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Mobile Based Agro-Services – a
    Business Perspective
          N T Yaduraju
            ICRISAT
Only 40% of farmer access information about agricultural techniques ,
 inputs and market information (India NSS, 2005).


Sources of Agricultural Information

    • Progressive Farmers - 16.7%
    • Input Dealers - 13.1%
    • Radio - 13.0%
    • Television - 9.3%
    • Newspaper - 7.0%
    • Extension Worker - 5.7%
                   Source: NSS, June, 2005 GoI
 ICTs play a key role in improving the availability of
  agricultural production and market information in
  developing countries.

 ICT-based market information and farm advisory systems
  have a proven track record for improving rural livelihoods in
  developing countries where they have been introduced.

 While Internet-based market information and farm advisory
  systems work well in more developed, literate markets,
  other media such as mobile phones or community radio,
  could be appropriate alternatives in developing and least
  developed countries.
Touch Screen       Computer-based       Smartphone-based         Radio-based
       Kiosks        Information Systems   Applications (GPRS &       Broadcasts
                                                 CDMA)




Voice-based Mobile
    Solution &                               Tablets-based
                     SMS-based Mobile         Information         Community Video
 Interactive Voice   Messaging Systems
 Response Systems                               Systems              Programs
Mobile is the way !!
Mobile telephony is a transformational
technology
                 - Prof. M S Swaminathan

                  •   Last mile connectivity
                  •   Reaching the unreached
                  •   Affordable
                  •   Bridging digital divide
                  •   Empowerment
                  •   Social inclusion
Density of mobiles (2011)
Country             Number        % of population
World               > 5.6 b       80
China               976 m         71
India               894 m         74
USA                 328           104
Indonesia           250           105
Brazil              242           126
Nigeria             90            65
Philippines         86            92
Bangladesh          84            49
Mobile Based Agribusiness
        Initiatives
Initiatives      Market     Farm Advisory   Weather
                         Information                   Forecasts

Nokia Life Tools             √              √             √
Reuters Market Light         √              √             √
IFFCO Kisan Sanchar          √              √             √
 Limited
e-Choupal                    √              √             √
ESOKO                        √              √             √
CKW Program                  √
Agropedia                                   √
SAPA Mobile                                 √
m-Krishi                                    √
• Up-to-date agricultural information on agriculture, education
  & entertainment directly to a consumer’s Nokia phone
• Rolled out commercially in India & Indonesia in 2009
• Services are subscription oriented
• SMS-based service sends basic text messages on an icon-
  driven interface
• Relevant information received almost daily in local language
  (Hindi)
• Available across 18 states, in 11 regional languages
• Claims 14 million subscribers
• Has several Private & public Sector Partners
• Works across several mobile network operators (MNOs)
Displays information in 2 languages –English and in the local language
(Bahasa-Indonesia & Hindi -India)
• RML offers Indian farmers up-to-date, customized information
  on commodity prices, local news, weather updates
• Started in 2007. User base- over 80,000 farmers (2010)
• Information relevant to 54 commodities in 270 mandis
• Subscription entitles to:
   – Market prices and arrivals in three markets for each of the two
     crops chosen by the farmer
   – 24-hour local weather forecast relevant to the farmer’s taluka
   – Information on best practices of production for two crops

   Works across mobile network operators (MNOs)
• Choupal refers to meeting place in a village
• Information on prices, weather forecasts & best practices
• Supply chain integration & supply of farm inputs
• aggregation of farm outputs to ensure competitive prices
  and efficient logistics
• Direct marketing channel to lower transaction costs
• Operating in 40,000 villages covering 4M farmers in 10
  states through 6,500 kiosks
• Plans to offer personalized crop management advisory
  services to individual farmers by integrating mobile phones
  into the digital and physical network of e-Choupal.
• Kenya’s most well known mobile based solution for
  agriculture.
• Enables farmers to create linkages with market
• Services offered:
  – Price Information
     • Up-to-date market information empowers farmers as they bargain
       for a fair price with middlemen and purchasers
  – Group Selling
     • Farmers get connected to each other to jointly market crops in
       greater volume, helping rural farmers access large-scale markets.
– Group Buying
   • Farmers get connected to suppliers and, through collective buying power, get
     significant bulk discounts on farming inputs such as seeds, fertilizers, and
     equipment.
– Customer Relationship Management
   • CRM module is targeted at cooperatives and large suppliers that want to
     manage their clients’ queries and responses.
• Incubated at Institut Teknologi Bandung, Indonesia. Now a
  Private sector venture
   Comprehensive, Mobile-based supply chain and Information
     management system
   – integrates large numbers of smallholder farmers into
     commercial supply chains
   – facilitate mutually beneficial partnerships between smallholder
     farmers and exporters/buyers
   – Provides technical information,
   – recommend best practices to smallholder farmers at real time
   – Links smallholder farmer s’ production to specific market needs
   – currently operational among 5000 organic rice farmers
•    Joint venture of IFFCO with Airtel to provide mobile tele-
    services to the rural farmers.
•   IKSL distributes Airtel SIM cards under the name “Green SIM”
    to the farmers
•   Subscribers are provided five voice-based messages free of
    cost every day.
•   Consumers can also access a toll-free helpline service
•   IKSL schedules its voice messages based on the local
    agricultural situation and queries on their helpline
• m-Krishi is a proprietary mobile agro-advisory system allows
  farmers to send queries to agricultural experts through a
  mobile phone and receive personalized advice in local
  language.
• The end-to-end m-Krishi solution has been developed through
  the integration of technologies such as:
   –   sensors
   –   solar power
   –   CDMA modem
   –   CDMA network
   –   handset with camera
   –   an engine to assist in displaying mobile screens in Indian
       languages
• Developed under ICAR-NAIP project
  Agropedia- II
• Service provider neutral
• Currently being pilot tested involving nearly
  10,000 farmers of 30 KVKs in:
  – 20 districts of Uttar Pradesh
  – 4 districts of Uttarakhand
  – 5 districts of Karnataka and
  – 1 of Andhra Pradesh
• SMS
   Text messages can be created in 11 different
    languages.
   Low cost
   Constrained with handsets & illiterate farmers
• Voice Messages
   Experts can create messages in their own voice.
   Expert send messages either through the web or
    mobile phone
   Delivery of messages to the farmers on their
    registered number
   Relatively more expensive
Dynamic market information
• Project based initiative by the TNAU, funded by DIT
• Covers 13 major markets in south India
• market analysis of 120 perishable commodities- fruits,
  vegetables & flowers
• Collects whole sale and retail market price and uploaded
  to the website
• Market information shared with farmers through FM
  radio and mobiles
• Serving 35,000 farmers
• Voice-based information systems are better accessed by
   farmers as it works above the constraints of illiteracy and local
   language support
• Greater mobile penetration in rural areas, will lead to more
   number of MNO/MSO to offer MVASs
• The credibility and quality of service offered going to be
   important considerations
• Two-way mobile application (E2F, F2E)
 • Farm-advisories alone can not be the business proposition, it
      needs to be supported by forward and backward linkages
• Government-funded and NGO-operated ICT
  solutions have an expiry date and when intervention
  ends, the solution needs a full sponsorship to revive
  its operations
• Greater risk of negative impact of information
  explosion

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Mobile based agri service business

  • 1. Mobile Based Agro-Services – a Business Perspective N T Yaduraju ICRISAT
  • 2.
  • 3. Only 40% of farmer access information about agricultural techniques , inputs and market information (India NSS, 2005). Sources of Agricultural Information • Progressive Farmers - 16.7% • Input Dealers - 13.1% • Radio - 13.0% • Television - 9.3% • Newspaper - 7.0% • Extension Worker - 5.7% Source: NSS, June, 2005 GoI
  • 4.  ICTs play a key role in improving the availability of agricultural production and market information in developing countries.  ICT-based market information and farm advisory systems have a proven track record for improving rural livelihoods in developing countries where they have been introduced.  While Internet-based market information and farm advisory systems work well in more developed, literate markets, other media such as mobile phones or community radio, could be appropriate alternatives in developing and least developed countries.
  • 5. Touch Screen Computer-based Smartphone-based Radio-based Kiosks Information Systems Applications (GPRS & Broadcasts CDMA) Voice-based Mobile Solution & Tablets-based SMS-based Mobile Information Community Video Interactive Voice Messaging Systems Response Systems Systems Programs
  • 6. Mobile is the way !!
  • 7. Mobile telephony is a transformational technology - Prof. M S Swaminathan • Last mile connectivity • Reaching the unreached • Affordable • Bridging digital divide • Empowerment • Social inclusion
  • 8.
  • 9.
  • 10.
  • 11. Density of mobiles (2011) Country Number % of population World > 5.6 b 80 China 976 m 71 India 894 m 74 USA 328 104 Indonesia 250 105 Brazil 242 126 Nigeria 90 65 Philippines 86 92 Bangladesh 84 49
  • 13.
  • 14. Initiatives Market Farm Advisory Weather Information Forecasts Nokia Life Tools √ √ √ Reuters Market Light √ √ √ IFFCO Kisan Sanchar √ √ √ Limited e-Choupal √ √ √ ESOKO √ √ √ CKW Program √ Agropedia √ SAPA Mobile √ m-Krishi √
  • 15. • Up-to-date agricultural information on agriculture, education & entertainment directly to a consumer’s Nokia phone • Rolled out commercially in India & Indonesia in 2009 • Services are subscription oriented • SMS-based service sends basic text messages on an icon- driven interface • Relevant information received almost daily in local language (Hindi) • Available across 18 states, in 11 regional languages • Claims 14 million subscribers • Has several Private & public Sector Partners • Works across several mobile network operators (MNOs)
  • 16. Displays information in 2 languages –English and in the local language (Bahasa-Indonesia & Hindi -India)
  • 17. • RML offers Indian farmers up-to-date, customized information on commodity prices, local news, weather updates • Started in 2007. User base- over 80,000 farmers (2010) • Information relevant to 54 commodities in 270 mandis • Subscription entitles to: – Market prices and arrivals in three markets for each of the two crops chosen by the farmer – 24-hour local weather forecast relevant to the farmer’s taluka – Information on best practices of production for two crops Works across mobile network operators (MNOs)
  • 18. • Choupal refers to meeting place in a village • Information on prices, weather forecasts & best practices • Supply chain integration & supply of farm inputs • aggregation of farm outputs to ensure competitive prices and efficient logistics • Direct marketing channel to lower transaction costs • Operating in 40,000 villages covering 4M farmers in 10 states through 6,500 kiosks • Plans to offer personalized crop management advisory services to individual farmers by integrating mobile phones into the digital and physical network of e-Choupal.
  • 19. • Kenya’s most well known mobile based solution for agriculture. • Enables farmers to create linkages with market • Services offered: – Price Information • Up-to-date market information empowers farmers as they bargain for a fair price with middlemen and purchasers – Group Selling • Farmers get connected to each other to jointly market crops in greater volume, helping rural farmers access large-scale markets.
  • 20. – Group Buying • Farmers get connected to suppliers and, through collective buying power, get significant bulk discounts on farming inputs such as seeds, fertilizers, and equipment. – Customer Relationship Management • CRM module is targeted at cooperatives and large suppliers that want to manage their clients’ queries and responses.
  • 21. • Incubated at Institut Teknologi Bandung, Indonesia. Now a Private sector venture Comprehensive, Mobile-based supply chain and Information management system – integrates large numbers of smallholder farmers into commercial supply chains – facilitate mutually beneficial partnerships between smallholder farmers and exporters/buyers – Provides technical information, – recommend best practices to smallholder farmers at real time – Links smallholder farmer s’ production to specific market needs – currently operational among 5000 organic rice farmers
  • 22. Joint venture of IFFCO with Airtel to provide mobile tele- services to the rural farmers. • IKSL distributes Airtel SIM cards under the name “Green SIM” to the farmers • Subscribers are provided five voice-based messages free of cost every day. • Consumers can also access a toll-free helpline service • IKSL schedules its voice messages based on the local agricultural situation and queries on their helpline
  • 23. • m-Krishi is a proprietary mobile agro-advisory system allows farmers to send queries to agricultural experts through a mobile phone and receive personalized advice in local language. • The end-to-end m-Krishi solution has been developed through the integration of technologies such as: – sensors – solar power – CDMA modem – CDMA network – handset with camera – an engine to assist in displaying mobile screens in Indian languages
  • 24. • Developed under ICAR-NAIP project Agropedia- II • Service provider neutral • Currently being pilot tested involving nearly 10,000 farmers of 30 KVKs in: – 20 districts of Uttar Pradesh – 4 districts of Uttarakhand – 5 districts of Karnataka and – 1 of Andhra Pradesh
  • 25. • SMS Text messages can be created in 11 different languages. Low cost Constrained with handsets & illiterate farmers • Voice Messages Experts can create messages in their own voice. Expert send messages either through the web or mobile phone Delivery of messages to the farmers on their registered number Relatively more expensive
  • 26. Dynamic market information • Project based initiative by the TNAU, funded by DIT • Covers 13 major markets in south India • market analysis of 120 perishable commodities- fruits, vegetables & flowers • Collects whole sale and retail market price and uploaded to the website • Market information shared with farmers through FM radio and mobiles • Serving 35,000 farmers
  • 27. • Voice-based information systems are better accessed by farmers as it works above the constraints of illiteracy and local language support • Greater mobile penetration in rural areas, will lead to more number of MNO/MSO to offer MVASs • The credibility and quality of service offered going to be important considerations • Two-way mobile application (E2F, F2E) • Farm-advisories alone can not be the business proposition, it needs to be supported by forward and backward linkages
  • 28. • Government-funded and NGO-operated ICT solutions have an expiry date and when intervention ends, the solution needs a full sponsorship to revive its operations • Greater risk of negative impact of information explosion