How Agri-Startups Revolutionize India's Farm Sector Amid Climate Change Challenges?
India's farming sector is getting a boost with the adoption of advanced technologies. Investors are now helping the farm sector to boost making large deals. In this article, we have discussed how agri startups have aided and helped the agriculture sector to evolve amidst climate change.
Over the years, India has witnessed a significant surge in the number of agritech startups, marking a remarkable transformation in the agricultural sector. In 2013, the country had fewer than 50 agri-startups, but by 2020, that number had exceeded 1000.
Today, more than 2,500 agritech startups are operating in India, with expectations of further growth. This trend received a boost when Finance Minister Nirmala Sitharaman announced the establishment of the Agriculture Accelerator Fund as part of the Union Budget, aimed at encouraging young entrepreneurs to explore agri-startups.
To support the sector's development, the government has increased the agricultural credit target to Rs 20 lakh crore for the current financial year, with a specific focus on animal husbandry, dairy, and fisheries. Recognizing the increasing concerns regarding climate change's impact on Indian agriculture, investors are actively engaging in efforts to deliver affordable mitigation and adaptation solutions for smallholder farmers.
While technology adoption in the agriculture sector has gained momentum, a significant number of farmers, particularly small and medium-scale ones, still rely on conventional methods. Agritech plays a pivotal role in improving yield, efficiency, and profitability, offering a wide range of products and services that fall under the agritech category.
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Startups are crucial in driving innovation and enhancing efficiency as India's agricultural sector transforms. Mayur Shah, head of business development at Japanese venture capital fund Beyond Next Ventures (India), highlights the critical role played by startups in the agri ecosystem. One such success story is BigHaat, an all-digital agro-startup founded in 2015, which has established a significant presence across 17,000 zip codes, engaging more than 2.5 million farmers each month.
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Agritech startups with a strong presence, such KhetiGaadi, CropIn, Farm2Fam, and MeraKisan, are making substantial progress. These firms are anticipated to be essential in assisting farmers, especially in light of growing concerns about climate change, as India is one of the nations most exposed to such difficulties.
The potential challenges posed by a probable El Nino event have further highlighted the need to accelerate technology adoption in the Indian agricultural industry. It becomes essential for agriculture to adopt technology if it wants to be resilient and sustainable.
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