The Union Budget 2024 has outlined a bold technology-driven move to propel Indian agriculture to a new orbit of efficiency called AgriStack, which will integrate over six crore farmers into a formal land registry system over the next three years
In a bold move to reshape India's agricultural landscape, the government is launching Agri Stack, a new digital public infrastructure (DPI) initiative outlined in the Union Budget 2024-25. Announced by Finance Minister Nirmala Sitharaman, Agri Stack aims to integrate over six crore farmers into a formal land registry system over the next three years, following the success of landmark projects like Aadhar and UPI.
Agri Stack is an open-source digital platform designed to enhance agricultural efficiency and boost farmer incomes by providing comprehensive data access to all stakeholders. This initiative promises to be a game-changer for agritechstartups, which have traditionally struggled with high costs and complex farmer acquisition processes. By simplifying data access, Agri Stack could significantly reduce onboarding costs and accelerate growth for these startups.
The formalisation of farmer data through Agri Stack also presents a valuable opportunity for fintech startups, enabling them to offer loans and insurance based on robust data analytics. This move comes at a critical juncture for India's $24 billion agritech sector, which is grappling with scaling challenges and a decline in investments. Despite its potential, the sector remains underdeveloped, with only 1.5 percent market penetration and no startups achieving unicorn status, according to Ernst & Young. Leading startups like DeHaat, WayCool Foods, and Ninjacart are valued between $650 million and $800 million.
While digitising agriculture presents its own set of challenges, including the high costs of technology and farmers' reluctance to adopt new methods, Agri Stack is poised to address these issues. As of 2022, only 2 percent of Indian farmers used agricultural apps, according to Nasscom. However, the push towards digitalisation through Agri Stack could serve as a pivotal moment, drawing substantial investment and fostering greater adoption among the farming community, offering a brighter future for Indian agriculture.