NABARD and govt launch Rs 750 Cr AIF fund to support agri-startups

The National Bank for Agriculture and Rural Development (NABARD), in partnership with the Ministry of Agriculture and Farmers Welfare, has launched AgriSure, a Rs 750 crore Category II alternative investment fund (AIF) aimed at supporting early-stage agriculture companies.

Out of the total corpus, Rs 300 crore will be directly invested in startups, while Rs 450 crore will function as a fund of funds, supporting venture investors operating in agriculture and allied sectors.

The central government and NABARD will each contribute Rs 250 crore, with the remaining Rs 250 crore to be raised from other banks, insurance companies, and private investors. The fund will be managed by NABVentures, a subsidiary of NABARD. The fund is designed to operate for 10 years, extendable by two or more years.

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The key objectives of AgriSure include reducing post-harvest losses, by investing in agricultural infrastructure like warehouses, cold storage, and processing units; bridging infrastructure gaps by developing critical infrastructure to support the agricultural supply chain; and reducing dependence on intermediaries by empowering farmers by providing direct access to infrastructure and resources.

It also looks to strengthen rural economies by enabling farmers to contribute to local economic growth; and boost farmers' income by enhancing access to infrastructure, increase income, and reduce wastage.

“Many young people are entering the agricultural field with great ideas and dedication, but often lack funding to realize their full potential. This is why we have launched AgriSure,” said Shivraj Singh Chouhan, Minister of Agriculture and Farmers Welfare of India, at the fund’s launch. “If there are good ideas, this government will work to nurture and support these startups,” he added.