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Sunday / April 21. 2024
HomeAgribusinessPhygital Farming Takes Root in India

Phygital Farming Takes Root in India

India’s agri-inputs market alone boasts a substantial $44 billion valuation, driven by over five lakh agri-input retailers serving as vital sources for farmers. As this marketplace rapidly evolves, combining the power of technology and agriculture to revolutionise the way farmers, suppliers, and consumers interact, it brings together various stakeholders – farmers, agricultural input suppliers, equipment manufacturers, distributors, processors and retailers in one virtual marketplace.

In the heart of India’s agricultural landscape, a transformation is underway, powered by the rapid growth of e-commerce platforms. Online platforms are becoming the bridge that connects farmers directly with buyers, eliminating the traditional intermediaries and ensuring fair prices. This shift holds the promise of addressing long-standing challenges and propelling the sector into a new era of efficiency and sustainability.

India’s agri-inputs market alone boasts a substantial $44 billion valuation, driven by over five lakh agri-input retailers serving as vital sources for farmers. As this marketplace rapidly evolves, combining the power of technology and agriculture to revolutionise the way farmers, suppliers, and consumers interact, it brings together various stakeholders – farmers, agricultural input suppliers, equipment manufacturers, distributors, processors and retailers in one virtual marketplace.

India’s B2B AgriTech companies have for decades been demonstrating how digital platforms are addressing agricultural challenges by leveraging data, analytics, and innovative technologies to optimise farming practices, reduce wastage, and enhance the overall efficiency of the agricultural supply chain. Now, the promise of India’s agriculture e-commerce sector is poised to contribute significantly to the surge in global agricultural e-commerce. That growth is primarily fueled by the demand for agricultural fertilisers, anticipated to secure the largest market share, closely followed by agricultural pesticides.

Major industry players, including UPL and ITC, are spearheading revolutionary changes. UPL, a key agrochemicals player, is at the forefront, providing mechanisation services and agrochemicals to farmers through its nurture.farm digital platform. Simultaneously companies involved in procurement, processing, or the selling of agricultural products have started to integrate backward into the supply chain, creating crucial market linkages for farmers. ITC, a core outputs player for instance, leveraged its e-Choupal network to expand direct-from-farm procurement over the past 20 years. It recently launched the ITCMAARS (Meta Market for Advanced Agriculture and Rural Services) super app. Using a partnership approach, the app gives farmers access to modern tools, quality inputs at the right prices, and finance.

Notably, B2B fruit marketplace Vegrow, secured $46 million from Government of Singapore Investment Corporation (GIC), Singapore’s sovereign wealth fund. The company aims to utilise the funds to fortify its global network and expand its reach across India.

Market Dynamics

India’s agri-inputs market is powered by retailers who serve as vital sources for farmers, providing seeds, fertilisers, pesticides, and tools. Despite their indispensable role, these retailers grapple with challenges such as limited product variety, poor availability, unclear pricing, and high working capital costs. Unlike some AgriTech players, the majority of agri-input retailers, who significantly contribute to the trade, have yet to benefit from technology or digitisation.

The digital agri-input market in India stands at a transformative juncture, propelled by rapid technological integration in agriculture. Over the past 75 years, India’s agriculture sector has evolved from being the primary economic driver to a critical contributor, now accounting for over 20 per cent of the nation’s income. However, significant challenges, including limited access to basic farming equipment, crop vulnerabilities, and financial constraints, hinder the sector’s untapped potential.

To read more click on :https://agrospectrumindia.com/e-magazine.

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