September 29, 2023


Passion For Business

Growing with Agritech: Application of new technologies poised to transform agri sector

The generation and adoption of reducing-edge systems is a strong enabler of immediate economic development. In the post-Covid-19 pandemic era, this has grow to be an even additional urgent necessity across industries which include agriculture.

As for every not too long ago exposed market indices, agriculture – the key supply of livelihood for about 58% of our inhabitants – together with allied sectors accounted for seventeen.8% of gross worth additional in India (at present-day charges) in FY2020-21. Due to the fact March 2020 even as the pandemic-induced lockdowns took a toll on field and products and services, agriculture advancement of 3.1% served sustain consumer desire.

This advancement in agribusiness is being pushed by increasing desire, changes in foods usage behavior and the need to have to respond to local weather adjust. According to the UN, by 2030, India will have the world’s most significant inhabitants, symbolizing 1/3 of Asia and seventeen% of the planet. This implies a huge uptick in agricultural desire, with earnings advancement accelerating usage of meat, fruits and vegetables, relative to cereals. This outlook phone calls for a commensurate shift in output.

Impediments to Indian Agritech

Weak agricultural procedures and absence of understanding of scientific farming techniques amongst our farmers have retained efficiency down below world-wide benchmarks. Even with a strong electronic infrastructure comprising satellite imaging, soil overall health information, land data, and cropping designs and frequency, the penetration of digitalisation is extremely lower presently.

One more big obstacle is the limited adoption of fiscal products and services like credit score and insurance policy. A 2019 study by the Reserve Financial institution of India (RBI)’s interior performing group exposed that inspite of several govt schemes to include farmers in the banking method barely forty% had access to formal credit score. 

The absence of market linkages is the following huge issue adversely affecting farmers’ earnings. Now, eighty five% of Indian farmers get charges forty% or reduce than the least assist price (MSP), with no immediate access to customers exterior current mandis. Meanwhile, even the number of such marketplaces has not been multiplied as projected.

Even the farm mechanisation in India is lower, at forty-45% in contrast to ninety five% in the US and fifty seven% in China.

Then there is also the additional obstacle of altering environmental circumstances. According to the Intergovernmental Panel on Local climate Alter (IPCC), greenhouse gas emissions have been growing at an alarming pace. The resultant increasing temperatures have critical implications for ecosystems, affecting just about every component of foods creation and good quality.

In addition to the previously mentioned, new issues are likely to also arise in the parts of pest and illness management, offer chain management and raw materials expenditures likely ahead. Consequently, both corporations and the govt need to have to function toward the development of resilient offer chains.

Inspire Adoption of Precision Systems

Application of new systems like artificial intelligence (AI), machine understanding (ML), online of things (IoT), huge knowledge, blockchain, machine vision, drones, contact centres, etcetera., are poised to change the sector by enabling increased efficiency, superior good quality, traceability and real-time visibility even while reducing the carbon footprint and growing profitability.

An improved concentrate on charge, good quality and dependability are vital drivers of the increased adoption of precision agricultural systems. The big volumes of knowledge created as a result of farms can be captured, processed and valorised applying analytics to provide real-time insights to cultivators to empower well timed and helpful choice-creating, reducing creation expenditures and strengthening yields.

For occasion, the selection of certain knowledge about soil, weather, pests, etcetera., applying IoT sensors or geospatial engineering and its examination by precision farming remedies aid present well timed insights.

Concealed Potential

According to a 2020 EY report, the whole addressable market for foods processing and agritech quantities to USD24 billion by 2025. It estimates the prospective of offer chain tech and output market linkages at USD12 billion, fiscal products and services at USD4.1 billion, precision agriculture and farm management at USD3.four billion, good quality management and traceability USD3 billion and market linkages-farm inputs at USD1.5 billion.

Although the segment has witnessed strong investment activity in the previous couple several years, the market penetration is at a lowly 1%! Sufficient investment, infrastructure, and innovation could aid India build hundreds of thousands of agri business people, having rural prosperity to unimaginable amounts.

In a nutshell, a broad array of systems will permit the changeover of Indian agriculture. Together the way, some bespoke systems will also need to have to be produced precisely for community circumstances, while systems now obtainable for other industries could also be adapted.

Equally, some of the new organization-to-organization (B2B) agritech remedies will also have organization-to-consumer (B2C) utility.

Right here the function of India’s software package builders will be extremely essential. As for every the online host for software package development and model manage, GitHub, the world’s 2nd-most populous nation has more than 5.8 million builders. This pool of brilliant ladies and adult males can be proficiently leveraged to build agritech remedies not only for the region but the planet.

I would like to go away you with a lovely tale from the lifetime of the Father of Present day Indian Engineering, Sir MS Visvevaraya. During a stop by to the mighty Jog Falls in Karnataka’s Shivamogga district, while other people in his group marvelled at the beauty of the white streams of h2o furiously cascading down the gorge, the good soul exclaimed, “What a waste!” It was this foresight that finally culminated in the one hundred twenty MW Mahatma Gandhi Hydroelectric Task coming up at the internet site.

The Jog Falls of our human source will need to have to be harnessed as proficiently. And to do that the Indian information engineering-enabled products and services (ITeS) field will need to have to glimpse further than merely coding for the planet to building software package as a assistance (SaaS).

Sandeep Sabharwal, CEO, Sohan Lal Commodity Management (SLCM) Group


(The author is CEO of New Delhi-headquartered Sohan Lal Commodity Management (SLCM) Group)