The Indian agri-tech ecosystem has the potential to attract investments of over $10 billion over the next ten years, according to a FICCI-PwC report.
Titled “Agri-start-ups: Heralding next level of agricultural transformation,” the report reveals that the existing start-ups in the country, estimated at over 600, account for merely one per cent of the potential market opportunity estimated at $24 billion. This connotes of the immense potential for agri start-ups in the country, the report said.
Despite being a pandemic year, investors pumped in more than $500 million in agri-tech arena in 2020, compared to $248 million in 2019.
“With a significant rise in investment activity and looking at the huge market potential of Agritech in India, industry experts estimate that there will be investments of over and above $10 billion in the next ten years,” the report said.
It further said that the Government has been exhibiting its commitment to bring policy reforms in agriculture and allied sector and bolster the agri start-up ecosystem. The recently launched Agri reforms are a step in this direction and endeavours to disintermediate the complex Agri-supply chain, it observed.
Further to attract investments and build a robust agri start-up ecosystem going ahead, the FICCI-PwC report said impetus is needed strategic key areas such as infrastructural enablement, product innovation, supporting entrepreneurship and incubation, enhanced co-creations and institutional support.
FICCI-PwC has suggested a 5 point agenda for building a robust agri-tech ecosystem.
Pacing development of an AgriStack – A nationwide single & unified digital agri database infrastructure could act as a one-stop-solution and enabler for data requirements in the start-up ecosystem. This coupled with better data infrastructure, mobile literacy and high-speed internet at rural India, will alleviate the infrastructure bottlenecks.
Ushering in entrepreneurship and incubation: Ecosystem-level support in agribusiness incubation centres, right mentorship, and a mix of technological and managerial assistance would help AgriTech start-ups leapfrog in their business.
Co-creating through collaborations: There is a need to foster a win-win collaborative partnership between start-ups, FPOs and MSMEs to optimise profitability across value chains and ensure improved price realisation for small and marginal farmers.
Product innovation: Agri start-ups need to collaborate & engage actively with banking and insurance companies and introduce crop and region-based credit and insurance products (Agri-FinTech solutions) in such a manner that small and marginal farmers get encouraged to readily adopt climate resilient solutions. Agri start-ups can also innovate and customise tech solutions for quality assaying, traceability and food safety. Product innovation strategies can be executed successfully through continuous engagement between start-ups and the Government, and other facilitators in the ecosystem.
Institutional support: To ensure requisite institutional support for Agri start-ups there is also a need for creating a dedicated Agri start-up cell at a decentralized level to meet the requisite regulatory and Ease of Doing Business requirements for start-ups.