Government Unveils Agriculture-Specific Rs 750 Crore Fund to Bolster Agribusiness Entreprenurship
The Indian government has launched a Rs 750 crore AgriSURE Fund to support new agribusiness associations. The fund aims to catalyze growth and innovation in agricultural startups by ensuring access to patient capital, nurturing technology-driven solutions, expanding market linkages, and generating employment in rural areas.
The AgriSURE Fund, jointly established by the Ministry of Agriculture & Farmers Welfare and NABARD, focuses on early-stage startups by offering equity and debt capital assistance. The fund targets fostering innovation and supporting high-risk, high-impact activities in the agriculture sector, particularly technologies such as Artificial Intelligence, precision farming, climate-friendly solutions, and digital agriculture.
Key features of the AgriSURE Fund include providing loans with a capped interest of 9% and an interest subvention of 3% for amounts up to Rs. 2 crore, with up to 7 years tenure. As of June 2025, nearly 48,000 agri-preneurs received loans totaling Rs. 48,330 crore, supporting 2,303 startups with Rs. 2,182 crore through various banks and financial institutions.
The fund structure consists of Rs. 300 crore directly invested into startups, while Rs. 450 crore acts as a fund of funds to catalyze further investments. The fund is managed by NABARD’s wholly-owned subsidiary NABVENTURE, ensuring professional venture fund management and leveraging NABARD’s expertise in agricultural development.
The AgriSURE Fund does not subsidize agricultural inputs directly but primarily supports startups through equity and debt investment, aiming at transformative innovation and scaling sustainable agribusiness models. This approach is intended to address funding gaps and reduce risks faced by high-potential agritech ventures, which have historically struggled with limited venture capital interest despite the sector’s vast potential.
The AgriSURE Fund encourages new businesses to use eco-friendly building practices, such as horizontal and vertical construction, and water-saving innovations. The fund also aims to improve farmers’ market access and create rural job opportunities, addressing broad agricultural challenges.
New associations funded by AgriSURE could increase productivity through the development of accurate advancements, large-scale water systems, and high-yield crop varieties. To be eligible for funding, new associations must submit coordinated recommendations that outline their innovative approaches and how they intend to use the support.
Scaling promising ideas from new agribusiness associations to assist a large number of farmers across India is a crucial test. The public authority may need to invest resources in establishing a robust foundation to support these new associations. Improvements in supply chains, such as blockchain technology and data-driven tasks, have the potential to increase the allocation of agricultural produce, reduce waste, and raise farmer wages.
The primary objective of the AgriSURE Fund is to assist and promote new agribusiness associations that have the potential to transform the agricultural sector. The AgriSURE Fund also aims to engage farmers in creating their own instruments and advances, improving their efficiency and livelihoods. The fund will provide new associations with access to industry experts, mentors, and networking opportunities. The AgriSURE Fund aims to redesign food security through the support of innovative agribusinesses and focuses on fostering sustainable practices by connecting with new associations.
The AgriSURE Fund, intending to foster sustainable practices and transform the agricultural sector, does not solely focus on agricultural inputs but primarily supports new agribusiness associations through equity and debt investment. These new associations are expected to utilize the funding for innovative technologies such as precision farming, Artificial Intelligence, and digital agriculture.
Beyond simply supporting new associations, the AgriSURE Fund aims to engage farmers in creating their owntools and advances, enhancing their efficiency and livelihoods, and redesigning food security through the support of sustainable, innovative agribusinesses.
