Growing Opportunities in Indian Agriculture: How B2B Marketplaces are Transforming the Industry

 

The importance of agriculture, which provides a living for the majority of people in India, cannot be understated. Agricultural production has increased, despite the fact that its share of the GDP has decreased to under 20% and that of other sectors has increased more quickly. As a result, we are now self-sufficient and a net exporter of agricultural and related goods, as opposed to being a food beggar after independence.

The second advance estimates for 2019–20 predict that the nation will produce a record 291.95 million metric tonnes of food grains overall. Although this is good news, the Indian Council for Agricultural Research (ICAR) predicts an increase in food grain demand to 345 million tonnes by 2025.

Expanding Opportunities in Indian Agriculture

For farmers, agribusinesses, and investors, there are a number of expanding opportunities in Indian agriculture. The following are some of the main opportunities:

Organic farming: There is an expanding opportunity for farmers to switch to organic production due to the rising demand for organic food and the increased public awareness of the environmental and health benefits of organic farming. Small and marginal farmers are widely spread throughout India, and they can profit from the rising demand for organic products.

Agroforestry: To create more sustainable and diversified farming systems, agroforestry involves combining trees with crops and livestock. India has a significant potential for agroforestry because of its large landmass and variety of agroclimatic conditions, which can improve soil health and provide multiple income streams for farmers.

Horticulture: With rising demand for high-value crops on both the domestic and international markets, horticulture—which includes fruits, vegetables, and spices—is a sector that is expanding in India. With its diverse agro-climatic conditions, India has the potential to become a major horticulture producer, providing significant opportunities for farmers and agribusinesses.

Contract farming: In contract farming, farmers grow crops as part of a deal with a consumer, giving them access to markets, financing, and technology. With increasing demand for quality produce and growing interest from agribusinesses and investors, there is significant potential for contract farming in India.

Digital Agriculture: Utilising technology and data to increase the productivity and efficiency of the agriculture industry is known as digital agriculture. India has a significant potential for digital agriculture, offering opportunities for farmers and agribusinesses to enhance their operations and increase their profitability. This is due to the growing availability of mobile phones and internet connectivity in rural areas.

Overview of Grain Trading

Before reaching the final consumer, such as a food manufacturer, grain may pass through as many as six different middlemen. By cutting out the middlemen, B2B grain marketplaces aim to pass the profit on to the producer, farmers, consumers, and food manufacturers.

Leading agricultural marketplace startups provide more than just a platform for trading grains; they also provide software tools, algorithms for data analysis, and value-added services for the logistics and purchase of fertiliser, seeds, and other farm-related products. All of these tools are designed to increase crop productivity and cultivation, which will increase the farmer's success.

The advantages of B2B marketplaces over traditional methods

Online platforms known as B2B marketplaces link businesses with one another and enable trade between buyers and sellers. B2B marketplaces have a number of benefits over more traditional B2B transaction channels like phone calls, emails, or in-person meetings.

1) Grain logistics are aided by a B2B model

One of the most challenging aspects of the agricultural sector is logistics. Logistics for grains can be particularly challenging because the product is transferred so frequently.

As a result, some grain logistics platforms can be used to match shippers and carriers in the most efficient way.

2) Crops can be sold to buyers directly

By switching to a B2B model, you can communicate with your buyer directly and eliminate a number of handlers. The COVID-19 pandemic is having a similar impact on the food industry as it does on other industries. However, since food is a necessity, technology will likely continue to advance in order to enhance the agricultural supply chain.

Businesses must meet consumer demand for fresher, healthier food, and some B2B marketplaces have developed apps to make this process easier. These marketplaces allow you to buy and sell fresh produce that is used to stock supermarkets, farmers' markets, and dining establishments.

Farmers can create accounts, post auctions, and coordinate projects with clients who require what they have to offer. One of the most important puzzle pieces is locating the ideal distributor. You can better serve particular geographical areas by selecting the right distributor. You can also use it to increase your profit margins and identify high-potential growth areas.

Having established, reliable relationships will also keep your supply chain functioning smoothly. Building and upholding this trust begins with choosing the appropriate distributor.

3) Companies are able to monitor and forecast precipitation thanks to data reporting

The agricultural sector is also benefiting from big data and machine learning. To support your forecast and crop yields, you will need sophisticated data. Make better data your top priority, not gathering more data. Using artificial intelligence (AI)-based precipitation reports to your advantage can help you control how your farm operates all year long.

Effective use of this data can help you spend your money more wisely while providing the most impressive yields and returns on investment (ROI).

4) Your work is optimised by digital precision farming technology, and GPS makes it simpler for people to find you

One of the most popular B2B services in the agricultural sector is precision farming. It enables you to manage your labour forces so that each work shift is as productive as possible. The data you receive is current, making it more useful than static data.

Additionally, good GPS technology equips your employees to work in low-light conditions. Due to the fact that you can track your farming equipment using GPS data in real time, you don't have to be concerned about blind spots.

5) Developers are producing agricultural software as a service (SaaS)

Like any other business, the agricultural sector must streamline and reduce overhead. The emergence of software as a service, or SaaS, has been a major advancement in this sphere.

Over the next few years, the use of SaaS in the agricultural sector is expected to increase by 28%. You can access all of your data and plan through these platforms from any cloud-capable device. You won't have to be concerned about data loss or organizational restrictions.

The overhead cost is low because you subscribe to these software packages rather than purchasing expensive licenses. Agriculture professionals are starting to use farming customer resource management (CRM) platforms. This allows you to communicate in real time whenever a problem arises. No matter how big or small your agricultural business is, maintaining a CRM subscription is priceless.

6) Agriculture-related businesses require more information technology (IT) than ever

Additionally, agricultural businesses now require more IT. It's not always necessary to bring an IT specialist on a service call because there are so many agricultural businesses in rural areas. Agribusinesses can now access remote IT work thanks to B2B information technologies. Cybersecurity concerns must now be taken into consideration by even agricultural businesses. Malware and man in the middle attacks have compromised entire data supply chains.

Since so much of your infrastructure and logistics are dependent on this data, it only makes sense to hire the best protection through a B2B relationship. Additionally, IT experts can maintain your hotspots, enhance encryption, and sync devices.

7) The market for digital goods is expanding

Right now, we're in the midst of a digital transformation. Any kind of digital product can be sold for a high price as long as it offers a lot of value. Information is currency today, and experts in the agricultural industry are winning big with digital products. In recent years, e-book sales have increased enough to create a sector worth close to $9 billion.

Whether you have a new course on irrigation and cultivation methods or a repair manual for farming equipment, these prospects can be lucrative.

The future of the agricultural industry's B2B market

To simplify the buying and selling of agricultural products, the sector is turning more and more to B2B marketplaces. The following are some prospective trends and developments for B2B marketplaces in the agricultural sector:

1) Increased adoption of precision agriculture: B2B marketplaces are likely to include precision agriculture technologies to assist farmers in maximising crop yields, minimising waste, and enhancing productivity.

2) Integration of IoT and blockchain: B2B agricultural marketplaces are anticipated to integrate IoT and blockchain technologies to offer greater supply chain transparency and traceability.

3) Greater emphasis on sustainability: As sustainable agriculture becomes more important, B2B marketplaces are likely to place more of an emphasis on sustainable agricultural practices like organic farming and regenerative agriculture.

4) More data-driven decision-making: To give farmers insights on market trends, weather patterns, and other pertinent data, B2B marketplaces in the agricultural industry will probably rely more on data-driven decision-making.

5) Increased use of mobile technology: B2B agricultural marketplaces are anticipated to make use of mobile technology to improve the convenience and accessibility of buying and selling for farmers, particularly those in rural areas.

Regarding Kisaan Trade

Kisaan Trade is an Indian B2B online marketplace that connects farmers and agricultural traders with buyers across the country. Farmers and traders can list agricultural products like grains, fruits, vegetables, spices, and pulses on the platform, where buyers can browse and buy them at discount prices.

To make trading easier for its users, Kisaan Trade provides a variety of features and services. For instance, the platform offers services for quality control, online payment options, real-time pricing information and alerts, and logistics support. Farmers and traders can manage their listings and transactions while on the go with Kisaan Trade's mobile app, which is available for iOS and Android devices.

Kisaan Trade's overall goal is to give farmers and agricultural traders the tools they need to succeed by giving them a reliable and effective platform to connect with customers and sell their goods at reasonable prices. If you have any questions or need any information, please contact us.