Key points

1. Agriculture accounts for 18% of GDP but more than 55% of the population depend on it for sustenance 
2. Indian farmers face the logistical problem of fragmented land holdings of less than 1 hectare each resulting in lack of price awareness, and low bargaining power

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Farmers receive only 10% of the final price of products primarily due to the proliferation of middlemen 

1. Mandis, Traders, Wholesalers, and Retailers take a lion’s share of the profit

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AgriTech Market Linkage companies are aiming to increase the share of farmer profit to 25% by reducing the margin and commissions paid to middlemen

1. In addition, these companies also aim to reduce lost revenue of the farmer due to improper storage and wastages 
2. Ensure adequate compensation for existing produce through price discovery 

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HOWEVER, despite over USD2bn in investment over the past 5 years, the current penetration of Agritech companies is less than 1% in India due to: 

1. High CAPEX in setting up rural collection centres 
2. Increased logistical requirements in reaching rural India 

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Modulus housing’s AgriCab product serves as the perfect infrastructure layer in the supply chain to aid in the market linkage efforts of these companies and assist them in obtaining deeper penetration into the rural agriculture market 

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AgriCab along with its integrations provides a low cost, portable, flexible, and easily implemented infrastructure layer to decrease wastages and logistical costs for Agritech companies and farmers alike. Agricab advantages are as below: 

1. Low CAPEX: Low cost collection centre in rural areas to promote further penetration of Agritech companies 
2. Low Wastage: Storage and processing facilities to ensure minimal wastage and value added processing 
3. Low Logistics: Lower logistics cost for farmers and agritech companies alike as facilities are close to farms while storage techniques ensures produce freshness till collection date 

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Advantages of AgriCAB modules:

1. Rapid, affordable, portable structures

Impact → Reduce Capex of collection centers by 50% while providing access up to 5x more farmers

2. Energy Efficient storage & cold storage leading to lower wastage

Impact → Reduce post-harvest losses due to storage inefficiencies resulting in up to 30% more produce

3. Diversifying and increasing revenue through indoor farming options

Impact → Increase farmer revenue by up to 50%

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