Farm income rising on tech-led value addition

Green Revolution

♦ Technology solutions addressing core issue with very local customized solutions

♦ Farmers can sustain their income in right ecosystem

♦ Innovative tech solutions have extraordinary market orientation

Tech solutions are addressing some of the very important issues related to sustainable agri-practices, be it the solar-enabled cold chains, traceability, or supply chain management. The solutions help conservative use of resources as well as enable stakeholders to take preemptive measures to handle sudden changes in demand, supply shocks, plant disease, etc.

These are some of the findings of a report by the Indian Council for Research on International Economic Relations (ICRIER). Titled ‘Innovations to Get Markets Right: Emerging Ecosystem of Agritech Startups and FPOs,’ it was authored by Manasi Phadke, Bhushana Karandikar, and Ashok Gulati.

The case studies indicate that technology solutions have the potential to break down a problem and address the core issue with very local customized solutions, which is very important for a geography like India.

The solutions offered by the agritech startups enhance farmers’ income not just by allowing them to reap a higher price, but also ensure sustainability of income by giving them the right ecosystem to work in, assured markets, sustainable practices, etc. Many of the solutions also reduce the vulnerability of farmers to downside risks and hence help to control volatility in incomes, the report said.

On their part, farmers too are more driven to deliver quality because of the inbuilt incentives and penalties in the system.

Farmers and/or farmer producer organizations (FPOs), which agreed to be first movers in the innovative tech solution offered by the agritech startups had an extraordinary market orientation. They had already decoded the market cues and saw value in the solutions being offered by the startups.

The first participants in the innovative tech solution have been, more often than not, well-off farmers with an innate understanding of markets and agribusinesses, the report said, adding that this also might be the reason why early impact seems so impressive.

For an agritech product or service to take off successfully, the presence of a local farmer client is very important, it said.

The very presence of agritech solutions indicates the problems that plague the present marketing system.

The failure of APMC mandis to offer even basic standards and formal grading methods, lack of cold stores, and lack of information about prevailing prices are the issues that create a natural context for business-oriented startups to offer tech solutions that address these issues.