New farm laws, digital transformation make India’s agri sector ‘ripe for disruption’: Report

The new reforms introduced by the government will also lead to efficient supply chains citing the Essential Commodities Act (ECA) law brought by the government, according to a report by Bain & Company.

Indian agricultural sector will see growth of $30 billion-$35 billion market in the agritech industry by 2025 owing to regulatory changes as well as technological changes in the backdrop of the Covid-19 pandemic. E-sales of produce, digitally powered logistics as well as use of advanced technology in farming will act as key segments leading to this growth, according to a report by Bain & Company titled, ‘Indian Agriculture: Ripe for disruption’.

Digital engagement in farming through online communities and marketplaces, which is even driving e-commerce, will help farmers take a firm step towards the future, a report by Bain & Company said, (HT photos)

The report authored by Parijat Jain, Prashant Sarin and Shalabh Singawne highlighted that the three new laws introduced by the government in 2020 will encourage the farmers to sell their produce to corporates without any APMC tax, will allow movement of food items from production to consumption centres freely and allow private investment in storage, thus bringing a change in the sector. “When the above three reforms come into operation, there will be a host of new business opportunities,” the report said.

The report also pointed out that ‘Digital Disruptions’ will play a large role in building a robust agritech sector. It said that digital engagement in farming through online communities and marketplaces, which is even driving e-commerce, will help farmers take a firm step towards the future.

“Insurance, credit rating, and loans are contributing to increased funding for this sector. In farming activities, weather prediction and smart crop management are leading to higher output while sensors and the Internet of Things are enabling better tracking and visibility of farming activities. Direct sourcing, demand forecasting, and inventory management are fuelling agricultural produce sales. Digital engagement is promoting the ‘uberisation’ of services, creating online communities and marketplaces and even driving e-commerce,” the report said.

It said that the new reforms introduced by the government will also lead to efficient supply chains citing the Essential Commodities Act (ECA) law brought by the government. It also said that the technology, the regulatory changes and new methods of farming will help farmers lift themselves out of poverty and become wealth creators.

The report also said that a digital marketplace, supply chain management and smart

services across the agricultural value chain should act as the bedrock for developing a robust agritech platform. It said the companies in the agriculture sector may digitally transform their internal business processes in order to adapt to regulatory as well as technological changes. The report said that agriculture remains intrinsic to India’s growth and said that Indian agriculture needs to go through from an environment, sustainability and climate change point of view.