Assam has launched a Rs 250 crore agricultural fund to boost agribusiness. In a bid to promote small and medium-sized units in the agriculture sector, multiple stakeholders, including the World Bank, have come together to create a fund worth Rs 250 crore in Assam, according to officials. The venture capital fund, Caspian Impact Investment Adviser, has partnered with the Assam Rural Infrastructure and Agricultural Services (ARIAS) Society to establish the Assam Agribusiness Investment Fund (AAIF).
The AAIF, with a corpus of Rs 250 crore, aims to provide a unique sector-specific fund that focuses on enhancing agricultural productivity and generating employment opportunities in the state. Its primary objective is to invest in small and medium enterprises operating in the agribusiness and allied sectors to foster accelerated growth. ARIAS has been designated as the anchor investor for the AAIF, while Caspian Equity will act as the fund manager.
Saurabh Johri, Executive Director and CEO of Caspian Impact Investment Adviser, expressed his delight at collaborating with ARIAS and their shared mission to catalyze the economic development of Assam's rural communities. By leveraging their investment expertise in conjunction with ARIAS' extensive knowledge and experience, the aim is to make a sustainable impact and empower individuals to thrive.
The fund will be led by Ravi Narasimham, Investment Director at Caspian, as the company looks forward to forging a strong partnership with ARIAS, with the ultimate goal of creating a prosperous and empowered rural community. Ashish Kumar Bhutani, Chairman of ARIAS Society, highlighted the uniqueness of the AAIF as a state-led initiative that seeks to address critical gaps in value chain finance within the agriculture and allied sectors while also increasing farmers' income.
The chairman expressed optimism that the fund would contribute to supporting high-growth and high-impact agribusiness SMEs, fostering vibrant and resilient agri-food value chains in Assam. Toshiaki Ono, Finance Sector Specialist at the World Bank Group, emphasized the crucial role of agribusiness SMEs in the transformation of the agriculture sector. However, he noted that external finance, particularly long-term and patient capital for their growth, remains limited.
Ono expressed confidence that the newly established fund would support these SMEs, facilitating their development and contributing to the establishment of vibrant and resilient agri-food value chains in Assam.
