Uniting the Ecosystem: Empowering Smallholder Farmers and Solving India's Water Crisis

Smallholder farmers are key to solving India's water crisis, accounting for 86% of farming households. Agricultural consumption accounts for 75-90% of India's freshwater use.

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Despite appearing to be a large market for innovative private players, significant barriers exist. These include lopsided incentives due to subsidised and erratic power supply, unregulated groundwater use, and the cultivation of water-intensive crops in unsuitable regions.

This complex problem requires diverse solutions. The DCM Shriram AgWater Challenge has unearthed many, from automated irrigation to biologics and irrigation-as-a-service models. It also provides pathways to patient capital, helping startups acquire customers and build sustainable models.

However, the smallholder farmer market's fragmentation extends beyond size, region, and crop types. It's also cultural. Many farmers view their land as integral to their heritage and livelihood, making them hesitant to adopt collective farming practices or new technologies without immediate benefits.

Market players often misunderstand this, expecting resource-strapped farmers to adopt cost-effective solutions readily. For smallholder farmers, numerous other variables influence decisions. Many consider farming their secondary profession and would rather invest in their primary occupation than in improving an unviable trade. They're suspicious of new players offering to solve old problems and prefer to wait and watch.

The Role of Civil Society and Research Institutes