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Wednesday, January 15, 2020

India - Brazil to share latest technologies in the Agriculture Sector


A lot of factors such as climate change, population growth, and food security concerns, have driven the agriculture sector to seek more innovative approaches to improve crop yielding and get better farming results. 

 
In days to come agriculture sector will become more important for the Indian economy as it would not only provide food but also the raw material for industries, fuel (Ethanol) through biomass and also be able to use the wastewater. The experience of the last few years shows how poor agricultural performance can lead to high inflation, rural distress, and political restiveness. A lot of factors such as climate change, population growth, and food security concerns, have driven the agriculture sector to seek more innovative approaches to improve crop yielding and get better farming results.
 
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Many developed and developing countries have realized that commercial agriculture can provide a boost to the economy through export of agricultural products and Brazil is one of them. For the South American nation agriculture sector become even stronger since the economic recession and has always been a massive contributor to its economy. The country is self-sufficient in basic foodstuffs and is a leading exporter of a wide range of crops, including oranges, soybeans, coffee, and cassava, which are grown mainly in the South and Southeast region of Brazil.
 
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The two countries have much in common in agriculture and both have small and marginal holdings farmers. In Brazil this is called Family Farmer (Portuguese: Agricultores Familiars) and recently have been increased by up to 10 times as expected after introduction of project Microbacias II (English: Microbasins II). Brazil’s success in making agriculture more market-oriented and raising farmer incomes holds many lessons for India.
 
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Microbacias II aims to increase competitiveness and provide market access for family farmers organized in associations and cooperatives throughout the São Paulo state, as well as producer organizations from traditional communities such as quilombolas and indigenous peoples. This aims to increase employment and income opportunities, social inclusion and promote the conservation of natural resources. This project was developed by State Government of São Paulo, Brazil and executed by the Secretaria de Agricultura e Abastecimento (English: Secretariat of Agriculture and Supply), through the Coordenadoria de Assistência Integral “CATI” (English: Coordination of Integral Assistance) and the Secretaria do Meio Ambiente (English: Secretariat of the Environment), by Coordenadoria de Biodiversidade e Recursos Naturais “CBRN” (English: Coordination of Biodiversity and Natural Resources). In this project actions are taken to ensure increased productivity and improved product quality; the integration of best soil and water management practices with more sustainable as well as competitive production systems; the strengthening of the organization and management capacity of production systems, the demands of products and the viability within the market; the promotion of more active participation of family farmers in their associations and cooperatives to integrate within the productive chains in their regions.
 
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Microbacias II is not restricted to conventional agriculture. It has sought to combine agribusiness with sustainable initiatives such as agro-forestry, organic and hydroponic agriculture. The project supported a total of 358 business proposals from rural organizations, which involved 10,986 producers. In addition to financial support, investments were also made in technical assistance to farmers and in guiding the adoption of sustainable agricultural practices. One of the biggest challenges in adapting such a project concerns scale: while in Brazil family farming is considered areas between 5 and 110 hectares, depending on the type of municipality agriculture, in India rarely exceed 2 hectares. In addition, some cultural factors do not allow the implementation of the Brazilian model. For example, farmers are not allowed to occupy large areas in the middle of the city, such as the São Paulo State Warehouse and Warehouses Company.
 
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With artificial intelligence (AI) and Big Data being a game-changer in industries, the Indian government has realized the importance and started to leverage this technology in developing the sector. AI can help achieve this vision by contributing to critical areas like Crop Selection and Crop Monitoring, where Crop selection AI-based solutions are ideal for selecting crops based on parameters like soil type, monsoon dates, availability and affordability. Crop Monitoring, where data can be collected using technologies like drones, and satellite imaging, from the fields, and then monitored and analyzed by AI-based applications to identify the right solutions.

In July 2019, Indian Ministry of Agriculture signed a Statement of Intent (SoI) with IT major IBM (An American multinational information technology company) for undertaking a pilot study on weather forecast and soil moisture information in three districts of Bhopal, Rajkot and Nanded in the states of Madhya Pradesh, Gujarat and Maharashtra respectively for the Kharif crop season 2019.

IBM’s "Watson Decision Platform" will give solution in the field of agriculture through (AI) analytics, and predictive insights with unique agricultural Internet of Things (IoT) data and weather technology at rural level or farm level to provide weather forecast and soil moisture information on pro bono basis to help farmers for taking decisions regarding water and crop management for better production and productivity.
 
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In 2017, the Government of Karnataka signed a Memorandum of Understanding (MoU) with Microsoft Corporation India Private Limited. The collaboration intends to empower smallholder farmers with technology-oriented solutions that will help them increase income using ground-breaking, cloud-based technologies, machine learning and advanced analytics. There are many projects and plans on the ground initiated by Indian government to increase agriculture sector like AGRI-UDAAN (To push innovative technologies in agriculture secure – Food & Agribusiness accelerator 2.0 to mentor 40 agricultural startups), Maha Agri Tech Project (The project is based out of Maharashtra, seeks to use innovative technologies to address various risks related to cultivation such as poor rains, pest attacks, etc. and to accurately predict crop yielding), PM-KISAN (Every farmer is going to receive Rs. 6000 annually to support their farming abilities.) and Pradhan Mantri Fasal Bima Yojana (PMFBY) (Sponsored crop insurance scheme by government that integrates multiple stakeholders on a single platform.) to increase agriculture sector.

With innovative practices coupled with the technological application, Brazil in a relatively short period of time transitioned from a net importer of food to be the 2nd largest agro exporters in the world overtaking Canada & Australia in the process and has led to a boom in the number of agriculture technology start-ups in the country. Agriculture research institutions like EMBRAPA "Empresa Brasileira de Pesquisa Agropecuária" (English : Brazilian Agricultural Research Corporation) which is affiliated with the Brazilian Ministry of Agriculture and setup in year 1973, had a major role to play in helping the average Brazilian farmer in increasing productivity. Moreover, the transformation of semi-arid land into agricultural pasture has had a significant impact on agricultural productivity.

Bilateral cooperation India-Brazil Technology change is a reality and has the potential of reducing agricultural productivity in India, making food security as a priority is crucial. With large tracts of arid semi-arid land and increasing uncertainty of the monsoon, India can adopt Brazil’s practices and innovative policies in its own agricultural sector by encouraging increased co-operation among the agro start-up ecosystems of both the countries.

In the month of December 2019, The Pusa Krishi Incubator, of Indian Council of Agricultural Research (ICAR) launched the “Maitri - Indo-Brazil Agri-Tech Cross Border Incubation Program” for seven days, where Brazil understand the Indian ecosystem partner like corporate, investors, organizations in regulatory and trade aspects and other of Indian agriculture sector. It was unique cross-border incubation program, which focuses on promoting agri-startup incubation, exchange and access to global market thereby enabling the social, industrial and economic growth of both the countries.
 
👉 Click here to read on The Financial Express

Article by Sandeep Wasnik | Latin America & the Caribbean Market Expert
Contact : latinosbiz@gmail.com
 

Friday, January 3, 2020

India has a strong focus in the area of biofuels and stipulated an ethanol blending target.

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Today’s global trend towards increased use of environmentally friendly fuels (Ethanol) is likely to gather pace. Brazil which is the second-largest ethanol producer after the United States in the world is home to the world’s largest fleet of cars that use ethanol. Ethanol is derived from sugarcane as an alternative to fossil fuel-based petroleum.

India is the second-largest producer of sugar after Brazil in the world and sugar production during the last few years has remained 24-26 million tons. A surplus sugar stock with a stronger financial incentive to convert excess sugar to ethanol should help the oil marketing companies procure upwards of 2.4 billion litres in 2019. This will help to achieve its highest fuel Ethanol blending in petrol penetration at 5.8 per cent, compared to last year’s record of 4.1 per cent.


 Ethanol blending with petrol is pegged to touch 7 per cent as shown in info-graph.
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To address environmental concerns due to fossil fuel burning, provide remuneration to farmers, the Indian government launched Ethanol Blended Petrol (EBP) programme in 2003 for undertaking blending of ethanol in Petrol. This initiative was also undertaken to subsidize crude imports and achieve forex savings. Presently, the EBP programme is being run in 21 states and 4 Union Territories of the country. In India, ethanol is primarily manufactured via the fermentation of molasses, a by-product of the sugarcane-crushing process. India has 330 distilleries, which can produce more than 4.8 billion litres of rectified spirit (alcohol) per year. Out of 330 of distilleries, nearly 166 distilleries have the capacity to distil approximately 2.6 billion litres of conventional ethanol per year.

In 2019, The Cabinet Committee on Economic Affairs (CCEA) approved Pradhan Mantri JI-VAN (Jaiv Indian- Vatavaran Anukool fasal awashesh Nivaran) Yojana which aims to provide financial support by Viability Gap Funding (VGF) to Second Generation (2G) Integrated Bioethanol Projects. This is done by using lignocellulosic biomass and other renewable feedstock.

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 The Pradhan Mantri JI-VAN Yojana will be supported by the total financial outlay of Rs 1959.50 crore for the period 2018-19 to 2023-24. Rs 1800 crore has been allocated for supporting 12 commercial projects, Rs 150 crore for 10 demonstration projects and the balance Rs 9.50 crore will be provided to Centre for High Technology (CHT) as administrative charges.

The government has also been exploring an alternate route of encouraging the production of second-generation ethanol from biomass and other wastes to bridge the supply gap for ethanol blending programme. The introduction of this fuel has not only environmental benefits but also addresses the country’s energy security.

In 1975, National Alcohol Programme, “Proálcool” was introduced by the Brazilian government, after the introduction of this programme, within 6 years, nearly 90 per cent of all the new vehicles sold in the country could run on ethanol. Proálcool programme accelerated ethanol production and today Brazil has become the second-largest ethanol producer in the world. End of December 2019, nearly 34.45 billion litres ethanol production has been estimated in Brazil.

In January 2020, during Brazilian President Jair Bolsonaro’s official visit India, ethanol will be on the agenda for discussion. The Brazilian government is expected to offer ways to assist India in boosting its ethanol program, such as increasing production and blending ethanol with petrol, which could help reduce the country’ sugar stocks, reduce Crude oil imports, reduce pollution in large cities and boost global prices for the sweetener. 

R
ecently, the Union Cabinet, chaired by the Prime Minister Narendra Modi has given its approval for signing of Memorandum of Understanding (MoU) between India and Brazil on Bioenergy Cooperation. This MoU provides a framework to cooperate and promote investment in biofuel, bioelectricity and biogas supply-chains, including feedstock, industrial conversion, distribution and end-use sectors. Few other salient features of the MoU included are reducing greenhouse gas emissions by using Biofuels, Engine and fuel modification that may be necessary for requiring Biofuel blend with fossil fuels.


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India has a strong focus in the area of Biofuels and stipulated an ethanol blending target of 10 per cent by 2022 and 20 per cent by 2030, while biodiesel blending target has been set at 5 per cent by 2030 when it had announced a new policy on Biofuels in 2018.

Now, the Indian Automobile sector not only needs to focus on Electric Vehicles (EVs) but also on Flexi-fuel engine. Today, nearly 44.8 million cars are running on Brazilian road, where 75 per cent of the total can run on a mixture of ethanol and gasoline due to its flexible fuel engine. Brazilian flexible-fuel vehicles are optimized to run on any mix of E20-E25 gasoline (E20 contains 20 per cent ethanol and 80 per cent gasoline, while E25 contains 25per cent ethanol) and up to 100 per cent hydrous ethanol fuel (E100). On the other hand, Indian Automobile sector needs to work on the flexible-fuel engine or flexible-fuel-vehicles technology and safety, which is also helping to reduce greenhouse gas emissions and reduce the hiking in fuel price trend.

👉 Click to read on The Financial Express

Article by Sandeep Wasnik | Latin America & the Caribbean Market Expert
Contact : latinosbiz@gmail.com