June 20, 2024


Imagination at work

Need innovative biz models that provide viable digital solutions for small-scale farmers: Report

Indian agriculture has the possible to develop into “the foodstuff bowl of the world” if the region emphasises on building efficiencies into the agricultural generate trade can integrate high-quality standards as part of trade practices and optimise manufacturing fees for rate competitiveness.

“Technology-led innovations supported by investments can carry India on par with its international friends. The emphasis desires to be on the 3Is, which include things like innovation, infrastructure, and financial investment,” said a report place out by the consultancy company Arthur D Very little (ADL).

There is a significant disparity in the adoption of electronic agriculture systems involving international organizations and these at the area or local community scale in the region. There is a have to have for innovative enterprise designs that provide viable electronic options for little-scale farmers, it said. Creating disruptive agritech enterprise options would demand far more funds and the means to link them with the sector and customer.

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“Forming innovation clusters in regionally contiguous zones can enable a broader ecosystem for innovation by driving inter-company linkages, collaboration, and networks. With heightened financial exercise and technological innovation advancements, the clusters provide a budding system to technological innovation commence-ups. To elevate productivity, be certain foodstuff safety, and develop into a net exporter of foodstuff solutions and intellectual assets, India desires to market innovation clusters with target-oriented initiatives,” the report said.

The region more involves huge-scale investments in submit-harvest infrastructure, which includes close to-farm warehouses and captive chilly chains, to lessen squander. This aside, the supply chains involving farmers and individuals have to have to be transformed and submit-customer squander should really be averted, the report said. Enabling electronic systems could assistance boost traceability, lessen squander and operational delays for supply chain gamers.

Indian agritech sector

Indian agriculture has occur a extensive way from staying Point out-centered in making certain foodstuff safety to getting a main producer in the environment. Although the Covid-19 pandemic has disrupted enterprises throughout quite a few sectors globally, which includes India, nonetheless, the latest progress of the agritech sector in the region reflects its massive unrealised possible.

“Increased rural Online penetration and the higher affordability of electronic systems assisted by growing investor interest have led to the ongoing electronic transformation of the farming ecosystem,” the report pointed out.

Agriculture is the major supply of livelihood for about fifty eight for every cent of the country’s inhabitants. Agri and allied sectors accounted for 17.8 for every cent of gross price included in India (at existing costs) in FY21. Although Covid-induced lockdowns took a toll on marketplace and solutions, agriculture remained buoyant and assisted maintain customer desire.

Also browse: Agtech investments plunged 35% last yr

The region also enjoyed important progress in agriculture exports during the last fiscal. In accordance to the Ministry of Commerce & Field, the export of agriculture and allied solutions grew by 17 for every cent to $41.25 billion in 2020-2021 soon after staying stagnant for the earlier 3 yrs. The momentum is envisioned to maintain in the coming yrs with new enterprises coming into and converting issues into alternatives.

“But many issues have beset Indian agriculture for a extensive time, and resolving them is crucial to the progress of agritech and to all round progress and rural prosperity. Worries include things like lower farm productivity, fragmented land holdings, absence of storage infrastructure, and high indebtedness – all which lead to persistent agrarian distress. The fragmentation of holdings, in which about 80 for every cent of Indian farmers till considerably less than 5 hectares of land each and every, results in lower economies of scale, confined obtain to technological innovation, high internet marketing fees, and lower productivity,” the report observed.

Know-how developments in latest yrs have been re-engineering the price chain to solve the two desire and supply-facet challenges in the agri sector.

Also browse: Indian agri on the cusp of disruption, says Bain analysis report

New age systems such as synthetic intelligence, the Online of Items (IoT), device understanding, huge knowledge, and blockchain are envisioned to change the sector by enabling bigger productivity, superior high-quality, traceability and serious-time visibility even though lessening the carbon footprint and rising earnings.

An increased emphasis on expense, high-quality, and trustworthiness would be significant motorists of the greater adoption of precision agricultural systems and in automation, the report said.