(NTI): The agricultural sector is on the brink of a revolution, and startups in agriculture and related industries are set to benefit significantly from the government’s latest initiative. The ‘Agri Fund for Start-Ups and Rural Enterprises’ (AgriSURE) is poised to provide direct equity funding to startups while also investing in debt Alternative Investment Funds (AIFs) that are either sector-specific or sector-agnostic. This initiative marks a significant step towards encouraging innovation and sustainability within India’s agricultural landscape.
A Brief Overview of the AgriSURE Fund
AgriSURE aims to bolster the agricultural sector through a Category-II Alternative Investment Fund (AIF) with a substantial capital of INR 750 crore. This fund is designed to back high-risk, high-impact initiatives in the agricultural value chain by providing both equity and financial support. The announcement was made during a pre-launch meeting of stakeholders at the National Bank for Agriculture and Rural Development (NABARD) headquarters in Mumbai.
Capital Allocation and Fund Management
Out of the total INR 750 crores, INR 250 crores will be contributed by NABARD and the Ministry of Agriculture, with the remaining INR 250 crores sourced from other organizations. The management of the AgriSURE Fund will be handled by NABVENTURES, a fully-owned subsidiary of NABARD. The fund is structured with an initial term of ten years, extendable by two additional terms if necessary.
Key Funding Priorities
The AgriSURE Fund is strategically focused on several key areas, including:
- Agricultural Innovation: Encouraging novel approaches and technologies in farming.
- Value Chain Enhancement: Improving the efficiency and profitability of the farm produce value chain.
- Rural Infrastructure Development: Building and upgrading infrastructure to support agricultural activities.
- Job Creation: Generating employment opportunities in rural areas.
- Farmer Producer Organizations (FPO) Support: Strengthening FPOs to enhance their capabilities and market reach.
- IT Solutions: Implementing information technology solutions to streamline agricultural processes.
- Rental Services for Agricultural Machinery: Providing affordable access to essential farming equipment.
The Role of NABARD
Established in 1982 by an Act of Parliament, NABARD (National Bank for Agriculture and Rural Development) is India’s premier development bank with a mission to promote equitable and sustainable agriculture and rural development. By leveraging both financial and non-financial interventions, NABARD strives to ensure that innovations, technology, and institutional development contribute to the holistic growth of the agricultural sector.
The AgriSURE Greenathon 2024
To underscore its commitment to innovation, NABARD has launched the AgriSURE Greenathon 2024. This initiative addresses three critical challenges:
- Smart Agriculture on a Budget: Tackling the high costs of advanced agricultural technologies that impede the success of small and marginal farmers.
- Turning Agri-Waste into Profitable Business Opportunities: Transforming agricultural waste into viable business ventures.
- Tech Solutions Making Regenerative Agriculture Remunerative: Overcoming economic barriers to adopting regenerative agricultural practices.
