Govt launches Rs 750 cr AgriSure fund to support agri startups

The minister was speaking after launching an integrated agriculture investment portal called KrishiNivesh. | Archive photo: PTI

3 minutes of reading Last update: 03 Sep 2024 | 23:56 IST

Agriculture Minister Shivraj Singh Chouhan on Tuesday launched a Rs 750 crore ‘AgriSure’ fund to provide financial support to agri-tech start-ups, while emphasising the need for increased public and private investment in the agriculture sector.

The Union cabinet on Monday approved seven schemes for the agriculture sector at an outlay of nearly Rs 14,000 crore.

The minister was speaking after launching an integrated agriculture investment portal called KrishiNivesh and a fund ‘AgriSure’ at an event held here.

The Rs 750 crore AgriSure Fund (Agriculture Fund for Startups and Rural Enterprises) will support start-ups and agri-entrepreneurs by providing both equity and debt capital.

Chouhan asked startups to tap into this fund and assured that there would be no restrictions on funds for agritech startups, which he said play an important role in the agriculture sector.

“Investment in agriculture is needed, not only from the government but also from private investment,” he said, adding that investment was essential to increase production and value addition in the sector.

The minister said the government has launched a Rs 1 trillion Agriculture Infrastructure Fund to create various agriculture-related infrastructure in rural India.

He noted that agriculture is the backbone of the Indian economy and that the sector contributes about 18 per cent to GDP.

Chouhan said the indirect contribution to the economy would be even greater because farmers are not only the largest producers but also the largest consumers.

He added that the government is making every effort to increase farmers’ incomes and ensure food and nutritional security.

The minister said the Centre is focusing on increasing production, reducing input costs, ensuring better prices of agricultural produce, diversifying crops and introducing modern technologies in the agriculture sector. He added that the Centre is providing huge subsidy on fertilisers.

Chouhan said the agriculture sector needs new experiments. He stressed that small farmers are forming groups to farm on a larger scale.

The Minister also spoke about the excessive use of chemical pesticides and fertilisers and emphasised the need to protect soil health.

Chouhan also highlighted the importance of the Krishi Nivesh portal, which is expected to transform the agricultural landscape by centralising investment opportunities and information.

He said the portal is a comprehensive platform aimed at supporting agribusiness, attracting investments and increasing farmers’ income.

Chouhan emphasised that the portal will cater to the needs of various stakeholder groups, including farmers, traders and industries, by providing easy access to information on various schemes of the Central and State governments.

The Minister presented AIF Excellence Awards to the best banks and countries in various categories, thus recognising their efforts.

Among public sector banks, awards were given to State Bank of India, Canara Bank, Bank of Baroda, Indian Bank and Punjab National Bank, while HDFC Bank was recognised for the best performance in the private sector.

In the Regional Rural Banks category, the top performers were Baroda Rajasthan Kshetriya Grameen Bank, Punjab Grameen Bank, Baroda UP Grameen Bank, Maharashtra Grameen Bank and Sarva Haryana Grameen Bank.

The top performing states included Madhya Pradesh, Punjab, Uttar Pradesh, Maharashtra, Karnataka, Gujarat and Telangana, which received performance awards under the Agriculture Infrastructure Fund.

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First published: 03 Sep 2024 | 23:56 IST