Page 30 - Banking Finance May 2021

ARTICLE

8. Contract farming: It helps in reducing the input costs
and operating expenses. In India, we have more than
75% small and marginal farmers who cannot afford to
invest in farm machinery and implements and are
dependent on custom hiring units for the same.
Contract farming can improve the operating profits in
the agriculture sector.
9. Farm to market: To minimize the role of middlemen,
there is a need to develop an efficient supply chain that
links farmers directly to the markets. Farmers need to
organize into cooperatives or companies. Amul is the
first organized retail chain connecting farmers to
consumers.

Digital innovations in agriculture sector
a) E-NAM: It is a technology driven unified National Level credit to the farmers for agriculture and allied activities
Market platform that integrates the physically dispersed on then lines of PSB loans in 59 minutes to MSMEs can
markets enabling better price discovery for the farm be developed.
produce.

Punjab Mandi Board has recently launched the e-PMB, Need of the hour
a mobile application. The mobile application provides Need of the hour is to bridge the gap between the policy
real-time information of procurement to the farmers. makers, farm technocrats and the farmers. The government
The app enables an opportunity to farmers to sell their bodies, agricultural institutions, social and religious bodies/
produce on real-time rates. Besides, consumers can institutions should come forward and apprise the masses and
compare the rates prevailing in various mandis across farmers regarding the aftermaths of over-utilization of
the state. natural and scarce resources.

b) Remote sensing and geo tagging: It helps in crop
identification, crop production forecasting, crop acreage Farm extension management plays an important role in the
and yield estimation, assessment of crop progress and dissemination of financial literacy and farm management
crop damage, soil health, soil mapping, water resource practices and ground-level implementation of government
mapping and climate change monitoring. policies.
c) Under Digital India, Government of India provides
Mandi prices on real-time basis through GramSeva: Financial literacy is the need of the hour as the majority of
Kisan App. the farmers are not making optimum use of available funds.
Financial literacy centres are being run by certain PSU banks
d) As majority are small and marginal farmers, corporates in their respective lead districts which can play an important
through mobile-based apps are providing farm
role in this regard.
machinery and implements to farmers on rental basis.
Krishi Gyan mobile app has been designed to spread agri State agricultural universities can play a major role in
related information among rural households.
disseminating information on new innovations and better
e) Now, banks too have launched mobile based applications farm practices through extension management services.
to cater to the specific needs of farmers. Baroda Kisan
Agri Digital Platform developed by Bank of Baroda Opportunities for credit flow to
provides information on weather, crop health, soil
moisture, pest infection , mandi prices, crop specific agricultural sector
advisory, equipment renting etc. Agricultural credit is an important prerequisite for
f) Web based portal for the banks to facilitate ease of agricultural growth. Demand for agricultural credit has

30 | 2021 | MAY | BANKING FINANCE