Agriculture, though one of the largest sectors in India, is still peppered with many operational and visionary issues. What is looked upon as a weak sector is actually a mammoth. But, if operated with strategy and vision, it can help the economy achieve unprecedented growth. Realising this, many start-ups are entering the agricultural technology space and changing it for the better.
Agtech start-ups are coming up with innovations, disruptive business models and pivots that can address the inefficiencies in the agricultural sector. From enhancing the adoption of sustainable cultivation practices to improving crop quality to re-designing the supply chain, agri-tech aims to remove pitfalls in the entire production, distribution phases and increase efficiency.
Here are a few key challenges that start-ups face in the agri-tech space:
Obsolete pre-harvesting data
The agriculture industry is largely operating on obsolete data, including outdated sowing patterns. To bringimpactful change with the help of technology, start-ups need access to current data that takes into account changing weather patterns. This is one of the major issues that agri-tech startups face. To cultivate farming communities that can easily adopt technology for information like weather alerts on phones, best practices on farming, advice on taking care of pest attacks, etc: it requires data that takes into account the current pre-harvest conditions as well.
Lack of mentors
Farming and agriculture are yet to find their space in the urban landscape. Another issues that agri-tech entrepreneurs face is a lack of mentors and experts in the urban space. This is to be expected, given the field itself is nascent for all practical purposes. Incubators, especially for start-ups, must have the competence, expertise, and on-the-ground knowledge to guide new businesses. They must also have the conviction and patience to back path-breaking ideas to their logical conclusion - this will result in a net positive outcome for all stakeholders.
Limited understanding
Considering the unorganised nature of the agriculture sector, most investors are not acquainted with the on-ground realities of the farming community and the operational challenges that agri-tech start-ups face running their day-to-day business. This lack of understanding of urban investors often leads to hurdles in seeking and sustaining funding. A concerted effort is needed on the part of the VC community to engage with and learn from the hundreds of grassroots building techs for the rural, agricultural audience.
Government initiatives
The government is making a lot of changes in its policies for agriculture. They realise the sector’s true potential and are supporting its pivot to digitisation. However, there needs to be increased investment in the same. From bringing in the best technologies suited for our country’s topography and agricultural landscape to commissioning research and development, there is a lot that still needs to be done. Initiatives such as Start-up India, Skill in India, etc. must take into account the work that agri-tech start-ups are doing.
Lack of technology in farming
Farming is still largely manual. This is mainly because the farmers are not tech-savvy. Therefore, introducing technology to their daily routine and practices and bringing about the change that agri-tech start-ups aim for often takes time and convincing.
Market connectivity
A major part of the development of the agriculture value chain must look into innovative ways of linking producers to end users. This is often a silo where start-up founders face challenges. For agri-tech to streamline a lot of processes, the agri-tech supply chains need to be integrated value chains that enhance sales to companies or end users from independent farmers.
Tip of the iceberg
The rural economy has witnessed a growth rate of 10 per cent year-on-year over the last five years and has contributed close to half of the country’s overall GDP. It contributes to 16 per cent of India’s gross domestic product (GDP) and employs 43 per cent of the Indian workforce.
This growth is just the tip of the iceberg. If the agri-tech start-ups are able to navigate the above challenges and if the industry is optimised, the agriculture sector can truly operate with a business mindset, witness tremendous growth, and generate countless jobs.
(The author is co-founder and CTO of Carnot Technologies)