What Is AgriSure Scheme For Start-ups? Here's Everything You Need To Know About This Initiative

The government has encouraged startups to make use of this fund & assured that there would be no shortage of funding for agritech startups, which are playing a crucial role in transforming the sector

The scheme seeks to target high-risk, high-impact activities across the entire agricultural value chain, focusing on areas that have the potential to bring about significant change and improvement

Source : ABPLIVE AI

In September this year, Union Agriculture Minister Shivraj Singh Chouhan launched the 'AgriSure' fund scheme designed to provide financial support to agritech start-ups. The Rs 750-crore 'AgriSure' fund (Agri Fund for Startups & Rural Enterprises) aims to support agritech startups and 'agripreneurs' by offering both equity and debt capital.

The government has encouraged startups to make use of this fund and assured that there would be no shortage of funding for agritech startups, which he noted are playing a crucial role in transforming the agriculture sector.

Agri Fund For Startups & Rural Enterprises (AgriSURE): Everything You Need To Know

The 'Agri Fund for Startups & Rural Enterprises' (AgriSURE) is an initiative aimed at driving innovation and sustainability within India's agriculture sector. The category-II Alternative Investment Fund (AIF), AgriSURE will offer both equity and debt support to accelerate growth in the sector.

The AgriSURE fund is designed to support approximately 85 agriculture startups, with each startup eligible for investments of up to Rs 25 crore. The fund will offer financial backing through direct investments in sector-specific projects as well as contributions to AIFs, targeting innovation and growth across various segments of the agriculture sector.

Eligible AIFs, incorporated in India, can invest in equity-related instruments and/or debt securities. The scheme mandates that sector-agnostic funds allocate a specified portion of their investments into the preferred sectors of the fund. Investments from this scheme are capped at a maximum of 5 per cent of the AIF’s corpus or Rs 25 crore per AIF, whichever is lower.

The scheme seeks to target high-risk, high-impact activities across the entire agricultural value chain, focusing on areas that have the potential to bring about significant change and improvement. With an initial corpus of Rs 750 Crore, AgriSURE will receive contributions of Rs 250 Crore each from NABARD and the Ministry of Agriculture, along with Rs 250 Crore from other participating institutions.

AgriSURE will primarily focus on supporting agritech startups and agripreneurs, boosting the value chain of farm produce, building rural infrastructure, and supporting Farmers Producer Organisations (FPOs). The fund is designed to stimulate innovation within the agriculture sector, create and enhance rural infrastructure, and improve employment opportunities in rural areas.

Additionally, AgriSURE will back the development of IT-driven solutions and machinery rental services, both of which are essential for empowering farmers and improving agricultural productivity. By focusing on these key areas, the fund aims to enhance India's agricultural landscape while improving the livelihoods of those in the sector.

The AgriSURE Fund comprises two key components designed to support agritech and rural development initiatives. The scheme (Rs 300 crore) is targeted at making direct equity investments in early-stage startups focused on agriculture and rural development. These startups must be registered with the Department for Promotion of Industry & Internal Trade (DPIIT) and incorporated in India. 

The fund will have a duration of 10 years from its inception, with the possibility of an extension of two years.