During 2017, agricultural startups were predicted to grow 10x within the next 5 years. This survey report made strong impact on business sector. Startups jumped into the agri sector and started creating agri companies. In India, 50% of the population is dependent only on agriculture, and it contributes 18% of the overall Indian economy.
Agriculture is one of the important sectors and Indians are emotionally attached to it. It has significant problems as many farmers have small land holdings, making it difficult to cultivate crops which are profitable or in large quantity. Many farmers take loans and still can't repay them back. The debt keeps on increasing, which makes their life horrible to survive and even a few suicide cases are reported. The 3rd major problem is that most of the farmers still use traditional methods with old equipment. This never initiated economic growth rather than stagnant economic survival. Forget using modern equipment, it is hard to even think of using modern tools for marginalised farmers.
By identifying the major problem to make things effective. The startup founders initiated various unique ideas to reshape the agriculture sector. The startups eventually promised to give a high income for farmers along with new innovative methods for better yield and growth. The supply of crops would be without any cuts from the middle man, benefitting directly to the farmers. The idea had great influence and support, even the government enacted new farm laws making them even more effective.
The new laws backfired on the government. Even after several talks, the farmers did not agree. Eventually, massive protests happened in Delhi along with violence across many parts of India. Finally, the government had to take back the laws. This move made the startups fail. Eventually, many startups tried new innovative and tech tools to introduce modern methods. Unfortunately, farmers did not adopt modern farming, as it costed more and it couldn't bring revolution in the agriculture sector.
It has made agri startups struggle and expectations have reduced compared to before. Farmers have adopted banking systems and few modern techniques but only by few rich and elite farmers. It has a high scope of wealth creation and economic growth, due to rigidity and lack of money the sector couldn't grow as expected. It became difficult to expand into a better sector like other. In many countries, only 10% of people produce but have more GDP and economic growth, but in India it is exactly the opposite. Indians has a strategic and geographical advantage in producing the best quality agriculture. No country has such climatic and environmental conditions along with vast amounts of different crops. Adoption of modern methods would enhance overall growth in India, making firm changes in the agriculture sector.
