NABARD Announces INR 750 Cr 'Agri-SURE' Fund to Boost Agri-Startups and Rural Enterprises The fund will support 85 start-ups with variable ticket sizes of up to INR 25 crore.
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The National Bank for Agriculture and Rural Development (NABARD) held a pre-launch stakeholder meeting in Mumbai to announce the 'Agri-SURE' fund, an agricultural fund for startups and rural enterprises.
The fund, managed by NABVENTURES, a subsidiary of NABARD, has an initial corpus of INR 750 crore, contributed by NABARD, the Indian Ministry of Agriculture, and other institutions.
This initiative aims to support approximately 85 agri-startups with investment sizes of up to INR 25 crore each by the end of its term, promoting technology-driven, high-impact activities in agriculture and allied areas.
The Agri-SURE fund will support agri-startups through sector-specific, sector-agnostic, and debt AIFs (alternative investment funds) and direct equity. Focus areas include tech-driven agriculture, enhancing farm produce value chains, creating rural infrastructure, generating employment, supporting FPOs (farmers producer organizations), and driving sustainable growth and development.
A K Sahu, Joint Secretary, Department of Agriculture and Farmers Welfare, said, "The broader objective of this initiative is to address the flailing issues for the agri- and rural sectors. We need innovation and technology to ensure the last-mile delivery of resources. 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."
"We need to foster an ecosystem for systematic mechanisation in order to achieve our objectives. Agri-SURE is a big leap in that direction. With the help of this fund, we aim to support startups to provide us with innovative and sustainable solutions," Sahu added.
Additionally, NABARD launched the Agri-SURE Greenathon 2024, a hackathon to address challenges in smart agriculture, agri-waste profitability, and regenerative agriculture. The pre-launch meeting underscored a collaborative effort to foster sustainable rural development and economic growth.
NABARD is an apex development financial institution in India, dedicated to promoting sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institutional development, and other innovative initiatives.
Shaji KV, Chairman of NABARD, said, "The digitalization of agriculture is the call of the hour in order to enhance the agri-value chain, as the next wave of growth will come from innovation. Fintech innovation in agriculture is one of the important aspects of last-mile connectivity with minimum expenses. Farmers are the foundation of the agri value, and they need to be handled very closely and provided with solutions."
"Credit alone will not solve the problem in the agriculture sector. The next level of growth will come from innovations that need to be co-partnered by public and private institutions. With this fund, we aim to support early-stage innovators and help farmers with viable, sustainable, and durable tech solutions," Shaji added.
