resilient food systems. (Trendov et al. 2019). At the
same time agriculture sector faces several critical
challenges across its value chain, hindering the
efficiency and sustainability of farming practices.
These challenges encompass diverse aspects, ranging
from input volatility to limited technological access,
inefficient supply chains, and inadequate irrigation.
Addressing these issues is crucial for enhancing
productivity, reducing wastage, and ensuring the
well-being of farmers.
1.1 Challenges Exist Along the
Agriculture Value Chain
The agricultural and food value chain typically
consists of three main segments. The initial segment,
known as the 'pre-farm' link, involves suppliers
providing tangible and intangible resources for
agricultural production (Pham & Stack, 2018;
Boehlje&Broring, 2011). The second segment
pertains to activities within the farm, encompassing
the farmers themselves, often referred to as the "on-
farm" phase. Finally, the third segment involves
activities occurring after the farm, involving
processors, retailers, and consumers (Gereffi et al.,
2009; Pham & Stack, 2018).
1.2 Describing the Challenges
Numerous obstacles prevent farmers worldwide from
being as productive and profitable as they could be.
The fluctuation of input prices and the resulting
inefficient selection of components necessary for
farming is one of the major obstacles. Due to limited
data on supply-demand dynamics, farmers often find
themselves at the mercy of fluctuating input costs.
This reliance on retailers for input decisions can lead
to either excessive or inadequate use of inputs,
negatively impacting both yields and costs.
Moreover, the absence of digitization further
exacerbates these issues. With limited access to
technology, farmers struggle to gain insights into
crucial factors like crop yield and soil productivity.
Traditional farming techniques, while deeply
ingrained, often contribute to soil degradation over
time. Thus, there is a pressing need for technological
interventions to improve efficiency and sustainability
in agriculture.
Another challenge lies in ensuring consistent
quality across agricultural produce. The lack of large-
scale quality testing with quick turnaround times
complicates efforts to map a farmer's produce to its
quality standards. This poses significant challenges
for food processing companies and exporters who
rely on consistent quality for their operations.
Furthermore, inefficiencies in the supply chain
further exacerbate these challenges. Farmers often
face lower realization rates due to uncertain demand,
inefficient cropping cycles, and higher procurement
costs for retailers. Limited infrastructure, such as cold
storage facilities, also contributes to increased
wastage along the supply chain.
Access to financial solutions remains a significant
hurdle for small and marginal farmers, further
compounded by limited digitization. Without access
to financial resources, farmers struggle to invest in
modern farming techniques and equipment,
perpetuating a cycle of low productivity and income.
Inadequate irrigation exacerbates these
challenges, particularly in regions heavily reliant on
rainfall like India. With groundwater levels depleting
annually, there's an urgent need for improved
irrigation methods to ensure consistent water supply
for agriculture.
Lastly, the inverse relationship between farm size
and productivity underscores the challenges faced by
small and fragmented farms, particularly in
comparison to larger operations in countries like
Europe and the United States.
Traditional agricultural extension services are
facing significant challenges in addressing the
complexities of modern agriculture, compounded by
the imperative for the agribusiness sector to produce
food sustainably to ensure global food security by
2050. As highlighted by Gelderen et al. (2021),
entrepreneurship in this context becomes increasingly
crucial, focusing on addressing social and
environmental challenges at the local level. This shift
towards necessity-driven entrepreneurship creates
fertile ground for agri-startups, presenting an
opportunity to innovate and transform the agricultural
sector. As a result, investments in agricultural
technology have increased exponentially, as
mentioned by Kakani et al (2020). This trend
underscores the importance of leveraging
entrepreneurial solutions to drive sustainability,
efficiency, and resilience in agriculture, thereby
contributing to the long-term viability of food
production systems.
1.3 Changing role of Agricultural
Extension
The Inter-Ministerial Committee on Doubling
Farmers’ Income (DFI) recognizes agriculture as a
value-driven enterprise. It emphasizes empowering
farmers through improved market linkages and self-