Come, reap a bumper harvest: Kerala's farms woo agritech startups

Agricultural universities now offer entrepreneurship training to encourage students, as most entrepreneurs come from engineering backgrounds, not agriculture.
Agritech startups in Kerala
Agritech startups in Kerala
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2 min read

From monitoring crop growth to selling produce,  Kerala's agritech startups offer innovative solutions to various aspects of farming. However,  the agricultural sector remains far underrepresented in Kerala's vibrant startup ecosystem.

Out of the more than 6,300 startups in Kerala, only 192 operate in agriculture. In contrast, a report by the Federation of All India Farmers Association (FAIFA) in May 2024 shows that there are over 7,000 agritech startups nationwide.

While Kerala offers favourable conditions for launching startups, those in the agricultural sector point out several challenges. Expansion and large-scale production remain hurdles due to limited land availability. Agriculture tends to be more profitable when done on a larger scale, and with land scarcity, scaling up becomes difficult.

Entrepreneurs in this space also highlight the lack of government support, which further dampens enthusiasm. Moreover, many potential entrepreneurs are unaware of the opportunities within the agricultural sector.

Change on the horizon?

Berin Pathrose, a lecturer at the Kerala Agricultural University, believes that the limited number of agritech startups is a nationwide scenario. According to him, most entrepreneurs come from engineering backgrounds, while fewer agricultural graduates venture into entrepreneurship.

However, efforts are underway to change this. Agricultural universities are now incorporating entrepreneurship training into their curriculum, which could encourage more students to explore opportunities in the sector.

Highest in job creation

On the employment front, the agricultural sector is performing well. Among the 55 sectors with registered startups in India, agriculture ranks high in job creation. According to the Department of Promotion of Industry and Internal Trade (DPIIT), the agro-allied sector had generated 83,307 direct jobs by October 2024. It also stands eighth in the list of sectors creating the most employment opportunities.

Despite Kerala's variety of cash crops, the state appears to lag behind in capitalising on these opportunities compared to other regions.

Some success stories

Some Kerala-based agritech startups have managed to make their mark both within and beyond the state. Kochi-based Fuselage Innovations, for instance, has grown internationally by leveraging drone technology for crop management. The company was founded by Devan and Devika Chandrasekharan from Alappuzha after experiencing crop failures during the 2018 floods.

With an initial investment of Rs 7.5 lakh, Fuselage Innovations expanded with support from Kerala Startup Mission and other organisations. Today, it has operations in the UK, Finland, and Canada, with a turnover of Rs 5 crore in the last financial year and an expected revenue of Rs 7 crore this year.

Another notable player is Greenovative Foods, the company behind "Green Meat," a plant-based meat substitute. Founded by Unnikrishnan P.G. and his friend Dheeraj, the idea for the company took shape during Unnikrishnan's MBA studies at IIM Kozhikode.

With financial support from KSIDC and Kerala Startup Mission, Green Meat is now available across India through platforms like Amazon and the company's website. Plans are underway to expand its reach via quick commerce platforms soon.

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