Nonetheless India is emerging as a burgeoning superpower with loads of natural resources and second largest population across the world, yet it is incapable to properly feed and nourish their citizens. How these different images of India can be related? Probably by right investment plans and support by Indian government.
Challenges Before Investors
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Small Farms are Not Productive
Majority of farms are small in size and does not have right infrastructure and are contributing to extremely low farm yields. This limits the farmers’ investment into their farm’s future to enhance their productivity and cut down the risks factor like seeds, crop insurance, fertilizer, market info etc. Investors find it risky betting their money on these small farms.
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Extremely Poor Infrastructure
More than half of the Indian agriculture spoils are wasted prior to reaching consumers because of poor repository, infrastructure and supply chain integration.
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Politics Influences Investment
Inconsistent government policies and unnecessary intervention has developed a challenging environment for domestic and global investors. These subsidies and investments are usually invested in politics as campaign tools.
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Supply Chain is in Poor Condition
Once food is cultivated, lack of right infrastructure and inefficiencies within the supply chain becomes the reason behind the loss of nearly a third of food produced. Increased investment is the only solution to improve the farmer productivity and financial condition.
Several Companies Are Looking to Solve the Issues
The good news is that for every challenge there are solutions, positive intervention and right investment. There are several agribusiness companies getting agricultural funds in India invested by many venture capital firms with a hope to streamline the agribusiness sector and hopefully the situation will change.
