Agricultural Technology (Agri-Tech)

What is Agri-Tech?

Agri-tech or Agricultural technology is basically the use of the new technologies based on agriculture, science and agronomy, and agricultural engineering in agriculture.
The objective of agri-tech is to improve the efficiency, profitability, and sustainability of agricultural operations.

The technologies used  for implementing Agri-Tech are as follows:

• Drones
• Satellite Photography
• Sensors
• Weather Forecasts
• Automated Irrigation etc

Status of Agri-Tech Ecosystem in India

India has become the third-largest start-up ecosystem hub. India is home to the highest number of unicorn startups after the US and China. Among them, Agri-startups are providing relevant and innovative solutions to a number of challenges faced all across the agricultural value chain.

These Agri-startups have been connecting the missing link between the farmers, input dealers, wholesalers, retailers and consumers; connecting each of them and providing strong marketing linkages and quality products on time.

Agritech has become a promising arena for investors, entrepreneurs, the agricultural community, and all other stakeholders. According to data by NASSCOM, India had around 450 agritech startups in 2022, with the number growing at 25% year-on-year.

How Technology can boost Agriculture

• Precision farming: Data on soil conditions, crop health, and weather patterns are collected using technology like sensors, GPS, and drones. Using this information, crop yields can be increased, input costs can be cut, and the impact of agriculture on the environment can be reduced.

Read More: Precision Farming: Technologies, Benefits and Challenges – Explained, pointwise

• Crop management systems: Crop management systems employ machine learning and artificial intelligence to analyse data from sensors and other sources to forecast crop yields, spot crop diseases, and maximise the use of fertiliser and irrigation.
• Smart Irrigation Systems: These systems can be used to gauge the prior information of leaks and equipment malfunction to farmers. It will also allow farmers to remotely control water pumps.
• Use of Drones: Drones can be deployed for faster examination of the fields. Using the drone technology, a farmer can see the areas which require special attention. In some parts of the World, Drones are being used to propagate seeds in the field.
• Mobile Technology: Apps and platforms for mobile devices can give farmers access to current crop prices, weather forecasts, and market data. Farmers can use this knowledge to make educated choices about when, what, and how to plant their crops.
• Digital payments: These systems can make it easier for farmers to receive payments swiftly and securely, enhancing their cash flow and lowering the hazards involved with carrying significant amounts of cash.
• Agricultural extension services: Technology can also be used to deliver agricultural extension services to farmers, providing them with information and training on best practices for crop cultivation, pest control, and other farming techniques.

Read: Emerging Technologies in Indian Agriculture

Read: Smart Farming: Towards Sustainable Agriculture – Explained, pointwise

Challenges

• First, the small and fragmented land holdings are not conducive to large-scale technological interventions. e.g large-scale irrigation system technology requires considerable land for its effective implementation.
• Second, for small farmers, who frequently have few financial means, the expense of technology can be a significant hurdle. Many technologies need substantial up-front expenditures, which farmers may be unable to afford.
• Third, small farmers have limited access to institutional finance, as a result they have limited access to finance to buy machinery or equipment.
• Fourth, there is a paucity of infrastructure which is required to make agriculture technology-centric. In rural areas, there is a shortage of electricity, internet connectivity, good road infrastructure etc. which makes integrating technology difficult.
• Fifth, changing the behavioural patterns of the farmers to adopt technology is a difficult. Farmers are attached to their mode and working and technology is seen with suspicion.
• Sixth, skilled manpower to provide extension services in these technologies is lacking.
• Seventh, there is a significant issue of a language barrier in India. Many farmers in India may not speak English, which can make it difficult for them to access information and training materials that are only available in English.

Way Forward

First, there is a need to develop mobile training programmes for the capacity building of farmers and help them adapt and adopt to new technological advancements.

Second, increased and timely support to early-stage startups will boost agri-tech startups in India.

Third, there is a need for corporate and government accelerators to help agri-tech startups. This is because only 9% of all funding in the last 5 years was focused on growth-stage startups. For this, large companies need to effectively collaborate with startups.

Fourth, the government need to set up agri-tech-focused incubators and grants.

Fifth, Karnataka alone is home to 70% of agri-tech startups. The other states need to come up with favourable policies to attract startups and investors similar to Karnataka.

Sixth, banks and financial organisations need to offer more creative models of financing for farmers, entrepreneurs, incubators, and accelerators.

Seventh, in order to make agri-startups successful, it is crucial to enable seamless hybridisation of relevant technology by building a promising ‘new-age distribution model’. Agri-startups have to reorient and customize their models for a sector that has low technology adoption rate.