To foster innovation and sustainability in India’s agricultural sector, the central government is set to introduce the ‘Agri Fund for Startups and Rural Enterprises’ (Agrisure) through investments in sector-specific and debt alternative investment funds (AIFs). The government is aiming to set up a Rs 750 crore category-II AIF along with providing direct equity support to startups and entrepreneurs working in agriculture and allied sectors.
Agriculture Ministry in collaboration with National Board for Agriculture and Rural Development (Nabard) announced the fund, which is expected to be introduced in August 2024. The announcement was made at Nabard’s 43rd foundation day event held at its headquarters in Mumbai on Friday.
The fund will be set up with an initial corpus of Rs 750 crore with a contribution of Rs 250 crore each from Nabard and the agriculture ministry. The remaining 250 crore will be contributed by other institutions. The fund is designed to operate for ten years, which is expandable by two or more years. Nabventures, a wholly owned subsidiary of Nabard will be the fund manager of Agrisure.
Ajeet Kumar Sahu, the joint secretary of the Department of Agriculture and Farmers’ Welfare (DA and FW) highlighted the fund’s potential to create an ecosystem that would enhance the financing for the agriculture sector through innovative approaches, benefitting small and marginal farmers.
The fund will be aimed at fostering innovation in agriculture along with enhancing the farm produce value chain, creating rural infrastructure and generating employment. It will also support Farmers Producer Organisations (FPOs), in addition to encouraging IT-based solutions and machinery rental services for farmers.
Shaji K V, the chairman of Nabard emphasised the need for public and private sector collaboration to drive the next level of growth in agriculture through technological innovations. Additionally, Nabard introduced the Agrisure Greenathon 2024 at the event in Mumbai.
