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Agritech start-ups are the industries formed out of the combination of agriculture and technology. The companies operating in this industry work to improve agriculture with the use of novel and feasible technology.
Given the pandemic condition prevailing across the world, people are majorly worried about health infrastructure and how will businesses revive to normal.
Agriculture worldwide has been the primary sector of the economy and backboned the growth of countries.
With world turning in direction of technology and everything being digitized now, this sector is no different. Companies have developed new technologies and through innovations have found ways to uplift this sector.
Convectional practices have failed to cope up and resolve the current issues that agriculture confronts. Here is a view of possible future agritech start-ups can have in India and in the world.
Agriculture accounts for a whopping 60% of aggregate employment in India. Clearly as result there if a fair degree of concern of what will future hold for the agriculture sector in India.
The sector has till now achieved more than $248 million funding. This highlights the massive growth potential this industry holds
The agriculture sector is currently crippled with problems like subsided seed quality, poor soil fertility, lack of good market interaction, climate change and what not. An aid from technology can be fruitful for this sector and help address these fundamental issues.
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The agritech star-ups can fill this gap with use technology like GIS, Blockchain, Artificial Intelligence, remote sensing, data analytics and various Internet of Thing (IoT) devices. Efficient supply chains can be set up using blockchain technology.
A leading agritech venture capital firm, Omnivore, in its report The Future of Indian Agriculture and Food Systems: Vision 2030 had some key takeaways about the future of agriculture in India.
Biotechnology will be deployed to produce more nutritious and environment friendly crops. Diversity, quality, and sustainability of food sources will increase.
There will be digitization of farmers and farms connecting every nook and corner of agriculture systemically. Farmer-consumer intimacy will improve value for both.
There will be significant mechanization and automation of farms in future. The report further notes that India’s agricultural workforce in the future will be smaller, younger, and more gender diverse, and will move towards higher productivity jobs.
Agritech star-ups are equipped to provide viable farming solutions and the activity in this industry will multiply manifold post the lockdown.
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The agriculture industry has radically transformed from past many years around the world.
The world is on track to touch the possible benchmark of 9.7 billion by 2050, requiring a corresponding 70 percent increase in calories available for consumption, even as the cost of the inputs needed to generate those calories is rising.
The water supply is expected to fall by 40% by 2030. About one-quarter of arable land is degraded and needs significant restoration before it can again sustain crops at scale.
The climate change is another problem creating pressure on environment. Also with people becoming more aware about environment and animal sensitivity, the traditional agriculture practices are getting challenged all over the world.
To address these issues, agriculture must embrace digitization and transform its practices that matched the current needs.
More sophisticated, digital tools are needed to deliver the next productivity leap. In recent years, framers have started to rely on data on variables like soil, crops, livestock, and weather.
According to AgFunder, startups in this sector have grown more than 80% from the year 2012. The industry is booming with investors showing more interest in the sector is it Bill Gates or food conglomerate Cargill.
New techniques like hydroponics where plants are grown without soil but using mineral nutrients solution in water solvent are developed. Bioplastics, algae feedstock and many other techniques will be replacing the conventional ones.
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Drone technology, data analytics, Internet of things and precision agriculture are some other technologies that will soon in future be optimizing the agriculture production and addressing the ongoing issues.
Clearly, a massive transformation awaits for this sector at the threshold. Entrepreneurs undertaking leaps in innovations and investors interested to put their money on stake, agritech start-ups have high growth potential.
These technologies can change the face of agriculture that we have known for years. Not only will farmers seem to benefit out of it, but if the consumer side shall enjoy the transformational benefits.
Hopefully a much needed alteration in agriculture sector is what all will witness in future.