Technology has embraced every sector in India, but has agriculture embraced it? The extent to which this technology penetration has reached India’s agro sector is still vastly unknown. Despite 54% internet users coming from rural areas, as per Internet and Mobile Association of India (IAMAI), a 2000 report from NASSCOM estimates that only 2% of the farmers in India use mobile applications for farming-related activities.
With agrotech startups and agro-product manufacturing companies playing their role, the reach is still afar. Resources, technology, applications, and products are all available. But the thing to see is how they will reach the farmers.
Agrotech adoption by farmers
There is a stark difference in tech adoption in urban and rural areas, as the IAMAI report shows. Tech has grown by 13%, and smartphone usage has increased to more than 65% in rural India. More and more farmers can now use apps like WhatsApp and Facebook, leading to increased access to digital tools and platforms for better farm management and decision-making.
In addition, new-gen farmers are now using UPI and online payment modes. Farmers have also started watching YouTube videos and live streams for farming techniques. Some applications help farmers decide whether to travel to mandi to buy and sell yields.
Well-paced growth for e-commerce in agrotech
Things have also progressed well when we move to the next agrotech space, where the actual farm input and output transactions occur. As online businesses have picked up steam after COVID-19, the e-commerce block of agrotech also gained momentum.
Today, farmers are comfortable listing their products and crops on e-commerce platforms, eliminating intermediaries who take the margins. Better price options accelerate growth, so more farmers choose e-commerce stores to invite crop bids.
The move will grow as farmers choose e-commerce platforms for payment guarantees and different quality inception modules. The existing agrotech market will see a mix of digital and physical integration, which will pace up the growth in this sector.
Use of modern tech in the agro sector
Beyond adoption and e-commerce, agrotech also focuses on other technologies such as precision farming methods and drones. According to an estimate, precision farming, analytics, and advisory segment grew by 17% in 2020 with farmers experimenting with drone-based sprays. Farmers using precision agriculture technologies have reported crop yield improvements demonstrating the tangible benefits of technology adoption.
This technology will cater to B2B and B2C only for the coming years as the transaction costs will be high. But with time and enhancements, it will seep deeper into India’s rural farming bases.
Agro technology and its challenges
Implementing agrotech and adoption by farmers is challenging because the solutions must be localized and customized. Adding different layers of tech can go a long way in reducing these challenges. However, social proof using influential farming techniques can push usage in rural regions.
Another barrier to tech adoption is the literacy rate. Using tech and apps may require digital knowledge and literacy, affecting adoption. Undoubtedly, young farmers are tech-savvy, which is why apps have reached a future of 1 million installs. Despite this increase, the adoption rate is still low. With tech adoption in the agro sector, there will be higher productivity.
The need for the correct adoption procedure
The adoption of agrotech is implemented well when these three factors – innovation, investment, and infrastructure converge. Innovation is the need of the hour, which can bear exceptional yields when integrated with different farming techniques. McKinsey’s report suggests how agricultural technology can grow farmers’ incomes by 25% to 35% in India.
Investment is another significant factor because a suitable investment will lead to the right prospects. An EY report on India’s agritech startups showcases the total market opportunity to be worth $24 Bn by 2025.
Infra and investment in the agro sector are on the right track, but innovation needs to see the light of day. Actual adoption is complicated, but with effort, penetration can be improved. The scope of technology used in agrotech is massive if only it reaches the farmers.
