In order to attract more entrepreneurs to the ailing agriculture sector, the government is planning to set up a dedicated Agri Entrepreneurial Cell to encourage agri start-ups. "We have now reserved 20 per cent of Rashtriya Krishi Vikas Yojana to set up incubator facilities and to promote entrepreneurs. We need to ensure this is utilised properly," said Ashok Dalwai, CEO, National Rainfed Area Authority (NRAA).
The government is already in talks with business chambers like Federation of Indian Chambers of Commerce & Industry and Confederation of Indian Industry to seek their support and also on hand holding these entrepreneurs and suggesting them the way the funds should be utilised.
This cell would help to increase efficiency of farmers, cut profit-making middlemen and introduce technology to farming. All these initiatives may help in increasing farmer’s income in the country. As of now, India has more than 1,090 agri tech start-ups that are working towards easing out the agricultural processes.
"The last few months we have seen a major surge in such start-ups. Also with the government thrust on increasing farmer’s income, many investors have shown interest in these start-ups. While the incubators will be helping to groom the start-ups, we have also asked industries to chip in funding these start-ups," said a senior official, Ministry of Agriculture, adding priority will be given to agri tech start-ups.
Currently, more than 450 start-ups are in the agri tech sector, which is integrating technology with farming. Most of these agri tech start-ups are growing at 25 per cent year-on-year and the sector has received more than $248 million funding in the first six months of 2019.
Further, start-ups are finding new love with farmer producer organisations (FPOs). So far, there are around 5,000 FPOs in the country that are carrying out business in traditional ways, which give immense scope for the companies to innovate. Recently, agri supply chain start-up Kamatan Farm Tech has raised Rs 30 crore in equity and debt financing.