Agritech

Govt Launches Rs 750 Crore ‘AgriSure’ Fund to Boost Agritech Startups

• ByStartupStory     |    September 4, 2024

In a significant move to bolster the agriculture sector, Union Agriculture Minister Shivraj Singh Chouhan on Tuesday unveiled the Rs 750-crore ‘AgriSure’ fund, designed to provide financial support to agritech startups and rural enterprises. The launch took place during an event where the minister also introduced the integrated Agri Investment Portal, ‘KrishiNivesh.’

The ‘AgriSure’ fund, formally known as the Agri Fund for Startups & Rural Enterprises, aims to support agripreneurs by offering both equity and debt capital. The initiative comes as part of the government’s broader push to increase investments—both public and private—in agriculture, which is regarded as the backbone of India’s economy.

“There is a need for investment in agriculture, not only from the government side but also private investments,” Chouhan stated during the launch event. “Investment is required to boost production and value addition in the sector.”

Chouhan assured the agritech community that there would be no shortage of funds for startups in the sector. “Startups should utilize this fund,” he encouraged, emphasizing the crucial role these enterprises play in modernizing Indian agriculture.

The ‘AgriSure’ fund is part of a series of initiatives aimed at transforming the agricultural landscape. On Monday, the Union Cabinet approved seven schemes for the agriculture sector, with a combined outlay of nearly Rs 14,000 crore.

Chouhan also highlighted the government’s Rs 1 lakh crore Agriculture Infrastructure Fund (AIF), which aims to create various farm-related infrastructure in rural India. “Agriculture is the backbone of the Indian economy and the sector contributes around 18 per cent to the GDP,” he noted. The minister also pointed out that the indirect contribution to the economy is even greater, as farmers are not only the biggest producers but also the largest consumers.

The government’s efforts, Chouhan said, are focused on boosting farmers’ income while ensuring food and nutritional security. He outlined the Centre’s strategies, which include increasing production, reducing input costs, ensuring better prices for farm produce, crop diversification, and introducing modern technology in agriculture.

“We need new experiments in the agriculture sector,” the minister said, urging small farmers to form groups to cultivate larger areas collectively. He also stressed the importance of sustainable farming practices, highlighting the excessive use of chemical pesticides and fertilizers and the need to protect soil health.

Chouhan also introduced the Krishi Nivesh Portal, which is expected to revolutionize the agricultural sector by centralizing investment opportunities and information. “This portal is a comprehensive platform designed to enhance agribusinesses, attract investments, and improve farmers’ income,” he said. The portal will cater to various stakeholders, including farmers, entrepreneurs, and industries, by providing easy access to information regarding Central and state government schemes.

During the event, the minister presented the AIF Excellence Awards to the top-performing banks and states in recognition of their efforts. Among the public sector banks, State Bank of India, Canara Bank, Bank of Baroda, Indian Bank, and Punjab National Bank received awards. HDFC Bank was recognized as the best-performing private sector bank.

In the regional rural banks category, Baroda Rajasthan Kshetriya Grameen Bank, Punjab Grameen Bank, Baroda UP Grameen Bank, Maharashtra Grameen Bank, and Sarva Haryana Grameen Bank were honored for their outstanding performance.

The best-performing states under the Agriculture Infrastructure Fund were Madhya Pradesh, Punjab, Uttar Pradesh, Maharashtra, Karnataka, Gujarat, and Telangana, each recognized for their significant contributions to the sector.

About AgriSure:

The Rs 750-crore ‘AgriSure’ fund is a government initiative aimed at supporting agritech startups and rural enterprises by providing them with both equity and debt capital. This fund is part of the government’s broader strategy to enhance investment in agriculture, increase production, and improve value addition across the sector.

About Krishi Nivesh Portal:

The Krishi Nivesh Portal is an integrated Agri Investment platform designed to centralize investment opportunities and information for the agricultural sector. It caters to a diverse range of stakeholders, including farmers, entrepreneurs, and industries, by providing easy access to information on various Central and state government schemes.

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