The Indian government is set to launch the ‘Agri Fund for StartUps & Rural Enterprises’ (AgriSURE) to support agritech startups and entrepreneurs in the agricultural sector. This initiative, created by the National Bank for Agriculture and Rural Development (NABARD) in partnership with the Ministry of Agriculture and Farmers Welfare, will kick off with an initial corpus of ₹750 crore.
Objectives and Operations of AgriSURE
AgriSURE aims to foster innovation and sustainability in India’s agriculture through a mix of equity and debt investments. The fund will be managed by NABVENTURES, NABARD’s wholly-owned subsidiary. It is structured to secure equal contributions of ₹250 crore from both the Department of Agriculture and Farmers Welfare and NABARD, with an additional ₹250 crore raised from financial institutions.
The fund is expected to support around 85 agribusiness startups, with investments of up to ₹25 crore each, specifically targeting high-risk, high-impact activities within the agricultural value chain.
Strengthening the Farmer Value Chain
AgriSURE is designed to enhance the farming value chain by providing direct equity support and investing in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs). The initiative aims to promote innovative, technology-driven projects in agriculture, improving the value chain of farm produce and establishing new linkages and infrastructure in rural areas.
Additionally, AgriSURE seeks to generate employment opportunities and support Farmers Producer Organizations (FPOs). A major goal is to encourage the adoption of IT-based solutions and machinery rental services, equipping farmers with modern tools and technologies to boost productivity and sustainability.
Launch of AgriSURE Greenathon 2024
Alongside the fund, NABARD has introduced the AgriSURE Greenathon 2024, a hackathon designed to address three significant challenges in the agricultural sector.
- Smart Agriculture on a Budget: This challenge aims to make advanced agricultural technologies affordable for small and marginal farmers.
- Turning Agri-Waste into Profitable Opportunities: This initiative focuses on transforming agricultural byproducts into viable business ventures.
- Tech Solutions for Regenerative Agriculture: The goal here is to develop economically feasible solutions for regenerative agriculture practices, overcoming the financial barriers to their adoption.
Through the AgriSURE initiative and Greenathon, the government is committed to promoting sustainable farming practices and advancing the agritech landscape in India.
