How innovative mobile apps benefit farmers in India
India’s agriculture sector holds immense significance, employing most of its workforce. However, agricultural yields fall short of global standards by approximately 35-50%. To address this gap, numerous AgTech startups, such as Agrify Fresh and Bharat Krushi Seva (BKS), have emerged, aiming to leverage digital solutions to boost productivity. To explore the latest sector trends and gain a deeper understanding of India’s agricultural landscape, Dominik Candreia and Gerald Weigl traveled within the state of Maharashtra. They talked with farmers, traders, entrepreneurs, and fellow investors. In this photo story, Dominik, elea’s Head of IT, shares his impressions and the insights he gained.
"Witnessing the transformative impact of mobile applications on food production was truly impressive. I strongly believe that a digital revolution in the Indian agriculture sector has only just begun," states Dominik.
Advisory can drive change through focus on the right things:
Providing sustainable and impactful services requires much more than just an app:
Impact creation is tangible and happens at scale:
Sector insights
- Advisory is an important enabler: Providing extensive advisory data in an app, such as weather conditions, satellite imagery, and soil composition, in a format accessible even to farmers with limited or no literacy can boost yields by up to 50%. Additionally, it can lead to a reduction in the use of fertilizer and plant protection agents by as much as 30%.
- Service integration is key: To ensure the sustainable adoption of the advisory app by farmers, it's crucial to integrate additional services and offerings seamlessly. For example, providing a simple one-click option for ordering fertilizers, crop protection agents, and seeds, combined with expedited delivery, removes the need for time-consuming trips to agricultural markets. Equally important is offering personalized instructions based on collected data, ensuring farmers receive accurate guidance on how to apply these products effectively.
- Platform can serve as a door to markets: In addition, many new AgTech startups integrate market information and access. Data like price trends and harvest projections give farmers the information required to optimize their income, e.g., by timing harvest. Online marketplaces allow them to streamline the sale of goods and to compare potential buyers and logistic options.
Conclusions
- At elea, we are convinced that digital agricultural technology is an important change lever. We nevertheless see adoption as the key challenge: Models that sustainably unlock use and impact creation by smallholder farmers are our focus. Monetization can be difficult in this segment and we therefore mostly look at impact venture that integrate hands-on services in their model.
- Regional differences can significantly impact technology adoption, even within India. While Maharashtra boasts high smartphone adoption, other states are still catching up. For instance, our portfolio venture, Oorja, provides solar irrigation services in northern India, where advisory and monetization strategies must account for a cash-based economy and limited smartphone access. Technology is important but needs to be adapted to local conditions for effective adoption.
- Given the increased penetration of smartphones and data services to rural areas around the globe, we will see more and more impact ventures reaching smallholder farmers through digital technology. Insights from trips like the recent one to India significantly shape our perception, outlook, and activity in the sector.
Authors and photographers: Dominik Candreia, Head of IT at elea & Gerald Weigl, Executive Director at elea