AB Chakravarthy, India Country Director
Hunger and poverty are two of the most pressing challenges that mankind is facing. The questions of how we can overcome them become more relevant and acute in the post-pandemic world with the vagaries of climate change, globally protectionist supply chains, and the Ukraine war at its epicenter. This has put undue pressure on food production and prices, leaving vulnerable countries like India and their people at the cusp of hunger and malnutrition.
With scientific advances post World War II, many defense technologies found applications in agriculture. This innovation drove food production and productivity thus reducing starvation deaths globally. The same technologies left a huge imprint on the planet’s soil, water, and biodiversity. Now, we need to focus on both enhancing food production for the growing population while also producing it in a sustainable manner.
Increased Pressure on the Planet: Land, Water, Energy, and Biodiversity
There are 8 billion people on the planet, and this number is projected to increase to 9.7 billion by 2050 . According to the FAO, 11% of the global land surface is being used for crop production. India, with 2.4% of the Earth’s land, is home to 18% of the world’s population. This outlines the undue pressure on the land with the growing population. Similarly, there are second-order effects on water and energy which are also under severe stress. Water used for irrigation, for instance, already accounts for over 70% of the world’s freshwater withdrawals. Likewise, 30% of global energy is used in the food & agriculture sector. Adding to this, current agricultural production has been identified as the biggest threat to 24,000 of the 28,000 species (86%) at risk of extinction.
Increased Pressure on the People: Practitioners and Consumers
Small farms account for 84% of the farms globally, but they produce 35% of the food. There is pressure on farm incomes as the cost of the inputs is rising. Many smallholder farmers do not have the wherewithal to adapt to the climate and market distress.
Even with enhanced production, it was estimated that ~10% of the world’s population (about 811 million people) went hungry in 2020, and poor diets continue to be the leading cause of death worldwide.
It’s Investing in Innovative Agriculture Models
These two drivers make food and agriculture compelling as an opportunity to innovate globally. We need the best of minds from different fields to innovate across different parts of the value chain from production to post-harvest through to taking it to consumers. And we need more impact-driven investors to provide much needed capital in this sector.
Let’s take Paddy as an example. It is a staple crop and is the source of nearly one fifth of all calories consumed by humans. At the same time, it is also a water guzzling crop. To produce 1 kg of rice, it needs at least 2000 liters of water. Innovations like System of Rice Intensification (SRI) and alternate wetting and drying water management can bring water levels down to 1200 liters while keeping the productivity intact. Companies like Aana Crop Solutions which are working in the paddy value chain are attempting to take some of these technologies to farmers.
Bioprime and Suma Agro are bringing bio-inputs that are safe to the soil and environment. For instance, Suma Agro’s potassium humate is manufactured using Active Carbon Technology (ACT) and it is the most efficient biologically advanced carbon delivery system to the soil. The product enhances the organic matter, the water holding capacity of the soil and reduces the pesticides usage.
Khethworks, Ecozen, ONergy are all attempting to replace the fossil fuel-run water pumps with solar water pumps for irrigation.
At Upaya, we made it a new commitment to invest in companies that are working to mitigate climate change. Precision farming for small holding farms is another area where there is substantial scope to work towards safe, sustainable food. New age innovations in bringing advisory to farmers using several techniques like drone, satellite imagery and with combination of hardware & software system to monitor farms are done by companies like Upaya’s portfolio partners, Bharat Rohan, and Bharat Krushi Seva. Getting the right advisory and the right (safe) inputs at the right time for farmers helps cut down input such as fertilizers and pesticides hence bringing cost savings for the farmer. At the same time, it improves soil health and brings in more productivity.
These are some of the companies which are helping the farmers cut down input cost, improving the soil health thereby productivity. They are playing an important role in ensuring that consumers get residue free food and farmers earn livable wages.
If these innovations across the value chain are implemented, we will be able to double productivity in major food crops sustainably, store in a scientific manner, and distribute where intended. That means better livelihoods and increased incomes for smallholder farmers as well.
