More than 50% of India’s population depends on agriculture for survival.

India’s agriculture industry has long been the backbone of the country’s economy.

In recent years, this sector has been evolving with a fresh wave of innovation driven by agri-startups.

These startups are bringing new technology and sustainable solutions to traditional farming methods, helping farmers improve yields, reduce waste, and address pressing challenges like climate change and resource scarcity.

In fact, before 2015, the number of agri-startups were less than 50; in the last 9 years, the number is boosted to over 7,000! (source)

But, while the potential is huge, these startups often face challenges like limited funding, lack of access to advanced technology, and complex market dynamics.

Recognizing the crucial role of agriculture in the economy and the need for innovation in this sector, the Indian government has launched various schemes and policies to boost the growth of agri-tech startups.

The aim is to modernize agriculture, increase rural incomes, and enhance India’s self-sufficiency in food production.

Key Takeaways

1. India’s agri-startup ecosystem is booming, with over 7,000 startups focused on modernizing agriculture.

2. Tech solutions like AI, climate-smart farming, and digital tools are helping farmers improve productivity.

3. Government schemes provide crucial support to agri-startups through funding, mentorship, and resources.

4. Agri-tech innovation is essential to boost India’s food security, rural incomes, and sustainable growth.

Let’s start-up!

Overview of the Agri-Startup Landscape in India:

As the population grows and demand for food rises, there’s an urgent need to make farming more efficient, productive, and sustainable.

Agri-startups in India are working on a wide array of solutions - from AI-powered farming to climate-smart agriculture, from efficient water management tools to supply chain transparency.

Here are some notable trends shaping the agri-tech sector:

• Digitization:
  Mobile apps and platforms are helping farmers access information on weather forecasts, crop prices, and best practices for better yields. These tools have made information accessible, especially to small farmers in rural areas.

• AI-Based Solutions:
  Startups are using AI to provide data-driven insights on crop health, pest detection, and soil conditions. These innovations help farmers make informed decisions, ultimately increasing productivity.

• Climate-Smart Agriculture:
  With unpredictable weather patterns due to climate change, startups are developing solutions that make farming resilient. This includes tools for precision irrigation, sustainable fertilizer use, and climate-resilient seeds.

• Supply Chain Improvements:
  Traditional supply chains often lead to high wastage due to inefficiencies. Agri-startups are focusing on building efficient, tech-enabled supply chains that reduce spoilage, improve logistics, and get fair prices for farmers.

Agriculture is deeply ingrained in India’s socio-economic fabric and there is a vast scope for innovation to improve livelihoods and food security.

Major Government Schemes to Support Agri-Startups in India:

Rashtriya Krishi Vikas Yojana (RKVY) – Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RAFTAAR)

Initiated in 2007, the Rashtriya Krishi Vikas Yojana (RKVY) has a specific focus on advancing agricultural businesses, and its RAFTAAR component is especially designed to foster entrepreneurship in the agri-sector.

Under RAFTAAR, the government supports innovation by providing funds and incubation services to early-stage startups working in agriculture and allied areas.

RAFTAAR’s Agri-Business Incubation (ABI) Component is crucial for startups.

It will aid startups in their ideation or expansion stage in their innovations, including tech solutions “that could enhance productivity…farmers’ income, rural economy, and wealth.”

Find their official website here.

Pradhan Mantri Kisan Sampada Yojana (PMKSY)

This scheme benefits startups focused on food preservation and reducing post-harvest losses.

PMKSY supports building food processing units, cold storage chains, and modernizing existing infrastructure.

Under PMKSY, eligible startups can apply for subsidies on capital investments for setting up or modernizing food processing facilities.

The scheme primarily wants to enhance food preservation, farmers' income, and reduce waste.

Find their official website here.

Agri Infrastructure Fund (AIF)

The Agri Infrastructure Fund (AIF) is a financing facility launched to build and upgrade post-harvest infrastructure, such as cold storage units, warehousing, and processing facilities.

Startups that focus on building sustainable storage, transportation, and processing solutions can apply for loans at a subsidized interest rate.

AIF allows startups to set up or upgrade their infrastructure with loans up to ₹2 crore, making it easier to handle perishable produce and reduce post-harvest losses.

Find their official website here.

The MahaAgritech Policy:

Maharashtra has been a pioneer in supporting agri-startups through its MahaAgritech Policy, uses advanced technology to improve farming in the state.

Through satellite imagery, drones, and mobile data, it provides real-time crop monitoring and helps with initiatives like crop insurance and drought management.

The project’s main goals include mapping crops, tracking crop growth, and estimating yields using AI.

This data-driven approach supports both farmers and planners in making better decisions for crop health and productivity.

Maharashtra’s policy encourages innovations in areas like precision farming, drip irrigation, and farm machinery that cater to the state’s diverse agricultural needs.

Through this program, the government offers incentives such as tax benefits, mentorship, and market access.

Find their official website here.

Andhra Pradesh and Telangana: Promoting Digital and AI-Based Agri-Solutions

Andhra Pradesh and Telangana have developed progressive policies to encourage digital and AI-driven agricultural solutions to make farming more resilient, especially in the face of climate change.

These policies emphasize the use of artificial intelligence, machine learning, and data analytics to solve common issues faced by farmers, like irrigation management, crop health monitoring, and market access.

For instance, “Saagu Baagu” was a project launched by the Telangana state government which assisted 7,000 chilli farmers with AI tools to overcome traditional challenges. Read more about it here.

Agri-startups can access funding, technological resources, and partnerships to drive these solutions.

Conclusion:

Government schemes have been fundamental in empowering agri-startups to innovate, scale, and bring positive change to the agricultural sector.

With access to funding, infrastructure, and market opportunities, you can also help strengthen India’s agricultural backbone and contribute to rural development.

Participating in available training programs, collaborating with incubators, and seeking government support can open up numerous possibilities to grow and make a meaningful impact in India’s agri-tech landscape.

Next week, we’ll cover trends in the agri-tech sector where you might find a problem you can solve!

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