Vikas Kapoor
Indian Agricultural sector has seen significant growth after entry of large corporations especially after 90’s Liberalization, Nationally as well as Internationally.
As per report released by the federation of All India Farmers Associations, there were less than 50 Startups in agriculture and allied sectors prior to 2014-2015 and now that number has crossed 7000 start ups in last 10 Years due to conducive Business environment and Government Support.
What I find particularly inspiring is how these Entrepreneurs are not only building scalable, profitable businesses but also contributing to India’s larger goals of Food security and rural prosperity. To me this Intersection of profit and purpose is the future of business. These startups have the ability to bridge the Rural – Urban divide. Many entrepreneurs come from Urban, tech focussed backgrounds but are finding ways to connect with rural communities. Through technology, they are helping farmers integrate into larger economy while maintain the cultural and social fabric of rural life.
The evolution of Agribusiness in India from Family Enterprises to Tech Startups. Agriculture sector contributes 20 % to India’s GDP and employs nearly half of the country’s workforce. The vast expanse of India’s agricultural land, spanning diverse climatic zones, from the Himalayan foothills to coastal plains, supports a wide variety of crops. The story of Agribusiness in India is one of the constant evolution and adaption.
The entry of corporate players brought with it substantial capital investment, advanced technologies, and modern management practices. Companies like ITC, Godrej Agrovet and Mahindra & Mahindra’s agribusiness division began to make significant inroads into various aspects of agriculture, from input supply to food processing and distribution. One of the most notable developments in this era was the rise of”Contract Farming” in which companies enter into agreements with farmers to produce specific crops under pre agreed terms and this has advantages on bothsides like –
* For Farmers, It provided a guaranteed market for their produce and often included support in form of the inputs, technology, amd advisory services.
* For companies, It ensured steady supply of quality produce tailored to their specifications.
Best example of Contract farming is “Pepsi’s potato farming” initiative in Punjab is often cited as an early success story of Contract farming in India.
Post independent India, Cooperative movements in agriculture at the same time emerged as a counter balance, aiming to empower small and marginal farmers through collective collection. Cooperatives play crucial role in aggregating the resources, and produce of small farmers, giving them greater bargaining power in the market.
Various agriculture value chains as below :
* Credit Cooperatives for providing financial services to farmers
* Marketing Cooperatives to help farmers to sell their produce collectively
* Input supply cooperatives, offering seeds, fertilizers, and other inputs at competitive prices
* Processing Cooperatives, adding value to farm produce
One of the most successful stories is AMUL, run by Gujrat Cooperative Milk Marketing Federation brought White revolution in India. Another example is IFFCO for fertilizers. One of the most prominent public sector entities in Indian Agriculture is the FCI (Food Corporation of India), National Seeds corporation, National Agriculture cooperative Marketing Federation of India (NAFED), National Bank for Agriculture and Rural Development (NABARD).
In the recent Years, Govt has been actively promoting Public Private Partnerships (PPPs) in Agribusiness like eNAM, Kissan Rail, Mega Food parks scheme etc to name a few.
The rise of Agri Start ups phenomenon is driven by a confluence of factors :
* Increased Internet & smartphone penetration in rural areas
* The Govt’s push for Initiatives like digital India and Startup India
* Growing awareness of the need for sustainable and efficient agricultural practices
* Availability of venture capital funding for Agriculture focussed technology companies
The key areas of Innovation in the agri-tech space include :
* Precision Farming
* Supply chain optimization
* Farm management software
* Agri – Fintech solutions
However, the transition is not with out challenges as below :
* The digital divide
* Trust building
* Regulatory environment
* Scaling up
Future outlook :
* Collaboration between the traditional and modern
* Data Driven Agriculture
* Sustainable and climate resilient farming
* Biotechnology and genetic engineering
* Vertical & Urban farming
Blockchain in agriculture
Artificial Intelligence and robotics
Several key lessons and themes characterizing this new wave of agri-tech innovation emerge :
* Immersion in the farmer’s world
* The power of purpose
* Technology as means, not an end
* Innovative funding in a capital scarce environment
* Holistic approach to problem solving
* Thorough preparation and diverse skill sets
* Empowering teams through autonomy
* The role of mentorship and ecosystem support
* Scalbility and profitability in agriculture
Few examples of “Disruptor Agripreneurs” on Starups in Agri business :
* Sachin Nandwana – Big Haat :Business model centred on providing a comprehensive digital platform for farmers. Generated revenue through multiple streams –
a) Sales of agricultural inputs (Seeds, fertilizers, crop protection products)
b) Commision from market Linkages (connecting farmers with buyers)
c) Data – Driven services and Insights for agribusiness
* Prateep Basu – Satsure :is reshaping the landscape of Agri finance& paving the way for more sustainable & equitable future for farmers across India.
* Kartik Jayaraman – Waycool :A demand-led supply chain In India, food supply occurs via a push supply chain. But with a pull-based supply chain, the demand is predicted or aggregated, and production and supply happen based on data thus avoiding waste.
* Rajamanohar – Aquaconnect :Full-stack Aquaculture
Tech Platform. Using AI & Satellite Remote Sensing to bring transparency and efficiency to theaquaculture value chain
* Hemendra Mathur – Investor and Mentor :drafted policy document for food processing & set up NIFTEM for Govt of India
* Abhishek Negi – Eggoz:At Eggoz, we are on a mission to improve availability of quality protein and nutrition across India, Organized the fragmented egg industry in India which is second largest in the world.
* Nidhi Pant- S4S Technologies :platform converting farm losses to value-added products for F&B Industry.S4S products save time, cost and energy for industrial customers.
S4S trains Small Holder Women Farmers to be and increasing their household income by 100-200% Annually. S4S is working with over 20,00 farmers and 800 Women Entrepreneurs. And in the process save over 300,000 Tons of CO2 from entering the environment.
* Sridhar Mehta – Prompt Dairy Tech :In 1995, Prompt started the journey in the dairy tech sector by giving India the ‘Automatic Milk Collection System’ which helped the dairies in India to digitalise and streamline their supply chain. Now spread across 28 states, 350+ districts, 70,000+ villages and with a team of over 1100+ employees.
* Shashank Kumar – Dehaat
Dehaat stands at the forefront of India’s agri-tech revolution, serving over 2 million farmers across country.
At last, & for sure, Building Agri-business is not for faint hearted. It demands a level of commitment and grit that goes far beyond what’s required in many other sectors. For these Entrepreneurs, success is not built in AC offices, its forged in the fields, under the scorching sun, alongside the very farmers, they aim to serve.
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