Unleashing Agtech Potential: Empowering a new era of agriculture

As one of the largest economies in the world – home to over 1.4 billion people today – India has made tremendous strides in accelerating its industrial development, while also fostering its focus towards agriculture.

The agricultural segment, however, continues to bear the brunt of a multitude of interconnected challenges – including a complex supply chain, persistently low incomes for agricultural households, and the burgeoning impact of climate change. Several studies indicate that substantial crops like maize, rice, and wheat may witness a reduction of about 5 per cent of their iron and 8% of their protein contents if exposed to CO2 levels predicted for 2050, according to research conducted. Furthermore, the gradual yet consistent population growth is expected to increase the global demand for dairy and livestock by 60 per cent and 70 per cent, respectively, between 2010 and 2050.

Recognising the urge to enhance our agricultural sector, solutions within the agtech segment offer optimism. India’s position as a leading global exporter of agricultural products (ranking among the top 101) is further bolstered by the estimated $24 billion opportunity for agtech startups in the nation,2 allowing room for the tremendous growth of the agricultural landscape while also strengthening the livelihoods and incomes of farmers in across the country.

Aligned with SDG2

Aligned with the Sustainable Development Goal 2 (SDG2) to ‘end hunger, achieve food security and improved nutrition and promote sustainable agriculture’ by 2030, stakeholders are increasingly recognising the pivotal synergy between developing robust agricultural practices to not only promote sustainability but also combat the challenges of food insecurity and malnutrition.

As we move towards achieving the ambitious Sustainable Development Goals (SDGs), the adoption of technological solutions across all sectors has emerged as a critical factor in accelerating progress towards meeting these targets, while also contributing to strengthening socio-economic realms of society. The integration of technology within the agricultural ecosystem further substantiates the warranted attention required to streamline the sector and empower those involved in the process.

Tapping into the agtech space

According to a report published by McKinsey, the agricultural sector has the potential to contribute roughly $600 billion to India’s GDP by 2030, representing a 50 per cent increase from its 2020 contribution, possible through extensive collaborative efforts at both State and national levels to promote agri-tech businesses. Promoting agri-tech efforts in the country becomes even more imperative, owing to the low market penetration rate of these technologies (below 1 per cent) – paving the way for an abundance of opportunities to tap into the sectoral potentials.

With this regard, the government has demonstrably emphasised advancements in digitalisation and mechanisation – evidenced by initiatives like the e-NAM (National Agriculture Market) platform in 2016. This online platform has successfully integrated the existing network of Agricultural Produce Marketing Committees (APMC) mandis, thereby generating substantial advantages for all stakeholders, including farmers, farmer-producer organisations (FPOs), buyers, and traders. Since its inception, the e-NAM platform has experienced significant growth, expanding from 250 linked markets in 2016 to 1,389 markets by 2023.

Simultaneously, the Rashtriya Krishi Vikas Yojana (RKVY)8, which promotes agri-tech startups via grants under its Innovation and Agri-entrepreneurship Development Programme, has already funded over 800 startups working across the agricultural sector, such as food processing, agro-processing, organic farming, and farm mechanisation.

Further solidifying its commitment, the government launched the Digital Agriculture Mission (DAM) initiative in September 2021, leveraging robust advancements in cloud computing, earth observation, remote sensing, data analysis, and artificial intelligence/machine learning models to foster the growth of Agri-tech startups.

The development of the “Agristack” initiative – a platform to consolidate land ownership information for individual farmers – would aim to facilitate Agri-tech companies via a comprehensive digital repository of agricultural data. The platform, which is projected to positively impact over 2,000 Agri-tech startups across 23 States, can be meticulously utilised to address the specific needs of each farmer, considering crucial factors such as land area, cultivated crops, and soil composition.

How can agtech assist in combating malnutrition?

By integrating technology into agricultural practices, organisations gain access to a suite of solutions that enhance monitoring capabilities, which could be leveraged to track crucial factors like soil fertility, crop health, and weather patterns. This data-driven approach empowers the implementation of precision farming techniques, ultimately leading to improved crop yields while minimising waste and nutrient density.

An increased focus on agtech solutions can be leveraged to transform the supply-chain challenges by streamlining the process from production to manufacturing and distribution. With this regard, DeHaat – a full-stack agtech platform – has fundamentally reshaped agricultural practices by empowering farmers to enhance productivity and efficiency. DeHaat directly addresses critical challenges within the supply chain, enabling farmers to sell their crops throughout the year, thereby ensuring a consistent ability to meet the demand for agricultural goods.

Furthermore, an increased focus on the integration of biotechnology – via the incorporation of biofortification and nanotechnology – to not only enhance yield but also improve the nutritional content of staple crops could massively aid in addressing the challenges of malnutrition and food insecurity.

How ATL can help

Empowering end-consumers with the requisite knowledge is critical for enabling them to make informed dietary choices. This knowledge-based approach ensures that the advancements in agricultural productivity, fuelled by technological innovation, translate into improved nutritional outcomes for individuals and enhanced food security at the community level. The Atal Tinkering Lab (ATL) – a modern, pioneering facility implemented within schools across the nation, could further cultivate inquisitiveness and a spirit of innovation in students, thereby allowing them to brainstorm creative Agri-tech solutions, using tools such as 3D printing, rapid prototyping tools, robotics, and miniaturised electronics.

At the grassroots level, governing bodies like the gram panchayat could be leveraged to increase awareness around the existing and potential agtech solutions, and subsidies, and improve overall knowledge about the industry – thereby empowering farmers to adopt the right agricultural techniques.

Agtech holds immense potential to revolutionise Indian agriculture and significantly bolster national food security. By integrating technological advancements across diverse facets of the agricultural value chain, agtech solutions offer the capability to tackle critical challenges marked by limited access and knowledge of nutritious food, concerningly high malnutrition rates, and a disrupted supply chain. Through the adoption of sustainable practices, fostering inclusivity for all stakeholders, and with the support of government initiatives, the booming Agri-tech industry can pave the way for developing a resilient and sustainable food system, while empowering every individual involved in the agricultural process.

The author is Co- Founder & CEO, Nourishing School Foundation