Why FPOs are critical to agtech adoption in rural India

Smallholders can see the value of new technologies, but adoption is possible only when the surrounding conditions make it viable. 
| Photo Credit:
RAO GN

India’s agricultural sector is witnessing a surge of innovation. From precision-driven drone solutions that promise greater efficiency to digital platforms offering real-time farm advisory, a new generation of agritech tools is redefining how farming can be practiced. These innovations have shown significant potential to improve yields and strengthen farmer incomes. Yet for most farmers, the challenge is not whether these tools work, but whether they can be applied in practice. With limited capital, thin margins and uncertain access to inputs and markets, farmers cannot independently take on the risks that adoption requires.

For farmers, adopting agritech is a sequence of steps rather than a single decision. Farmers need timely advice, access to the right inputs, the ability to mobilise labour and a reliable market for their produce. When any link in this chain fails, adoption falters.

What is required is a supporting institutional mechanism that coordinates these steps, lowers barriers and builds confidence that technologies can be applied reliably season after season.

Why individual farmers cannot adopt at scale

For most smallholder farmers, adopting new technologies is not simply about willingness, but about the conditions they work within. A farmer cultivating two hectares or less cannot easily invest in modern equipment, because high capital intensity makes technologies like solar pumps or cold storage unaffordable. Even when information is available, farmers often lack clarity on soil health, weather shifts, or pest cycles, which leads to input misuse and crop loss. Suppliers find it costly to serve scattered demand, which leaves farmers with limited access to services. And because one poor season of rainfall or pest infestation can wipe out earnings, the appetite for experimenting with unfamiliar tools is low.

A farm advisory study conducted by Villgro during Rabi 2025 highlights both the opportunities and the constraints of individual adoption. Farmers across eight states received digital advisories on weather, irrigation and pest management. When guidance was timely and aligned with urgent needs, farmers acted decisively. Wheat growers rescheduled irrigation to match soil moisture conditions, which conserved water and stabilised yields. Chili farmers purchased and applied recommended pesticides immediately after receiving pest alerts, protecting crop quality and avoiding major losses.

The study also showed why interventions often fall short when farmers act alone. Many farmers lacked the inputs or labour to implement the recommendations. Weekly nutrient practices, for instance, were rarely followed because the suggested fertilisers were either unavailable or unaffordable. The insight is not about farmer reluctance but about feasibility: even effective interventions cannot achieve consistent adoption without a system that links advice, resources and action.

FPOs as the bridge between innovation and practice

Smallholders can see the value of new technologies, but adoption is possible only when the surrounding conditions make it viable. This is where Farmer Producer Organisations (FPOs) become critical. By consolidating farmer needs into predictable demand, they bring down the cost of services such as soil testing, solar pumps, or dryers that would otherwise be unaffordable. They also ensure that advisories do not remain abstract messages. Inputs are stocked, labour is coordinated and spraying or irrigation is organised collectively so that farmers can act the same day. Most importantly, FPOs connect improved production to buyers, which turns potential yield gains into reliable income. Together, these functions allow farmers not only to access technologies but to use them effectively.

Turning solutions into systems

Adoption is most successful when innovations are embedded within systems that reflect farmers’ realities at every stage. This means starting with institutions that farmers already trust, such as FPOs, and then tailoring interventions to the challenges of each region.

For example, water scarcity in drought-prone areas, pest pressure in chilli belts, or irrigation scheduling in wheat-growing zones all demand context-specific solutions. These are most effective when advice is linked directly to action. Soil testing becomes impactful when paired with input depots where corrective nutrients are available. Solar pumps gain traction when offered through collective financing, making them affordable. Pest advisories translate into action when supported by coordinated spraying so that farmers can respond in time.

The study’s field evidence reinforces this systemic approach. Pre-sowing interventions like soil testing led to yield gains for over 80 per cent of farmers, while cultivation costs dropped by 17 per cent because inputs were both appropriate and accessible. During production, FPO-led solar irrigation in Uttar Pradesh and Bihar delivered eight hours of reliable water daily, cut irrigation costs by a third and encouraged diversification into vegetables. Farmers responded quickly to weather and pest advisories when inputs and labour were organised through their FPOs, but adoption weakened where these supports were absent.

Agtech innovations succeed only when they are part of a supportive system. FPOs provide that system. By consolidating demand, enabling timely action and linking farmers to markets, they turn innovations into everyday practice. In rural India, FPOs are not just partners in adoption. but the pathway through which agtech can truly scale.

Subramanya is Lead, Agriculture & Food Systems, and Purushotham, Senior Associate, Research & Impact, at Villgro

Published on September 13, 2025