Startups in the agriculture sector are pioneering innovations
Startups in the agriculture sector are pioneering innovations
- 11-01-2024
The Software Technology Parks in India (STPI) serves as a catalyst for enhancing innovations in the field of agritech
Agriculture, the backbone of India's economy, contributes nearly 17% to the country's GDP against the global average of 4.4%, sustains a significant portion of the population, and contributes significantly to the GDP. In the global effort to feed a growing population sustainably, technological advancements and innovation in agriculture are more criticala than ever. In recent years, the Indian agricultural landscape has witnessed a transformative wave driven by the Agri-Tech startup ecosystem. Poised at the forefront of innovation, these startups are not only addressing longstanding structural challenges but are also laying the foundation for a more sustainable and prosperous future, by improving farm productivity and ecological sustainability across the entire agri-value chain.
An amalgamation of favourable government policies, increased technology access and rising demand for high-quality produce has galvanized Agri-Tech startups across the country. Never before in India’s history has technology been so ubiquitous as it is today. Auguring a paradigm shift, dynamic Indian entrepreneurs are today leveraging cutting-edge technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Machine learning, and Data analytics to address agricultural challenges. Currently, over 2000 Agri-Tech startups are working across a myriad of domains such as organic agriculture, food processing, horticulture, animal husbandry and dairying, fisheries, and a wide assortment of combined agriculture-allied activities, to provide innovative solutions to India’s agriculture sector. As per praxis analysis, the agri-tech sector has attracted significant investments amounting to USD 958 million approximately in 2022, growing at a CAGR of about 51% from 2017 to 2022.
Agri-tech start-ups empower farmers to make data-driven decisions, adopt modern practices, and access real-time information through their innovative digital solutions. These solutions offer farmers higher profit margins, assistance in crop grading and packaging, product traceability, market exposure, access to quality inputs, and scientific guidance. They have led to high-yielding seed varieties and the adoption of technology-driven solutions like tractors, drones, and robots, further enhancing operational efficiency.
Agri-tech contributes to environmental conservation and climate change mitigation through ecologically sustainable practices such as organic and precision farming, agroforestry, crop rotation and water management solutions. In the recent past, a virtuous confluence of digital platforms, mechanization and biotechnology have together helped radically increase farm output, and improve crop quality while also reducing wastage.
Agri-tech startups have been successful in addressing the various critical challenges plaguing the Indian agricultural industry. These include real-time weather forecasting, disaster mitigation and resilience. The lack of access to timely and accurate information has long been a hurdle for farmers in India. Agri-tech startups are bridging this information gap through mobile applications and digital platforms. Farmers can now access weather forecasts, market prices, and expert advice at their fingertips. This democratization of information empowers farmers to make informed decisions, negotiate better prices, and improve overall farm management.
Another challenge was structural supply-chain and logistics challenges due to inadequate forward and backward linkages that lead to labour sourcing and inefficiency and are the major cause of farmers not receiving their due share of the profits. Supply chain inefficiencies have led to post-harvest losses, impacting the income of farmers. Agri-tech startups are introducing innovative solutions to streamline the agricultural supply chain. From farm-to-fork traceability using blockchain technology to data-driven logistics optimization, these startups are ensuring that produce reaches the market in a timely and efficient manner. This not only reduces wastage but also ensures that farmers receive fair compensation for their efforts.
Access to fair finance has historically crippled Indian farmers, hindering productivity and technological advancements. Today, Agritech startups offer tailored solutions, providing timely credit, crop insurance, and financial products. The Government of India supports agriculture through initiatives like e-NAM, Kisan Suvidha app, and Rashtriya Krishi Vikas Yojana, boosting the sector. The Software Technology Parks of India (STPI), under MeitY, aids Agritech startups through mentoring and funding in three CoEs. This ecosystem not only addresses immediate challenges but also fosters sustainable practices, resource efficiency, and rural development. The digitalisation of agriculture attracts tech-savvy individuals, revitalising the sector for a more vibrant and dynamic landscape, ensuring a brighter future for India.
(The writer is the director general, Software Technology Parks of India, views are personal)
