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Government Initiatives for Supporting Farmers Propelling Indian Farming as a Service Market Growth

Government Initiatives for Supporting Farmers Propelling Indian Farming as a Service Market GrowthIn India, the requirement for food is rapidly growing because of the increasing population. The agricultural sector of India contributed 17.8% to its gross domestic product (GDP) in 2020, and this percentage is likely to grow in the upcoming years.

Due to the booming population, the demand for food items is surging sharply in India. In 2020, the agricultural sector of the country contributed 17.8% revenue to the country’s gross domestic product (GDP) and this share is predicted to grow even more in the forthcoming years. In order to meet the rising demand for food products, the focus on improving the agricultural productivity in the country is increasing rapidly. Some of the major factors driving the expansion of the Indian farming as a service market are the rapid improvements being made in internet connectivity in rural areas and the launch of several initiatives by both private and government companies for improving the efficiency and productivity of the agriculture sector.

The COVID-19 pandemic is supporting the growth of the Indian farming as a service market. This is because of the huge investments being raised by several enterprises such as LeanCrop Technology Solutions Pvt. Ltd. and Clover Ventures Private Limited. Furthermore, the FaaS technology provides solutions that assist in the conversion of fixed costs into variable costs, thereby leading to less-expensive farming processes. These benefits are facilitating the expansion of the market, as like other sectors, the agriculture sector also witnessed huge financial losses during the pandemic.

Farm Management Solutions Holding Largest Revenue Share

The Indian farming as a service market is categorized into farm management services, solutions, and market access solutions, depending on type. Out of these, the farm management solutions category dominated the market in 2020. This is ascribed to the huge investments made by public and private companies and the existence of several market players such as Mahindra and Mahindra Ltd., Deere & Company, and ITC Ltd. Additionally, new organizations are beginning to penetrate the industry, which is resulting in the development of new services and products, thereby pushing up the demand for farm management solutions.

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Entry of Startups and MSMEs Steering Farming as a Service Market Expansion

Recently, several startups and micro, small, and medium enterprises (MSMEs) have penetrated the Indian farming as a service market, and they are providing a plethora of market access and farm management solutions. For instance,

 In February 2021, Mahindra & Mahindra Ltd. set up Krish e-centers at five locations in Karnataka, that provide several solutions and services to farmers such as advanced agronomy, rental, and farm equipment advice. Apart from being set up in Karnataka, these e-centers have also been established in all major agricultural states such as Bihar, Maharashtra, Madhya Pradesh, and Uttar Pradesh.

Browse report with detailed COVID-19 impact analysis on India FaaS Market Analysis and Growth Forecast to 2030

In June 2020, KhetiBuddy Agritech Private Limited developed a free mobile app, called Kheti Buddy Farm, for farmers, which assists them in sowing and harvesting and managing fields. In addition to this, this app enables the personalization of the schedule for each crop, on the basis of soil information, inventory data, and weather.

Mahindra & Mahindra Ltd., ITC Ltd., Tractors and Farm Equipment Limited (TAFE) Ltd., Utkal Tubers India Pvt. Ltd., Cropin Technology Solutions Pvt. Ltd., Intello Labs Pvt. Ltd., Ulink Agritech Pvt. Ltd., KhetiBuddy Agritech Private Limited, Deere & Company, RML Information Services Pvt. Ltd., and Em3 Agriservices Pvt. Ltd. are some of the major Indian farming as a service market players.

Market Size Breakdown by Segments

By Type

  • Farm Management Solutions
  • Services
    • Equipment rental
    • Labor service
    • Utility service
  • Market Access Solutions
    • Supplier to farmer
    • Farmer to end market

By Model

  • Subscription
  • Pay-Per-Use

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