Assessing Risks, Returns, and Technology Fit in Agri Projects Through Techno Commercial Studies?

 Indian agriculture sector was valued at USD 479 billion in 2023 and is set to reach USD 598 billion by 2029. Close to 45% of the Indian workforce are employed in the agriculture industry. There are multiple factors that are driving the growth in Indian agriculture and agribusiness industry. Large sized population, growth in per capita income, change in lifestyles are some of the key fundamental factors fuelling demand. India is also a major exporter of agro commodities as well as processed goods. Few of the key segments where India exports heavily are mango, soybean, rice, sugarcane, pulses, ground nuts, cashew, tea, coffee and much more. 

As Indian agribusiness sector is rising, we are also witnessing influx of organized players in the space, lured by its long-term potential. Numerous large-scale business houses Tata, Reliance, ITC, Olam International are active in the space. Many conglomerates whose business are based on agriculture are now backward integrating to boost their supply lines. For instance, MARs is scouting for lands in India to start cocoa production. Likewise, there are multiple other stories. Many cooperatives, govt. backed development agencies, non-profits are also entering the organized agriculture business. 

However, one should also know agribusiness in India is abreast with risks and challenges. Fluctuating weather conditions, irregular rainfall patterns, declining soil quality can undermine agriculture yields. Similarly, poor rural infrastructure in certain parts of India or lack of market knowledge can affect the profitability. 

This necessitates the need for conducting a techno economic viability study or a techno commercial study, before any investing in an agribusiness set-up. Buying hundreds or even thousands of acres of lands or investing in processing plant can require huge investments. Blindfolded starting the business might not be a wise idea. To derisk the investment a comprehensive techno commercial study can offer tremendous amount of valuable insights. 

A techno commercial study on an agribusiness project can offer valuable insights on

Evaluate the project objective and strategic fit 

Estimate the market size 

Identify the TAM, SAM, SOM

Identify the best soil type to maximize yields 

Identify the best seed types to maximize yields 

Feedstock assessment 

Technology assessment 

Overall value chain assessment and also identify possible value-added products 

Demand analysis and demand mapping across key geographies and industry segments 

Carbon credit potential and monetization through sustainable waste usages 

Financial model and ROI calculations 

Regulatory compliances 

Growth roadmap 



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