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. Distinguished guests included Ajeet Kumar Sahu, Joint Secretary, DA&FW; Shaji K.V., Chairman, NABARD; Govardhan Singh Rawat, DMD, NABARD; and Dr. Ajay Kumar Sood, DMD, NABARD.
In his address, Ajeet Kumar Sahu highlighted the fund's potential 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.
While explaining the features of the fund CEO NABVENTURES briefed 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.
While speaking on the announcement of Agri-SURE Shaji K.V., Chairman of NABARD said, “Digitalization of agriculture is the call of the hour in order to enhance the agri value chain as the next wave of growth will come from innovation. Fintech innovation in agriculture is one of the important aspect for the last mile connectivity with minimum expenses. Farmers are the foundation of the agri value and they need to be handled very closely and provided with solutions. Credit alone will not solve the problem in Agriculture sector. Next level of growth will come from innovations that need to be co-partnered by Public and Private Institutions. With this fund we aim to support early stage innovators and help farmers with viable, sustainable and durable tech solutions.”
Underscoring its commitment to fostering innovation, NABARD 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 upon participation from young innovative minds to contribute in the journey of our country towards ‘Vikasit Bharat’ with their innovative solutions to alleviate the flailing issues of the agriculture.
The prelaunch stakeholder meeting gathered representatives from banks, financial institutions, insurance companies, AIFs, and startups operating in the agricultural domain. Their presence underscores the collaborative effort to foster sustainable rural development and economic growth.
