Government Launches ‘Agri SURE’ fund of ₹750 Crore
The Government is poised 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.
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.
The fund’s potential is to create an ecosystem that enhances financing for the agriculture sector through innovative approaches, benefiting small and marginal farmers. Shri Shaji K.V. emphasized the need for public and private sector collaboration to drive the next level of growth in agriculture through technological innovations.
Focus of Fund
The CEO of NABVENTURES explained that the fund will be set up with an initial corpus of ₹750 Crore, with ₹250 crores each from NABARD and the Ministry of Agriculture, and ₹250 crores 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). The fund 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
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 for participation from young innovative minds to contribute to the journey of India towards ‘Viksit Bharat’ with their innovative solutions to alleviate the pressing issues of the agriculture sector.
AgriSURE’s Vision for the Future
This initiative is a significant step towards revolutionizing India’s agricultural sector by infusing it with modern technology and innovative practices. The emphasis on high-risk, high-impact activities indicates a commitment to transformative changes that can sustain long-term growth. The collaboration between public and private sectors is expected to enhance the reach and efficacy of these efforts, ensuring that even the smallest farmers benefit from these advancements.
The AgriSURE fund’s dual focus on equity and debt support offers a comprehensive financial solution for start-ups and ‘agripreneurs’. By targeting various stages of the agriculture value chain, the fund aims to create a robust ecosystem that supports everything from initial research and development to large-scale implementation and market integration.
With initiatives like the ‘AgriSURE Greenathon 2024’, NABARD is not just investing in financial resources but also in intellectual capital. By involving young minds in solving real-world agricultural problems, the initiative hopes to spark a wave of innovation that can drive sustainable agricultural practices and profitable business models for years to come.
Stay tuned with us on our WhatsApp channel for more real time updates on various agriculture related schemes and innovative cultivation methods aimed at supporting our hardworking farmers. For more detailed information, visit KhetiGaadi regularly!
