1. Building the database, monitoring, and information-sharing system for the Action Platform March 2013

2. Table of contents I. Results Monitoring System A.Key indicators for value chain and input companies with ICT B.Key indicators for input companies without ICT C.Key indicators for financial institutions II. ICT Providers for Results Monitoring A.FrontalRain B.CropIn C.Nokia Life III. Using ICT to Monitor Results—Godrej Agrovet 2

3. Executive summary The first section of this report outlines potential indicators on farmer characteristics, company inputs and farmer outcomes for three sets of companies:  Value chain and input companies which are using ICT systems to monitor participating farmers, company inputs, and farmer outcomes.  Companies which are not using ICT systems to track farmers served, inputs provided and results achieved.  Financial institutions which are doing appraisal based lending of farmers, with the ability to capture key indicators on farmer clients, financial services provided and changes in farmer incomes. We have worked to create a results monitoring system for company initiatives, collaborations and PPPs for the Action Platform to Create Shared Value in Agribusiness. First section 3

4. Executive summary The second section of this report provides a description of three service providers which offer ICT solutions, with mobile devices for use by field staff and farmers to track farmer tag variables, inputs and outcome:  FrontalRain  CropIn  Nokia Life. The features of the ICT offerings of each of these firms have been analyzed by an IIMA team, and the firms have reviewed the features described in this report. Second section We hope that companies will be able to use these ICT offerings for commercial purposes, to track efficiency and effectiveness of operations with large numbers of farmers. The same system can be used to monitor actions taken to meet the shared objectives of the Action Platform to create shared value with 20 million farmers by 2020. We look forward to the review of the results monitoring system with participating companies to enable implementation in FY2013-14. 4

5. 5 I. Results Monitoring System

6. The monitoring system has been designed for input companies, value chain companies and financial institutions with farmer tag indicators, input and outcome indicators, collection methods for each 6 indicator Input Companies With ICT Without ICT Value Chain Companies Financial Institutions Tag indicators— Baseline data Data collected by extension officers, including use of geo-tagging Data based on best estimates by company management Data collected by extension officers, either manually or with ICT Data from appraisals by loan officers entered into MIS Input indicators— Company activities Data collected by extension officers using ICT Data based on best estimates by company management Data collected by extension officers, either manually or with ICT Data from appraisals, efficiency and repayment data from MIS Outcome indicators— Impact of company engagement Data collected by extension officers using ICT Data based on best estimates by company management Data collected by extension officers, either manually or with ICT Data from MIS, including from appraisal by loan officers of repeat loans.

7. Key indicators for value chain and input companies with ICT: a.Tag indicators on farmers b.Input indicators c.Outcome indicators 7

8. Tag indicators on farmers for value chain and input companies with ICT 8 DimensionKey Indicators Information on farmers prior to company engagement 1.Farm location by state, district and mandal/taluka 2.Operational holding size 3.Whether focused on commercial vs. subsistence 4.Water and irrigation 5.Whether farmer used a tractor 6.Land under production of targeted commodity 7.Yield per hectare of targeted commodity 8.Price per kilo realized for targeted commodity 9.Total net income of farmer 10.Total net income of farmer, attributed to each targeted commodity Value Chain Companies Only 1.Percentage of output consumed by household or sold in village 2.Percentage of output sold by farmer in local market 3.Percentage of output sold through commercial value chains

9. Input indicators for value chain and input companies with ICT 9 DimensionKey indicators Input indicators – for each commodity 1.Amount of improved seeds purchased, by type 2.Amount of fertilizer purchased, by type 3.Amount of plant protection purchased, by type 4.Amount paid by farmer for all inputs 5.Company costs per farmer in providing inputs 6.Supply of drip or spray irrigation provided, in ha 7.Tractor or farm equipment sold, in rupees 8.Whether farmer provided with demo plots 9.Whether farmer provided with group training 10.Whether farmer provided with on-farm extension services 11.Whether farmer provided with ICT-based information and advice 12.Company costs per farmer in providing advice 13.Whether farmer provided with support in accessing credit 14.Whether farmer provided with support in accessing crop or weather insurance 15.Amount of credit extended

10. Input indicators for value chain companies only 10 DimensionKey indicators Input indicators – for each commodity 1.Whether company procured directly from farmers in value chain 2.Whether company established contracts with farmers with minimum prices 3.Whether company procured through an agro-entrepreneur 4.Whether company procured through a producer organization 5.Whether company procured through a traditional trader 6.Whether company helped organize producer organizations and/or agro entrepreneurs for procurement, QC, other services 7.Whether company procured over 75% of output from farmer 8.Whether farmer received bank loans under value chain financing collaborations 9.Company costs per farmer in providing procurement services

11. Outcome indicators for input companies with ICT and value chain companies 11 DimensionKey indicators Outcome indicators – with company engagement, by targeted commodity Farmer Level 1.Land under production 2.Yield per hectare 3.Price per kilo realized 4.Price increase per kilo 5.Total revenue of farmer in value chain from output sold to agribusiness 6.Net income of the farmer attributed to target commodity (revenues minus expenditures) Aggregate Data 1.Average yield per hectare 2.Average price per kilo realized 3.Average net income earned

12. Key indicators for input companies without ICT: a.Estimates on farmer segments b.Estimates on services provided c.Estimates on results achieved at farmer level 12

13. Tag indicators on farmers for input companies without ICT—based upon management estimates using data from agro-dealers and field officers 13 DimensionKey indicator: estimates of farmers and segments served Tag indicators - information on farmers prior to company engagement 1.Number of farmers served, by state, district and mandal/taluka 2.Number of farmers served, by operational holding size 3.Number of farmers served, by farming model 4.Number of farmers served, by water and irrigation 5.Number of farmers served using a tractor 6.Average land under production of targeted commodity 7.Average yield per hectare of the targeted commodity 8.Average price per kilo realized for targeted commodity 9.Average net income of farmer 10.Average net income of farmer attributed to each targeted commodity

14. Input indicators for input companies without ICT, using aggregated estimates by management using data from agro-dealers and field officers 14 DimensionKey indicators: estimates of services provided to farmers Input indicators – for each commodity 1.Number of farmers served with improved seeds, by type (kg) 2.Number of farmers served with fertilizer, by type (kg) 3.Number of farmers using plant protection, by type (kg/l) 4.Average amount paid by farmer for inputs 5.Average company costs per farmer in providing inputs 6.Number of hectares supplied with drip or spray irrigation 7.Number of farmers sold a tractor or farm equipment 8.Number of farmers provided with demo plots 9.Number of farmers provided with group training 10.Number of farmers provided with on-farm extension services 11.Number of farmers provided with ICT-based information and advice 12.Average company costs per farmer in providing advice 13.Number of farmers provided with support in accessing credit 14.Number of farmers provided with support in accessing crop or weather insurance 15.Number of farmers to whom credit was extended

15. Outcome indicators for input companies without ICT— estimating pre and post engagement outcomes for farmers using management estimates based on information from agro-dealers and field officers 15 DimensionKey indicators: estimates of results achieved Outcome indicators – with company engagement, by targeted commodity 1.Average land under production 2.Average yield per hectare 3.Average price per kilo realized 4.Average price increase per kilo 5.Average revenue of farmer in value chain from output sold to agribusiness 6.Average net income earned (revenues minus expenditures)

16. Key indicators for financial institutions: a.Tag indicators on farmers b.Input indicators c.Outcome indicators 16

17. Tag indicators on farmers for financial institutions— Using information from loan appraisals entered into MIS 17 DimensionsKey indicators Tag indicators -information on farmers prior to loan 1.Location of the farmer by state, district and mandal/taluka 2.Operational land holding 3.Whether focused on commercial vs. subsistence 4.Gross total income of the household 5.Net income of the household 6.Net income of the household from agriculture and livestock 7.Main commercial crops grown 8.Percentage of farm output sold for cash 9.Whether farmer has received loans from this FI in the past 10.Whether farmer has received loans from other FI’s 11.Whether farmer has a history of default 12.Whether farmer has a clear land title

18. Input indicators for financial institutions— Services to farmer by FI, using and refining MIS 18 DimensionKey indicators Input indicators – for each commodity 1.Amount of working capital loan by FI 2.Amount of fixed investment loan by FI 3.Amount of warehouse receipt loan by FI 4.Whether crop or weather insurance provided 5.Time taken between application and disbursement 6.Whether loan originated, was appraised and was disbursed from bank branch and by bank staff 7.Whether loan made as part of a value chain financing collaboration with an agribusiness 8.Whether agro-dealer or other agent was used for origination and/or other functions 9.Whether client has a savings account with FI 10.Whether client has payment services from FI 11.Whether client has other services from FI 12.Cost per unit per rupee lent 13.Annual cost to provide annual services to client 14.Average interest rate in loans to client 15.Net revenues to FI from financial services to client

19. Outcome indicators by financial institutions— Impact on net income, end use, repayment and repeat loans 19 DimensionKey indicators Outcome indicators – with loan, by targeted commodity 1.Whether the client repays loan on time 2.Net income post-loan, calculated when repeat loan provided 3.Whether over 50% of the loan was allocated to procure improved inputs 4.Whether a portion of the loan was allocated to procure irrigation or farm equipment 5.Whether FI intends to make a repeat loan to the client

20. 20 II. ICT Providers for Results Monitoring

21. FrontalRain 21

22. Frontal Rain process map for collecting and providing data for key players in the value chain 22

23. Objectives and advantages of FrontalRain ParametersFrontalRain Objectives and Business Focus Deliver specialized software (Rain+) to agribusiness sector that can improve efficiency at every stage of the supply chain Focus on increasing revenue, farm productivity and supply chain management and expansion capacity through Rain+ Advantages Provides end-to-end solutions and supply chain management through five Rain+ products targeting the following categories: Grower management Process manufacturing for food processing plants Logistics solutions for warehouses and cold chains Collaboration platform for distributors and traders Customer satisfaction solutions 23

24. Target clients, technology and key features of FrontalRain ParametersFrontalRain Target Clients Growers Processors Logistics and agri-service providers Traders Technology FrontalRain is based on the SaaS software distribution model Functions such as sales, purchase, procurement, quality, R&D, finance and investment are tracked by SaaS Farmers are tagged through a coding convention and data is fed into different logs for each farming activity Scalability Easily customized for organizations experiencing rapid growth Distinct features Can be accessed by any ERP operator Farmers can log and input data themselves but data normally entered and maintained by staff of larger entities or by third party associates 24

25. Development costs and fee structures of Frontal Rain ParametersFrontalRain Costs Cloud (Data Storage) Nothing extra for data storage Data Storage (If own server is used) Hosted on Amazon cloud and the charges are in the Amazon website Development Cost There is no customer specific development cost, standard product TrainingNo additional cost Revenue FeesINR 5000/user/month Other ChargesNot applicable 25

26. Key agribusiness clients, geographical and sector focus, services, and technology of Frontal Rain ParametersFrontalRain Clients DiversityNational players SpreadSouth, West and North India Sector Seafood, poultry, spices, rice, processing industries, SHGs of cultivators, aqua industry, organic products, cotton, edible oil Services Supply chain management system, food and agribusiness management, farm management, contract management, consulting, compliance and quality standards Data EquipmentMobile technology, email, chats, printing device, photos and videos 26

27. FrontalRain farm monitoring--some key features ParametersRain+ Grow Types of Growing Field Crops, Fruits and Vegetables, Green Houses, Aqua Ponds, Poultry, Dairy, Plantations, Contract Farming Events Issue of Funds, Input Materials like Agrochemical and Fuels, Harvests, Inspections, Labour and Equipment Usage and Monitoring of Growth Stages of Crops. AdditionalPest Management, Diseases, Diagnosis, Recommendations Real time Data Real time data captured about Users, Date and Time Stamp, Weather, Accurate location data from GPS, Sensor data etc to prove authenticity Compliance, Sustainability, Shared Value BRC, GlobalGap, HACCP, Organic Certifications like Bio Suisse, Demeter, NOP etc. Monitoring of Soil, Water Quality, Nutrients and Bio Diversity. Shared value parameters like wages and benefits to staff, Labour Contracts and farmer training programmes Results Utilization for farmer assets like land, livestock etc, Yield measurement and crop level profitability and Post harvest management TraceabilityBatch level traceability to track and trace the origin and destination. 27

28. CropIn 28

29. Process map for CropIn system to collect data and provide information to agribusinesses and farmers 29 Farmer/Farm Registration Area Audit Crop Monitoring Pest Consulting Procurement & Farmer Rating E-Shipment with harvest details Weighbridge receiving Export: Trace Consignment

30. Objectives and advantages of CropIn ParametersCropln Objectives and Business Focus Equip India’s agribusiness sector with ICT through collaboration with all value chain partners Focus on leveraging ICT to increase farm productivity, reduce losses and manage supply chains Advantages Provides the agribusiness sector a network of ERP (Enterprise Resource Planning) and BI (Business Intelligence) through ICT Provides effective tracing capabilities at the farm level through portable devices and built-in software systems Offers flexibility to provide customized solutions depending on user (input suppliers, value chain companies, banks etc.) Real time visibility of the entire farming process 30

31. Target clients, technology and key features of CropIn ParametersCropln Target Clients Growers Processors Financial Institutions Retail Technology CropIn has developed an app which can be downloaded and used by any device which runs on Android and has the ability to connect to a network At the back end, the app is connected to software which in turn is connected to the cloud Scalability Not as efficient for businesses in rapid growth stages CropIn indicates that the system is suitable for large companies and scalable, as indicated by use of CropIn by ITC, Pepsico, FieldFresh and HDFC. Distinct features App is installed on a mobile phone and used by field officers who use it to input data Currently developed for Androids. Coming soon for Windows and Java. Currently available in English, Hindi, Telgu and Tamil. Other languages provided based upon customer demand Tailored for small, medium and large scale operations. 31

32. Development costs and fee structures of CropIn 32 ParametersCropln Costs Cloud (Data Storage)No Storage Cost Data Storage (If own server is used) As per Cloud Service Provider (Amzon or Window Azzure) Development CostNo Development Cost - Standard Product Available TrainingNegligible (3 days of management time) Revenue Fees (Small Holdings) INR 300 – INR 1000 /acre/year Fees (Large Holdings) Per User Licence- Ranges from INR 10,000 - 50,000 / year ( for exp. For 100 Licence Package : per Licence cost is 20,000/yr)

33. Key agribusiness clients, geographical and sector focus, services, and technology of CropIn ParametersCropln Clients Diversity MNCs, national and regional players Spread North India, South India, West India Sector Agribusinesses, processing, retail, financial institutions. Services Agribusiness mobility solution integrated with Cloud apps: complete farm management, real time farm monitoring, contract and supply chain management, traceability, food safety, decision support. Data Equipment Mobile app with image capabilities, geo tagging, SMS capabilities and farmer voice recording-sent to location in real time. 33

34. Nokia Life 34

35. Nokia Life for Farmers Mobile based information and advice covering the entire crop cycle Sow Information on seed types Variety- specific best practices Grow Fertilizer application Disease symptoms and crop protection Harvest, store and sell Choosing best time for harvesting Storage and transportation guidelines Prepare for next cycle Ground preparation Crop selection based on climate and soil type 35

36. Nokia Life for Farmers Strong agro capabilities, outreach and collaborations. Information to farmers focusing on improving productivity and negotiating power Extensive coverage: 22 states with 7000 markets, 8,000 blocks, 275 crops and commodities 30+ ecosystem partners contributing to sustainable and credible content platform Collaborations with industry on joint projects including NABARD, Syngenta and TAFE 40+ agriculture experts and dedicated Agri Knowledge Desk to validate and enhance inputs to farmers 36 Improves farmer negotiating power Allows farmer to plan based on weather patterns Provides daily tips from experts Timely advice geared To match a crop cycle Not cheated by middlemen and traders Selling harvest at the right time at the best marketplace Schedule key activities based on forecast Take early action to reduce damages Protects crops from pests and diseases Enhances yield quality and quantity Messages are sequenced as per specific crop cycle for each state / region Can be planned for specific sowing seasons Benefits to the farmers

37. Nokia Life for Agri-Enterprises End-to-end mobile based solution for extension service management for agri-businesses (Inputs, Value-chain and Financial Institutions) to manage programs with farmers Nokia Life for Agri-enterprises is a single pre-loaded application on Nokia devices to send real-time information updates to field staff and also receive data on daily extension activities Information services for field teamsData gathering from field teams Customized information for field workers in different regions and roles Product training and meeting schedule updates FAQs and links to audio/video demos Info on market prices, weather, news and advisory from 30+ agri-ecosystem partners fully customized as per specific needs Optimized for data input by field worker Flexibility in form design based on market activity GPS enabled location capture Image upload capability Web-based, centralized administration interface Seeds Fertilizers Farm machinery Water management Disease management Finance and insurance Contract farming Livestock for secondary income Inputs Best practices Yield and income Hyper-local Personalized Multi-modal: SMS, voice, data Information services for field teams Data gathering from field teams Nokia Life for Agri- Enterprises Flexible data and Image upload support GPS for geo-locating field activities Centralized activity monitoring Farmers Field teams 37

38. 38 III. Using ICT to Monitor Results— Godrej Agrovet

39. Godrej Agrovet has been a leader in using ICT to monitor productivity enhancing measures and results in its palm oil business, using handheld devises and storing data on a common server. Godrej Agrovet works with about 36,000 small farmers in palm oil, with over 40,000 hectares, under long term contract with the government. Godrej Agrovet has been successful in getting high levels of productivity in Andhra Pradesh which it is trying to replicate in other states. Targets: At the start of the year, Godrej gives projected target to the farmers for crop yield, based upon field officer visits to the assigned area in April, in which targets are set after considering soil and weather conditions for the season. In September, the targets are revised based upon actual production in the previous six months. Godrej Agrovet Farm Management System (FMS) Developed to monitor the company’s palm oil business output. Focuses on outputs achieved. Collects tag variables on farmer attributes, hard and soft inputs by Godrej Agrovet, and yield changes by participating farmers. Integrated with the SAP of Godrej Agrovet. Field officers enter data into handheld and farmers and Godrej managers get instant SMS on the transaction. Godrej support in providing saplings and technical services is also recorded. Other factors are not recorded eg machine downtime, farmer credit transactions. 39

40. Variables measured by Godrej Agrovet focus on improving productivity and expanding output Tag Variables System generated Unique Farmer Code Farm Location—geo tagging of latitude and longitude Farm area—total land holding, total land cropped Irrigation type Soil type Weather Input Variables Inputs provided—saplings, fertilizer, pesticide by: Quantity Grade Monetary value Output Variables Farm output: Quantity Grade Quality Monetary value Productivity Godrej Agrovet is ready to adopt more tag and input variables if have key impact on improving output and productivity. 40