Agriculture in India has shown an increase in its average agricultural output (per hectare), in the last 60 years, and this is adding to the growth in total output. The increase in agricultural productivity is directly related to India’s green revolution mission, developed infrastructure of road and power generation, management of Agri-inputs and supply chain, knowledge of Agri-processes, and other reforms. As per the Food and Agriculture Organization of the United Nations (2013), India is among the top few producers of rare agricultural produce. Interestingly, the quality of Agri-produce is better because of the wide diversity of soils and climate in the country, across three seasons. Despite these recent happenings, crop yield in the country is still 30 to 60 percent of the best sustainable crop yields achievable in the farms of developed and other developing countries. Out of all the agriculture operations, maximum losses happen after harvest due to poor storage infrastructure and unorganized retail and despite logistic support, and incentives by State Governments, Indian farmers still face difficulties like low prices of farm produce, uncertain weather, low rainfall, and the latest technology. After Independence, the Government laid major emphasis on achieving self-sufficiency in food production.
Even though Central and State governments have initiated several agricultural development programs, there is a huge gap to be filled by young minds. There is a strong need to incorporate local knowledge, indigenous wisdom, and skills of farmers into modern farm technologies being developed by scientists. However, there is a difficulty in building extension contact with farmers bearing the fact that an extension agency does not have a sound understanding of all the farmers as their clients leading to a gap in the working knowledge of their perception, tendencies, needs, interest, strength, and weakness. Viewing the facts there is a need to set up business startups in technology, IT, online retail, online bookings, home deliveries, supply, and distribution business. Adding more to this fact agriculture and its allied activities could be taken up as a business opportunity for start-ups. According to studies, it is also evident that agricultural problems can be solved by small-scale investments and various business models. This article suggests some of the probable business opportunities where startups can be launched to attain growth and agricultural development and how the farmer, rural Indian citizen, agricultural laborer, and society could benefit too, and at the time of COVID-19, this can be turned into a real real-time opportunity. Farmers must use high-quality inputs, fertilizers, and agro-chemicals to improve productivity and yield and this would be the major focus area. Observing the scenario, business startups could be planned to procure and arrange Agri-inputs at the desired end user of this sector. Research shows that farmers are still not able to get agricultural inputs on time like seeds, pesticides, fertilizers, and agrochemicals.
Hence, there is scope for Agri-market environment analysis, segmentation of agricultural inputs, positioning of Agri-products, designing of distribution channels, and many other opportunities for startups. Agri-business counseling and guidance are envisaged to provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection from pests & diseases, market trends, prices of various crops in the markets, and also clinical services for animal health, which would enhance the productivity of both crops and animals.Agri-business counseling and guidance startups are equipped to provide information and guidance on the availability of input and its supply, the availability of farm equipment on hire, and other services. Currently, Krishi Vigyan Kendra (KVKs) provides counseling and guidance at the farm level but the varieties and set of information required every day are difficult to come in the existing system. Adding to agri-business startups Students having degrees in agronomy, plant breeding, post-harvest technology, horticulture, Agri-extension and communication and animal husbandry could be trained with ICT knowledge which can be motivated to start counseling and guidance centers at village, block, or district levels. Later, on these centers could also provide services like soil testing, compost making, and plant nurseries. Moreover, the agri-business sector’s supply and value chain spans input management, farmers, Agri-produce traders, food processing units, and retailers; all of whom must ultimately satisfy the varying demands of the customer in a workable manner. This sector encompasses huge diversity and variety at each stage, from research and development-based agri-business companies to common manufacturers, from subsistence farmers to high technology agro-holdings, and from biotech boutiques and small and medium-sized enterprises to multinational corporations. Today, building a suitable value chain is a need for the development of agriculture, farmers, and every other stakeholder. In this context, another startup we could think of is having an inclusive market system development approach which could be focused on building capacity and resilience of the local market and business scenario, supporting incentives resources of the farmers and agri-businesses, ensuring beneficial inclusion of the small farmers and stimulating change and innovation that continues to grow. Services like farmer’s landholding and cropping patterns especially which are useful for the farmers, type and quality of farm produce, timeline of quantity production, and suitable supply chain management from farm to retail store can also be added as service provider startups. Another possibility is about Warehousing in India which could be linked to food security and agricultural growth. The three public sector agencies that are involved in building large-scale storage and warehousing capacities in the country are the Food Corporation of India (FCI), Central Warehousing Corporation (CWC), and 17 State Warehousing Corporations (SWCs).Currently, the country has a total agricultural warehousing capacity of around 91 million metric tons, to store and conserve large quantities with state agencies and they own 41 percent of the capacity and the balance distributed among private entrepreneurs, cooperative societies, farmers, etc. despite being public sector warehousing and private players, including cold chains, millions in farm produce goes waste every year. So, to prevent perishability, there is a strong need for startups at the local level to manage farm produce and Warehousing is now been seen as an integral part of the supply chain where goods are not only stored for safekeeping but also for other value processes for further implementation and thereby, minimizing wastage and costs. In fact, warehousing in agriculture is part of the larger agricultural ecosystem. However, just like agriculture, the warehousing market is local, unorganized, and fragmented. Many small and medium landholding farmers use the services of public warehouses, also known as third-party logistic companies which help farmers by storing, packaging, and shipping produce. Building of warehouse at a Public-private partnership model at the local level in co-operation with villagers can be a thought process that can carry the process at the village level like cleaning, processing, and packaging of vegetables and fruit by villagers.Like all other startups tourism has also been recognized as one of the major sectors for providing employment opportunities to less developed or developing countries. Several countries across the globe plan their tourist spots to attract millions of tourists every year and the whole economy runs on revenue earned from the tourism sector. One of the newest and popular tourism segments today is Agri-tourism or eco-tourism and India is still far from its tourism exposure. This startup not only captures multiple other business opportunities viz. handicrafts, food processing, and hospitality but also significant benefits for local rural areas. A few states in India like Rajasthan, Assam, Haryana, Uttar-Pradesh, and Kerala have been trying to attract tourists to their villages and Agri-farms but still, there is a lack of new entrants as business startups. Focusing more on Agri-tourism as entrepreneurship may improve economic backwardness in rural and Agri-dominated areas.At the same time, this kind of start-up can offer visitors an education in agriculture including how crops are grown and which crops thrive the best in a given climate. Different seasonal events like Lohri, Sankranti, Holi, Deepawali, Navratra, Bihu, Pongal, and Dussehra can be planned in villages and can be a part of brand building which will educate visitors about Indian culture, tradition, and farming. In some countries, the practice of hosting overnight guests, so they get a traditional taste of the great outdoors, could also be thought of.
An increasing number of business startups are much needed to help farmers, across the agricultural cycle. The current union budget has a very significant allocation of funds to develop the agriculture and allied sectors.
Observing the situation, one can sense that there are several opportunities available for entrants to start a business for the welfare of farmers and the development of the agriculture sector. College graduates, especially those in agriculture science, agriculture technology, animal husbandry, post-harvest technology, biotechnology, and agri-business management could explore business ideas that can be further developed as business models, aimed at the betterment of the agriculture sector in India.
