Lok Sabha Question No. 214 (STARRED), answered on 2024-08-06
Subject: Start-Ups in Agriculture
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Pradeep Purohit, Shri Khagen Murmu

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION No. 214

TO BE ANSWERED ON 06 TH  AUGUST, 2024

## START-UPS IN AGRICULTURE

## *214. SHRI PRADEEP PUROHIT: SHRI KHAGEN MURMU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a)  whether the Government has taken or intends to take measures to support start-ups and agripreneurs through investments in specific sector-agnostic and debt Alternative Investment Funds (AIFs), as well as direct equity support to start-ups working in Agriculture and allied sectors including any special provisions for technological innovation, sustainable practices, and rural development;

(b) if so, the details thereof including the allocation of funds, criteria for eligibility and the process for start-ups to access this support;

(c) whether there are any monitoring mechanism in place to evaluate the effectiveness of these investments, if so, the details thereof; and

(d) whether there are any specific initiatives or provisions for start-ups and agripreneurs in the Bhiwani-Mahendergarh and Gurugram Lok Sabha constituencies, and if so, the details of such initiatives?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

(a) to (d): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO. 214 DUE FOR REPLY ON 06 TH  AUGUST, 2024.

(a) to (c): Yes, the government has approved a new scheme called AgriSURE (Agriculture Fund for  Startups  and  Rural  Enterprises)  to  provide  capital  to  startups  working  within  the agricultural value chain. Under this scheme, a blended fund of ₹750 crores is being created and registered  with  SEBI  as  an  Alternate  Investment  Fund  (Category-II).  This  fund  will  assist startups in raising capital through both equity and debt, thereby increasing investment in the agriculture sector. The increased investment and technological advancements are expected to enhance productivity and sustainability within the agriculture sector. NABVENTURE a 100% subsidiary of NABARD, is a fund manager for this fund and required process and guidelines will be issued by NABVENTURE following SEBI registration.

(d): Besides,  AgriSURE  following  other  schemes  are  available for  providing  support  to start-ups and agripreneurs across the country including Bhiwani-Mahendergarh and Gurugram Lok Sabha constituencies:

(i) AIF -  Under  the  AIF  scheme  credit  is  provided  for  creation  of  viable  post-harvest management infrastructure and community farming assets. This loan is available to eligible farmers, Farmer Groups/collectives, Agri-entrepreneurs, Agri start-ups etc.  The benefits under the scheme includes 3% interest subvention and Credit Guarantee fund Trust for Micro and Small Enterprises (CGTMSE) fee reimbursement for a loan of up to Rs. 2 Crores for maximum period  of  7  years  including  moratorium  period  of  upto  2  years.  Start-Ups  are  eligible beneficiaries under the scheme.

(ii) Rashtriya Krishi Vikas Yojana (RKVY) - The Department of Agriculture & Farmers' Welfare (DA&FW) also implements the 'Innovation and Agri-Entrepreneurship Development' programme under Rashtriya Krishi Vikas Yojana (RKVY) since 2018-19. The programme  aims  to  foster  innovation  and  agri-entrepreneurship  by  offering  financial  and technical support to startups. It involves 5 Knowledge Partners and 24 RKVY Agribusiness Incubators  for  training  and  incubation.  Financial  support  includes  up  to  Rs.  5  lakh  at  the idea/pre-seed stage and up to Rs. 25 lakh at the seed stage. This helps entrepreneurs launch and scale up their agricultural products, services, and platforms.

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