Farmers are facing a bad time in this pandemic. As per IBEF(Indian Brand Equity Foundation) more than 58% of India’s population is dependent on agriculture for livelihood. The reverse migration of migrants due to covid-19 will also lead to more people being dependent on agriculture as a source of income. The government has come up with some reforms that can help farmers. Now, the question is whether agri-tech startups become a ray of hope for farmers and make their lives better.
Farmers have long been exploited by the present system of APMC. They have earned less due to the presence of middlemen. Thus, farmers are left with fewer returns. Farmers require more than policies and this where agri-tech startups come to their rescue.
Ways in which agri-tech startups can help farmers
Removing middlemen
The major problem that farmers face is of middlemen. This increases the cost per transaction which is mostly 2-3% in case of offline transactions. However, this cost can be upto 0.5% in case of online transactions. This is the same as online stock market investments, where people used to pay a lot per transaction before startups like Zerodha came into the market. The result of this reduction in cost is more profit in the hands of farmers.
Health of Crop
India loses around 30-35% crop due to pests. Also, attacks by insects is a major threat to farmers. The recent attack by locusts have created fear among many farmers. Agri-tech apps can help a lot in such situations. They can help in monitoring the health of crops with the help of AI. One such startup is Plantix which is a Hyderabad and Berlin-based startup. It helps farmers to identify plant diseases, pests and nutrient deficiencies. This is done with the help of AI.
Increasing crop productivity with the help of data
Agri-tech startups can store data and measure the performance of crops. With the data, farmers can identify in which conditions the crop yielding is good. These apps can study the history of land and also comment about the fertility of the soil. This data can also be used by other companies who produce agri based products and can lead to newer developments.
Easy availability of finance
The farmers have faced a lot of problems because of non-availability of finance from banks. This led them to borrow money from unorganised sectors at very huge costs. With these apps, the farmers can maintain their data regarding stock sold and inventory. This will help banks in monitoring their performance and thus banks will be more willing to provide money to farmers.
Challenges that can be faced by agri-tech startups
These startups can definitely help farmers but there are some challenges in their way. Their growth depends on the following factors:
- Support from government.
- Faster data penetration.
- Strong financial support from private investors.
These are some of the technical and legal challenges that these startups may face. Apart from these challenges, the acceptance of these apps by farmers is also a challenge. As many farmers are not tech savy, these startups will have to make farmers comfortable with technology. Even with these challenges, agri-tech startups are likely to change the life of farmers.
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