Agri Industry Outlook 2021

Factors providing impetus for the seed industry

  • Increasing SRR and Hybridization rates to drive growth of the industry
  • Increased government initiatives to boost R&D in the industry will help in addressing emerging challenges of climate change and stagnant yields
  • Broad based breeding programs with appropriate access to genetic resources aligned with changing biotic and abiotic stress, market and consumer requirements to define the industry research ecosystem
  • Clear policy on modern breeding techniques like Gene editing may catalyze increased investments in crop research
  • New era value added products including novel chemical and biological treatments, nano material and Biological coated Seeds, Plant growth promoting Rhizo microbe-Inoculants, seed insurance schemes to bring in growth for the sector
  • Seed traceability systems coupled with data analytics for quality control will be a key driver for the industry advancement
  • Synchronized and systematic farmer sensitization and demonstration of newer products and its varieties will help in delivering desired genetic gains
  • Promising government initiatives like eNAM, increased MSPs, PM Kisan Samman Nidhi (distribution of direct benefit transfer) to enhance farmer returns and encourage adoption of improved quality seeds

Remodeling the agro chemical industry

  • Agrochemical sector to witness sharp growth: Increased area under cultivation and increased MSP for key crops to witness enhanced consumption of agrochemicals
  • Price moderation of key imported raw materials (with improving supplies from China) and enhanced revenue will increase operating profitability of most agrochemical companies
  • Government initiatives like production-linked incentive (PLI) to promote domestic manufacturing of agrochemicals. Further initiatives to encourage R&D for boosting domestic manufacturing, tax exemptions and land allocation to drive additional manufacturing capabilities of domestic companies
  • Portfolio diversification with environment friendly products like biofertilizers, biostimulants, biopesticides & organic products
  • To drive efficiency and growth by transitioning to digital platforms (farmer apps, dealer management systems), shifting to direct selling platforms (organized retail, e- commerce) from traditional channels as well as monetizing farming services (spraying of agro chemicals, real time advisory services).

The Agritech way– digitizing the agri value chain

  • Strong policy support, smarter innovations fueled by greater private capital lending for the sector and an unprecedented adoption of technology to drive growth for the sector
  • Supply chain technology & output market linkages is expected to be the segment with highest market potential.
  • High growth expected among startups providing precision agriculture and farm management services. Intelligent prediction and active monitoring offering potential for increased yield is expected to drive the growth
  • Integration of value chain across segments by key players are expected to boost growth and maximize margins
  • FMCG players expected to increase efficiency by venturing into the sector through vertical integration of their supply chain by adoption of technological solutions
  • Many Strategic partnerships with Corporates & FPOs are expected to act as catalyst and help in scaling up the development
  • Data driven & value chain financing will have major share in the transformation of resilient Agriculture ecosystem

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