Dubbed ‘Agri Fund For Startups and Rural Enterprises’, the fund will offer both equity and debt support to agritech startups
The announcement was made last week by Ajeet Kumar Sahu, joint secretary of the Department of Agriculture and Farmers Welfare, during an event held in Mumbai
In 2023, the government announced an agriculture-focused accelerator fund to encourage such startups in the rural parts of the country.
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The Centre is planning to set up an INR 750 Cr Category-II Alternative Investment Fund (AIF) to help startups operating in the agriculture and allied sectors.
Dubbed ‘Agri Fund For Startups and Rural Enterprises’, the fund will offer both equity and debt support to agritech startups, with a special emphasis on high-risk, high impact activities in the agriculture value chain, PTI reported.
Addressing the pre-launch stakeholder meet held on Friday at NABARD headquarters in Mumbai, Ajeet Kumar Sahu, joint secretary of the Department of Agriculture and Farmers Welfare, reportedly said that the initiative is aimed at spurring innovation and sustainability in the agriculture sector.
The official further said that the fund, when launched, would also open new opportunities for small and marginal farmers in terms of investment and innovation.
The development comes a year after the government announced an agriculture-focused accelerator fund to encourage such startups in the rural parts of the country. However, the government didn’t declare any tax incentives for agritech players, which the industry is hoping will be announced in this year’s Budget.
It is pertinent to note that the Indian agricultural sector accounts for nearly 16% of the country’s gross domestic product (GDP) and employs nearly 44% of the national workforce.
While the sector is still plagued by old-age practices and obsolete technology, homegrown agritech startups are trying to transform the Indian agriculture landscape, offering innovative digital solutions from providing weather-based crop advisory to soil analysis and from promoting IoT-enabled practices to AI-driven technology.
The fast-growing agriculture sector is expected to become a $24 Bn opportunity by 2025.
According to the Economic Survey 2022-23, there are more than 1,000 agritech startups in the country. Some of the notable startups in the space include AgroStar, Fasal, CropIn, Dehaat, Ergos, KisanKonnect, Ninjacart, Waycool, FarMart, and Gramophone.
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