SEPTEMBER, 202519In an exclusive interview with Industry Outlook, Ramesh Ramachandran, MD & CEO of Mahindra Agri Solutions Ltd. and MD of Mahindra EPC Irrigation Ltd., discusses the growth of India's micro irrigation market. He points to key drivers such as government support, rising farmer awareness, and targeted subsidies, while highlighting future growth enablers such as increased adoption by small landholders, timing of the launch of subsidy schemes, and the need for policy reforms to enhance climate resilience and sustainability. A seasoned business leader with over three decades of global experience in agriculture, strategy, innovation, and brand technology, Ramesh brings deep expertise in precision farming, digital transformation, and sustainable agribusiness growth.INDUSTRY INSIGHTSRECALIBRATING SUSTAINABLE PRACTICES WITH MICRO IRRIGATION SOLUTIONThe Indian micro irrigation market has been showing steady growth for over a decade. What factors are driving this growth, and how is it enhancing climate resilience among farmers?The Indian drip irrigation market is witnessing steady growth driven by rising farmer awareness, strong support from the central government, continued support from the traditional states, essentially in central and southern parts of India, and increasing patronage by a few new states in the northern and eastern regions. Because of efforts put in by various players over the years, awareness among farmers on the benefits of micro irrigation has increased. This growth is also contributing to enhanced climate resilience among farmers. By significantly improving water-use efficiency, micro irrigation, which includes drip irrigation and sprinkler irrigation, enables cultivation even under low water availability. Drip irrigation in particular, with its targeted root zone application, ensures optimal moisture delivery, helping crops withstand high temperatures and water stress for crucial advantages in an increasingly unpredictable climate.The Micro Irrigation Fund's corpus was increased by 5,000 crore in October 2024. How effective has this been in expanding drip irrigation adoption among smallholder farmers?The increase of 5,000 crore to the Micro Irrigation Fund (MIF) in October 2024 has further empowered states to enhance drip irrigation adoption, especially among smallholder farmers. Managed by NABARD, the MIF provides financial support to states that choose to extend subsidies beyond the standard centre-state allocation. By offering bridge loans through the MIF, states are able to provide additional subsidies, sometimes covering up to 90% or even 100% of the cost. This can significantly improve the accessibility and adoption of micro irrigation systems for small and marginal farmers, making the scheme more inclusive and impactful.Drip irrigation achieves 90% water efficiency. Given this, why is adoption low, and what policy shifts can drive implementation?It is worthwhile noting that the area under micro irrigation (drip and sprinkler) has increased by about 5.2 million ha in the last 5 years. While adoption is moving in the right direction, it could grow faster. There are some practical challenges faced by the industry. These include Ramesh Ramachandran, Managing Director & CEO - Mahindra Agri Solutions & MD - Mahindra EPC IrrigationRamesh Ramachandran, Managing Director and CEO
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