“Climate-resilient agricultural practices remain our top priority in next 12-15 months”

In this exclusive interaction, Amit Patjoshi, CEO of Palladium India explains the emerging trends in agriculture, company’s focus on sustainable practices and future outlook

0
193
Amit Patjoshi, CEO of Palladium India brings over two decades of invaluable experience in advisory roles during his robust career in renowned firms such as E&Y, KPMG, and PwC.
In this exclusive interaction, Amit Patjoshi explains the emerging trends in agriculture, company’s focus on sustainable practices and future outlook:

BV LogoEmerging trends that you foresee for the Indian agriculture sector, especially in the AgriTech segment during FY 2024?
The Indian agriculture sector is poised for significant transformation driven by many emerging trends. We will see a continued surge in technology adoption. Techniques like precision farming, utilizing drones and IoT devices for data collection and field monitoring will become mainstream allowing for maximum yield. Artificial intelligence and big data analytics are being leveraged to process extensive agricultural data, including weather patterns and crop health. These technologies help in enhancing overall farm productivity. Additionally, the rise of e-commerce and digital marketplaces allows farmers to sell directly to consumers, cutting out intermediaries and securing better prices for their produce, while also meeting the increasing demand for organic and locally sourced products.
Despite advancements, financial inclusion for farmers remains a significant challenge. Agri-focused fintech solutions, such as microloans, crop insurance, and digital payment platforms, are anticipated to bridge this gap. Furthermore, the Indian government is expected to continue its support for the AgriTech sector through initiatives like the Pradhan Mantri Fasal Bima Yojana and the promotion of Farmer Producer Organizations (FPOs).
BV Logo
In what ways does Palladium India engage with local agricultural communities to understand their needs and challenges?
Through landscape studies we analyze the broader agricultural environment, including ecological, economic, and social factors influencing farming communities. We work on Marketing System Development (MSD) approach to catalyse income enhancement for the smallholder farmers, which goes beyond direct delivery models, focusing on systemic change by improving core market functions, facilitation to support lasting behavioural change in market system actors, and sustainability to ensure enduring changes beyond the intervention period. We evaluate market conditions, pricing trends, and economic factors impacting farmers’ livelihoods. Value chain analysis is also performed to map out the entire agricultural value chain from production to consumption, identifying key players, processes, and bottlenecks. We then determine strategic points where interventions can have the most significant impact on improving the value chain. We also try to understand the local trade dynamics and networks that facilitate the distribution and sale of agricultural products.
BV Logo
How does the company support initiatives that enhance farmers’ financial literacy and promote sustainable agriculture practices?
To enhance farmers’ financial literacy, we train Board of directors of the FPOs on inclusive business plan development, financial projections, implementation of the business plan, working capital assessment, loan utilization, financial due diligence practices, documentation and rotation of the loan funds.  We also promote sustainable agriculture practices through partnership with State Agriculture Universities and Krishi Vigyan Kendras, making farmers market ready with post-harvest management standards and other value addition practices as per market requirements, and training and capacity building through exposure visits and by organizing industry emersion programs.
“Palladium is partnering with Bill and Melinda gates Foundation on strengthening FPO ecosystem in Odisha and in agricultural transformation of the North-East region.”
BV Logo
Can you share examples of initiatives that positively impacted the socio-economic development of farming communities?
Palladium is leading many agriculture initiatives in India which have positively impacted the socio-economic development of farming communities. For example, The Department of Agriculture & Farmers’ Empowerment in Odisha has partnered with the Bill and Melinda Gates Foundation (BMGF) to enhance the effectiveness FPOs in the state by addressing challenges related to governance, membership, management, and business operations. Since 2020, the Promotion and Stabilization of FPOs (PSFPO) project has been active in Odisha. As the Technical Support Unit for this initiative, Palladium has facilitated stakeholder collaboration and strengthened the business capabilities of FPOs through skill-building and improved market access.
The efforts led to the development of the “Support to FPOs” state scheme, backed by Rs 3.13 billion. Over 960 FPOs were registered, with 65 private agri-businesses procuring through them. FPOs also earned over Rs 1.25 billion selling produce to institutional buyers. The initiative witnessed 13.4% to 17% income enhancement for the FPO member farmers through collectivization and access to remunerative markets and 152% increase in access to credit resulting in timely availability of working capital for business. Further, through collaboration with The Agricultural and Processed Food Products Export Development Authority (APEDA), Palladium has ensured 40% increased price-realization for the state FPOs by facilitating export of Mangoes from Odisha to Italy and Dubai.
Another initiative by Maharashtra Agribusiness Network, funded by the Asian Development Bank, aims to enhance the agribusiness sector in Maharashtra by promoting innovation, technology adoption, market linkages, and value chain optimization. Under this initiative over 18,000 farmers have been trained of which 25 percent are women, across 28 districts of Maharashtra. A total grant of Rs 1.25 billion has been approved for 47 subprojects, with Rs 160 million allocated to women-owned or led subprojects. Additionally, three financial intermediaries have signed agreements to provide financial intermediary loans to FPOs.
Palladium has been empanelled by NABARD and NAFED as a Cluster-based Business Organization (CBBO) for the implementation of Central Sector Scheme for Formation and Promotion of 10,000 FPOs. We are actively supporting 29 FPOs in in Odisha, Gujarat and Maharashtra to create a comprehensive and sustainable ecosystem to promote income-oriented farming and overall socio-economic development. Our expertise in market linkages and capacity building aims to ensure the FPOs’ sustainability and compliance, facilitating efficient operations and organic growth. Palladium’s efforts were acknowledged by the National Project Management Agency (NPMA) with a 2nd ranking for the year 2021-22 in Odisha.
“Over the next 12-15 months, our key priorities will revolve around advancing climate-resilient agricultural practices, fostering market linkages, and promoting technological innovation within the sector.”
BV Logo
Your partnerships with local stakeholders, NGOs, or government agencies across India?
Palladium is partnering with Bill and Melinda gates Foundation on strengthening FPO ecosystem in Odisha and in agricultural transformation of the North-East region. We are also associated with many government agencies including the Department of Agriculture and Farmers’ Empowerment, Government of Odisha. We are empaneled by NABARD and NAFED as a Cluster-Based Business Organization to facilitate the promotion of FPOs across Odisha, Gujarat and Maharashtra. Our engagement with private sectors across the value chains for market system development is also crucial for FPO promotion and stabilization.
BV Logo
Looking ahead, what are your key priorities for the next 12-15 months?
Over the next 12-15 months, our key priorities will revolve around advancing climate-resilient agricultural practices, fostering market linkages, and promoting technological innovation within the sector.
A central focus will be the promotion of climate-smart Farmer Producer Organizations (FPOs). By providing training and capacity building, we aim to enable these FPOs to adopt sustainable practices that mitigate the adverse impacts of climate change.
Another critical priority is the widespread implementation of climate change adaptation practices on agricultural lands. We plan to deploy a comprehensive suite of technologies and methods that enhance resilience to climate variability and extreme weather events, ensuring our agricultural systems can withstand future challenges. In our efforts to increase farmers’ incomes and improve environmental sustainability, we will promote the sustainable sourcing of agricultural commodities such as coffee, spices etc. This initiative will focus on enhancing soil biodiversity and fertility and ensuring food safety through the adoption of regenerative agricultural practices at scale. We are exploring to connect Indian smallholders to voluntary carbon markets. By augmenting their current revenue streams and implementing carbon sequestration practices, both above and within the soil, we aim to effectively remove or prevent greenhouse gas emissions, thereby contributing to climate change mitigation.
Another major priority will be promoting circular economy principles in agriculture. We are committed to optimizing resource use and minimizing waste throughout the production, processing, and distribution stages in the agriculture, food, and beverage sectors.
Seeing the world moving towards innovations in agriculture, finally, we will actively seek out innovative technologies with the potential to address critical challenges in Indian agriculture. These priorities are designed to create a resilient and prosperous agricultural sector in India, enhancing sustainability and improving farmers’ livelihoods.