Digitisation changing the face of agri sector

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Traditionally, agri warehousing industry was looked upon as an asset-heavy model which gave importance to creation of the warehousing space alone without any emphasis to efficient handling, scientific processes and management of the same. Lately, we see a shift in focus with increasing importance being attributed to systems and processes which are making agri logistics purely a services-driven sector.

With a sector focused on services and better delivery modules, the players have initiated an integrated model wherein warehousing management, collateral financing and agri financing are provided under one umbrella. This has enabled the delivery of agri financing within hours of approval rather than days or months, as earlier.

With the emphasis on better services and innovative delivery models, technology is set to be the key enabler for growth of this sector. There are very few integrated service providers receptive to the fact that technology can help them reduce costs and improve efficiency in their businesses and overall market.

Digitisation and state-of-the-art technology is redefining this sector. Changing times can be evidenced by seeing real-time technology with GPS and GEO tagging happening in warehouses that from a physical standpoint look old and depleted.

From real-time crop health measurements like pest infestation levels to moisture readings of the crop to satellite imagery of the warehouses, the once asset-driven model now looks like a scene from an erstwhile science fiction movie. Only this is the new reality. A reality wherein handheld devices using mobile telephony are talking to satellites and delivering data to centralised servers which are analysing and converting the grain into monetised assets. Such high-tech interventions have allowed financial institutions to use agri crop as the primary collateral, thus bringing real financial inclusion. Gone are the days when to get a loan on a bag of wheat you had to pledge your land.

A new dawn has set upon the industry challenging the status quo and setting benchmarks of service levels, efficiency, turnaround times and collateral management.

In keeping with this, the benefits are being reaped on the ground with enhanced crop protection, curtailment of food wastage and increasing credit availability to the stakeholders of the agri value chain.

The future is here and, just as software and technology has revolutionised other sectors, agriculture, warehousing and agri finance is all set to evolve.

@stock market advisory