Agriculture Technology

 

AGRITECH ECOSYSTEM IN INDIA:

In India and many other emerging nations, the agriculture industry is a lifeline. It, directly and indirectly, supports the livelihood of several smallholder farming households. Agriculture employs about one billion people worldwide and is intertwined with a variety of industries. Around 35% of the world's food is produced by more than 608 million smallholder farmers who work on less than two hectares of land worldwide. These farmers are essential agents in reaching the Sustainable Development Goal (SDG) aim of eliminating poverty and hunger by 2030. In many emerging economies, continuous agricultural expansion is crucial for driving GDP, sustaining livelihoods, and ensuring food self-sufficiency. The agriculture sector has multiple challenges in terms of production, market linkages, supply chain, climate change, weather hazards, and so on, all of which result in large losses for smallholders.

AgriTech Industry in India:

 The agriculture industry, which serves as the backbone of the Indian economy, accounts for around 16.5% of India's GDP. The Indian agriculture market was valued at US$ 435.9 billion in 2022 and is predicted to increase to US$ 580.82 billion by 2028, rising at a CAGR of roughly 4.9% between 2023 and 2028. In 2022, India had approximately 450 agritech startups, with the number increasing by 25% year on year. India's agritech sector opportunity is valued at US$ 24 billion, with a market penetration of less than 1%. The large disparity between potential and actual value realization suggests a significant opportunity for many new agritech start-ups, as well as business development chances for current start-ups.

Significance of Smallholder Farmers:

Smallholders, who own less than two hectares of land and account for 82% of all agricultural land, make up the majority of those working in the industry. Smallholders are critical in driving agricultural productivity. Thus, continuous agricultural growth is crucial in many emerging economies to fuel GDP, sustain livelihoods, and assure food self-sufficiency. The Agritech Challenge intends to serve as a link between markets within the global south. There are 540 million smallholder farms worldwide, accounting for 30% of global food production. Smallholder producers face difficulties in acquiring input, credit, a market, and technology. Furthermore, a lack of income surplus renders them from more vulnerable to natural disasters. Smallholder farmers continue to be exposed to a variety of unpredictability variables, including price fluctuations, regulations, diseases, infrastructure, and information asymmetry, as well as unexpected weather and climate change. Furthermore, the recent Covid epidemic has heightened the risks for smallholder farmers. A system that removes the barrier between smallholders and the market will promote efficient resource utilization, resilience, and food security. Farmers, according to the United Nations (UN) Food and Agriculture Organization (FAO), are the key change agents in reaching the Sustainable Development Goal (SDG) of eliminating poverty and famine by 2030.