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India’s agriculture technology can grow to $24.1 billion in 5 years: Ernst & Young Report

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India’s-agriculture-technology-can-grow-to-$24According to a report by Ernst & Young ,India’s agriculture technology has the potential to grow at $24.1 billion in 5 years.  The report also stated that with a turnover of $204 million, India’s agri-tech sector is at under 1% of its market potential.

Key Points:

i.Major gains will be made by companies addressing supply chain and financial service solutions, driven by availability of affordable high-speed internet and maturing of India’s digital content ecosystem. 

ii.The report has forecasted consolidation in agri-tech space with startups expanding horizontally to service the end-to-end needs of farmers within the next few years.

iii.According to the report, there are 500 agritech startups in the country, out of which 57 are servicing the five high categories and have raised a combined total of $532 million till April 2020.

Categories:

i.According to EY, five key categories are expected to control the lion’s share of the agritech sector’s turnover which are Tech enabled supply chain, output market linkages, financial services, agritech market for supplying farm inputs and market for quality management and traceability. 

ii.The market for tech enabled supply chain and output market linkages would be the largest segment and would be worth around $12 billion by 2025. 

The second largest segment would be financial services, with market potential of $4.1 billion in next five years (2020-25).

iii.The Agritech market for supplying farm inputs will be as big as $1.7 billion by 2025, the market for precision agriculture and farm management will grow to $3.4 billion, and the market for quality management and traceability would be worth $3 billion. 

iv.Bulk of money will be pumped into startups building agri supply chains and market linkages. 

v.Ninjacart, Waycool and Jumbotail have raised $252 million in funding.

Recent Related News:

i.The Ministry of Agriculture announced that the e-NAM reached target 1000 mandis across the nation in 18 states and 3 union territories(UTs) with 38 new mandis integrated with the e-NAM platform of electronic agriculture trading portal.

ii.The Union Cabinet approved the Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, for creating ‘One India, One Agriculture Market’ where farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce.

About Ministry of Agriculture & Farmers Welfare
Union Minister – Narendra Singh Tomar
Minister of State (MoS) – Parshottam Khodabhai Rupala, Kailash Choudhary