For the past few years, the agriculture sector has seen immense growth in the number of private players in all aspects be it agri-input, logistics, warehousing, procuring, processing etc. This has been a result of the promising future that Indian agriculture holds after the Indian government had removed barriers that earlier restricted the growth of the private sector in this sector. The sector has witnessed Flipkart acquiring Walmart Inc’s Indian wing Best price, Tata group acquiring Bigbasket and the entrance of Reliance Industries Ltd. To add to all this now Amazon is eyeing to make its way into the Indian agriculture sector.
AMAZON LAUNCHES AGRONOMY SERVICES
Amazon Retail on 31st August 2021 announced the launch of their agronomy services for the Indian farmers through which they will get quick & timely updates regarding their crops and will help them to make accurate decisions for their crops.
The agronomy service will also provide an application interface which includes introduction of machine learning technology and computer vision that streamlines supply chain processes, assists farmers in identifying defects (rotting, spots, cuts, and mold) in fruits and vegetables, and lessens produce wastage, ensuring that customers receive high-quality produce, according to the company statement.
“We’re thrilled about the potential for pioneering technology to help Indian farmers and the agrarian community increase farm output and quality of fruits and vegetables. This is comprehensive software that allows farmers to employ scientific crop planning depending on soil and climatic factors, as well as crop and disease control inputs.”
Sameer Khetarpal, Director, Grocery, Food and Health, Amazon India
CROP PLANS TAILORED FOR EVERY FARMER
Amazon is aiming towards creating an ecosystem by combining agronomist-led field treatments with farm management technologies to track the impact of such efforts. Agronomists provide agri-tech assistance to registered farmer partners in order to increase farm production and product quality. Crop planning is included in the program, both proactive and reactive: Proactive crop plan is based on scientific crop and soil management practices and is aimed to get better yield and quality; Reactive crop plan is an intervention-based initiative where farmers can raise alerts on pests and diseases and get remedial solutions for their farm problems. Amazon claims that 80% of farmers that have on boarded with the firm have access to customized crop plan on their mobile app, as well as the option to raise crop related issues that are resolved by experts appointed by Amazon.
Furthermore, Amazon Retail is investing to leverage state-of-art technology to build a robust temperature-controlled supply chain infrastructure that reduces shrinkage and provides the freshest quality to customers. Amazon Retail associates use technology to inspect and monitor quality at multiple stages once the produce is sourced from farmers and dispatched to the processing centers. The fresh produce (fruits and vegetables) are then sorted, graded, and packed in different sizes at the processing centers and dispatched to Amazon Fresh fulfillment centers located closer to customers. The fulfillment centers operate with 4 separate temperature zones (ambient, tropical, chilled and frozen) to maintain the quality and freshness of produce.
“We are gratified by farmers’ willingness to adapt and embrace tech-driven simpler solutions that aid them in making quick decisions and seeing enhanced farm results. We intend to increase program efficiency and develop new modules that will assist Indian farmers and offer consumers with fresh products.”
Sameer Khetarpal, Director, Grocery, Food and Health, Amazon India
POSITIVE RESPONSE FROM THE FARMERS
The response from the farmers that have enrolled themselves with the Amazon services have showed a positive response towards the program so far. Darshan Daulat Khandagle, a farmer from Manjarwadi, Maharashtra who has used the agronomy service from Amazon Retail said after being enrolled in the agronomy services from Amazon for cauliflower, he has been getting regular visits from a qualified expert for guidance. “I also get a growing plan in my app and can raise alerts whenever I notice something unusual in the farm,” said Khandagle. “Last season the quality of the crop improved due to the right actions at the right time helping me earn more.”
Earlier Amazon had announced that it’ll be procuring vegetables and fruits from Himachal Pradesh where farmers were benefitted with as they got higher prices from the private firm when compared from the conventional markets and even the procurement was done from the farms that helped save transportation costs, adding to the overall profit.
THE FUTURE OF SUCH VENTURES
Technology is going to play a critical role in enabling Agriculture in this decade and the years to come. Securing a steady stream of fruit, vegetables and other groceries is considered key to dominating Indian online commerce. Unless Amazon, Walmart, Reliance and others crack the farm supply chain, they cannot unlock big growth in e-commerce. These companies aim to boost their businesses by helping modernize an industry dominated by small farmers and struggling to acquire basic equipment from temperature-controlled warehouses and refrigerated trucks, which in turn generates enormous waste. Gaining goodwill at the grassroots level by building a strong relationship with farmers will help them get predictable, quality produce all round the year at stable prices.