The agricultural sector in India is at a turning point. When India gained its independence from Britain 75 years ago, agriculture dominated the economy and accounted for more than 50% of its GDP. India continues to be one of the largest and most diverse food producers in the world, and agriculture—which accounts for more than 20% of India's income—remains a key sector of the country's economy.

However, serious issues prevent the country from reaching its full potential. If the problem could be resolved, a thriving agriculture sector would benefit the economy and greatly enhance farmer livelihoods and income. With a 50% increase from its contribution in 2020, agriculture could contribute about $600 billion to India's GDP by 2030. To get there, though, India must boost the sector's productivity and growth. Let us discuss the potential of agriculture B2B trade portals for new startups.

Indian agriculture has already benefited from Ag Tech

The number of agtech start-ups in India increased from less than 50 in 2013 to more than 1,000 by 2020, thanks to growing farmer awareness, increased internet access in rural areas, and the need for increased efficiency in the agricultural industry. 3 Additionally, the regulatory environment in India is gradually changing to support the expansion of digital technologies in agriculture.

Agtech in India is still growing, with innovations coming from both start-ups, or "agri fintechs," and major technology firms. Core companies in the value chain are using digital technologies like "super apps" to innovate and recognise the potential of agriculture B2B trade portals for new startups.

Suppliers are evolving into buyers, and financial services are being added by advisers

1) Agrochemical, fertiliser, and seed suppliers are utilising technology to develop direct-to-farmer sales channels that eschew middlemen and retailers. For instance, through its digital platform, nurture.farm, UPL (traditionally a core player in agrochemicals) offers mechanization services and agrochemicals to farmers. Additionally, the business has grown to offer market, advisory, and financing services.

2) Businesses, including banks and nonbanks, that specialize in lending money through farm and rural loans are utilising technology to better understand farmers, offer specialized products, and lower the risk of loans. As an illustration, the State Bank of India (SBI) created the YONO Krishi app to address the financial, input, and advisory needs of farmers.

3) Farm equipment retailers have begun offering mechanization as a service to farmers. Mahindra, for example, offers a tractor rental service.

4) Companies that deal with the buying, processing, or selling of agricultural goods have begun to integrate backward into the supply chain and build connections to the farmer's market. For instance, over the past 20 years, ITC, a core output player, has expanded direct-from-farm procurement using its e-Choupal network. The super app for ITC MARS has now been released. The app gives farmers access to contemporary equipment, high-quality inputs at reasonable prices, and financing through a partnership model.

Agriculture's potential B2B trade portals for emerging businesses

1) Wide Range of Customers Available: Startups have immediate access to a broad and diverse customer base made up of potential partners and customers in the agriculture sector thanks to B2B trade portals. As a result, startups are no longer required to make significant investments in creating their own customer networks from scratch.

2) Market Validation and Exposure: Startups can get important market validation and exposure for their goods or services by taking part in an agriculture B2B trade portal. They can increase their visibility and draw in potential clients by showcasing their offerings to a niche market of companies that are only interested in agricultural products.

3) Streamlined Sales and Marketing: B2B trade portals provide startups with a streamlined sales and marketing channel. For startups, they offer a centralized platform where they can create product listings, interact with potential customers, handle inquiries, and carry out transactions. This streamlines the sales procedure and enables startups to concentrate on developing relationships with customers.

4) Partnerships and Networking: B2B trade portals act as platforms for networking, bringing together startups and potential customers, suppliers, and distributors in the agriculture sector. Through these connections, startups may be able to scale their businesses and broaden their reach through valuable partnerships, collaborations, and joint ventures.

5) Reduced Time and Costs: For startups, joining a B2B trade portal for agriculture can greatly reduce the time and costs involved with entering the market. Startups can use the existing platform to reach potential customers, streamline transactions, and hasten their go-to-market strategy rather than developing their own sales infrastructure.

6) Credibility and Trust: Participating in a reputable B2B trade portal helps startups gain credibility and trust. The portal's verified profiles, product reviews, and customer ratings instill trust in prospective customers. This can assist new businesses in breaking through the initial trust barrier and establishing themselves as dependable suppliers in the agriculture sector.

Significant Obstacles for Agritech Startups

1) Information on Pre-harvest and Sowing Activities: Large businesses that rely on agricultural products want details on sowing and pre-harvest activities leading up to harvest. They also need an example of how farming communities can use technology to create benefits that last, like weather alerts on phones, advice on best farming practices, and guidance on how to deal with pest attacks.

2) A Lack of Visibility and Low Productivity: Another factor that has an impact on the agritech industry is low productivity and a lack of visibility in the supply chain. Blockchain technology and artificial intelligence are being used by many startups to address these problems.

3) Governmental Measures: Although the government has changed its agricultural policies, there is still a long way to go.

4) Lack of Commercial Guidance: Many of the existing agri-enterprises are having trouble growing their businesses past a certain point, despite experiencing some initial success. Project incubators typically offer such assistance to start-ups by assisting them with networking, building capacity, gaining access to information and resources, and other types of required expertise. Unfortunately, few of the roughly 300 incubators and accelerators currently in operation possess the knowledge and skills necessary to support farm-oriented businesses.

5) Droughts, Water Availability, and Climate Change: According to trends, the nation is concerned about disaster management, particularly when it comes to drought. To solve these issues, startups should concentrate more on cutting-edge technology.

How can Kisaan Trade assist new startups in maximising the benefits of agriculture B2B trade portals?

For new startups, Kisaan Trade can be extremely helpful in maximising the potential of agriculture B2B trade portals in the following ways:

1) Dedicated Platform for Agriculture: Kisaan Trade targets the agriculture market specifically, giving startups a dedicated space to network with potential customers, suppliers, and collaborators. Startups can benefit from the agricultural expertise and niche audience of Kisaan Trade by joining, increasing their visibility, and gaining access to pertinent opportunities.

2) Access to a Wide Customer Base: Kisaan Trade provides startups with immediate access to a large customer base made up of companies in the agriculture sector. This saves startups the time and effort of starting from scratch when creating their own customer network. Startups can reach a large audience of potential customers and improve their chances of generating sales leads by showcasing their goods or services on Kisaan Trade.

3) Increased Visibility and Branding: Kisaan Trade gives startups a platform to build a thorough profile showcasing their products, business details, and domain knowledge. The targeted audience benefits from increased visibility and brand recognition as a result. Startups can use the platform's features to highlight their distinctive selling propositions and set themselves apart from rivals, drawing in potential clients.

4) Opportunities for Networking and Collaboration: Kisaan Trade promotes networking and cooperation between start-ups and other agriculture sector participants. Startups have the opportunity to connect with potential partners, suppliers, distributors, and service providers, paving the way for fruitful partnerships and collaborations. Startups may be able to do this to increase their reach, gain access to resources, and find new growth opportunities.

5) Market Trends: Kisaan Trade might provide market trends, analytics, and insights tailored to the agriculture sector. Startups have access to information on consumer preferences, market trends, pricing dynamics, and market demands. Startups can use this information to understand the market environment, spot opportunities or gaps, and modify their strategies to meet changing customer needs.

Conclusion

In conclusion, Kisaan Trade is a useful B2B platform created especially for the agriculture sector. It functions as a specialized platform that links farmers, vendors, distributors, and other companies engaged in the agricultural industry. Businesses, especially startups, can access a wealth of advantages and opportunities by joining Kisaan Trade.

With immediate market access and exposure to potential buyers in the agriculture sector, Kisaan Trade gives startups access to a large customer base. The platform improves visibility and branding, enabling startups to present their goods or services to a specific audience and stand out from rivals.

The private sector is essential to the growth of the agricultural industry on international markets. Local small and medium-sized businesses are not only seen as crucial for economic development in the majority of developing nations, but larger "lead firms" are also developing closer relationships with SME suppliers as a result of tightening food regulation, traceability, and transparency standards.

The likelihood of successful outcomes increases when leading companies build relationships with SME suppliers and processors. Lead businesses can reduce supply chain risks, cut costs, and increase access to locally produced goods, while SMEs can access new markets, get financing, develop new skills, and create a lot of local jobs and income opportunities.

Traits of effective business-to-business connections

Although agro processing activities are growing in developing nations, a number of barriers prevent leading firms from independently connecting with SMEs.

Lead firms might not devote the necessary time and resources to removing obstacles if they are too high. Instead, they might move manufacturing "in-house," look for suppliers in more affluent nations, or even stop participating in the supply chain altogether. The local economy may never reap the rewards, and food quality, security, and safety may never improve.

Successful B2B linkages in agriculture require four factors:

1) Market opportunity

Lead companies must see a profitable opportunity to work with SMEs. The International Finance Corporation assisted olive oil SMEs in the West Bank in differentiating their product so that it would be more competitive on the export market. The project assisted SMEs in marketing a specialty product with a high price tag that appealed to an importer based in the United States. Because there was value in the product, the company kept importing it even after the project was finished.

2) Mutual gain

The lead company and SMEs must see concrete advantages to collaboration. Alquera, a dairy company in Colombia, sought out lower-cost production techniques and quickly realised there was room to improve the caliber and output of its SME suppliers as well. Alquera has established a supplier development programme.

3) Adequate capacity

To meet lead-firm standards for scale, quality, cost, labour, and the environment, a minimum level of SME capacity is required. SMEs can participate in a lead firm's supply chain by participating in capacity-building activities like mentoring, advisory services, and training. In one case studied, publicly funded technical and marketing support helped Cambodian SMEs engaged in rice processing attract the interest of international lead firm importers, leading to a sharp rise in rice exports.

4) Supportive setting

Linkages between lead firms and SMEs must be established in the context of legal, regulatory, service, and infrastructure considerations. After partnering with SMEs to create a local sorghum supply chain for a new beer, the beer company Nile Breweries Ltd. in Uganda lobbied the government to lower excise taxes. The lowered taxes made it possible for the product to compete with low-cost homebrews, leading it to become the highest-selling beer in the country.

How can the agriculture B2B marketplace aid your success?

1) Increasing Market Reach: A large network of potential buyers and sellers for the agriculture sector is made available by B2B marketplaces. You can access a larger customer base and broaden your market beyond your local or regional borders by participating in such a marketplace. You might be able to grow your business and draw in new clients thanks to this increased exposure.

2) Effective Lead Generation: Businesses with a specific interest in agricultural goods and services are drawn to B2B marketplaces. On the marketplace, you have the opportunity to generate leads and inquiries from buyers who are actively looking for the goods or services you provide. As a result, your chances of turning prospects into customers increase, and the lead generation process is streamlined.

3) Streamlined Sales Process: B2B marketplaces offer a central platform where you can present your goods, handle inquiries, and conduct business. By removing the need for multiple communication channels and paperwork, this streamlines the sales process. You can effectively manage your sales pipeline and close deals by using the tools and features of the marketplace.

4) Enhanced Visibility and Branding: Participating in a B2B marketplace for agriculture will raise your profile within the sector. You can set up a profile or company page to promote your name, goods, and knowledge. Potential customers are more likely to recognise and trust your brand as a result of this exposure. Additionally, marketplaces frequently provide advertising and promotion opportunities to further increase your visibility.

5) Access to a Diverse Ecosystem of Suppliers, Buyers, Distributors, and Other Industry Stakeholders: B2B marketplaces bring together a diverse ecosystem of suppliers, buyers, distributors, and other industry stakeholders. This gives you the chance to investigate fresh collaborations, partnerships, and sourcing possibilities. You can strengthen your supply chain and increase your customer base by connecting with dependable suppliers and interacting with potential customers.

6) Market Trends and Insights: B2B marketplaces frequently offer insightful market trends and analytics. Utilising these resources will help you stay up-to-date on market trends, consumer preferences, and the state of the competition. With this knowledge, you can make data-driven decisions, modify your tactics, and keep up with trends.

7) Cost savings and operational effectiveness: B2B marketplaces can help with both of these factors. You can cut marketing costs, speed up order processing, and automate some business processes by utilising the platform's infrastructure. By doing this, you can concentrate on core tasks like product development and customer relationship management while freeing up resources.

The value of B2B markets

1) Increased Market Access: B2B marketplaces give companies a platform to reach customers outside of their usual geographic reach. They link buyers and sellers from various areas, nations, and sectors, allowing companies to reach a larger customer base and investigate new market opportunities.

2) Efficient and Streamlined Transactions: By offering a centralized platform for transactions, B2B marketplaces streamline the buying and selling process. They provide features that make it simpler for businesses to find and connect with one another, such as product listings, catalogues, pricing details, and communication tools. This effectiveness lowers transaction costs, removes geographic restrictions, and expedites the entire trading process.

3) Increased Visibility and Branding: B2B marketplaces give companies a digital storefront to display their goods, services, and skills. Businesses can improve their visibility and brand recognition among a targeted audience by having a presence on a reliable marketplace. This exposure contributes to the growth of credibility and trust, creating better business opportunities.

4) Access to a Wide Range of Buyers and Sellers: B2B marketplaces bring together a wide range of buyers and sellers from different industries and regions. This gives companies more options for locating suppliers, locating potential clients, and forming beneficial alliances. The market serves as a centre for networking, making connections and teamwork possible that might not have been otherwise.

5) Competitive intelligence and market insights: B2B marketplaces frequently offer helpful market insights, trends, and analytics. Data on consumer preferences, competing products, pricing dynamics, and new trends is available to businesses. Businesses can remain competitive in the market with the help of this information, which is used to inform strategic decision-making, product development, and marketing strategies.

6) Better Efficiency and Cost Savings: By streamlining different business processes, B2B marketplaces improve efficiency and lower costs. They make tasks like finding products, comparing prices, processing orders, and logistics management simpler. By utilising the infrastructure, tools, and services offered by the market, businesses can save time and resources and concentrate on their core competencies and value-added activities.

7) Promotes Credibility and Trust: Reputable B2B marketplaces build participants' credibility and trust through verification procedures, ratings, and reviews. Based on the opinions and experiences of other companies, customers can make wise decisions. This mechanism for establishing trust helps lower the risk associated with transacting with unidentified parties, promoting a safe and dependable trading environment.

How can the B2B marketplace for agriculture be aided by Kisaan Trade?

1) Market Access: Farmers, suppliers, distributors, and other companies in the agriculture sector can connect on Kisaan Trade platform to access a larger market. It enables companies to present their goods or services to a specific group of potential customers in the agricultural industry.

2) Increased Visibility: Companies participating in the Kisaan Trade marketplace are given more exposure and visibility within the agriculture sector. By doing so, you may be able to increase brand recognition and draw in potential clients who have a particular interest in agricultural goods or services.

The commodity trading sector has experienced growth over the previous five years. Although all industries experience multi year cycles of peaks and troughs, the future of the sector appears to be very bright.

The next normal is indeed just around the corner for the commodity market. The current energy transition is a physical and economic change that affects and integrates various global food, energy, and material systems. From the perspective of commodity trading, this change will amplify structural volatility, stifle trade flows to create new arbitrages, redefine what it means to be a commodity, and fundamentally transform business relations. For both new and established players, these developments will create special opportunities and challenges.

Commodity market for agriculture

Agriculture-related commodities are traded on agricultural commodity markets. Crops like wheat, corn, soybeans, and cotton are examples of agricultural commodities. Livestock products like cattle and hogs are also included. These markets are crucial because they enable farmers and other agricultural producers to reach buyers like food producers, exporters, and other consumers and sell their products to them.

Aside from other economic and geopolitical factors that may affect the production and distribution of agricultural commodities, supply and demand factors also play a role in setting prices in the markets for agricultural commodities. Weather patterns, governmental regulations, and market speculation can all affect prices.

The markets for agricultural commodities come in a variety of forms, including futures, options, and cash markets. While options markets give buyers the right but not the obligation to buy or sell a commodity at a specific price, futures markets allow buyers and sellers to agree on a price for a future delivery date. The physical delivery of a commodity is required in cash markets, also referred to as spot markets, at the time of the transaction.

Understanding agricultural commodity markets requires knowledge of both market fundamentals and the variables that can affect supply and demand for agricultural commodities. Agricultural commodity markets can be complicated.

How can you trade agricultural commodities?

Since 2002, modern commodity trading has been permitted in India. By purchasing and selling futures contracts on any of the six exchanges that permit trading in agricultural commodities, you can transact in the market for those commodities. Two of the six exchanges that permit trading in commodities on their platforms are devoted exclusively to the trading of agricultural commodities. The National Commodity & Derivatives Exchange Limited and the National Multi-Commodity Exchange are these exchanges. Prior to 2017, trading in agri-commodities was challenging. The Securities and Exchange Board of India did permit trading in commodities from standard Demat accounts towards the end of that year, though.

You can conduct research on a commodity and make price predictions if you want to invest in the market for agricultural commodities. If you are confident in your prediction of future prices, you should pay your broker the required margin and purchase a futures contract. The sale would be carried out on the future date specified in the contract. When it comes to trading commodities, brokers offer significant leverage; however, you should be aware of the associated risks. Your life savings could be quickly depleted by a few bad bets.

Agri-commodity trading has advantages

Price research: Agricultural commodity markets give buyers and sellers a place to find out what various commodities are worth in the market. The best time to sell crops is determined by farmers and other producers using this information, and the same is true for buyers.

Risk management: Trading in commodities enables farmers and other agricultural industry participants to control price risks related to agricultural commodities. Prices can be fixed through futures and options contracts, which can act as a form of price protection.

Increased market access: A wider market for agricultural commodities is made available by commodity trading platforms, giving farmers and producers access to consumers outside of their local markets. Increased competition and higher producer prices may result from this.

Increased market efficiency: Trading platforms enable buyers and sellers to transact at fair market prices by reducing information asymmetry and increasing market efficiency.

Investment opportunities: Through commodity trading, investors can diversify their portfolios, make investments in the agricultural sector, and possibly profit from changes in commodity prices.

Futures markets for agricultural commodities

Futures contracts for agricultural commodities are market-based tools for risk management and aid in the orderly development of effective agricultural markets. Risks related to commodity prices are hedged using futures markets. By providing a forum for the exchange of information about supply and demand conditions, they also serve as a low-cost, highly effective, and transparent mechanism for determining prices in the future. Future market functions for hedging and price discovery encourage more effective production, storage, marketing, and agro-processing operations and aid in enhancing overall agricultural marketing performance.

India has a long history of trading in commodity derivatives, but due to government intervention in many commodity markets to control prices, this sector has remained underdeveloped. The state still controls the production, supply, and distribution of many agricultural products. The Essential Commodities Act (ECA), 1955, and the Agriculture Produce Marketing Committees (APMC) Acts of various state governments restrict the free trade of many agricultural commodities. According to the Forward Contracts (Regulation) Act (FCRA), 1952, forward and futures contracts were until April 2003 restricted to just a few commodity items. But in 2003, the GOI removed all restrictions on commodities, which could be traded on commodity exchanges.

Currently, 81 different commodities are traded in futures on 25 different commodity exchanges operating in India. These exchanges tend to be regional and commodity-specific. Four commodity exchanges—National Multi Commodity Exchange (NMCE), Ahmedabad; National Board of Trade (NBOT), Indore; National Commodity Derivative Exchange (NCDEX), Mumbai; and Multi Commodity Exchange (MCX), Mumbai—were each given National Multi Commodity Exchange (NMCE) status in 2003.

Market trends for agricultural commodities

Growing demand: The world's population is expanding, which is causing the price of food to rise. As a result of the shortage of supply, agricultural commodity prices are under pressure.

Climate change: Climate change is causing more frequent and severe weather events, like floods and droughts, which can have an impact on agricultural production. Increased price volatility and supply chain disruptions may result from this.

Technological developments: The agricultural sector is becoming more productive and efficient thanks to developments in technology like genetic engineering and precision farming. This lowers production costs while increasing the supply of agricultural products.

Sustainability: The demand for agricultural products that are produced sustainably, such as those that are organic or that use environmentally friendly methods, is rising. Changes in supply chain procedures and production techniques are the result of this.

Trade policies: Modifications to international trade policies, such as tariffs and trade agreements, may have an effect on both the demand for and the cost of agricultural commodities.

About Kisaan Trade

A B2B (business-to-business) online marketplace called Kisaan Trade links Indian farmers, traders, and buyers. The platform aims to offer buyers a wide selection of premium goods at affordable prices, as well as farmers and traders a transparent and dependable platform on which to sell their agricultural commodities.

A number of features are available from Kisaan Trade, such as real-time pricing data, logistics assistance, quality control, and payment facilitation. Farmers and traders can reach a larger market and possibly get better prices for their commodities by listing their products on the platform. Buyers have access to a wide variety of agricultural products from all over India, including grains, oilseeds, pulses, fruits, and vegetables.

What role does Kisaan Trade play in the agriculture commodities market?

Establishing a marketplace where farmers and traders can sell their agricultural products: An online marketplace called Kisaan Trade links farmers, traders, and customers all over India. Farmers and traders can reach a larger market and possibly get better prices for their commodities by listing their products on the platform.

Providing real-time pricing data: Kisaan Trade gives farmers and traders access to real-time pricing data for agricultural commodities, assisting them in making decisions about when to sell their produce.

Providing logistics support: For the transportation of agricultural commodities, Kisaan Trade offers logistics support, which can help ensure prompt delivery and lower the risk of spoilage.