Empowering

p g Farmers through
g m-
agriculture

eIndia 2010
Hyderabad International
Convention Centre
Centre, Hyderabad
Hyderabad,
India
August 5,2010

Sapna A. Narula PhD.

Assistant Professor
TERI University, Vasant Kunj
New Delhi, India
narulasapna@gmail.com
l @ il
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 Information :An Important
p Input
p
Information on agri‐inputs (  Information on Forward 
seed, fertilizers, pesticides,  linkages
credit) • Domestic/International 
• What input brands to use? Markets
• How to use them  • Price Discovery 
effectively? • Consumer Behavior
Consumer Behavior
• Which are the best sources  • Packaging , Grading and 
for procurement? standardization

• Awareness about good 
agricultural practices Other Needs
• Weather information •Family
y Health and
• Time of sowing Education
• Package of Practices •Entertainment
• Q/A with scientists and  •Networking
extension staff
extension staff •Communicating with
• Govt. scheme/subsidies friends, relatives and
society
Importance of Various Categories of Information

Source:Narula,2009;Empowering farmers through ICT enabled food supply chains in

Uttrakhand; presented at 4th Uttrakhand Science and Technology Congress,
Pantnagar
 Importance of Various Categories of Information

Source:Narula,2009;Empowering farmers through ICT enabled food supply chains in

Uttrakhand; presented at 4th Uttrakhand Science and Technology Congress, Pantnagar
 Mobile Telephones: A Big Opportunity

„ More than 200 mn. Customers with 20 p percent rural

subscribers ( 2007)
„ 3-4 percent penetration in rural areas with 3-4 mn
users being added every month
„ More than 15 operators existing with most of the
leading
g indian corporates
p such as Airtel,, Reliance,,
Idea, Vodafone
„ Top six companies occupying 90 percent of the
share
„ App. 30 percent of business of BSNL and Aircel
and vodafone subscriber base come from rural India
Impact of Mobile Telephony: Global Evidence

„ Positive and significant impact on economic growth

„ Increase in Income in the range of 5-10%

„ Ten mobile phone increase per 100 people boosts the GDP
growth by 0.6%.

„ Positive correlation between tele density and quality of

life– especially in rural areas

„ Savings in travel time and costs in rural areas of Asia and

Africa.

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Our study in Punjab and Haryana (2009)

„ There was 100 p percent ppenetration of mobiles and around 40

percent penetration of computers
„ few farmers were using internet (19.15%) their use was limited to
e-mailing,
g, entertainment,, p
property
p y rates and pproject
j work
„ Newspapers and mobiles are the most important sources of
information
„ Input supply was the main problem faced by the farmers
followed by lack of electricity during cropping season , marketing
problems , information related problems ( high priority needs)
Major Recommendations

„ Mobiles could be used as potential source for information

dissemination
„ The farmers who already possess computers and internet may be
used as information hubs for the fellow farmers
„ Supplying timely information on quality agri-inputs as well as price-
discovery mechanisms , traditional as well as emerging marketing
channels can help improve farmers’ incomes by overcoming their
reliance on agri-input dealers and exploitation
„ Besides agriculture, health and education information is much
sought after
„ Information delivery can help in the development of efficient supply
chains by linking the backward and forward linkages
Mobile Phone VAS Operators

„ Reuters Market Light

„ IFFCO-Airtel Alliance
„ Nokia Life
Life-Tools
Tools
„ Handygo
Reuters Market Light

• Around 300
300,000
000 subscriber base
• Working in 13 different states
• Generating and validating content at the field
level
• Providing
P idi specific ifi information
i f ti about
b t 260
crops/crop varieties
• Own
O distribution
di ib i network k
• Have collaborative linkages with NABARD,
IDEA etc.
What is IKSL? IFFCO-Kisaan Sanchaar Ltd.

„ A unique collaboration between India’s

India s
largest telecom service provider Airtel and
g
largest farmer’s co-operative
p IFFCO
„ The objective of IKSL is rural empowerment
through enhanced customer relations and
serving its farmers by providing information
related services

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Win-Win Model - For Farmers & Co-operatives

UNIQUE SIM CARD

IFFCO - Airtel Green Card

• Needful location specific information for users of SIM Card

• IFFCO Kisan ensures the most competitive Call Rates
• Value Added Services are bundled free of cost
• Best deal for the handsets also
• Cheaper Call Rates within the group also
• Five free Voice based messages for the farmer everyday
Source: Iffco Kisaan Sanchaar Ltd.
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 • Mandi rates , Canal Roster
• Availability
A il bilit off Fertilizer
F tili and
d
IFFCO Kisan Messages other inputs
• Cane harvest , Weather,
Camps/Mela, Pest attack
• Vet Disease, Soil testing
Local IFFCO
Camps
Veterinary Mandis Field
e d Officers
O ce s
Doctors • Pesticide/ Insecticide
• Best yield & Best farming
Practices
Agricultural
Agricultural IFFCO
Institutions • Various Government
Scientists Kisan Agriculture Schemes
• Cash crop p Economics
• Interest Rates of various
A lot more..
Weather Banks
Dept
p
Medical
Officers
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Business Model for the Society

IFFCO Kisan pay society commission

On sale of each green card by
for a new mobile user

Society gets commission on

Sale of recharge coupons. This
SOCIETY Commission from IFFCO Kisan continues

Society provides a 60’X50’ plot of

Land on lease for erecting tower
through IFFCO Kisan

IFFCO Kisan tie up with phone manufacturer

and handsets are sold through
society and gets commission on it.
Source: Iffco Kisaan Sanchaar Ltd.
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Designing Value-Added Services: Issues Ahead

„ How to achieve economies of scale?

„ How to generate and validate useful content?
„ How to ensure sustainability?... Revenue streams?
„ H
How tto increase
i th
the no. off subscriber
b ib as wellll as d
dealers’
l ’
base?
„ How these models can ensure the farmers’ the best of
services and have strong relations with them by
providing value-added services?
„ How can the co.s increase its no. of subscriber base as
well its talk –time revenue?
„ How collaborations should be strengthened?

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Developing Conent
„ Tie up with reputed organizations to create messages or generate their
own content with respect to specific district/area office wise to meet
specific crop needs.
„ Identify mandi and other local linkages with Govt. offices for collecting
daily dynamic information
„ Creation
C i off customised
i d content as well
ll as message
„ Clarity as well as usefulness of the message
„ Empanelment of crop experts and other field experts
„ Tying up with Universities
Universities, KVK’s
KVK’s, and other research Institutions
„ Farmers as the Practical Advisors
„ Record Success as well as failure stories

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BUSINESS MODEL

„ Content sponsorship
p p or information
selling or both?
„ Collaboration as in case of IFFCO –Airtel
Or independent such as Reuters and
Nokia Life Tools
„ Cross-selling
C lli or upselling
lli through
th h new
products and services??
„ Only agriculture or other fields such as
education, health etc.

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Product-Service Mix
„ Distribution & Retailing of Mobile Telephones
„ Intermediary for various input output providers
„ Retailing other products acc. to rural people
needs
„ Providing other value added services to farmers
such as micro financing,money transfer etc.
„ Extending
E t di the
th mixi to
t offer
ff more
product/services throughout the supply chain

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Training

„ Training module for farmers and officials.

„ Making farmers aware of many of the features and
their uses available in mobile phone
„ Training about the processes and sale of telecom
products to MAs, Retailers is essential.
„ Advertisement and promotion
„ Having feedback from farmers so as to design user-
specific
ifi services
i

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Empowering farmers Through m-agriculture
Delivering Effective as well as Efficient Informtion through Mobile 
Phones

User‐specific   Getting Right 
Content  Linkages  as 
delivery and  well as 
user‐friendly  product‐
technologies
g service mix

Ensuring 
sustainability 
through 
right Business 
g
Models
 The Road Ahead

„ Let us ask what information do different farmer segments need

„ Let us research into what are the major need-service gaps in
information delivery
„ Let us teach him how to make maximum use of his mobile handset
and actually use the information he gets
„ Let us develop a culture amongst them to share the information
virtually
„ Let us develop partnerships
„ Let us deliver them smart information

…………………………………………….Let us empower them!

THANK YOU

Reach me at :
narulasapna@gmail.com

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