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With over 70% of India’s rural population still being dependent on agriculture for their livelihood, the need for innovation in the sector has always remained high. In this scenario, efforts have been made by Government-led initiatives like Startup India to foster the growth of an ecosystem with Agritech sector being one of the key areas. AgriTech is a term used for agricultural technology, which involves the use of technology to improve farming and agriculture across different value chains. It includes sophisticated technologies that drive the so-called 'fourth agricultural revolution,' akin to the industry 4.0 revolution, shaping the future of the sector. In India, AgriTech has continued to grow with startups using innovation and digital technologies like precision farming, quality management, production, supply- chain/market linkage, and digital traceability to name a few.
The Agritech industry has experienced a remarkable tenfold growth in the past three years, propelled by four pivotal factors: the expanding digital reach throughout India, supply chain disruptions due to COVID, rising consumer demand for high-quality produce, and growing interest from private equity and venture capital.
Currently, there are nearly 2800[Startup India Database as on 31st December 2023] AgriTech startups recognised by Startup India. These AgriTech startups in India have been termed as the “ray of hope”, driving innovation and transforming the way agriculture is traditionally done in India. Here are some of the areas where AgriTech startups are making a difference.
Precision Farming
One of the key areas where AgriTech startups are making a significant impact is precision farming. Precision farming allows for more accurate application of resources like water, fertilisers, and pesticides, leading to increased efficiency and reduced environmental impact. This not only enhances crop yields by up to 30% but also promotes sustainable farming practices, a crucial aspect in the face of climate change.
Online Marketplaces
Many startups also focus on making farm inputs and farming equipment more affordable to farmers. They sell fertilisers, seeds, farm tools, and other inputs at online marketplaces and mobile applications. Many of these startups have developed marketplaces that analyse crop-related problems and offer specific solutions.
Data-Driven Farming Solutions
Several startups have also begun to take care of the final phase delivery of products through technology and predict the supply-demand of inputs based on AI and data-driven decisions. This data-driven approach helps farmers anticipate challenges, plan better, and ultimately improve their crop yields. For a country like India, where unpredictable weather conditions often pose a threat to agriculture, such predictive capabilities can be a game-changer.
Supply Chain Technology
Many farmers in India face challenges in reaching the right markets and obtaining fair prices for their produce. AgriTech startups have built platforms that connect farmers directly with buyers, cutting out middlemen and ensuring a more equitable distribution of profits. They achieve this through mobile and web-based applications. This not only boosts farmers' incomes but also promotes transparency in the agricultural supply chain.
Machine-Based Quality Management
In addition to all of this, there has also been a spurt in the sector of quality management, which makes use of machine-based image analytics to assess the quality of products. One of the most common examples of this is when one orders their groceries online, one can know everything about the goods ordered since certain startups use end-to-end visibility using Blockchain technology.
In a nutshell, AgriTech startups are ushering in a new era for Indian agriculture by integrating agriculture practices with artificial intelligence and machine learning. Through the integration of cutting-edge technologies and innovation, these startups are addressing age-old challenges, empowering farmers, and fostering change. The positive impact of AgriTech is not only evident in increased productivity and income for farmers but also in the potential to reshape the entire agricultural landscape of India for the better.
If you have an AgriTech startup looking for various tools to spur growth, become a DPIIT recognised startup by registering your startup on the Startup India website.
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References:
- https://naas.org.in/Policy%20Papers/policy%20108.pdf
- https://zinnov.com/digital-technologies/agritech-in-india-how-technology-is-enabling-new-and-better-yields-blog/
- https://www.fao.org/india/fao-in-india/india-at-a-glance/en/
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/topics/start-ups/2020/09/ey-agritech-towards-transforming-indian-agriculture.pdf
- https://www.mckinsey.com/industries/agriculture/our-insights/how-agtech-is-poised-to-transform-india-into-a-farming-powerhouse
