Agri-Tech Industry is still in a stage of finding the right farm. Technology is evolving with integrated services and products shaping at a rapid pace. Agri-Tech startups and companies(which are few) are in a fumble of understanding this sector raising a technology-front approach. Though all in this sector is not vehemently distorted or not promising. The ecosystem and sector is getting larger with last counted number of 1,400(thousand) startups already instrumental in this space. The states of Karnataka and Maharashtra and the Delhi National Capital Region (NCR) are major hubs for agri-startups in India. From reducing wastage to creating better supply chain, and if not that’s enough, increasing crop quality and productivity, in 2023 Agri-Tech companies are set to cultivate new form of irrigational and agricultural value in the global Ari-tech sector.
Potential Productivity in the Rural Sector
In the last few years, the rural geographies have changed. Now farmers can be seen using a smartphone and also opting more digitized equipment’s and tools to increase productivity. Further, they can create a new lifestyle while yielding superior products. Crops are also getting globalized. Thanks to technology and also farmers who are finding new methods to put new crops in their fields. In these few years, Governments and PPE have strived to bring in innovations in the AGRI sector. They are introducing enablers, producers, managers and consumers with new form of technological revolution. Though, the stated revolution has not been evolving at that magnetic speed. For say, Internet penetration in rural India has shown significant growth. It has increased by 30 per cent on a YoY basis over the last five years. The tech-front approaches are helping startups to get around and attract regulators and multiple stakeholders. And of course the agri-tech startups are finding the internet to be a boon.
Connecting the Market With New Value
Till now the bond or let’s say the value chain of agriculture sector has not been to see innovative and newer tactics to bring producers and end users on one table. But with new intuitive and digital platforms, Agri-tech startups can now fully integrate value chains and empower small and marginal farmers quickly and efficiently. On the other hand, corporates and commercial buyers in the agri-tech sectors are looking for more fast, organic and last-mile delivery of Agricultural products hence today maintaining the quality standards and matching delivery requirements while getting more value for crops is a new way the farmers across sees the future of this sector.
Agritech Sector And Union Budget 2023
The agriculture sector is a crucial part of the Indian economy logging around 19 per cent of the Gross Value Added (GVA) of the economy and employs more than 50 per cent of the country’s workforce. Improvising on the productivity and sustainability with technology empowerment is key to the growth of India agricultural sector. And the Government of India (GoI) seems to be very seemingly interested in these transformative moves. Empowering Digital Agriculture through Digital Agriculture Mission is a welcoming step. The Digital Agriculture Mission onlooks on digital infrastructure, digital extension services, digital finance and digital research and development.
Worth mentioning that the agri-tech sector is in a boom in the rural India where this sector sees a flamboyant future. The sector has been grappling with challenges such as low productivity, limited value addition, inadequate infrastructure, limited access to credit and low adoption of modern technologies. Crops are also getting globalized and thanks to technology and also farmers who are finding new methods to put new crops in their fields. In these few years, Governments and PPE have strived to bring in innovations in the AGRI sector by introducing enablers, producers, managers and consumers with new form of technological revolution.
Key solutions service which are widely been use in the Indian Agri-tech sector is providing efficient input and output market linkages with robust infrastructure, ensuring better productivity through precision agriculture and advisory services, improving quality and traceability of the products, digitisation of records through efficient farm management providing access to finance and insurance to the farming community.
Precision Farming – The New Way
Precision farming, or Site-Specific Crop Management (SSCM), adopts satellite or drone imagery to optimize strategies for crop and farm management. This is done by farming in only precise locations, hence, saving time and preventing unnecessary chemicals from penetrating into the ground. For example, multispectral imagery helps determine the best fit for crops by studying terrain types. For example, a multi-year simulation helps mitigate risks by studying crop health patterns using satellite images.
What is Agri Stack
The Government has started implementing the concept of India Digital Ecosystem of Agriculture (IDEA)5 – which is based on a framework for Agri Stack that would serve as a foundation to develop new agri-focused solutions leveraging emerging technologies. One major roadblock is the collection of data from farmer groups. The current scheme on the promotion of FPOs may be suitably amended to include a component on digital literacy and adoption which would help in quick scaling of the envisaged stack and roll-out services such as digitisation of land records and other data which can be analysed using emerging technologies to improve farmer incomes and overall productivity of the sector.
Business Models In India’s Agritech Sector
The business models within the agritech space be classified into:
- Margin-based model: Segments such as market linkage – farm inputs, supply chain technology, and output market linkage operate through this model where the agritech player earns a margin by creating marketplace linkages at the input or output side, and by executing the promised services.
- Subscription-based model: Agritech players operating in segments like precision agriculture and farm management as well as quality management and traceability offer a mix of hardware, software, and services-based solutions throughout the year and collect monthly or annual subscription charges from their customers.
- Transaction-based model: Agritech companies dealing in the financial services segment follow this model based on the number of loans or insurance policies served.
Post-Harvest Optimization
Transportation, inefficient storage, and delays result in wastage of agri-produce and processed foods worth multi-millions. Besides the bottlenecks in connectivity, the lack of traceability often restricts the export potential of agribusinesses. . This can be achieved by increasing automation in agricultural operations with tech solutions to reduce manual errors. Services such as end-to-end visibility and digital marketplaces not only facilitate transparent and traceable transactions but also keep all the stakeholders informed. With e-commerce and Q-commerce witnessing growth, enhancing traceability via tech in agriculture is the next major milestone.
Agritech startups are taking charge of the biggest issues plaguing the agricultural sector and helping it grow.
Know The Companies With Their Key Segments In The Agritech Industry Below:
- IoT powered agriculture and drones: Fasa, Bitmantis, Agronxt, Soilsens
- Marketplace and e-distributor: DeHaat, Ninjacart, Jumbotail, Bijak, Farmzen
- Farm inputs: DeHaat, AgriBegri, AgroStar, BigHaat, Gramophone
- Precision agriculture and farm management: Cropin, FarmERP, AgNext, BharatAgri
- Farmer advisory: AgroStar, IFFCO Kisan, RML, Farmbee, Fasal Salah
- Finance and insurance: Aggois, Niruthi, Weather Risk, Jai Kisan
- Equipment leasing: EM3, Agri Bolo, Tractor Bazaar
- Meat delivery: Licious, Zappfresh, Pesca Fresh, Fresh to Home
- Crop quality assessment: Nebulaa, AgricX, Intello Labs
- Smart farm equipment: Drip Tech, Netafim, Cultyvate, Soilsens
- Hybrid seeds: Mahyco, Nu-genes, Nuziveedu seeds
- Hydroponics: Fresco, Triton Foodworks, Junga Fresh and Green, Absolute Foods
