se rvic e c h a rg e s (tra n sa c tio n fe e ) Th is p ro je c t o rig in a lly sta rte d w ith a n e -g o ve rna n c e so ftw a re a n d se rvic e d e live ry m o d e l. W ith tim e it ha s e vo lve d in to a c o m p le te p a c ka g e fo r rura l e n tre p re n e u rs. It h a s d isc o ve re d th a t the ru ra l e n tre p re n e u r n e e d s to h a v e a b a sk e t o f se rvic e s in o rd e r to b e fin a n c ia lly su sta in a b le a n d is he n c e e xp lo ring a ll a re a s o f c o -o p e ra tio n w ith va rio us p a rtn e rs. Th e se rvic e s b e in g o ffe re d a t D rish ti kio sks va ry fro m e g o ve rna n c e to a g ri- in fo rm a tio n to d a ta p ro c e ssin g to c a b le TV

Fo c u s La st m ile c o nn e c tivity U se rs Re v e n u e M o d e l Re m a rks

26

n-Log ue
Type o f org anization Investm ents m a de so far Servic es offered Priva te Ltd. A sta nd-a lone sta rt-up p rojec t venture ca p ita l funded Estim ated to be ab out U SD 1,000,000 e-governance services (go vernm ent to citizen), rural extension (agriculture, health), servic es (ed ucation , job typing, e-m ail, etc.). O ther lo cation spe cific inform ation/ com m unication services Provid e lo w er cost and w ireless te chnolog y to bridge the digital divide . District and bloc k le vels. Stated objective connect India outside the top 150 cities Through kiosks set up by individual entrepreneurs. C entral hubs to support a bunch of kiosks G eneral pop ulation in villages. This in cludes farm ers and other econo m ic classes Servic e charges, specific services ha ve spe cific charges O riginally, they planned to be technology provid ers only. The w ireless techn ology w as pro m ising for rural India w h ere landline p enetration is very low . The initial projects w ith EID Parry and W arna w ired village w ere projects w here n-logue d id not do anything other than pro vide techn ology.

Focus

Last m ile conn ectivity Users Revenue M odel Rem arks

27

H a rit G y a n
T y p e o f o rg a n iz a tio n In v e s tm e n ts m a d e s o fa r S e rv ic e s o ffe re d Foc us P riv a t e . P a rt o f J a ip ra k a s h In d u s t rie s w h ic h is in t o c e m e n t , H o t e ls , p o w e r a n d IT e n a b le d s e rv ic e s E s tim a te d to b e a b o u t U S D 5 0 0 ,0 0 0 A g ric u ltu re k n o w le d g e s e r v ic e s ( F A Q d a ta b a s e ) w ith s p e c ific fo c u s o n c ro p s a n d s o ils in P u n ja b , H a ry a n a a n d U P F o c u s o n fa rm e rs w ith in te rfa c e s d e s ig n e d to b e u s e r frie n d ly to s e m i- lite ra te s . U s e s v o ic e o v e rs a n d g ra p h ic a l c u e s . Its e s s e n tia lly o ff- lin e w ith p e rio d ic u p d a te s T h ro u g h th e d is trib u tio n c h a in o f a g ri- in p u t c o m p a n ie s . C u rre n tly w ith R a s h triy a F e rtiliz e r C o rp o ra tio n in B a ra b a n k i a n d M e e ru t F a rm e r c u s to m e rs o f k io s k o w n e rs F ra n c h is e e p a y s to H a rit G y a n a n a n n u a l fe e fo r th e c o n te n t T h is p ro je c t s ta rte d w ith a n a m b itio u s p la n o f p ro v id in g k n o w le d g e to fa rm e rs . H o w e v e r, it s o o n d is c o v e re d th a t w h e re a s k n o w le d g e w a s w e lc o m e it d id n o t c o m m a n d a p ric e a s a s ta n d - a lo n e . F a rm e rs a re w illin g to p a y a p re m iu m o n in p u ts if b u n d le d w ith s e rv ic e s s u c h a s k n o w le d g e a n d a d v ic e , b u t fo r a p u re k n o w le d g e s e rv ic e ( a s a s ta n d a lo n e ) th e re w a s a re a l re lu c ta n c e to p a y .

L a s t m ile c o n n e c tiv ity

U s e rs Revenue M odel R e m a rk s

28

Parrys Corners
Type of organization Investments made so far Services offered Focus Privat e. Part of Murugappa Group which is into sugar and confectionaries Estimated to be about US D 1,000,000. agri extension, services (education, job typing, e-mail, etc.). Factory ERP which allows farmers to look at their accounts with the factory Focuses on the factory catchment area. Attempts to give kiosk owners a variety of rural service offerings so as to make the kiosks sustainable Through kiosks set up by individual entrepreneurs. Central hubs to support a bunch of kiosks Farmers transacting with EID sugar factory None at present. Plan to implement service charges for a few services EID Parrys project is limited geographically to the area from which its sugar factories buy. The factory ERP, will over time, shift to these kiosks. The commitment to the project is high and the farmers will benefit. The benefits are in terms of a transparent accounting and factory information system, additional knowledge in terms of cropping patterns and crop planning and other relevant services. This is a network that can be tapped to provide extension services, since it is long term and stable (very small proportion of E ID Parrys costs. However, it will remain geographically limited

Last mile connectivity Users Revenue Model Remarks

29

THE ICT INITIATIVES IN PLACE

Manage Kiosks Tata Kisan Kendra UP, Punjab and Haryana Plan to have 800 franchisees by the end of this year Ranga Reddy District, AP

iKisan 30 kiosks in AP, 8 in TN

Samaikya Agrotech 18 kiosks Information Village Project Pondicherry

contd.
30

Tata Kisa n Ke nd ra
Typ e o f org a niza tio n Inve stm e nts m a d e so fa r Se rvic e s o ffe red Priva te . Pa rt o f Ta ta C he m ic a ls. Estim a te d to b e a b out U SD 1,000,000 p lus O ffe rs a c om p le te fa rm ers se rvic e c ente r eq uip p e d w ith tra ining a nd e xtensio n fa c ilitie s. Ha s lib ra rie s o f e xte nsio n m a teria l (d ig ita l a n d o th erw ise ), Tie -u p s w ith U niversity p e rso nnel for p rog ra m s O n a g ri-know led ge and e xtension w ith sp e cific fo c us on long term inc rea se o f sa les o f Ta ta G ro u p p rod u cts fertilizers, p e stic id es, e tc . G eo g ra p hica l fo cus U P, Punja b , Ha rya na Physica l in fra structure a c ts a s Ta ta K isa n K e nd ra s. Further d issem ina tio n thro ug h fra nchise e ne tw ork (te nd to b e exclusive d ea lers of Ta ta G roup p ro d u cts) Fa rm ers a nd fa rm er g roup s N one a t p resent. The ke y p urp ose is to p ro m o te usa g e of Ta ta Pro d uc ts o ver th e long term The b a sic ob je ctiv e here is to d e velo p fa rm ing p ra c tic es in ord er to inc rea se p ro d uctivity a nd w ea lth. By b e ing the p rim e m o ver, the Ta ta G roup e xp e cts to g e ne ra te b ra nd eq uity a nd g o od w ill a nd tha t should tra nsla te into hig h e r m a rke t sha re s fo r the va ried p ro d u cts tha t the Ta ta G roup ha s to o ffer.

Fo cus

La st m ile co nn ec tivity

U se rs Rev enue M o d e l Rem a rks

31

Ikisan.com
Type of organization Investm ents made so far Services offered Private. Part of Nagarjuna Fertilizer Corporation Ltd. Estim ated to be about USD 500,000 Crop practices related databases knowledge bank. In addition, also provides dynam ic data to farmers such as weather, trade inform ation, etc. On agri-knowledge and extension. Is tying up with various extension agencies Through the distribution chain of NFCL. Currently 30 dissem ination centers in AP and 12 in TN Farm ers and farm er groups Service charges, specific services have specific access charges The initial reach has been achieved through the distribution network of Nagarjuna Fertilizers and Chemicals Ltd., the parent group. They have started a mem bership drive to try and stim ulate revenue generation. However, revenue generation rem ains low and it is increasingly clear that the project is unlikely to m ake enough m oney to cover the investm ents.

Focus Last mile connectivity Users Revenue M odel Rem arks

32

Village Information Kiosks

MANAGE KIOSKS Type of organization Investments made so far Services offered Manage is a govt. organization involved in agricult ure extension related training. Rs 1.1 million Kiosks offer comput er training, net surfing and e-mail. It also serves as the facility for computerized accounting of the micro credit banks (where the kiosk is housed) On trying to work with SHGs in rural areas and evolve a sustainable kiosk model Physical infrastructure connected by dial-up internet General population in villages. Specific womens SHGs Service charges This is a very small experiment al project. Manage has set up these kiosks at very low cost (using shared premises) to test out the viability. Whereas the response and usage has been good, the ability to pay for the services (for the village personnel) makes it unviable in the short term. Manages conclusions are that it will require support for a considerable period and several services need to be added in order to make them viable.

Focus Last mile connectivity Users Revenue Model Remarks

33

Information Village Research Project

Type of organization Investments made so far Services offered Set up as a demonstration project by the MS Swaminathan Foundation. Completely funded by grants Estimated to be about USD 1,000,000. agri extension services, health and education services, information services (weather, prices, etc.), knowledge network to assimilate and develop local knowledge Local knowledge and knowledge sharing, relevant information dissemination, knowledge dissemination tools development Through kiosks set up by individual entrepreneurs. General population in villages, specific womens SHGs Service charges for a few specific services. Mostly survives on grants This is an experimental project funded through grants. MS Swaminathan foundation tends to carry out time bound projects which are funded by grants. Many projects may be executed simultaneously with synergies between them. The Information village project by itself will continue to get support for a reasonable period and already several agriculture extension related issues are part of it. However, this will not be scaled up by the foundation. A government or a private initiative will have to study the project in detail and try and replicate it in other areas
34

Focus Last mile connectivity Users Revenue Model Remarks

THE ICT INITIATIVES IN PLACE

Tarahaat Indian Society of Agribusiness Professionals On-line network with offices in Delhi, Pune and Bangalore Bundelkhand and Bhatinda

ITC e-chaupals MP (Soy and wheat) 1200 chaupals Karnataka (Coffee) 100 chaupals AP (Shrimps) 70 chaupals UP (Wheat + Rice) 250 chaupals Total 1500 chaupals catering to 10,000 villages and 1000,000 farmers

contd.
35

Tarahaat
Type of organization Investments made so far Services offered Focus Last mile connectivity Users Revenue Model Remarks Private. Promoted by Development Alternatives, an NGO. Estimated to be about USD 500,000 plus Currently offers IT education services in rural India. Plans to offer all possible rural services including agriculture extension IT education basic IT education and computer lieracy in the villages. Current area of focus Bundelkhand and Bhatinda Through kiosks set up by individual entrepreneurs) General population in villages Service charges, specific services have specific charges This initiative is active only in areas where the original promoters, Development Alternatives, were active. It is focusing on IT education (basic computer training) which is not likely to be a high income generator for its franchisees. It is tight-lipped about its other programs and plans. However, it is not likely that they have any major breakthroughs. Their business plan talks about a large number of village kiosks all over India offering everything of relevance, which includes news, product retail, education, advisory services, etc.
36

Indian Society Of Agribusiness Professionals (ISAP)

Type of organization Investments made so far Services offered Focus Last mile connectivity Not for Profit organization Estimated to be about USD 150,000. Knowledge network access, query redress by experts, knowledge bank Focuses on utilizing the services of agri-experts spread across the country and overseas for the benefit of small farmers. Through kiosk led ventures such as n-logue, drishtee and others, through private sector extension machinery, agriclinics and through the govt. extension machinery Farmers, farmer groups, farming services providers Service charges. Charges from corporations and experts for value added services. This organization is attempting to create a knowledge network, a knowledge bank and a gateway to get the experts and service seekers together. The government extension and research personnel will also be part of the network, eventually. Since it is not investing in last mile connectivity and is riding on existing networks it is a low risk venture. For the agriculture extension system, this project is a collaborator and the two can work together effectively to augment their efforts
37

Users Revenue Model Remarks

THE ICT INITIATIVES IN PLACE

IASL NDDB Gujarat, Anand Gyandoot Dhar, MP Covers 56 mandis all over India Publishes in Hindi for dissemination in North India

GAU Satellite Krishi Gosthi Gujarat

Honey Bee Network Gujarat

Warna wired village

38

Indian Agri-Business systems Ltd (IASL)

Type of organization Investments made so far Services offered Privat e Ltd. stand alone Estimated to be about US D 800,000. Information services (price, weather, etc.) through media such as internet, mobile phones, newspapers. Knowledge services (cropping pattern and methods etc.), Consulting services Focuses on content and information services Through kiosk led ventures such as n-logue, drisht ee and others. Rides the backbone of private companies distribution, government extension machinery and through direct selling agents Commodity traders, farmers, agri product companies Service charges. Sponsorships from large organiz ations. This is a pure information service. It is already collaborating with several kiosk based service providers to disseminate market and farming practices related information to the target audienc e. Additionally, the vent ure works with agri-input companies, govt. departments and others to distribut e its services (print edition) to the target audience (the collaborators pick the price tabs) Its a profit making vent ure and is now preparing to increase its reach by introducing publications in various regional languages

Focus Last mile connectivity

Users Revenue Model Remarks

39

NDDB Anand
Type of organization Investments made so far Services offered Government organization, working closely with dairy cooperatives. Over US D 1 million Automated milk collection accounting, dairy information system (knowledge and extension), dairy GIS, trade related information prices of various products in different markets, market intelligence. On using ICT for increasing the overall efficiency of the dairy cooperative sector Cooperative offic es, chilling centers, etc (all the existing infrastructure). Milk farmers, cooperative members None This is a well thought out project which encompasses all areas of ICT including extension. E vent ually, the model in Anand will be replicated in other dairy co-operatives. The advantage for Agriculture extension is that most of the small dairy farmers also own land and do crop farming. They can be reached through this net work effectively. NDDB is using the cooperatives offices as dissemination centers and not kiosks owned by small ent repreneurs. The financial backing that these centers have makes them a long term pros pect.

Focus Last mile connectivity Users Revenue Model Remarks

40

GAU Satellite Krishi Gosthi

Project Name: GAU Satellite Krishi Gosthi
Type of organization Investments made so far Services offered University No investments per say. Uses existing Narrow-casting facilities. There is no revenue model and it is grant dependent Uses satellite technology to narrowcast short programs to farming community. Farmers can phone-in and get responses from a panel of agri-experts One-way narrow-casting with phone-ins for farmers to ask relevant questions This is not an issue. Community centers in villages are used for the purpose. Farmers None This is a very small experiment but has a good potential. There are similar ideas being implemented by commercial broadcasting organizations such as Eenadu TV. The main drawback is that it is still largely a push media and hence it will be difficult to measure how the target community is receiving it. Broadcasting for extension has been used over several years, but concepts in narrow-casting with telephonic participation is relatively new. This can be tied up with kiosk base initiative as an additional service. The kiosks then arrange specific farmer groups with specific agenda.
41

Focus Last mile connectivity Users Revenue Model Remarks

Honey Bee Network

Project Name: Honey Bee Network
Type of organization Investments made so far Services offered Focus Last mile connectivity Users Revenue Model Remarks NGO Over USD 1 million Knowledge network and documentation of innovations. On documenting grass-roots innovations Kiosks run by entrepreneurs Farmers and farming services providers Service charges, specific services have specific access charges This is a knowledge service organization. It is attempting to document as many grass roots innovations as possible. However, it does not have a clear revenue model and is likely to be dependent on grants and sponsorship to sustain itself. It adds to the knowledge pool that agriculture extension can deliver, but not much to the delivery mechanism. However, both the Honeybee project and the ISAP project are low cost ventures which can at least create a strong knowledge bank and experts network

42

Warana Wired Village Project, Warananagar

Type of organization Investments made so far Services offered Cooperative Over USD 750,000. Operating budget of US D 50,000 pa Rural info needs of the cooperative area (mostly sugarcane farmers and a few dairy farmers). This is aclosed network with no revenue model Trans actions with cooperative, cropping knowledge and basic computer literacy Cooperative offic es, computer booths (kiosks) Cooperative members, mostly sugarcane farmers Service charges This is supported by the cooperatives and is therefore a stable project. Concept ually, it is very similar to the NDDB project though the implementation may differ a bit in the sens e that it uses various private service providers to finally deliver extension and information services. Like EID Parry and NDDB, the primary foc us is on IT enabled transactions and information. The education/ extension related services are add-ons riding on the same network

Focus Last mile connectivity Users Revenue Model Remarks

43

GYANDO T ANETW O ORKFORE-G OVERNANCE AND EMPOW MEN OF RURAL PEO ER T PLE
Type of organization Investments made so far Serv offered ices Focus Last mile connectiv ity Users Revenue Model Remarks Priv private companies and v ate illage communities own it Ov USD 200.000 er e-governance (gov to citizen), information, knowledge banks, t. education computer literacy. e-governance and agriculture extension serv ices Kiosks run by entrepreneurs General population in v illages. This includes farmers and other economic classes Serv charges, specific serv have specific access charges ice ices Gyandoot has basically implemented with Drishtee as the software provider. The model is similar to that of Drishtee, except that Gyan doot is focused on one district and is trying to develop it in depth. The services are mainly in e-governance, extension, education and also e-mail and internet surfing

44

And some more!!!!

45

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Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix Other ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

52

Issues to be addressed for Effective Delivery

The lack of reliable connectivity in rural areas The sheer lack of purchasing power in the rural segment, which makes it necessary to find sponsors (govt., co-operative, private sector companies) who benefit by way of advertising, goodwill creation or fulfillment of certain objectives The time element in establishing e-governance services in districts, which has a cascading impact on investment cost The need to have alternate media vehicles to reach the target audience The need to have high usage of graphics and voice-overs (less confidence with computers, low literacy levels) in content

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Issue: Mode of Delivery

Farmers benefit more from simple technology which communicates information which is relevant and easy to understand. The efficiency of an information service should be judged by whether it meets the needs of the end user eg MSSRF initiative for fishermen in Pondy. At a village level, the simpler the delivery system, the more effective the dissemination of market information is likely to be

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Issue: Point of Delivery

Since there are large numbers of small farms, home delivery is limited by the fact that many farmers may not own radios or television sets, and may not have access to a daily newspaper. Delivery of the information to the market place itself is sometimes seen as a solution: Agmarket initiative of the DMI, MOA Given the above and the illiteracy rates amongst farmers the role of the farmer interfacing infomediaries- kiosks/clinics/co-procurement centers/service centers/ is critical and vital

In the short run, it is unlikely that these projects will be able to generate enough money to pay for the initial investments. However, what is encouraging that the variable cost of most services (including delivery) are low enough to make them self-sustaining
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Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix Case Studies of projects Other ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Recommended Actions

56

RURAL CONNECTIVITY AND ALLIED SERVICES PROVIDERS

Key Strengths Established working models of e-governance in select districts in close collaboration with district administration Established content and service delivery partnerships with relevant service providers (both local and pan - India service providers) Have got adequate funding to take it through the initial phase of development Established successful partnerships with initiatives in private sector and the state sector

Support Required Adoption and support by district administrations on a priority basis Adequate legislations/ rules to facilitate more e-government applications development and delivery Syndicated content from various govt. departments in the area of health, education and agriculture

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TRANSACTION RELATED CORPORATE INITIATIVES

Key Strengths Since it ties in with the main business objectives of the concerned companies, the monetary commitment is not lacking Efficient procurement of material from farmers is a key objective Thrust on ultimately creating a market place for both buying and selling of products and services - which addresses the circle of fulfillment

Support Required Legislations/ rules regarding procurement and selling Knowledge and know-how inputs/ content from universities and other extension arms

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INFORMATION SERVICES INITIATIVES

Key Strengths Have established information delivery models that are sustainable The lack of internet penetration and computer comfort has seen them innovate into other forms such as print for delivery Have been able to partner with delivery infrastructure creators to disseminate to target groups

Support Required Supporting their franchisee/ partners to set up viable local language versions Facilitating use of all possible media (some of which are under government control) for dissemination of content internet, print, TV, radio

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MULTIPLE RURAL SERVICES INITIATIVES

Key Strengths Established working models in select districts in close collaboration with district administration Established content and service delivery partnerships with relevant service providers (both local and pan - India service providers) Have got adequate funding to take them through the initial phase of development

Support Required Adoption and support by district administrations on a priority basis Adequate legislations/ rules to facilitate more e-government applications development and delivery Syndicated content from various govt. departments in the area of health, education and agriculture Expert network support

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KNOWLEDGE NETWORKS AND KNOWLEDGE BANKS

Key Strengths Have been able to create practical and relevant data bank and data mining capabilities Have been able to enroll professionals as experts on the network Have got both on-line and offline services

Support Required Providing knowledge bank content university, research institutions, etc Providing experts data bases to help create networks Utilizing the services at ground level Providing users databases

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KIOSK ENTREPRENEURS
Support Required 1. Training and skill upgradation Technical skills as well as business skills 2. Space to set up kiosks, at strategic locations such as mandis 3. Provide back-ended subsidies on initial investment subject to specific criteria

The broad guidelines in providing back-ended subsidies to entrepreneurs are 1 The entrepreneur must have an MOU with at least one approved service provider of each of the main categories of service providers Infrastructure Content Agriculture transaction services e-governance services knowledge network and expert services Information services 2. The qualifications and experience 3. Commitment of the entrepreneurs conflicting business interests, etc. 4. Detailed business plans including quarterly milestones
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Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix Other ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Case Studies of projects Recommended Actions

63

Case Studies of effective ICT implementation in Agriculture

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Example - Livestock sector(Milk and Broilers)

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Livestock sector output is 34% of agriculture output and 8.2% of the economy
Total Economy: USD 475 billion
Agriculture Rest Livestock Rest

38.91 114

75.09

361
broiler meat bovine meat pig meat sheep/goat meat milk marine fish inland fish eggs

USD billion

10

15

20

25

30

35

40

45

Milk sector is the largest contributor to livestock segment 49%, followed by fisheries (34%)

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Broiler is the fastest growing meat segment

6,000 5,000 4,000 3,000 2,000 1,000 0 1995

CAGR = 4.8% pa 4,041

5,350

Poultry Meat Pork Meat Bovine meat

19.6% 2.8% 0.7%

Mutton & Goat Meat 4.7%

1997 1999 2001

Figures in 000 tpa

Broiler and Egg have the most Effective Market Systems. Here, unlike in dairy, the thrust has come from private players in the form of contract farming making extensive use of IT, Media and efficient distribution systems.
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Price again, is a key driver of demand

WPI of WPI of WPI of WPI of Eggs Fish (wt inland) Beef & buffalo meat Pork WPI of Fish (wt marine) WPI of Mutton WPI of Poultry chicken

Chicken prices have declined @ 0.5% pa Egg prices have increased @ 4.5% pa Pork prices have increased @ 4.8% pa Marine fish prices have increased @ 6.6% pa Mutton prices have increased @ 7.9% pa Beef and buffalo meat prices have increased @ 10.7% pa Inland fish prices have increased @ 12.4% pa 2002-03 data is from December 14, source RBI

300 250 200 150 100 50

1993-94

2002-03

Efficiencies in the poultry segment have led to control of price rise in case of eggs and a price decline in case of broiler meat. The least Effective Market Systems inland fisheries, beef and mutton have seen the highest price increases. Pork has a limited small market and the lack of demand keeps the prices low, even though it is as unorganized as the other meat categories

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Production of milk in India

90 80 70 60 50 40 30 20 10

Production in million MT

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01 (E)

E= estimated T= target / expected Source: DFPI, Annual Report-1999-2000

The growth rate during the period depicted above is 4.2% p.a. (CAGR).

Organized procurement from farmers have reduced farmers risks, kept consumer prices under control and stimulated demand
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2001-02 (E)

NDDB
Under the national information network project, NDDB has undertaken several projects. The major projects are AMCS Automatic Milk Collection System IDIS Internet based Dairy Information System DGIS Dairy Geographic Information System DISK/DP Dairy Information System Kiosk/Dairy Portal
Helps NDDB to monitor the performance of all India Dairy Co-operatives. NDDB gives feedback to the co-operatives on various operational, tactical and strategic issues

Automation of the milk collection system at the collection center at the village level. The system is installed on a PC at the This tool uses various aspects of GIS to help collection center. Weighing, the dairy co-operatives in decision making fat testing and billing is done instantly when the Plans to provide technology and market related information farmer brings his milk at to the members using an internet based kiosk and portal the collection centers
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NDDB Project Model

DGIS Dairy Geographic Information System
There is a central DGIS server hosted at NDDB, Anand. A software is given to the implementing co-operative to be hosted on their PC. The local software acts as a decision making tool whereas the central server acts an a source of up-to-date geographical information and maps. The member co-operatives can access the central server anytime and get standard geographical information. At their end, they can customize this information.

DISK/DP Dairy Information System Kiosk/Dairy Portal

DISK is Kiosk supposed to provide extension education to the dairy farmers. DP is a dairy portal which will be one stop collection of all information needs of a dairy farmer including prices of animals, milk, milk products, feed, etc. The DISK & DP Models are still in testing and trial stage

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NDDB Project Model

AMCS Automatic Milk Collection System
AMCS is interfaced with a PC at the Milk Collection Center at the village level. Weighing, fat testing and billing is done instantly when the farmer brings his milk at the collection centers. The decision of implementing AMCS and its cost is the responsibility of the concerned co-operative.

IDIS Internet based Dairy Information System

It is an Internet based software system. All the individual co-operatives are given an ID and password to use the system. The co-operatives are expected to input the following data to the system on daily basis Milk collection & billing data Plant operation data Animal Health/Artificial Insemination data Quality Control Data The system analyses the data online and prepared certain reports which can be used by NDDB as well as the co-operatives in decision making
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Conclusion: Organization and efficiency using ICT leads to lower prices to consumer and drives consumption leading to an effective market system.

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Introduction Agriculture Extension Needs of the Community The ICT Promise ICT Category Matrix Case Studies of projects Other ICT initiatives in rural/ agricultural services The nature of support required Issues to be addressed for effective delivery Recommended Actions

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RECOMMENDATIONS
1. The governments (state and center) should play the role of the enabler by harnessing the experience and expertise gained by the existing initiatives

2. Most of the successful initiatives have a critical component in its chain the village/ taluka level entrepreneur who invests in and runs the kiosks from where the services are disseminated. The government could play a decisive role here by a. b. providing incentives (back-ended subsidies subject to specific fulfillment criteria) Ensuring availability of space at strategic locations (eg. Mandis)

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RECOMMENDATIONS

3. For all the e-governance related initiatives/ services, the administrative machinery at district level could play a key role by prioritizing the on-line conversion of as many services as possible and facilitating the usage of ICT delivery modes

4. Providing Syndicated content from various govt. departments in the area of health, education and agriculture to the various initiatives on commercial terms

5. Adequate legislations/ rules to facilitate procurement of agricultural produce and common market

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RECOMMENDATIONS

6. Facilitating the usage of alternative media vehicles (print, TV, Radio) by the various projects 7. Human Resource Training and Development on the lines of what is being executed by MANAGE in the context of Agri-clinics 8. The massive repository of knowledge (several of which can be used as off-the-shelf) with the universities and the research institutes need to be digitized and converted into an intelligent database with intelligent query facilities 9. The various queries and their answers (generated by farmers and universities) generated over the years should also be similarly digitized 10.Private sector companies (such as Tatas, Chambal Fertilizers and ITC among others) have also over the years generated a substantial repository of FAQs. These may also be harnessed by the knowledge system 11.Create databases of agri-experts, innovator farmers and others and make them available for service seekers to benefit

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