AgriSURE Fund: Objectives, Target Beneficiaries, and its Impact on India's Agriculture Sector

AgriSURE Fund, an innovative scheme aimed at transforming India’s agricultural sector, was recently launched by Union Minister Shivraj Singh Chouhan. With a fund of Rs 750 crore, this scheme seeks to support technology-driven start-ups and rural enterprises, providing a significant boost to the rural economy and empowering farmers through cutting-edge solutions. Let's explore how the AgriSURE Fund is set to reshape the future of agriculture in India.

What is the AgriSURE Fund?

The AgriSURE Fund, officially known as the Agri Fund for Start-ups & Rural Enterprises, is a pioneering venture that aims to bring transformative change to the agricultural sector. This fund is designed to back high-risk, high-impact projects driven by advanced technology, offering crucial support to start-ups and rural enterprises that are at the forefront of agricultural innovation.

Background of AgriSURE Fund

The concept of the AgriSURE Fund was first introduced by the Finance Minister in the Budget Speech for 2022-23. The speech highlighted the need for a fund, with blended capital, to be facilitated through NABARD under a co-investment model. This fund was envisioned to finance start-ups focusing on agriculture and rural enterprises, particularly those involved in the farm produce value chain. The initiative was expected to include support for Farmer Producer Organizations (FPOs), farm-level machinery rentals, and technology-based solutions.

In response to this vision, the AgriSURE Fund was established, sponsored by the Government of India and NABARD, to support innovative, technology-driven, high-impact activities in agriculture and allied sectors.

Structure and Management of the Fund

The AgriSURE Fund boasts a total corpus of Rs 750 crore. Of this, Rs 250 crore is contributed by the Government of India, Rs 250 crore by NABARD, and the remaining Rs 250 crore is to be raised from other institutions, including private investors. The fund is registered as a Category-II Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI), and is managed by NABVENTURES Ltd., a wholly-owned subsidiary of NABARD.

Objectives of the AgriSURE Fund

The AgriSURE Fund is designed with several key objectives aimed at fostering innovation and growth within the agricultural sector:

• Investment-Friendly Environment: To create an investment-friendly climate for start-ups related to agriculture and allied activities, enhancing their capacity to attract and absorb investments.

• Accelerating Growth: To accelerate the growth of start-ups within the agri-ecosystem, ensuring they have the necessary resources and support to thrive.

• Capital Commitment: To increase and sustain capital commitments to sector-specific AIFs, enabling them to provide equity support to Agri & Agri-tech start-ups serving farmers and FPOs.

• Encouraging Innovation: To encourage young entrepreneurs with innovative, technology-driven ideas to take on high-risk, high-impact activities in agriculture and Agri-tech.

• Liquidity Support: To provide liquidity to existing Agri & Agri-tech start-ups struggling to scale up due to limited access to financing options like equity and debt instruments.

• Strengthening Value Chains: To enhance opportunities for efficient and profitable forward and backward linkage systems in the rural space, strengthening the farm produce value chain.

• Employment Generation: To create additional employment opportunities for technically qualified rural and urban youth, encouraging them to view agriculture as a viable business opportunity.

• Youth Retention in Agriculture: To retain rural youth in agriculture and attract the younger generation by providing access to new technologies and equipment.

Target Beneficiaries

The AgriSURE Fund aims to support approximately 85 start-ups by the end of its lifecycle, with investments ranging up to Rs 25 crore. The target beneficiaries include start-ups working in agriculture and rural development sectors, particularly in areas such as Agritech, Food Processing, Animal Husbandry, Fisheries, Supply Chain Management, Farm Mechanization, Biotechnology, Waste Management, Renewable Energy, and Agri Value Chain development. The fund also supports Primary Cooperative Societies and FPOs, focusing on technology integration at the farm level and addressing challenges related to climate change.

The AgriSURE Fund represents a significant step forward in the modernization and revitalization of India’s agricultural sector. The fund is poised to drive technological advancements, improve farm productivity, and ultimately enhance the livelihoods of farmers across the country by supporting innovative start-ups and rural enterprises.

As the fund begins to deploy its resources, it will likely serve as a catalyst for sustainable growth and development in India’s rural economy, paving the way for a more prosperous and resilient agricultural landscape.