Akash Mitra, Sales Head at Bijak, unveils how agritech is transforming India's FMCG and retail landscape. He explains that modern trade is not just about supermarkets but also about integrating technology to bring transparency and traceability to agricultural produce, challenging traditional distribution models.
There are some brands which have emerged in the market... with a small QR code. If you scan, you can trace back to the farmer, when it was harvested, what chemicals were used, or if none were used. You can trace back – that is what agritech is.
— Akash Mitra, Juno
India's diverse retail landscape can be segmented into distinct operational models. Organized trade encompasses modern supermarkets, hypermarkets, and the growing direct-to-consumer (D2C) e-commerce platforms. In contrast, unorganized trade refers to the vast network of traditional kirana stores and street vendors that still serve a significant portion of the population.
Akash Mitra highlights that these classifications are fluid, with "modern trade" often used locally to describe organized retail. Understanding these evolving terminologies and the unique characteristics of each channel is crucial for effective market penetration and distribution strategies in India.
Understanding channel-specific strategies is crucial for market penetration.
The Fast-Moving Consumer Goods (FMCG) sector traditionally deals with processed, packaged products like soaps and snacks, characterized by longer shelf lives and established distribution networks. Agritech, when integrated into retail, introduces the unique challenges of fresh agricultural produce such as fruits and vegetables.
Unlike FMCG, fresh produce is highly perishable and often requires direct sourcing from farmers, demanding specialized cold chain logistics and rapid distribution. This fundamental difference necessitates distinct supply chain management and retail strategies, as the product's nature dictates its journey from farm to consumer.
Agritech's unique product characteristics demand tailored retail approaches.
The Legal Metrology Act (2009) and its subsequent amendments have significantly impacted organized retail, particularly concerning fresh produce. These regulations mandate stringent labeling for packaged goods, including fruits and vegetables, requiring details such as country of origin, weight, price, and expiration dates.
This regulatory framework empowers consumers to trace the journey of their food, often facilitated by QR codes, back to its source. This level of transparency stands in stark contrast to unorganized markets, where product origin and other crucial details remain largely unknown, thereby building greater trust in organized channels.
Transparency through regulation and tech builds consumer trust and differentiates organized trade.
Agritech represents a profound technological transformation in agriculture, extending far beyond simple procurement and packaging. It encompasses innovative applications such as drone technology for crop monitoring, smart irrigation systems, and the use of advanced fertilizers to enhance yield and quality sustainably.
This digital ecosystem integrates data analytics and government initiatives, like drone pilot training programs, to create an end-to-end value chain. The goal is to optimize every stage from cultivation to distribution, ensuring efficiency, reducing waste, and ultimately providing consumers with higher quality, traceable produce.
Agritech leverages technology for efficiency and transparency across the entire value chain.
In India's bustling Metro cities, consumer purchasing habits are undergoing a significant transformation. Shoppers are increasingly gravitating towards organized retail formats, including large supermarket chains, and embracing the convenience of e-commerce platforms for their grocery needs. This shift is driven by factors such as product variety, quality assurance, and the ease of online ordering and home delivery.
While traditional kirana stores still hold a dominant share of the overall Indian retail market, data from sources like Nielsen indicates a consistent and rapid growth in the market share captured by modern trade and e-commerce within these urban centers. Businesses must adapt to these changing preferences by strengthening their presence in these modern channels to remain competitive.
Adapt to shifting consumer preferences by investing in organized and digital retail channels.
Agritech is just about local procurement and packaging.
Akash clarifies that true agritech extends far beyond simply buying local produce and putting it in a bag. It involves sophisticated technological interventions like using drones for precision farming, implementing advanced fertilizers, and adopting sustainable cultivation methods to significantly boost yield and enhance quality. The packaging and traceability seen in organized retail are outcomes of these broader agritech solutions and regulatory compliance, not the entirety of the field.
Modern trade is just supermarkets.
While supermarkets are a prominent part, Akash explains that "modern trade" is a colloquial term for the broader "organized trade" sector. This includes not only the physical supermarket stores but also the burgeoning D2C (direct-to-consumer) e-commerce applications and even large-scale master wholesale platforms, citing examples like Metro Cash and Carry. This demonstrates a more complex ecosystem than just traditional brick-and-mortar stores.
Traditional trade is losing its hold entirely.
Akash acknowledges the significant shift in Metro cities, where shoppers are increasingly opting for supermarket chains and online grocery ordering. However, he emphasizes that this trend doesn't signify the complete demise of traditional trade. Across India, local grocery stores and street vendors continue to dominate the sales of daily-use goods, indicating a dual market where both traditional and modern channels coexist and thrive, albeit with varying regional strengths.
How are local kirana stores in Tier 2 cities currently sourcing their fresh produce, and what are their biggest pain points in quality control or supply consistency?
Purpose: Understand Traditional Supply GapsFor a specific packaged food brand, what percentage of its sales in Mumbai comes from D2C e-commerce versus large format supermarkets?
Purpose: Analyze Modern Trade ChannelsWhat specific government subsidies or initiatives are available for farmers in Karnataka adopting drone technology for crop monitoring?
Purpose: Identify Agritech Adoption DriversCan you provide an example of a competitor's product in organized retail that effectively uses QR code traceability, and what information does it offer the consumer?
Purpose: Benchmark Traceability StandardsWhat are the logistical challenges of delivering fresh, perishable produce directly from farms in rural Maharashtra to urban Delhi within 24 hours?
Purpose: Assess Supply Chain FeasibilityHow do pricing strategies for fresh organic vegetables differ between a premium supermarket chain and a local farmers' market in Bangalore?
Purpose: Evaluate Market SegmentationUnderstand how agritech-enabled traceability (e.g., QR codes for farm-to-fork data) builds consumer trust and meets regulatory demands. Position this transparency as a premium feature when engaging with organized retail chains or D2C partners, highlighting the tangible benefits for both the retailer and the end consumer.
Beyond basic sourcing, integrate technology across your agricultural value chain—from sustainable farming practices and yield optimization (drones, smart fertilizers) to efficient cold chain logistics. This holistic approach ensures quality, reduces waste, and enables the traceability essential for modern trade and consumer confidence.
Develop marketing campaigns that highlight the unique "farm-to-fork" journey of your products, emphasizing the role of agritech in ensuring quality and transparency. Utilize digital channels to showcase traceability features (like QR code scans) and differentiate your brand from traditional, less transparent alternatives in the market.
Deep dive into emerging agritech solutions, digital supply chain management, and the impact of regulatory frameworks like Legal Metrology on retail. Understanding these areas will equip you with critical skills for roles in modern trade, FMCG, and the rapidly evolving agricultural sector, particularly in markets like India.
Previously when we wanted to go somewhere we used to ask street bystanders... right now we don't do that anymore... we just put the location on Google Map and we just reached to the spot. That is what tech drives us and that is what the solution Tech is providing.
— Akash Mitra, Juno
Sales Head at Bijak
Akash Mitra is a seasoned sales leader currently serving as the Sales Head at Bijak, a pioneering agritech company. With prior experience at Win Greens Farms and TK Maxx, Akash brings a wealth of knowledge from both the agritech and broader retail sectors. He specializes in understanding and navigating the evolving landscape of modern trade and FMCG in India, driving digital transformation in agricultural supply chains.
Sales Head, Bijak · Win Greens Farms · TK MaxxJoin thousands of Indian professionals learning from industry experts.
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