Agritech Beyond Being A Trader With An App
Three significant changes have led to the change in the ecosystem enabling agri-tech players:
1. Development in road infrastructure resulting in large trucks being able to go all the way to the interior farms
2. Data in India has become extremely inexpensive and easily available to all
3. Digitization of money means instant payments are now possible
It is pertinent to note here that Agritech does not merely imply using a mobile app to facilitate the trading of agri commodities. A true Agritech company builds an entire tech-driven ecosystem from soil to sale.
The Agritech Landscape In India
The potential for infusing technology in agriculture is enormous and feeding on this are a huge number of startups (around 600-700 of them) dominating the Indian Agritech ecosystem.
According to a Ken Research report, the Indian Agritech market is expected to grow at a CAGR of 32% from FY20 to FY25, with Karnataka, Maharashtra, and Delhi-NCR leading the charge in the country.
With India having a large but fragmented and complex food supply chain, there are number of problems to solve. Today, there are post-harvest losses of around $13 billion in agricultural value which is a wastage of over 40% percent of food even before it reaches the end consumer. This is driving Agritech companies to find new ways to use technology to address the same.
So, what are Agritech companies promising? Their goal is to make supply chains efficient in the sector, in addition to providing better access to agriculture inputs for farmers as also building resilience. They offer technology solutions with buyer-supplier matching as a central function to connect different stakeholders in the value chain. In addition, their integrated value-add services in logistics & warehousing, quality assessment, traceability, and financial services can create a huge impact on farmer incomes.
In the race are not only startup companies, but also big agri companies, who identified the trend and the growing need, and are trying to develop their own apps and software platforms. According to the Inc42 report, among all the sub-sectors in Agritech, market linkage has the highest potential to reach $12 billion by 2025.
The Problem of Plenty
With so many smart agri solutions in the market, how can our farmers choose the right one?
One of the major challenges is that, while most Agtech platforms focus on solving one aspect of the supply chain, farmers need cohesive solutions that address the entire production process. Why would they adopt a solution that provides just a narrow aspect of the farming process? Moreover, they may feel overwhelmed with the many solutions offered and from the need to log in to separate platforms.
It is important to note here that most farmers in India are marginal or small landholding farmers and hence may not even be technologically capable of comprehending smart data. These specific challenges require hyperlocal solutions that work in local demands and context.
Another moot point is, how can Agritech companies use the data on their apps to help farmers add value to the entire food chain? And, how can they translate data back to increase production efficiencies on the farm? Farmers don’t just need smartphones; they need smart inputs as well. They need technology support at every stage of the agri value chain from soil to sale, from farm to fork.
Is there an Indian Agritech company that can offer farmers all this and more?
As India’s only multi-dimensional full-stack agri-commerce company, WayCool Foods has a whole gamut of tech interventions that help crop cultivation planning, enhance farm productivity, ensure food traceability, create transparency in pricing, eliminate supply chain inefficiencies and food wastage as well as manage a cost-effective distribution system so that everyone benefits - farmers get improved returns for their produce and consumers get fresh and safe food.
The time has come for India’s Agritech ecosystem to evolve to the next level. And WayCool is leading this change from the front.