Indian govt to soon launch AgriSURE fund to support agritech startups, agripreneurs

The Indian government is set to launch the 'Agri Fund for StartUps & Rural Enterprises' (AgriSURE) with the aim of supporting agritech startups and agripreneurs.

The fund, which is created by the National Bank for Agriculture and Rural Development (NABARD) in collaboration with the Ministry of Agriculture and Farmers Welfare, will have an initial corpus of Rs 750 crore.

The initiative is designed to foster innovation and sustainability in India's agricultural sector through equity and debt investments.

How will AgriSURE operate?

AgriSURE will be managed by NABVENTURES, a wholly-owned subsidiary of NABARD. The fund is structured to provide an equal contribution of Rs 250 crore each from the Department of Agriculture and Farmers Welfare and NABARD, with an additional Rs 250 crore raised through financial institutions.

The fund will support approximately 85 agribusiness startups with investment sizes of up to Rs 25 crore each, targeting high-risk, high-impact activities in the agriculture value chain.

Enhancing farmer value chain

AgriSURE aims to bolster the farming value chain through direct equity support and investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs).

The fund is designed to promote innovative, technology-driven initiatives within the agricultural sector. By enhancing the farm produce value chain and creating new linkages and infrastructure in rural ecosystems, AgriSURE aims to invigorate these communities.

Additionally, the initiative seeks to generate employment and support Farmers Producer Organizations (FPOs).

Another key objective is to encourage the adoption of IT-based solutions and machinery rental services, providing farmers with modern tools and technologies to improve productivity and sustainability.

Launching AgriSURE Greenathon 2024

In addition to the fund, NABARD has introduced the AgriSURE Greenathon 2024, an innovative hackathon crafted to tackle three critical challenges facing the agricultural sector today.

The first problem statement, "Smart Agriculture on a Budget," addresses the prohibitive costs of advanced agricultural technologies that often sideline small and marginal farmers.

The second, "Turning Agri-Waste into Profitable Business Opportunities," focuses on transforming agricultural byproducts into viable and profitable ventures.

Lastly, "Tech Solutions Making Regenerative Agriculture Remunerative" aims to find ways to make regenerative agriculture practices economically feasible, overcoming the financial barriers that hinder their wider adoption. The initiative seeks to harness creative and technological solutions to advance sustainable farming practices across the board.