Akhilesh Jain, Co- Founder Agrotech Risk Private Ltd shares his views on agritech sector in India with AgroSpectrum.
Agrotech Risk Pvt. Ltd.- Agrotech India, an agfintech firm in India, provides creative solutions for all agricultural challenges. It is a joint venture between Trinity League India Limited and Ctrl2Go. Its forte is the use of cutting-edge technology for data processing and exchange as well as automation. To communicate this data to its customers, it employs its own CLASS software. The company provides software solutions for agritech and agfintech from start to finish. Akhilesh Jain, Co- Founder Agrotech Risk Private Ltd shares his views on agritech sector in India with AgroSpectrum. Edited Excepts:
How Agrotech India is contributing to the agritech landscape in India?
Agrotech India (Agrotech Risk Pvt. Ltd.), a one-of-a-kind global agfintech company based in India, provides innovative solutions for all of the difficulties that are faced in the agricultural sector. Trinity League India Limited and Ctrl2Go have collaborated on this project to form a joint venture. Utilising cutting-edge technology for the purpose of data processing and exchange, in addition to automation, is one of its strongest points. In spite of the numerous agricultural problems that are affecting India, Agrotech India stands head and shoulders above the competition as a result of the cutting-edge technological knowledge and products that it offers. For the purpose of conveying this information to its clientele, it utilises its very own CLASS software. In addition to offering software solutions for agritech and agfintech operations from beginning to end, the company also offers drone services to assist with any issues that may arise.
We provide a one-of-a-kind service that is more than ninety percent accurate for major crops, and it is called Crop Yield Estimation (both before and after harvesting). Traders are provided with assistance in the planning of in-time yield buy volumes and additional logistics resources by the service. Additionally, it assists the farmers in increasing the potential output and revenue of their farms. Through the use of our AgfinTech software, we not only offer technical aid to farmers, but we also assist them in loan acquisition. It comes with a farm-level score system that is integrated right in. The use of this system makes it possible to keep track of all the financial matters that are associated with a certain farm and farmer, which enables the farmer to make investments that are both intelligent and decisive.
What challenges are the agritech startup companies facing in the Indian market?
Connectivity and digital literacy are two issues that frequently prove difficult to overcome in rural places. AgriTech entrepreneurs have a responsibility to address these difficulties in order to guarantee that their solutions are accessible to farmers located in rural areas, hence promoting inclusivity in the use of technology. Given that AgriTech platforms are responsible for the collection and analysis of enormous volumes of data, protecting the confidentiality and safety of this information is a significant concern. For the purpose of safeguarding sensitive farmer data, startups are required to deploy stringent cybersecurity safeguards. The agricultural infrastructure is out of date, which presents a challenge. Inadequate storage facilities, transportation bottlenecks, and access to reliable electricity are some of the hurdles that agritech businesses need to overcome in order to facilitate the smooth integration of technology.
The adoption of new technologies by farmers is of the utmost importance. Startups in the agritechnology industry confront the difficulty of overcoming old traditions and ensuring that farmers are taught about the benefits of embracing digital technologies, addressing scepticism, and pushing solutions that are user-friendly.
What are the opportunities for Indian agritech startups in the global agriculture market?
Companies should prioritise the local market at the moment since it has a lot of promise on its own. According to McKinsey and Company, India’s agricultural sector is expected to quadruple its contribution to the country’s gross domestic product (GDP) by 2030. Supply of agricultural inputs, production and transformation of agricultural products, and distribution to end users are all parts of the full value chain that makes up the agribusiness ecosystem. As a result of factors such increasing urbanisation, dietary diversity, shifting consumer tastes, and the proliferation of food markets, this ecosystem has grown to encompass e-commerce and hyperlocal. Agritech in India is booming, thanks to advances from established businesses along the value chain that have embraced digital tools like “super apps” to newer businesses like “Agri fintechs” and massive tech conglomerates. In India, agri-startups tend to congregate in the states of Maharashtra and Karnataka as well as in the NCR of Delhi. The agricultural value chain, however, is still highly fragmented and disorganised, with many intermediaries and middlemen present at various levels.
What inputs are required for the growth of the agritech sector in India?
Unlocking new opportunities at every stage of the value chain extends beyond the core agritech industry. Trading and auction platforms are believed to transact over $8 billion worth of product, according to statistics from an Avendus analysis.
The goal of farm gate warehousing is to oversee agri-commodities valued above $10 billion. Agri fintech is anticipated to enable loan disbursals of more than $3 billion, while quality evaluation is anticipated to cover a GMV of $5 billion worth of produce.
At every point along the value chain, agritech companies are shaking up the conventional wisdom about farming. Data analytics and ML, for example, are key to raising output quality. By giving them access to up-to-the-minute information on the prices of inputs and outputs, platforms and data-driven solutions for price transparency empower farmers.
An increasing amount of money is flowing into the agritech business, which is a sign of how confident investors are in this area. Despite financial winter and macro headwinds, the agritech sector managed to secure over $1.1 billion in 46 acquisitions by 2022, up from $187 million in 19 deals in 2018. Roughly eight transactions totalling $161 million have occurred throughout the nation thus far in 2023’s first half.
What are the growth strategies and plans of the company for FY 24-25?
For the purpose of catering to a larger market and meeting a variety of requirements within the agricultural sector, it is recommended that the range of agrotech products and services be expanded. Possible examples of this might include the introduction of new crop protection systems, technologies for precision farming, or agricultural Internet of Things devices. The demand for agricultural products, the regulatory environment, and the level of competition are some of the elements that should be considered when identifying new geographic markets for expansion, whether they are domestic or international. In order to accomplish this, it may be necessary to build partnerships or distribution channels in novel regions. Invest resources in research and development in order to improve already existing items, come up with creative ideas, and maintain a competitive advantage over other businesses. For the purpose of crop development, this may involve making investments in emerging technologies such as artificial intelligence, machine learning, or genetic engineering.
Create more cutting-edge risk management solutions that are specifically adapted to meet the requirements of agricultural businesses, financial institutions, and farmers. Maintain an awareness of the regulatory shifts that are influencing the agriculture industry and make certain that you are in compliance with the applicable laws and standards. A company’s legitimacy and capacity to compete in the market can be improved by obtaining certifications that pertain to the quality, safety, or sustainability of their products.
Further, we would like to incorporate sustainable business practices into the business model in order to attract customers that are environmentally sensitive and to satisfy the needs of the regulatory bodies. These may include the promotion of organic farming practices, the reduction of carbon emissions, or the investment in solutions that utilise renewable energy sources.
By Nitin Konde
