How Seed Companies Can Reach More Farmers Through Agritech Startups
Valued at Rs 15,000 crore, India has the world’s fifth largest seed market, yet organised seed providers meet less than 40% of the national demand. This is because 60% of Indian farmers are marginal farmers, who according to studies prefer cheap, unbranded seeds that claim to be high yield variety (HYV). The government estimates 400 to 500 private seed companies operate in India and less than 25% of the seed is supplied by the top 10 organised firms.
Seed companies in India also face operational hurdles like unreliable sales leads generation mechanism, poor returns on product marketing campaigns, and lack of comprehensive market intelligence.
How do seed companies improve their reach and realise the true market potential of the sector?
They can start by taking advantage of the innovations on offer from agritech startups which are developing solutions to improve the agriculture supply chain in India.
Image Processing
Agtech startups have been heavily investing in the research and development of image processing using machine learning. This technology has a wide range of applications for seed providers from sorting to satellite/drone monitored validation of HYV seeds during crop cutting experiments using government-approved yield assessment e-tools.
Information Services
To overcome the challenge of unreliable marketing and low converting sales leads, seed providers can engage agritech startups with ICT-based interactive voice response systems (IVRS). The technology can generate reliable leads based on demand raised directly by farmers during the IVRS calls. This platform can also be used by seed companies to directly market their products to farmers. Offering agro-advisory as a value-added service for purchasing their product, seed companies can create brand differentiation among buyers (farmers). Seed providers can also directly get customer feedback on their products or operations which can help optimise business functions.
Data Analytics
Agritech startups have also invested in data analytics as agriculture in India is on such a massive scale. This cleaned data has several applications for seed companies, who can chart their sales and marketing strategy in advance, get market intelligence on the area-wise performance of products, and the potential of a virgin territories.
Software as a Service
Seed companies can also engage agritech startups to develop softwares that improve business functions. Machine-learning SaaS can optimise business efficiencies like stock management, storage and distribution of seeds to reduce waste, and planning of logistics.
Technology Consultants
Engaging agtech startups as technology consultants will help seed companies get expertise and opinion on non-business functions like technology.
Seed companies should take advantage of the buzz around agritech and engage young startups whose innovations are set to disrupt agriculture in India.
