Centre launches Rs 750 crore fund for tech startups to boost agriculture

Mumbai: The Ministry of Agriculture and Farmers’ Welfare in collaboration with the National Bank for Agriculture and Rural Development (NABARD) on Friday launched a Rs 750 crore ‘Agri Sure’ fund for startups to promote investment in innovative, technology-driven and high-impact activities in agriculture and rural enterprises.

The fund announced by NABVentures, a subsidiary of NABARD has an initial corpus of Rs 750 crore with 250 crores each from NABARD and the Ministry of Agriculture, and 250 crores from other institutions.

The fund is structured to support approximately 85 agri startups with investment sizes of up to Rs 25 crore each by the end of its term. The fund will provide support through investments in sector-specific, sector-agnostic and debt Alternative Investment Funds (AIFs) as well as direct equity support to startups.

The fund was launched in the presence of Ajeet Kumar Sahu, Joint Secretary, Department of Agriculture & Farmers’ Welfare, Shaji K.V., Chairman, NABARD and other senior officials.

Sahu said, “Most of our farmers hold small pieces of land, in this ecosystem we need to focus on enhancing productivity, this is where technology can play a crucial role.”

The NABARD chairman said, “With this fund, we aim to support early-stage innovators and help farmers with viable, sustainable and durable tech solutions.”

The fund is structured to support approximately 85 agri start-ups with investment sizes of up to Rs 25 crore each by the end of its term. The fund will provide support through investments in sector-specific, sector-agnostic and debt Alternative Investment Funds (AIFs) as well as direct equity support to start-ups.

Agri-Sure’s focus areas include promoting innovative, technology-driven initiatives in agriculture, enhancing the farm produce value chain, creating new rural ecosystem linkages and infrastructure, generating employment and supporting Farmers Producer Organizations (FPOs).

Additionally, the fund aims to encourage entrepreneurship through IT-based solutions and machinery rental services for farmers, driving sustainable growth and development in the agricultural sector.

Underscoring its commitment to fostering innovation, NABARD launched the Agri Sure Greenathon 2024. The hackathon aims to address three key problem statements: "Smart Agriculture on a Budget," which tackles the high cost of advanced agriculture technologies that hinder small and marginal farmers; "Turning Agri-Waste into Profitable Business Opportunities," focusing on transforming agricultural waste into profitable ventures; and "Tech Solutions Making Regenerative Agriculture Remunerative," which aims to overcome economic hurdles in adopting regenerative agriculture practices.