Digital platforms to service input (seeds, nutrition and pest control) needs of farmers and provide them with easy access to markets

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Digital platforms to service input (seeds, nutrition and pest control) needs of farmers and provide them with easy access to markets
Input-side digital platforms
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Input-side digital platforms serving farmers (including those engaged in specialised value chains, like aquaculture or high value produce like exotic fruits and vegetables) by offering agriculture inputs (seeds, nutrition and pest control), mechanisation or productivity-increasing tools (both, on sale or on lease) and enable them to eliminate any delays in production caused by travelling to nearby markets or due to inadequate access to essential inputs (inputs are either not available easily or time involved in procuring them leads to delay in production). Such platform providers also offer advisory services to farmers to resolve the problem of information asymmetries, thereby improving production yield and increasing their income.

Expected Impact

Improvement in farm productivity, farmers' income levels and bolster food security by enabling easy and ubiquitous access to digital markets for quality farm inputs.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
PE and VC deal values in the food and beverage sector stood at USD 881 million, through 83 deals in 2019. (12.22)
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13) Life Below Water (SDG 14) Life on Land (SDG 15)
Sector Sources
  • 4.1 https://www.ibef.org/industry/agriculture-india/infographic 4.2 https://niti.gov.in/sites/default/files/2019-12/SDG-India-Index-2.0_27-Dec.pdf 4.3 https://asia.nikkei.com/Business/Startups/Indian-agritech-startup-targets-10m-users-in-nationwide-expansion#:~:text=Sheth%20said%20AgroStar%27s%20goal%20is,become%20more%20profitable%20and%20prosperous. 4.4 https://www.drishtiias.com/summary-of-important-reports/strategy-for-new-india-at-75 4.5 https://www.thehindubusinessline.com/economy/agri-business/agri-tech-platform-ninjacart-expands-operations-to-delhi-mumbai-pune-strengthens-headcount-by-600/article26600072.ece 4.6 https://foodsecurityindex.eiu.com/Country/Details#India 4.7 https://www.drishtiias.com/to-the-points/paper3/food-security-1 4.8 https://www.ibef.org/economy/union-budget-2020-21 4.9 https://www.hindustantimes.com/india-news/govt-to-announce-changes-in-essential-commodities-act-dismantling-of-apmc-sources/story-TOBYYq5XvLW2fNMz0mUIYL.html#:~:text=Amendments%20in%20the%20essential%20commodities,meeting%20on%20Monday%2C%20sources%20said. 4.10 https://indianexpress.com/article/explained/an-expert-explains-farm-acts-and-federalism-6622769/ 4.11 https://www.wbcsd.org/Overview/News-Insights/WBCSD-insights/Impact-of-COVID-19-on-smallholder-farmers-in-India#:~:text=Prices%20of%20sugar%20rose%20in,places%20due%20to%20over%2Dsupply.&text=However%2C%20the%20COVID%2D19%20induced,marginal%20farmers%20in%20the%20country.
IOA Sources
  • 12.1 https://www.yourarticlelibrary.com/agriculture/7-reasons-for-low-productivity-in-india-agriculture/42317 12.2 https://www.thehindu.com/business/mandis-linked-to-e-platform-see-65-rise-in-count-post-lockdown/article31560507.ece#:~:text=Photo%20Credit%3A%20PTI-,On%20Monday%2C%20177%20more%20joined%20the%20platform%2C%20taking%20the%20total,according%20to%20Agriculture%20Ministry%20data. 12.3 https://medium.com/work-work-work/information-asymmetry-in-indian-agriculture-c07f793543aa 12.4 https://tech.economictimes.indiatimes.com/news/startups/agrostar-raises-27m-funding-led-by-bertelsmann-india/68384826 12.5 https://www.livemint.com/Politics/0ZS5n0x0EsIWhhfwhwxuiM/World-hunger-rises-as-climate-change-conflict-curb-food-acc.html 12.6 https://www.agribusinessglobal.com/agrochemicals/how-agrostar-is-leading-the-way-to-simplify-indias-distribution/ 12.7 https://www.prnewswire.com/news-releases/india-agriculture-market-report-2018-2023-300709483.html#:~:text=The%20agriculture%20industry%20in%20India,12.2%25%20during%202018%2D2023. 12.8 http://news.agropages.com/News/NewsDetail---33696-e.htm#:~:text=India%27s%20agri%2Dinputs%20industry%20comprises,consumption%20at%20US%24%202.77%20billion. 12.9 https://www.ey.com/en_in/start-ups/how-agritech-start-ups-are-changing-the-face-of-indian-agriculture 12.10 https://ideascape.in/blog/a-startup-for-58-of-india/ 12.11 https://www.ibef.org/industry/agriculture-india.aspx 12.12 https://sustainabledevelopment.un.org/content/documents/26279VNR_2020_India_Report.pdf 12.13 https://www.ibef.org/industry/agriculture-presentation 12.14 https://medium.com/ninjacart/welcome-to-ninjacart-b58e64938e62 12.15 https://iasexamportal.com/the-gist/kurukshetra-corporate-investment-in-agriculture 12.16 https://corporate.agrostar.in/blog/ 12.17 https://asci-india.com/about-us.php 12.18 https://uk.practicallaw.thomsonreuters.com/1-604-1046?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1 12.19 https://pib.gov.in/PressReleasePage.aspx?PRID=1537546 12.20 https://www.business-standard.com/budget/article/budget-proposes-11-hike-in-farm-credit-to-rs-15-trillion-for-fy21-120020101225_1.html 12.21 https://www.prsindia.org/policy/discussion-papers/state-agriculture-india 12.22 https://ivca.in/wp-content/uploads/2020/02/IVCA-EY-PE-VC-Agenda-India-Trend-book-2020_compressed.pdf