What are Agtechs chasing?

"Sir, I am told we have a swanky office in Bangalore. I hope someday I will get to see it." This excerpt is from a conversation in far-off North India of a Bangalore-based Agri Startup employee who goes by the exalted title of Area Manager. But he is only a gig worker paid a paltry sum and expected to oversee the working of the field staff in the state.

Further interaction with the field staff showed how although they are not employees and compensated on achieving targets of enrolment of farmers, effectively, they are treated like staff and must put in long hours of work, including working on Saturdays and Sundays. “Incoming calls toh aate he rehte hain, but HO staff stop taking our calls from Friday evening” the staff said in passing. How often do the head office staff visit the field? Rarely, almost never was the response. New recruits make a visit when they join, afterwards it is all remote.

The interesting point of note is that the compensation incudes a portion that is reimbursement like fuel expenses and a variable pay that is based on fulfilling targets. But in a recent instance, a product offering was pulled out because it was not working. While the head office people got paid their salaries without a cut, the field staff who had done all the hard work of market development, generating leads and mobilizing interest were left high and dry, and even the out-of-pocket expenses already incurred were not reimbursed. It was sad to hear the woes of the staff of unpaid dues, school fees, provisions bills, rent dues as the planned cash flows never materialized.

What do the farmers using the products and services of this Startup feel? First, most do not know who the startup is. Second, they are not bothered about the efficacy of the offering. “These are our boys” they say. “If we do not buy and use their offerings, our boys will not get paid. So we oblige.”

Why should this bother you, you may ask? After all Agri Startups are not in the business of creating rural jobs. “We are in the business of solving farmers problems. And if we pay more to the staff, it will be at the cost of giving a better deal to farmers. Why hold us guilty? Everyone is doing the same thing.”

The concern is really this. Any Impact business, and I am hoping Agritechs see themselves as Impact, should not exploit the weakest in the chain, those who have the least capacity to negotiate and get a fair deal for themselves. How an institution treats the weakest and most vulnerable, defines the organization values. Robbing Peter to pay Paul is not Impact. I am ready to listen and change my views if you have arguments to the contrary.