Know-how, digitisation and public investments in agtech are the keys to growth of agriculture amidst local weather challenges, consultants stated at businessline’s Agri and Commodity Summit 2025 right here on Friday.
At a session on “Tapping digitisation and know-how for agri growth”, the panel members famous that India has a terrific potential within the growth agri stack, which the federal government is implementing presently.
Dr Paresh Verma, Government Director, Shriram Bioseed Genetics, referred to as for a“political will” and coordination amongst all stakeholders to reap the advantages of know-how to farmers.
Stating that seeds make up hardly 10 per cent of the farmers’ enter prices, Verma identified that the federal government has “sadly” introduced cottonseed underneath the Important Commodities Act, 1955. “It’s the solely seed introduced underneath the Act,” he famous.
MSP’s impression
“The fixing of a minimal help value (MSP) has an impression on seed manufacturing. Whereas the MSP for cotton has elevated by 185-190 per cent over the previous 10 years, costs of seeds — decided by the federal government — has gone up by solely 15 per cent,” stated Verma.
Referring to Bt cotton, he stated bugs have gained the battle on this matter because the nation has not saved tempo with technological developments. The pink bollworm has turn into an actual menace and consequently, textile items at the moment are going through cotton scarcity.
Subsequent disruption
Hemendra Mathur, Co-founder of ThinkAg, stated start-ups have pushed digitisation of the meals worth chain over the previous 15 years. “About 90-95 per cent of the innovation by way of start-ups has been by way of digitisation, and advantages are brewing,” he stated.
The federal government’s Agri Stack programme would be the subsequent disruption, he famous. It may minimize down the transaction prices in coping with farmers, similar to banks offering loans to farmers. Nevertheless, farmers’ consent must be obtained for transacting enterprise.
On funding state of affairs, he stated it took the pandemic to grasp the significance of capital infusion. “From round $100 million for 7-8 years since 2010, funding elevated to $2-3 billion in 2021 and 2022. Nevertheless, it has now moderated and there was a correction,” Mathur stated.
Stressing that public investments are required in agtech to make non-public investments enticing, he famous that, some 2-3 start- ups will doubtless give you IPOs over the subsequent couple of years.
“The agtech sector is a ‘Nice Bharat Story’ since many corporations have begun working with farmers. This fashion, it has created rural employment,” he stated.
Decrease insurance coverage, banking prices
Partha Ghosh, Programme Lead, Social Alpha, stated 15 per cent of digitisation has gone into the worth chain. Synthetic intelligence and machine studying fashions are being developed to get a way of the bodily impression of climate, pests and illnesses.
The Agri Stack challenge would decrease the price of insurance coverage and banking however many organisations are usually not but ready, he stated.
Ghosh stated there’s a reluctance to undertake know-how and due to this fact, there’s a want for public sector investments to assist adapt to those challenges. It would break the worth barrier of know-how and guarantee financial advantages attain the stakeholders, he stated.
The businessline Agri and Commodity Summit 2025 is offered by Nabard and co-powered by the Federation of Seed Trade of India (FSSI) in affiliation with Yara.
The Affiliate Companions are NCDEX, Indofil, Bayer, Hindustan Urvarak & Rasayan Ltd, Kribhco Agri, NSE, Aqua Group and the Tamil Nadu Agricultural College.
The Banking Associate is State Financial institution of India whereas the Broadcast Associate is NDTV Revenue.
