India’s agritech sector has the potential to grow to $24.1B in the next 5 years, according to a new report. With a turnover over of $204M, India’s agritech sector is at under 1% of its market potential today. Five key categories that’ll have the lion’s share are – agritech market for supplying farm inputs $1.7B; precision agriculture and farm management $3.4B; quality management and traceability $3B; supply chain and output market 12B; financial services $4.1B.
The adoption of digital rural products and payments have accelerated since the onset of the pandemic, as per Omnivore’s report. Intermediary reduction and tech-enabled payments are the prime boosters of digitization. Investment in horticulture, dairy, poultry etc are much-needed. Robots, automation and other techs will take over manual tasks, making agriculture more gender diverse. Tech-adoption will increase transparency between farmer and customer.
Indian Farmers are logging into tech platforms to sell produce as physical distribution is impacted in lockdown. Start-ups like AgriBazaar and Fraazo saw a 3X to 5X increase in registrations on its app in April. Agri10x added 1.5 lakh farmers since March, which in normal days take over six months. These apps help farmers, who get less than 30% of the retail price, to avoid middlemen to sell their produce directly to customers.