From food security to global leadership

Climate and agriculture scientists have warned that India’s farmers may soon face productivity losses of 10-20 per cent for rice, 6-23 per cent for wheat and up to 40 per cent for pulses by 2050. Rising temperatures, erratic rainfall and soil degradation pose a threat to the food security of 1.5 billion Indians.

Yet, a different story unfolds in the farms with an increasing number of progressive farmers leveraging soil-sensors, weather monitoring and smart micro-irrigation systems to achieve 25-30 per cent higher yields, while reducing water consumption by 40 per cent. They represent the vanguard of India's agricultural transformation, one powered by cutting-edge solutions by a new generation of Agriculture Tech or AgTech. This is India's AgTech moment. And we cannot afford to miss it.

Indian AgTech is promising to not only solve our food security challenge but also solve it for the other countries in Asia and Africa, and establish India as a global leader in AgTech solutions. This is a daunting target, considering that 68 per cent of agriculture is rainfed, average land holding is less than 0.75 hectares, limited mechanisation and increased risk of extreme weather events and climate change. But, with more than 2,500 AgTech start-ups that range from precision farming, supply chain and logistics optimisation, digital marketplaces and e-commerce, quality management and traceability and fintech solutions for financial inclusion, India arguably has the best enabling ecosystem to scale AgTech.  

The numbers are compelling. The global AgTech market, currently valued at $21 billion, is experiencing robust growth. India's unique combination of digital infrastructure, innovative financial systems and deep agricultural expertise positions us to capture a significant share of this expanding market and drive change in the ways the world produces its food.

Recognising this potential, the government has also offered significant backing through an accelerator fund in 2023 to the creation of foundational digital public infrastructures (DPIs) like AgriStack, focused on farmer and farmland registries, crop sown registry and a unified farmer service interface. But to unlock the full potential of the AgTech sector to not only resolve the Indian agriculture challenges but also make India a leader in helping the world achieve global agri-food goals, there are a few persistent challenges we must address with a phased, strategic long-term plan.

The way ahead

Our greatest asset lies in existing networks. India has about 40,000 farmer-producer organisations – a collective of small, marginal and landless farmers, to increase their income and provide better market access. These FPOs are a robust pathway to reach small farmers who work with minimum resources. Strengthening the digital and data access for these FPOs will be the first step to ensuring the solutions are reaching the last mile. Simultaneously, using networks like district-level krishi vigyan kendras (KVK), which train farmers on traditional methods of farming, must also be transformed. We must also build regional AgTech Innovation Hubs that can help translate all available solutions to the local context and ensure a more equitable use.

Phase two must ensure wider adoption of the technological solutions. Precision agriculture, including drones, sensors, AI analytics, must be used at scale across millions of smallholder farms. Here is where the digital literacy of FPOs must be strengthened. Success here positions Indian AgTech companies to export solutions globally, targeting a potential $10 billion market in countries facing similar agricultural challenges.

But we must also tread with caution. As we embrace a more digital way of agriculture, strong data protection mechanisms must be put in place. We must also work on financial innovations to enable the marginalised farmer to use the technology and be protected from climate risks through products such as parametric insurance.

Moment for leadership

By 2047, India can not only accelerate and climate-proof its own agriculture and food systems for its growing population but also set global benchmarks. Countries across the Global South are watching India's agricultural transformation. They represent not just potential markets for Indian AgTech solutions, but partners in building resilient food systems. India must also take cues on policy enablers and ecosystem builders from countries like China, which have been able to pioneer and establish themselves as leaders in the global solar industry or the Electric Vehicles market.

Indian AgTechs are not just tools for our own agriculture transformation but also our moral obligation to the 2 billion smallholder farmers across the Global South. With the right roadmap and robust implementation, India can define the narratives, capture the global markets and set the standards in agriculture and climate adaptation in the world.

The author is managing director, Intellecap