Agri-Tech startups transforming vegetable supply chains in Coimbatore

This research investigates the transformative role of digital agri-tech startups in optimizing vegetable supply chains in Coimbatore District, Tamil Nadu, India, with an emphasis on improving agricultural productivity and farmer welfare. Despite a marked 45% decline in agri-tech sector investments between the financial years 2021-2022 and 2022-2023, attributed to global interest rate hikes and economic uncertainties, startups such as WayCool, Farmers Fresh Zone and Farm again have demonstrated significant potential in enhancing supply chain efficiency and supporting farmer livelihoods through technological innovations. Employing a mixed-methods approach, this study integrates both qualitative and quantitative data derived from surveys, field visits, and interviews. Key performance indicators analyzed include Price Spread, Marketing Efficiency, Cost-Benefit Ratio and Productivity. Advanced econometric tools, including logistic regression and propensity score matching, were used to assess the impact of technology adoption on farmers’ outcomes. The results reveal that farmers utilizing digital platforms for crops such as onion and tomato achieved higher market prices, improved marketing efficiency and superior financial performance compared to those employing the conventional methods. Despite persisting challenges like resistance to technology adoption and inadequate internet connectivity, the findings emphasize the potential for substantial growth in the sector, driven by technological innovations. The study emphasizes the need to develop user friendly digital platforms, strengthen internet and technological infrastructure, and enhance government support through financial incentives and clear policy frameworks to encourage the broader use of agri-tech solutions. Overall, the research highlights the significant potential of digital agricultural technologies to improve farming practices, increase farmer earnings, and serve as a model that can be adapted to similar agricultural regions.