"Agri-SURE" Fund by NABARD Ready to address Innovation and Funding Gap in Agriculture

 

India being one of the largest agricultural land holders in the world, has multidimensional prospects to drive innovation in the agriculture and allied sectors. To cater to India’s growing population and rising export demand for agriculture products, the country now needs a transformational shift from traditional agriculture practices to innovative agriculture solutions to support the growth of the rural economy.

Source:  https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2032838

To give financial support to this transition the Government of India through NABARD planning to launch the 'Agri Fund for Start-Ups & Rural Enterprises' (Agri SURE) Fund. It will support startups and rural enterprises working in agriculture and allied sectors through investment. The vision is to ensure viability and innovation in Indian agriculture through the incorporation of advanced technologies.

Here, the government will invest in Alternative Investment Funds (AIFs) Category II of INR 750 crore along with NABARD and other institutions. The wholly-owned subsidiary of NABARD, NABVENTURES will manage the fund and provide financial assistance in the form of debt as well as equity to startups and agripreneurs. The fund will primarily focus on attributes with high-priority areas and risks. Through this, it will develop exponential growth opportunities in developing innovative agriculture practices and strengthening the farm produce value supply chain to address challenges.

By strengthening production and value supply chain, the farmers can elevate market reach that can eventually increase their profits. The rural advancement and robust establishment of needed infrastructure, advancing agricultural ventures, and assisting Farmers Producer Organizations (FPOs) will directly address the challenges of small and marginal farmers in terms of financing.

The collaboration under this fund among stakeholders will support the development of rural infrastructure to generate employment opportunities and support Farmer Producer Organizations (FPOs).  Through this, the government seeks support from agripreneurs, and start-ups to develop cutting-edge IT solutions and innovative machine rental services to support farmers.

This fund through collaborative investment will nurture innovation and promise sustainable growth in agriculture and allied sectors driven through technology. It will nurture strategic investment to shape futuristic transformation in agriculture and the allied sector. This will encourage stakeholders to address funding gaps in the domain and strengthen the rural economy to achieve the vision of ‘Viksit Bharat’.