AgriTech or AgTech solutions are gaining impetus owing to their formidability and the awareness that the world is economically driven is steamrolling this sector at full-force.
Around four-third of India’s employment is supported by agriculture, it is one among the foremost vital economic sectors in conjunction with being our prime supply for sustenance. ‘AgriTech’ a particular class of the ‘technology’ spectrum provides help and toughness to the Agricultural sector. The scientific discipline processes comprehend numerous solutions in each step, starting from the sowing of seeds to the harvest home of crops. The processes comprise of integrated resolutions to boost the potency of agricultural organizations, in conjunction with benefiting marginal farmers.
In recent times, AgriTech or AgTech solutions are gaining impetus owing to their formidability and the awareness that the world is economically driven is steamrolling this sector at full-force. AgriTech has revolutionised the agricultural business stream and therefore, it has caught the eyes of investors, venture capitalists and massive firms and corporations alike.
The ascending curve of investments and lucrative opportunities within the industry does not seem like it would dip anytime soon. According to an AgFunder report, specifically, start-up investments bucked global venture capital markets across all sectors to $4.7 billion in 2019. More than 600 deals were carried out across 940 unique investors. The AgriTech sector has witnessed an increased investment and capital of roughly 370% in the past two decades.
Similar growth cannot be looked forward to for the remainder of 2021, due to the second wave of Coronavirus governing industries across all business streams. However, the chances of investments plunging lower than expected are quite slim.
Overpopulation is an ongoing battle in several countries across the world and the number is only predicted to go up in the next three decades according to Global-Engage.com. The article cites that food production on an overall scale will have to increase from 8.4 tonnes to roughly 13.5 tonnes a year by 2050. The ever increasing demand for food and the inexcusable need for increased sustainability in agricultural practices has made it imperative to embrace smart farming and smart agricultural practices.
The importance of utilizing modern technology like AI, Big data, machine learning, IoT and blockchain is heightened now, more than ever. Modern technology allows farmers to efficiently manage their farms at lowered costs and with an influx of productivity.
Around 60% of farmers in a survey stated that precision farming is a distinguishing trend to look towards for a foundational and structural change in their daily practices. With the risk of climate change looming over us all, it is vital to understand the essential need to direct funds towards projects that solve difficult and predictable problems.
The food produced that is wasted incurs a social, economic, and environmental cost of $2.5 trillion annually as around 25% of produce is wasted. An outdated supply chain results in around 20% of the crops produced in developed countries being left in the field itself, this can be avoided with digital integrations or climate-smart advisory. Socio-conscious investors who care equally about productivity view AgriTech as a hot spot for investment, solving two major concerns at the same time, essentially hitting two birds with one stone.
AgriTech today is an area that is ripe for innovation with limits imposed solely due to constraints in terms of capital and lack of proper knowledge. When investors provide funds to apply modern technology to one of the oldest industries in the world, it could multiply food production to a great extent.
Source: Business World
