☘ AgriTech Startups: Solution to Farmers' Troubles?
Farmers in our country earn little more than the minimum wage. But many startups are trying to change this. Here's how.
Every time we order from Zomato, we end up paying Rs. 385 on average. But have you wondered how much the people who put that food on your plate earn?
Farmers in India earn an average of Rs. 335/day (Rs. 1,22,616/year).
And while this is way above our minimum wage (Rs. 176/day), it is still a pitiful amount.
In comparison, farmers in the US earn $164,362/year on average. (Roughly Rs. 1.24 crores)!
What's behind this disparity?
Farm sizes.
67% of Indian farmers own less than one hectare of land. So, if these farmers were growing rice, they would see a produce of around 2,000-2,500 kgs only.
So, what's the solution?
Solving Farmers' Problems
The one obvious solution would be to increase the farm yield, that is the quantum volume of crops produced from the land. India's farm yield is much lower than that of other countries.
But that is not really possible with these small farms. Plus, an overall increased yield could increase supply and decrease prices.
So, what to do?
Thankfully, where our brains find a dead end, a startup finds a solution. And in this case, several startups have found multiple solutions.
Solution 1: New Revenue Stream
One way to increase farmers' income could be to supplement income generated from crops with other income.
And Chennai-based AgriTech startup Aqgromalin is trying to do exactly that.
Since income from crops is not enough for farmers, Aqgromalin is trying to supplement their income by adding other verticals such as animal husbandry and aquaculture.
Basically, why just grow crops. Also raise animals like chickens, ducks, goats, fish and crabs.
This will also protect the farmers from droughts and other disasters that could spoil their crops.
The startup is helping farmers set up micro-farms with minimum investment that can give them returns in just 6-8 months. The company also provides farmers with the training required to deal with these animals.
And that's not all. It promises to buy back the animal products from the farmers unless they can get a better rate from the market.
Solution 2: Multi-Crop Revenue
Farmers often depend on just one crop. Their farms are usually too small to accommodate another crop. So, if that one crop goes bad, they're left helpless.
Another startup, Kheyti, is trying to solve this problem.
It is helping farmers grow other vegetables on their farms by providing them micro greenhouses that don't take up much space. These greenhouse plants also need less water and less fertiliser, so farmers don't have to spend as much on the newer crops. As for the cost, farmers can start with an investment of just Rs. 80,000.
Solution 3: Farm Version Freelancing
If the farmers don't want to take up the hassle of adding these new features to their farm, they can consider working part-time on other people's farms. A startup called Farmizen allows common people like you and me to rent farmland. Usually, these farms are owned by farmers themselves. But more farmers can be brought in to grow organic fruits and vegetables of renters' choice, which are then sent to them. Meanwhile, the farmers get paid for their work.
But if farmers do not have time, then they can opt for Agro Tourism (a concept you have seen on Shark Tank). Yes, this is a growing sector that has helped 600 farmers earn over Rs. 58 crores. Farmers just have to host tourists for a day or two, to give them a glimpse of the farm life.
So, you see, several startups are trying to make a difference in farmers' lives. Many more are trying to solve their supply chain issues, or working on providing farmers with easy credit.
But do you think startups are the key to solving farmers' problems? Or more needs to be done by the government to solve their problems?
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