Government to Launch ‘Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE)

The Government of India is set to launch the ‘Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE) to support start-ups and agripreneurs through investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs), as well as direct equity support to start-ups working in agriculture and allied sectors. This initiative aims to foster innovation and sustainability in India’s agricultural sector through the establishment of a Rs 750 crore Category-II Alternative Investment Fund (AIF). The fund will offer both equity and debt support, specifically targeting high-risk, high-impact activities in the agriculture value chain.

Announcement and Key Attendees

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 Shri Ajeet Kumar Sahu, Joint Secretary, DA&FW; Shri Shaji K.V., Chairman, NABARD; Shri Govardhan Singh Rawat, DMD, NABARD; and Dr. Ajay Kumar Sood, DMD, NABARD. Shri Ajeet Kumar Sahu emphasized the fund’s potential to create an ecosystem enhancing financing for the agriculture sector, benefiting small and marginal farmers. Shri Shaji K.V. highlighted the need for public and private sector collaboration to drive agricultural growth through technological innovations.

Fund Structure and Focus

The CEO of NABVENTURES explained 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. 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.

AgriSURE Greenathon 2024

As part of 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,” addressing 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.
• “Tech Solutions Making Regenerative Agriculture Remunerative,” aiming to overcome economic hurdles in adopting regenerative agriculture practices.

Call for Participation

NABARD has called for the participation of young innovative minds to contribute to the country’s journey towards ‘Viksit Bharat’ with their innovative solutions to alleviate the challenges in agriculture.

NABARD : Key points

Full Name: National Bank for Agriculture and Rural Development.

Established: 1982.

Headquarters: Mumbai, Maharashtra, India.

Function

NABARD is responsible for providing credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.

Role

It acts as the apex development bank in India for the promotion of sustainable and equitable agriculture and rural development.

Objectives

• Provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, and rural crafts.
• Promote integrated and sustainable rural development.
• Support the development of infrastructure in rural areas.

Activities

• Financing rural infrastructure development.
• Promoting rural banking and financial inclusion.
• Facilitating the flow of institutional credit to agriculture and allied sectors.

Subsidiaries

NABVENTURES, NABARD Consultancy Services (NABCONS), and others.

Initiatives

NABARD has launched various schemes and programs such as the Kisan Credit Card (KCC), Self Help Group (SHG) bank linkage program, and the Rural Infrastructure Development Fund (RIDF).

Green Initiatives

Promotes sustainable development through schemes like the Watershed Development Program and the Climate Change Adaptation Fund.