Leaders In Agri-Tech Startups-art2

India’s broad agricultural sector remains largely informal and data are fragmented. In addition to compiling data on trade in agricultural products, a number of agencies under the Ministries of Agriculture, Commerce & Industry, and micro, small & medium-sized enterprises are involved in the management and promotion of the sector.

Export Products List 

India exports a variety of agricultural products and is mainly the leader in producing rice and milk products. 

The list of export products is dominated by Rice (Other than Basmati), Basmati Rice, Sugar, Raw Cotton, Edible oil, Misc Processed items, Fresh Fruits, Fresh Vegetables, Groundnut, Processed fruits & Juices, Wheat, Tobacco, Processed Vegetables, Sesame seeds, Cashew, Alcoholic Beverages, Dairy products, Cereals, Pulses, Fruits & vegetable seeds, Floriculture products, Poultry products, Processed Meat, Processed Fish and the list goes long as the variety of products is increasing in India. 

Growth Base 

A deep dive into the data shows that recent growth has a broader basis. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), which monitors non-plant crops, the export basket reached $ 13.1 billion in the first seven months of the current fiscal year. The number is $ 20.6 billion for the full fiscal year 2020-2021, compared to $ 16.4 billion in 2019-2020.

Crops such as rubber and tea have well-established retail chains and are well invested. But to increase global demand for products such as herbs, dairy, vegetables & fruits, a coordinated effort is needed to open up foreign markets for Indian products. It is also important to broadly support and unify local and foreign industries. All this has been done in the last three years and the result has already come, “said a senior APEDA official.

Exports of herbs such as ginger, pepper, cinnamon, cardamom, cornflour, and saffron, which have medicinal properties, have also grown well. Meanwhile, the Marine Products Export Development Authority (MPEDA) said that exports of shrimp and prawns last year had already reached 88 percent of the total value of exports.

It is also considerable that the government has mandated the export of processed goods such as honey, cocoa, fruit jam & wine, whereas India has not yet shared global expertise.

India has now become the ninth-largest exporter of honey in the world, transporting 7.36 lakh tonnes in the last fiscal year, with the US being the largest customer with 80 percent.

Hurdles on the way

However, agricultural exports continue to suffer from logistical constraints, in particular the lack of global containers. As the number of containers available decreased, average shipping rates increased, leading many foreign buyers to cancel orders.

“The shortage of refrigerated containers drives shipping costs to an inadequate level, with shipping costs exceeding production costs,” said Ajay Sahai, Director-General & CEO. Federation of Indian Export Organizations. It is mainly affected by seafood exports to India, which is heavily dependent on fish stocks and is experiencing a boom in European and West Asian markets.

Agri-Tech Startups Contribution 

Innovation is the most crucial element to grow in this globally competitive world. Startups are shaping the future of the country with innovative technologies on the table, creating opportunities for the farmers and the nation’s youth. 

The future of the AgriTech industry is bright, especially in our country, which has one of the most cultivated areas and our economy depends on it. With a large population in rural areas involved in agricultural practices, we can generate huge agricultural yields through start-ups if they are well developed and managed. In addition, our climate and diverse geographical landscape are ideal for high-coverage agriculture.

With the influx of start-ups emerging in Agri Tech, one day awaits to help farmers increase productivity and efficiency through digitization. This is the great potential for change in the agricultural economy. 

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