As the agriculture sector stands at a crossroads, scalable innovations like satellite-based sensing, region-specific tools, and inclusive pricing models offer a path toward a more sustainable and tech-enabled agricultural future
The farming industry is one of the significant pillars of the Indian economy, contributing a significant 16 per cent of India’s GDP and engaging more than half of the country’s population. However, to date, there has been a slow uptake of advanced technologies in agriculture. While several agritech start-ups have been launched and well-funded by investors, the connection between these ventures and farmers remains a challenge. One of the main problems that these start-ups have to contend with is that of high costs, which tend to be associated with technology.
There are many tools — including those used in precision farming, machinery such as weather stations, and sensors that can be applied to the soil — that hold the future of increased yields and sustainable farming. However, the cost associated with such technologies might be unaffordable for small farmers, who form the largest percentage of India’s farming community. Devices such as IoT sensors can cost hundreds of dollars per year, meaning that while a slight increase in yield for such farmers is hard to come by, the devices do not offer value for money.
More than 80 per cent of farmers in India are marginal farmers, cultivating landholdings of less than five acres. These marginal lands are often fragmented into multiple smaller plots, allowing farmers to grow different crops on the same holding.
This fragmentation poses a challenge for agritech solutions designed for large-scale farming. However, satellite-based data solutions can bridge this gap by providing precise, farm-specific insights even for farms having an area of only a quarter of an acre (about 10,000 square feet), enabling even smallholder farmers to optimise their crop management and improve productivity.
The policies of the Indian agricultural sector fluctuate, and some crucial aspects like water — which is a basic necessity for agriculture — are controlled by the state governemnt.
While such interventions as subsidies and grants are useful, they have led to a situation where agritech remains a state-subsidised model rather than a market-driven one.
Many new agritechs have come to depend on these Governemnt partnerships for revenue instead of selling directly to farmers, which has impacted the growth and sustainability of most of them in the private market.
Among the challenges that have limited the embrace of agritech is ignorance among farmers.
It is essential to understand that large-scale farmers might invest time and resources to evaluate and consider adopting new technologies, while smallholder farmers are more likely to make decisions by word of mouth or based on regular practices.
This is mainly due to the poor development of facilities and capacity-building to form the basis for adopting innovations in farming technologies.
Cost-Effective Solutions
The first area of intervention for farmer uptake can be increased through improved adoption of technologies that are cheaper to develop. Although IoT-based sensors are costly, satellite remote sensing is feasible.
While IoT sensors can cost several hundred dollars and give localised information, satellite technology offers information for the whole farm area at a considerably lower cost — usually less than 5 per cent of the price of sensors. Satellite remote sensing, combined with artificial intelligence and machine learning, can be used to monitor soil nutrient levels, manage pest and disease risks, and support irrigation water management across large areas of farmland.
These solutions are especially practical and accessible for smallholder farmers. In this way, satellite-based solutions represent a constrained set of technological tools whereby agritech companies can propose complete and high-quality products and services at more competitive prices.
localised Solutions
Given the highly heterogeneous climate of the country and the different farming practices followed across regions, it can be said that a market solution carved in one casting will not fit this agritech market. Start-ups must provide region-specific products.
They can, therefore, apply different ways of ensuring their solution reaches farms in varying regions so that farmers can adopt it.
Pricing Models
Long-term, technology must be accessible to small and marginal farmers and useful even for field crops like wheat —especially in terms of the ultimate cost of the technology delivered to the farm. A scholar cited that the cost of any new technology farmers must consider has to be less than or equal to 10 per cent of the total farming cost. This is crucial for adoption.
Affordability is another value that agritech start-ups should embrace, enabling them to offer their products at a cheaper cost and within reach of many farmers. Other revenue models that can be used include fee-for-service or usage plans in which the farmer pays only for what is used.
Fostering Education
Guaranteeing extensive use of such technology — even if it is cheap— requires more education and support. Agritech companies must incorporate education campaigns as a key means of informing farmers about the benefits of using these products.
This might be achievable through human capital development programmes, farmer organisations or local associations. This paper contends that hands-on training and demonstrations enable farmers to overcome hesitance stemming from a lack of familiarity. Current strategies point to the need to make technology simple and easy to use to minimise the chances of farmers being unable to adopt it on the farm.
Government and Private Sector Collaboration
Although major funding is currently being attracted to agritech start-ups via governemnt grants, the long-term model will require the involvement of both public and private entities.
This implies a need for policies that encourage agritech growth while avoiding excessive dependence on state subsidies. This includes strengthening policy content, creating private-sector incentives, and guaranteeing support for farmers transitioning to better technologies. Scaling efforts via public–private partnerships may help deliver appropriate support to farmers.
Final Thoughts
The Indian agritech industry is at a turning point. Although there is hope in the power of technology to transform agriculture, challenges such as cost, accessibility and uptake remain significant. High-end technologies like IoT sensors and UAVs are often too expensive for small and marginal farmers.
However, affordable and scalable solutions — such as satellite remote sensing, regionalised products, optional pricing structures and farmers’ sensitisation —are available. When combined with agricultural expertise and AI/ML, satellite remote sensing emerges as a practical and inclusive solution, making advanced technology accessible even to small and marginal farmers.
India, being one of the top agricultural producers globally, has a wealth of insights from its diverse farming landscape. These learnings not only improve Indian agriculture but are also leveraged globally to assist small and marginal farmers elsewhere.
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