Lokeswara Reddy, a seasoned Indian farmer with 20 years of experience, has witnessed a remarkable transformation in his crops after years of struggle, thanks to earth-observation satellites. The data, gathered and analyzed by the Indian startup Cropin and provided to him by Syngenta, offers optimal sowing times, weather warnings, and guidance for better use of irrigation and pesticides.
Indian Government’s Focus on Using Satellite Data
The Indian government, having recently relaxed foreign investment rules for the space sector, is increasingly leveraging satellite data to address ground-level challenges, with a primary focus on agriculture. Reuters spoke to 11 experts and farmers, six industry startups, and three NGOs, all of whom highlighted how space technology and big data are set to revolutionize Indian agriculture.
“India’s path to leadership in the new space race lies in utilizing the power of data, and applications within the agricultural sector offer immense potential,” said Pawan Goenka,
chairman of the Indian National Space Promotion and Authorization Centre, the country’s space regulatory body.
Market Research Future, an India-based data analysis firm, says the global space agriculture market will be worth $11.51 billion by 2032, up from $4.99 billion in 2023. Although China holds the largest market share, the sector is growing faster in India than anywhere else in the Asia-Pacific region, it said.
Lokeswara Reddy on How Satellite Data Helped Him
Shifting climate patterns, high input costs, a scarcity of labour, and erratic weather began to disrupt his earnings about 10 years ago, said Reddy, 52, currently a contract farmer with global giant Syngenta.
Satellite data gathered and crunched by Indian startup Cropin and provided to him by Syngenta, now gives him optimal sowing times, weather warnings, and better use of irrigation and pesticides, he said.
Reddy said that over the last decade, he has increased his net profit to 20,000 rupees ($240) per acre on corn at his farm in the southern Indian state of Andhra Pradesh, up from 5,000 - 10,000 rupees.
"We are on a surer footing when it comes to agricultural practices; (using satellite data) safeguards us from climate change, pest and disease, problems with irrigation scheduling," he said.
About Cropin
Cropin, founded in 2010 and backed by Google and the Gates Foundation, recently signed a deal with Amazon Web Services to utilize satellite data to combat global food insecurity. This strategic partnership aims to leverage advanced data analytics to address the pressing issue of food shortages worldwide.
In India, Cropin's collaboration with farmers, the World Bank, and the government has made significant strides. Their efforts in 244 villages have digitized over 30,000 farm plots, encompassing 77 crop varieties across various climate zones, according to a project analysis conducted in 2019. The results have been remarkable: 92% of the participating farmers saw their average yields increase by 30%, while their farm revenue rose by nearly 37%. These outcomes reflect similar successes in Africa, demonstrating the potential of Cropin's technology to transform agriculture on a global scale.
AGRITECH PUSH
Cropin and other innovators are tapping into a burgeoning sector with vast potential. According to a Deloitte report, the market potential for using satellite data in crop insurance and horticulture is projected to reach about $1.35 billion over the next five years. This growing interest underscores the significant opportunities in leveraging space technology for agricultural advancements.
SatSure, an Indian startup backed by Baring Private Equity, is another key player in this space. The company uses earth observation data to inform loan analysis. Chief Executive Officer Prateep Basu highlighted that there are approximately 70 million active farmer bank accounts in India, representing roughly 38% of the total pool. This equates to about $200 billion of all lenders' loan books, indicating a substantial market for satellite data applications in financial services.
India's agricultural technology landscape is vibrant, with 2,743 agri-tech startups, many of which integrate satellite data and other space technologies. Funding for these startups peaked at $1.3 billion in 2021, reflecting the sector's rapid growth. In 2023, companies raised $394.4 million, and so far in 2024, they have secured $136.7 million. This influx of investment highlights the increasing recognition of the value and potential of space technology in revolutionizing agriculture.
Despite the promising potential of space technology in agriculture, there are significant barriers to its large-scale adoption. The average landholding size for farmers in India is just 1.08 hectares, a fragmentation that complicates the implementation of advanced technological solutions. This small-scale farming structure, combined with pervasive poverty and low levels of literacy among the farming community, poses substantial challenges for tech adoption. Industry experts highlight these issues as critical hurdles that need to be addressed for the widespread integration of space technology in Indian agriculture.
"Agriculture has never been a tech-forward sector and often farmers want to rely on traditional practices, or the wisdom of their forefathers," said Raghunath Reddy, a Syngenta manager.
For farmers like Lokeswara Reddy, the impact of agriculture technology has been transformative. After years of struggle, Reddy has seen significant improvements in his crops, thanks to earth-observation satellite data provided by startups like Cropin and supported by companies such as Syngenta. These advancements have not only increased his yields but also elevated his living standards. "Over the past few years, I've been able to buy a car and a new house in town," Reddy shared.
"This increase in earnings also means better education for my son, who has plans to be a software engineer abroad, in the U.S. or London. At the end of the day, we want a better future for our kids," Reddy said.
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