In a significant development for the agricultural sector, Union Minister for Agriculture and Farmers’ Welfare and Rural Development, Shri Shivraj Singh Chouhan, today launched the AgriSURE Scheme in New Delhi. AgriSURE – Agri Fund for Start-ups & Rural Enterprises is an innovative fund which is a pioneering step toward revolutionizing the agricultural landscape in India. With a focus on technology-driven, high-risk, high-impact ventures, AgriSURE is designed to fuel growth and foster innovation in the agricultural and rural start-up ecosystem. A Blended capital fund of ₹750 crore with SEBI Registered Category II, Alternative Investment Fund (AIF), contributions from the Government of India is ₹250 crore, NABARD is ₹250 crore, and ₹250 crore is being mobilized from banks, insurance companies, and private investors.
Main objective of AgriSure Scheme
- The main objective of AgriSure Scheme is to promote innovation and sustainability in the agricultural sector of India.
- Under this scheme, an Alternative Investment Fund (AIF) of Rs 750 crore will be established in the agricultural sector of India, in which Rs 250-250 crore will be contributed by the Ministry of Agriculture and National Bank for Agriculture and Rural Development (NABARD) and another Rs 250 crore will be raised through other financial institutions of India.
- The main objective of this scheme is to include high risk and high impact activities in the agricultural value chain.
- The AgriSure Scheme launched in India is an innovative mixed capital fund, which is registered as a Category II Alternative Investment Fund (AIF) with the Securities and Exchange Board of India.
- The Government of India, National Bank for Agriculture and Rural Development (NABARD) and private investors are mainly financially contributing to operate this scheme in India.
- AgriSure aims to promote growth and innovation in the agriculture and rural development start-up ecosystem by focusing on technology-driven, high-risk, high-impact ventures.
- Through this scheme, production and quality will be improved by using new and advanced technologies in the agriculture sector, thereby increasing the income of Indian farmers and providing immense economic strength to the rural economy of India.
Key features of AgriSure Scheme
Key features of AgriSure Scheme are as follows
- Encouraging entrepreneurship through IT-based solutions to promote sustainable growth and development in India’s agriculture sector: The fund will encourage entrepreneurship through IT-based solutions for farmers, thereby promoting sustainable growth and development in the agriculture sector.
- Investment size and structure of the fund: The fund created under the AgriSure scheme aims to support around 85 agriculture start-ups, each with an investment size of up to Rs 25 crore.
- Providing assistance through investment: The fund will provide assistance through investment in sector specific and Alternative Investment Funds (AIFs).
- Providing direct equity assistance: The fund will also provide direct equity assistance to start-ups in the agriculture sector of India.
- Promoting innovation and development in the agriculture sector: The fund will focus on innovation in agriculture, enhancing the agricultural produce value chain, building rural infrastructure, generating employment and supporting Farmer Producer Organizations (FPOs).
- Operation period of Agrisure Fund: The Agrisure Fund is to be operated for 10 years in the agriculture sector of India, which can also be extended for two or more years.
- Beneficiary class of Agrisure Scheme: The fund created under the Agrisure Scheme will benefit small and marginal farmers of India.
- Fund Manager of Agrisure Scheme: NABARD’s wholly owned subsidiary ‘NABentures’ will act as the fund manager.