Government to Launch ‘Agri Fund for Start-Ups & Rural Enterprises’ to Boost Agripreneurship
- ByStartupStory | July 15, 2024
The Government is set to launch the ‘Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE) to support start-ups and agripreneurs with investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs), along with direct equity support for start-ups in Agriculture and allied sectors. This initiative aims to foster innovation and sustainability in India’s agricultural sector through the establishment of a ₹750 crore Category-II AIF. The fund will provide both equity and debt support, focusing on high-risk, high-impact activities in the agriculture value chain.
The announcement was made at the Pre-Launch Stakeholder meet held at NABARD Headquarters in Mumbai. The event was attended by key stakeholders, including financial institutions, investors, AIF managers, and agri-startups. Distinguished guests included Ajeet Kumar Sahu, Joint Secretary, DA&FW; Shaji K.V., Chairman, NABARD; Govardhan Singh Rawat, DMD, NABARD; and Dr Ajay Kumar Sood, DMD, NABARD.
In his address, Ajeet Kumar Sahu highlighted the fund’s potential to create an ecosystem that enhances financing for the agriculture sector through innovative approaches, benefiting small and marginal farmers. “The fund’s potential to create an ecosystem that enhances financing for the agriculture sector through innovative approaches will significantly benefit small and marginal farmers,” said Sahu.
Shaji K.V. emphasized the need for public and private sector collaboration to drive the next level of growth in agriculture through technological innovations. “Public and private sector collaboration is crucial to drive the next level of growth in agriculture through technological innovations,” he stated.
Explaining the features of the fund, the CEO of NABVENTURES briefed that the fund will be set up with an initial corpus of ₹750 crore, with ₹250 crore each from NABARD and the Ministry of Agriculture, and ₹250 crore from other institutions. “The fund will focus on innovation in agriculture, enhancing the farm produce value chain, creating rural infrastructure, generating employment, and supporting Farmers Producer Organizations (FPOs). It will also encourage IT-based solutions and machinery rental services for farmers,” he explained. NABVENTURES, a wholly-owned subsidiary of NABARD, will be the Fund manager of AgriSURE. The fund is designed to operate for 10 years, extendable by two or more years.
Underscoring its commitment to fostering innovation, NABARD also launched the AgriSURE Greenathon 2024. The hackathon aims to address three key problem statements: “Smart Agriculture on a Budget,” which tackles the high cost of advanced agriculture technologies that hinder small and marginal farmers; “Turning Agri-Waste into Profitable Business Opportunities,” focusing on transforming agricultural waste into profitable ventures; and “Tech Solutions Making Regenerative Agriculture Remunerative,” which aims to overcome economic hurdles in adopting regenerative agriculture practices.
NABARD called upon participation from young innovative minds to contribute to the journey of our country towards ‘Viksit Bharat’ with their innovative solutions to alleviate the flailing issues of the agriculture. “We call upon young innovative minds to contribute to the journey of our country towards ‘Viksit Bharat’ with their innovative solutions to alleviate the flailing issues of the agriculture,” said a NABARD spokesperson.
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