The emerging agri-tech start-up ecosystem, which is on course to attract a billion-dollar investment this year, sees no impact of the repeal of the farm laws.
The agri-tech start-ups, which are seen catalysing the Indian farm landscape driving adoption of newer technologies besides enhancing market linkages to the farmers, have caught the interest of overseas investors who are pumping in more money into the ecosystem.
“Honestly, the farm laws were never implemented, and most agri-tech start-ups existed long before they were ever mooted, so I see very little impact,” said Marh Kahn, Managing Partner at Omnivore, a venture capital firm that has been investing in Indian agri-tech for over a decade now. “I don’t think the investors were banking on these immediately frozen reforms, so I’m not worried,” Kahn added.
Hemendra Mathur, an investor, said the Indian agri-tech won’t suffer due to the repeal of the laws, but will continue to grow adding value to the farmers.
“Agri-tech started happening in India before the farm laws were put in place and there are already demonstration of the unit economics in areas like market linkages, farm-to-fork and direct-to-farm, crop advisory is well established now. I don’t think it would impact in any adverse way. Had the farm laws been implemented, it would have probably facilitated a faster growth,” Mathur said.
Enough room for growth
Considering the fact that agri-tech has touched only 10-15 per cent of the Indian farmers, there’s enough head room for growth, Mathur said. Investments in the sector, so far this year, have been around ₹700 crore and may get closer to the billion-dollar mark by the year-end, Mathur said adding the quality of the entrepreneurs was the key reason for attracting such investments. .
Amith Agarwal, Co-founder &CEO AgriBazaar, said the PM's announcement will help bridge the divide between the farmers and the government. “I am sure both will come together to discuss the challenges facing Indian agriculture in a win win manner," he said.
Sateesh Nukala, CEO, BigHaat, which is into contract farming and stockholding, sees no impact. However, in general it is disappointing to see such progressive farm laws being repealed due to political pressure, he said.