NITI Aayog has praised Telangana’s AI artificial intelligence-based farming project Saagu Baagu, calling it a model for modern agriculture in India.
In its new report “Reimagining Agriculture: A Roadmap for Frontier Technology-led Transformation,” the policy body said the AI system helped farmers boost yields by 21%, raise prices by 11%, and cut input use by 9% in just one cropping season.
Launched in 2021 in Khammam district, the pilot project focused on chilli farmers. It recorded a 5% drop in fertilizer use and an 11% price gain due to better crop quality. These changes led to an income rise of about ₹66,000 per acre per crop cycle — nearly doubling farmers’ earnings.
Encouraged by the success, the Telangana government expanded the programme in October 2023 to reach five lakh farmers across ten districts, covering five major crops.
The project, supported by the World Economic Forum’s AI for Agriculture Innovation (AI4AI) initiative and funded by the Bill & Melinda Gates Foundation, is being executed by Digital Green. So far, more than 7,000 chilli farmers have benefited from AI-led advisories and improved data use.
NITI Aayog said AI is helping Indian farmers make better decisions, improve productivity, and manage risks. Drone and satellite data are now providing personalized insights for small farms. AI-based credit tools are also helping underbanked farmers get loans to adopt new technologies.
The report pointed out that India’s farmers still face tough challenges such as climate change, erratic rainfall, and poor market access. Nearly 40% of produce is lost due to weak logistics and storage.
NITI Aayog said frontier technologies — from AI to biofertilisers and precision irrigation — could help solve these problems and make agriculture more profitable and sustainable.
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