Entrepreneurs Ignoring a vital sector of economy having a huge potential

Whenever we think about some of the great startups, firms like Flipkart, Zomato, question Unacademy, Byju, Nykaa, Instamojo, Paytm, Delhivery, Ola, etc comes to our mind. By analyzing all these successful startups, the one thing that I can conclude is that most of the startups nowadays are focussed on providing consumer goods and services to its customers with convenience over the use of the Internet and digital means. Further, most of the youngsters who wants to become an entrepreneur are also thinking upon these lines only. With this, the question that comes to my mind is " Are entrepreneurs ignoring the Agricultural sector? "

We have noticed tremendous growth in all the other sectors like technology, Transportation, Travel & tourism, personal services, etc over the years, expect in the Agricultural sector. We have to understand that agriculture is the foundation of everything and there cannot be any trade or commerce without this fundamental element and hence needs more consideration.

"Agricultural was the first occupation of man, and as it embraces the whole earth, it is the foundation of all other Industries"
- Edward W Stewart

Talking about India, the Agricultural sector contributes 18℅ of the GDP and provides a living to more than 50℅ of the total population of India. The agricultural sector performs a pivotal role in the growth and development of the Indian economy. It fulfills the food and nutrition necessities of 1.3 billion Indians as well as creates employment opportunities for the majority of the population. As compared to other prominent economies of the world, our agricultural sector is extremely underdeveloped and weak. Also, in these recent years, our farmers have started facing many problems due to climate change which is seriously affecting their productivity.

Over the recent past, there has been a huge incline in the start-up economy. However, a very small percent of start-ups are focused on the agricultural sector.

Clear evidence of growth can be seen in increased investor activity in the Agritech start-up space.  2018 saw a disclosed investment of approximately $65 million in Indian agriculture, which is a 21per cent rise from the previous year. While this indicates progression, the sector still struggles behind in certain areas such as storage and supply chain management. With this increasing demand, there is a need for agri-entrepreneurs to employ innovative models and solve the problems in this sector such as dissemination of information, farm management, capital availability, farm mechanization, improved cultivars, environment-friendly pesticides and fertilizers, and agricultural supply chain. There are various segments lacking development, which open up opportunities for entrepreneurs:

Cultivation: Traditional techniques are still used by farmers today, driven by experiences, which are not practical today. With the development and integration of new equipment, practices & types of seeds, these tasks can be handled with much more efficiency. The available data could be utilized and worked on to benefit cultivation across the board.

Services: The lack of proper tools and machines can lead to a lot more damage than anticipated, but it may not be affordable by many farmers. This can be improved by agro-dealers who can offer rental services of farm machinery. Knowledge of machinery and its proper utilization is another invaluable service that should be provided to farmers.

Post-Harvest:  After harvesting of crops, processing, cleaning and packaging must be conducted before the crop becomes fit for human consumption. This is a vital step that cannot be done without the right tools. An instance of this can be seen with Cassava; once harvested, with the help of agro-processors, it can be processed into garri, cassava flour and animal feed. The profits are greatly amplified by this post-harvest processing.

Infrastructure: The quality of production is enhanced with improved transport facilities. It helps to develop a market for agricultural produce and facilitates interaction among geographical regions. Over 35% of produce is often damaged and rendered wasteful due to a lack of proper storage and transportation. Therefore, proper stacking and transportation are necessary.

Research and Development: With the increasing demand and advancement in technology, there is a constant need for the development of new methods and seeds in the agricultural industry. This can only be achieved through research and development. Farmers can access these studies to overcome problems like seed problems, crop sustainability, pests and diseases, etc. Research can also ensure the development of quality and environment-friendly agrochemicals.

Every stage in the value chain is important and dependent on one another to perform properly and every stage is profitable. With the recent challenges and opportunities prevalent in our country, entrepreneurship can deliver innovative solutions to solve some of the critical issues in the agricultural sector.

To read about 16 young Entrepreneurs revolutionizing food and farming, follow this link:
https://foodtank.com/news/2018/01/young-food-entrepreneurs/