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Automation in Indian Agritech Compared to US
Automation in Indian Agritech Compared to US

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Automation In Indian Agribusinesses: Catching Up With The World

When it comes to Automation and use of AI, the US has always been at the forefront of all the action, including Agtech. There are two primary factors behind this agtech boom in the US: low availability of labor and high cost of labor. Apart from these cost pressures, factors like the consumer asking for cleaner food has further changed the way agribusinesses operate.

For instance, in the US, strawberry harvesting robots are now identifying and evaluating if a fruit is ripe enough to be picked. AI-powered drones are being put to work to get actionable insights that yield better crops. AI software is used to collate data from autonomous robots and convert it into crop care instructions.

Agritech in India

The idea that Indian farmers and the entire agribusiness supply chain can use automation only seems wildly futuristic. According to a McKinsey report agriculture has ‘a 57% potential for automation;’ and, including in India. Rather, the report specifies that 62% of highly automatable labor resides in India and China.

So far, Indian labor comes cheap and in abundance, giving rise to the mistaken belief that machines and automation don’t fit here. But emerging numbers tell a different story. In 2005, the agricultural workforce was 263 million strong. In 2012, the numbers dropped to 228 million. By 2019-20, 23 million more were expected to leave.

It proves labor is becoming more expensive, and in the imminent future, it will cross over to the exorbitant zone. It’s not just the shortage of workers; increased compliance, PF/ESI and other such statutory dues are causing the total outflow from business to labor to shoot up.

The benefits of automation

Automation reduces the cost to business by optimizing quality processes and offering scalability. Think of a repetitious task like manually assessing fruits or vegetables before packing. The process is subjective, error-prone, and it cuts into profit. When a business needs to scale and cross, say 10 tons a day, hiring more people for the job is not a viable option.

Automation is the obvious answer because it can assess more units in less time, improving productivity. Add in the objectivity of AI and there are lower error incidents, standardizing quality. Combined, they positively impact profitability. Explore how automation helps agritech on our website.


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