Startups to be Supported by NABARD's Agri-SURE Fund, Valued at Rs 750 Crore

Nitin Konde

Jul 15, 2024 — 3 min read

Government Launches Agri-SURE Fund for Agriculture Startups

Startups in agriculture and related industries will soon have access to direct equity funding through the government's 'Agri Fund for Start-Ups and Rural Enterprises' (AgriSURE), which will also invest in debt Alternative Investment Funds (AIFs) that are either sector-specific or sector-agnostic.

The creation of a Category-II Alternative Investment Fund (AIF) with a capital of INR 750 crore is part of this initiative's plan to encourage innovation and sustainability in India's agricultural industry. Targeting high-risk, high-impact initiatives in the agriculture value chain, the fund will provide both equity and financial backing.

The development was announced during a pre-launch meeting of stakeholders at NABARD's Mumbai headquarters. A total of INR 750 crores would be used to establish the fund, with INR 250 crores allocated by NABARD and the Ministry of Agriculture, as well as INR 250 crores from other organisations.

Funding priorities include agricultural innovation, value chain enhancement for farm produce, rural infrastructure development, job creation, and FPO support. Information technology (IT) solutions and rental services for agricultural machinery will also be supported by the fund. The management of the AgriSURE Fund will be carried out by NABVENTURES, a fully-owned subsidiary of NABARD. The initial term of the fund is ten years, with two more extensions possible.

Additionally, NABARD launched the AgriSURE Greenathon 2024 to emphasise its dedication to encouraging innovation. It attempts to resolve three critical issues: "Smart Agriculture on a Budget," which addresses the exorbitant cost of advanced agricultural technologies that hamper the success of small and marginal farmers; "Turning Agri-Waste into Profitable Business Opportunities," which concentrates on the conversion of agricultural waste into profitable ventures; and "Tech Solutions Making Regenerative Agriculture Remunerative," which attempts to overcome economic obstacles to the adoption of regenerative agriculture approaches.

In 1982, an Act of Parliament established NABARD as India's top development bank with the goal of fostering equitable and environmentally responsible agricultural practices and rural infrastructure development.

By involving stakeholders in financial and non-financial interventions, innovations, technology, and institutional development, NABARD seeks to ensure agricultural and rural development that is both sustainable and equitable.

NABARD with the Government of India

By subsidising a portion of the total project cost, the Indian government encourages farmers to take up projects in specific locations. In sectors of critical national importance, all of these projects seek to improve capital investment, sustained income flow, and employment.

Throughout the government's many projects and initiatives, NABARD has played a pivotal role in order to rightly execute these schemes and policies.

Schemes for the Farm Sector

New Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM
Agri Clinics and Agri-Business Centres Scheme (ACABC)
Scheme for Extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity
Interest Subvention Scheme
National Livestock Mission - Entrepreneurship Development & Employment Generation (NLM-EDEG) (Closed/Temporarily Closed)
Dairy Entrepreneurship Development Scheme (DEDS) (Closed/Temporarily Closed)
Commercial production units of organic inputs - National Project on Organic Farming (NPOF) (Closed/Temporarily Closed)

Schemes for the Off Farm Sector

Stand-Up India
Special Credit Linked Capital Subsidy Scheme (SCLCSS)

Farmers must be treated with the utmost care and given the resources they require because they are the backbone of the agri value chain. Agricultural problems cannot be resolved by the use of credit alone. Innovations necessitating public-private partnerships will drive the next level of growth. The government of India and related institutions are hoping to provide farmers with practical, long-term technological solutions by investing in early-stage innovators.