26 Sep Agritech report 2022
Agritech Report 2022
The topic is based on Agritech/ Agriculture-technology. This article also talks about how this report impacts Indian Economic and Social Development.
Prelims: Economic and Social Development
Mains: GS III — Agriculture: transportation and marketing of Agri products, e-technology to help the farmers.
Why is it in the news?
Recently, The new Agritech Report 2022” what’s next for Indian Agri-tech”, has been released by the FSG, a global consulting firm.
What is Agri-tech/ Agriculture-technology?
- Agri-tech or Agricultural technology is basically use of the new technologies based on agriculture, science and agronomy, and agricultural engineering in agriculture.
- The objective of agri-tech is to improve the efficiency, profitability, and sustainability of agricultural operations.
Key takeaways from the report
- Startup in Agri-tech: innovations and investment story of Agri-tech startups has driven India’s agri-tech with significant private equity inflows.
- Focused Area: linkage of the market, agri-fintech, farm management software, remote sensing and advisory, and farm automation.
- The new technologies have established a change in the traditional agricultural value chain- from how the farmers are gaining information and implementations on how to grow and sell the produce.
- The agri-tech startup will need severe attention on profitability to overcome the “battle of platforms ” as several of these players are now complete for farmers’ attention.
- At present, it has been calculated that there are almost 600 to 700 agri-tech startups in India operating at many different levels of Agri-Value chains.
- Ashok Gulati stated, “Agritech startup can steer the shift from the government-controlled agricultural market towards more demand-driven digital markets”.
- Most of them involve artificial intelligence (AI), machine learning (ML), the internet of things (IoT), etc so that they can get the potential of big data for greater resources to use efficiency, transparency, and inclusiveness.
Agritech startup impact
- 1st wave of agri-tech focused on several mature, market linkages, and late-stage start-ups and at present, it is turning into a ‘full-stack’ platform, involving value-added services such as agri-fetch in their core offerings.
- The 2nd wave of agri-tech in India will come with the advancement in technology, and expanding the adoption of, sustainable input, digital in-farms (like farm management software, remote advisory and sensing and fare, automation), novel farming systems, traceability, and agri-carbon.
- The change in the climate has a put and great impact on agri-carbon innovation.
- The government has played a prime role in continuing the mainstream of agri-tech in Indian agriculture,
- Through supportive policies in each of these emerging categories.
Requirement of Agritech innovation
- Despite the importance of agriculture to the Indian Economy and social development, the sector is fraught with challenges. Agriculture accounts for an estimated 43% of India’s Employment.
- As a result of several operational issues and structural barriers, such as rising input and production cost, a threat to sustainability because of change in climate and intensive cultivation, shortage of labours limitations of mechanism, and a receiving a very minimal share of the final cost of production, Indian farmers have to face increasing cost and margin pressures.
- The innovations in agritech can tackle many of the challenges of the Indian farmers by bringing a piece of better information and technology available to the farmers.
- It can open up many opportunities for farmers to increase their income and engage in more sustainable food production.
- If advancement in the Agri tech of India will be utilized in a proper manner then it will be an excellent opportunity for sustainable end equitable growth, making sure not only profitability for agribusinesses but also improved livelihood for farmers.
- Impact of Agri-tech startups:
- Dehaat has permitted the increase of up to 50 per cent in farmer’s income savings in the input costs, boost the farmer’s productivity and better price discovery
- Ninjacart has brought down the wastage to 4% from 25 per cent in income in the traditional chains by a demand –drive harvest schedule.
Role of technology in agrarian changes:
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