As India’s agricultural landscape evolves, technological advancements in agrotech have sparked a debate: Is agrotech only benefiting large-scale industrial farms, or is it also accessible to smallholder farmers, who make up the bulk of India’s farming population?
With the growing prominence of startups, the government’s push for digital agriculture, and a wave of innovation, India’s agricultural landscape is undergoing a transformation. The integration of agrotech solutions shows increasing signs that this technology is making its way to the grassroots, helping even the smallest of farms.
Agrotech and Small Farmers: An Evolving Ecosystem
Historically, smallholder farmers—who make up 86% of India’s farming population—have struggled with limited access to finance, infrastructure, and modern equipment. These farmers own less than two hectares of land, making large-scale mechanization or technology investments difficult. Limited access to credit, fragmented supply chains, and a lack of market access have historically kept them at a disadvantage. However, agrotech companies are changing the game by offering mobile-based solutions, advisory services, and market linkages.
According to McKinsey & Company, India’s agrotech sector has grown from 50 startups in 2013 to over 1,000 in 2023, with a cumulative investment of $1.6 billion. This growth is also supported by the government’s initiatives like the eNAM (National Agriculture Market), which connects farmers directly to buyers, and the Agristack, a database linking farmers to various agricultural data sets to enable customized solutions.
For small farmers, this tech-driven ecosystem reduces reliance on middlemen, cuts input costs, and ensures better prices for their produce. These digital solutions reduce dependence on middlemen and give farmers access to better prices for their produce, particularly in geographically isolated areas.
Access for Small Farmers: A Growing Reality?
Although industrial farms have been early adopters of high-end agrotech solutions like drones, precision farming tools, and advanced irrigation systems, small farmers are beginning to see the benefits of simpler, low-cost technological interventions. Agrotech platforms are increasingly designed with affordability and ease of use in mind, focusing on solutions such as:
- AI-powered crop advisory: Startups like DeHaat and AgNext offer farmers personalized crop advisory through apps in regional languages. These platforms leverage artificial intelligence (AI), Internet of Things (IoT), and data analytics to help farmers by providing real-time weather updates, pest management advice, optimal sowing times, real-time crop advisory, access to financial services, and direct-to-market sales channels, helping small farmers improve yields, profits and manage their crops more effectively
- Market Linkages: Platforms such as Ninjacart have enabled small farmers to bypass intermediaries and sell their produce directly to retailers. This not only helps farmers receive better prices but also reduces post-harvest losses.
- Financial Services: Many agrotech startups are helping small farmers gain access to credit by utilizing farm data for digital credit scoring. For instance, Samunnati provides working capital loans to farmers and agribusinesses, bridging the financial gap that often limits small farmers’ ability to adopt new technology.
Impact on Small Farmers’ Lives
The adoption of agrotech solutions has begun to change the lives of smallholder farmers by improving productivity, reducing costs, and enhancing market access. Key benefits include:
- Increased Crop Yields: AI-driven advisory services have enabled farmers to make better-informed decisions, leading to improved yields and better-quality produce.
- Cost Reduction: The use of technology such as soil testing kits and crop monitoring tools has reduced input costs for small farmers. For example, farmers using precision irrigation methods have reported savings on water and energy use.
- Better Access to Markets: Agrotech platforms are helping small farmers access national and international markets, increasing their income. For instance, startups like AgriBazaar have created digital marketplaces where small farmers can sell their produce directly to buyers.
Read more: Tiny Technology, Huge Impact: Risks and Rewards of Nano-Farming in India
Challenges for Small Farmers in Adopting Agrotech
While agrotech is slowly permeating the small farming community, challenges remain:
- Digital Literacy: Many small farmers lack the digital literacy needed to fully benefit from agrotech solutions. Though smartphones are becoming more common in rural India, many farmers are not yet proficient in using digital tools.
- Affordability: Although agrotech is becoming more accessible, the cost of advanced technologies like drones and precision farming equipment remains out of reach for many small farmers. Government subsidies and initiatives like the Agriculture Infrastructure Fund are crucial in helping farmers afford these technologies.
- Infrastructure Barriers: Rural areas in India often suffer from inadequate internet connectivity, making it difficult for farmers to use online agrotech platforms consistently.
Democratizing Agrotech: Government Initiatives and Digital Reach
The Indian government has also played a significant role in fostering the growth of agrotech at the grassroots level. Programs like the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and the promotion of Farmer Producer Organizations (FPOs) have enabled small farmers to collectivize and access better resources.
Digital soil health cards and the Direct Benefit Transfer (DBT) system for fertilizers are examples of how technology is being used to improve farming practices at the grassroots level. The aim is to create a holistic ecosystem that supports farmers in increasing their productivity, securing better prices, and reducing input costs. Additionally, the government has announced a $750 million fund to promote agrotech startups, making digital solutions more accessible to farmers across the country.
Is Agrotech Only for Industrial Farms?
While agrotech initially catered to larger, industrial farms, the landscape is changing. Efforts by both startups and the government are making agrotech more accessible to small farmers, though challenges remain.
Many smallholder farmers lack smartphones or consistent internet access, limiting their ability to fully participate in the digital revolution. Furthermore, while agrotech solutions may offer long-term benefits, the initial cost of adoption—such as installing IoT devices or subscribing to digital platforms—can be prohibitive for those without financial support.
The solution is emergence of affordable technologies and digital tools along with government-backed initiatives like AgriStack and the Digital Agriculture Mission, smallholder farmers are increasingly benefiting from the agrotech revolution. With the right support and investment, agrotech has the potential to transform farming practices for all farmers in India, regardless of the size of their landholdings.
The potential of agrotech to increase smallholder income by 25–35% is undeniable. The future of Indian agriculture lies in its ability to integrate technology at every level, from the industrial giants to the smallest landholders. As startups and the government work together to make agrotech more inclusive, India’s transformation into an agricultural powerhouse is within reach.
By fostering collaboration across the value chain, from input suppliers to financial institutions, agrotech could unlock India’s agricultural potential, boost economy and drive sustainable growth while uplifting the livelihoods of millions of smallholder farmers who form the backbone of the country’s agricultural sector.
