Inside India’s Agricultural Labor Gap: How AgTech Is Digitizing the Farm Workforce
Labor remains one of the most overlooked — and least understood — forces shaping global agriculture, particularly in emerging markets where fragmentation and informality dominate. In India, that challenge is amplified at scale. In this interview, Azhaan Merchant, Co-Founder and CEO of Bharat Intelligence, breaks down how a lack of visibility — not labor itself — is the root of inefficiency, and how data, AI, and workforce intelligence could fundamentally reshape how agricultural labor is organized, deployed, and valued across the supply chain.
AgriBusiness Global: Farm labor is often described as informal and fragmented — especially in emerging markets. What structural changes are needed to make rural labor markets more efficient, transparent, and scalable?
Azhaan Merchant: In India, the scale of fragmentation is massive. There are roughly 140 million agricultural laborers spread across 650,000 villages. Yet, there’s almost no structured understanding of who these workers are — their skills, availability, migration patterns, or earning expectations.
The core issue is a lack of visibility. Before you can solve for efficiency or scalability, you need a baseline: a structured, digitized understanding of the workforce. Today, even basic segmentation — like distinguishing between someone skilled in grape pruning versus sugarcane harvesting — doesn’t exist at scale. Without that, matching supply and demand efficiently is nearly impossible.
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ABG: Are there any existing models — formal or informal — that are working today? Why haven’t they scaled?
AM: The system today is almost entirely informal and offline. A key role is played by “mukadams,” or team leaders, who manage small groups of 10-20 workers. They coordinate jobs, negotiate with farmers, and handle logistics.
These systems work at a hyperlocal level because they’re built on trust and social relationships. But they don’t scale because they operate independently, without shared data or coordination across regions. You end up with thousands of fragmented micro-networks instead of a cohesive labor market.
ABG: Do you see government policy or private platforms playing a bigger role in driving change?
AM: Right now, most government focus is on farmers, not laborers. But labor is just as critical to the system.
I believe private players will drive the shift. The inefficiencies in the system are so large that even incremental improvements can create massive value — both commercially and socially. There’s a real opportunity to build scalable solutions that deliver both enterprise value and impact.
ABG: How are shifting migration patterns and seasonal labor shortages affecting farm-level decision-making today?
AM: Migration is constantly shifting based on crop economics, climate, and competing industries. For example, high-value crops like grapes are pulling labor into certain regions, while infrastructure development is pulling workers out of agriculture entirely.
At the same time, generational shifts are accelerating the problem — many younger workers simply don’t want to stay in agriculture. Add in government subsidies that reduce the urgency to seek work, and you get a tightening labor supply.
The result is real disruption at the farm level: labor shortages, rising costs, and in some cases, farmers changing crops — or even exiting farming altogether.
ABG: Are farmers adapting proactively or mostly reacting to labor uncertainty?
AM: For the most part, they’re reacting. Labor shortages are one of the biggest pain points in Indian agriculture today.
Farmers rely on local networks, labor markets, or neighboring communities to fill gaps, but it’s inconsistent. During peak periods, they often face inflated wages or lack access to skilled workers entirely. That uncertainty is forcing changes in cropping decisions and long-term planning.
ABG: To what extent can AI and workforce intelligence platforms realistically solve these challenges?
AM: To a very large extent. The issue isn’t a true labor shortage — it’s a visibility problem.
There are regions with surplus labor and others with acute shortages, but no system connecting the two. With the right data infrastructure, you can map both supply and demand — down to specific crops, locations, and timing — and match them proactively.
AI plays a critical role in forecasting demand, understanding migration patterns, and optimizing allocation at scale. Once that foundation is in place, the system becomes far more efficient.
ABG: How do you build trust and drive adoption among farmers and workers who may be skeptical of technology?
AM: We keep the front end extremely simple. There are no dashboards or complex apps. We rely on tools people already use — primarily WhatsApp and phone calls.
All the complexity — AI, forecasting, optimization — happens in the background. For the user, it feels like a natural extension of how they already operate. That simplicity is key to adoption, especially in markets with varying levels of digital literacy.
ABG: What role should data-driven labor platforms play in bridging gaps between farmers, workers, and policymakers?
AM: Right now, there’s virtually no structured data. Even basic things like proof of work or verified skill sets don’t exist for laborers.
Creating a digital identity — work history, ratings, certifications — can unlock mobility and earning potential. At a policy level, better data can inform decisions around infrastructure, social programs, and economic planning.
This isn’t just about efficiency — it’s about bringing millions of people into the formal economy.
ABG: How could labor intelligence influence broader outcomes like income stability, mechanization, and rural development?
AM: India still has low levels of mechanization and relatively low productivity. There’s huge room for improvement across the board.
With better labor intelligence, decision-making becomes more informed — at both the farm and policy level. That can drive higher productivity, more stable incomes, and better resource allocation.
We’re at a point where the next decade could unlock significant value across rural economies.
ABG: What does success look like at the village or district level if these systems work as intended?
AM: At a basic level, it’s about stability — ensuring workers have access to 300 days of employment per year, up from less than 100 today.
At the same time, farmers should be able to access reliable, skilled labor when they need it, improving both yield and quality.
If both sides function efficiently, India has the potential to become a global leader in horticulture — and, more importantly, improve livelihoods for tens of millions of people.
ABG: Any final thoughts?
AM: Labor is one of the least-addressed areas in the agricultural value chain. Most innovation has focused on mechanization, but not on improving labor itself as an asset.
There’s an opportunity here to build something transformative — something that creates both economic value and real societal impact. If done right, this could represent a major shift in how agricultural economies function.
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