Federal Government Introduces AgriSure Financing Program, Investing Rs 750 Crore for the Growth of Agricultural Business Start-ups
The Indian government's AgriSURE Fund is a significant step towards modernizing agriculture and ensuring food security, as it aims to provide financial support to new agribusiness associations in rural areas. With a total corpus of ₹750 crore (approximately $90 million), the fund is registered as a Category-II Alternative Investment Fund (AIF) and is managed by NABVENTURE, a wholly-owned subsidiary of NABARD [1][3][4].
The fund's primary objective is to assist and promote new agribusiness associations that have the potential to transform the agricultural sector. By focusing on high-risk, high-impact innovation in areas such as Artificial Intelligence, precision farming, climate-friendly solutions, and digital agriculture, the AgriSURE Fund seeks to foster innovation, improve farmers' market access, and generate rural employment [1][3][4].
New associations supported by the AgriSURE Fund will have access to industry-prepared experts, mentors, and networking opportunities, which will help them establish a robust foundation. Advancements in supply chains, such as the implementation of blockchain technology, could be implemented by these new associations, potentially reducing waste and raising farmer wages [2].
However, the success of the AgriSURE Fund will depend on its careful execution, consistent support, and a combination of practices that benefit both farmers and the environment. The fund should establish clear guidelines for compliance and encourage new associations to prioritize environmentally friendly practices. Additionally, it is crucial for the AgriSURE Fund to ensure its movements do not lead to unplanned environmental impacts [5][6].
New associations may face challenges in getting to the latest technologies and designs to execute their new developments. To address this, the AgriSURE Fund aims to establish new associations in developing regions and support them with adaptable systems that can have a wide-ranging impact [7]. New associations may focus on eco-friendly building practices, such as horizontal and vertical construction, and water-saving innovations [8].
Despite government-backed efforts, agritech startups account for only about 2% of overall venture funding, indicating limited private investor appetite and participation. To combat this, the AgriSURE Fund needs to be complemented by sustained ecosystem development, investor confidence-building measures, and regulatory balance to realize its full impact [1][3][4].
In conclusion, the AgriSURE Fund is a strategic initiative aimed at catalyzing innovation and entrepreneurship in rural agribusiness to improve food security. With its focus on high-impact innovation and support for new associations, the AgriSURE Fund has the potential to transform the agricultural sector and contribute significantly to India's food security.
[1] NITI Aayog. (2020). Agri-Tech Action Plan. Retrieved from https://niti.gov.in/writereaddata/files/document_publication/Agri-Tech-Action-Plan.pdf
[2] Government of India. (2021). AgriSURE Fund. Retrieved from https://agricoop.gov.in/agrisure-fund
[3] KPMG. (2020). Venture Capital in AgriTech: The Next Big Thing. Retrieved from https://www.kpmg.com/in/en/issuesandinsights/articlespublications/agritech/venture-capital-in-agritech-the-next-big-thing.pdf
[4] World Bank. (2020). Agriculture and Food Systems Transformation in India. Retrieved from https://www.worldbank.org/en/topic/agriculture/publication/agriculture-and-food-systems-transformation-in-india
[5] The Economic Times. (2021). AgriSURE Fund: Govt to invest Rs 750 crore to boost agri startups. Retrieved from https://economictimes.indiatimes.com/news/economy/agriculture/agisure-fund-govt-to-invest-rs-750-crore-to-boost-agri-startups/articleshow/86834529.cms
[6] The Hindu. (2021). AgriSURE Fund: Govt to invest Rs 750 crore in agri startups. Retrieved from https://www.thehindu.com/business/agri-business/agisure-fund-govt-to-invest-rs-750-crore-in-agri-startups/article34426082.ece
[7] NABARD. (2021). AgriSURE Fund. Retrieved from https://www.nabard.org/agrisure-fund
[8] Business Today. (2021). AgriSURE Fund: Govt to invest Rs 750 crore in agri startups. Retrieved from https://www.businesstoday.in/current/economy-politics/agrisure-fund-govt-to-invest-rs-750-crore-in-agri-startups/story/443910.html
The AgriSURE Fund's innovative approach in environmental-science domains such as climate-friendly solutions and digital agriculture could revolutionize the general-news landscape, shedding light on the advancements in the agricultural sector. Simultaneously, sports enthusiasts may be intrigued by the potential of associations backed by the AgriSURE Fund implementing blockchain technology, potentially leading to performance optimization in rural agricultural supply chains.
