Agri Fund for Startups and Rural Enterprises (AgriSURE)

The AgriSURE Fund is a major financial initiative launched by the Government of India to promote innovation, entrepreneurship, and capital investment in agriculture and allied rural sectors. It aims to provide structured funding support to start-ups and enterprises that bring modern technologies and value-added practices into agriculture, thereby transforming rural economies through sustainable and scalable ventures.

Background and Purpose

India’s agriculture sector, though a vital contributor to the economy, faces challenges such as low productivity, fragmented land holdings, limited access to credit, and inadequate technological adoption. Recognising these gaps, the AgriSURE Fund was established under the joint stewardship of the National Bank for Agriculture and Rural Development (NABARD) and the Ministry of Agriculture and Farmers Welfare (MoA&FW). The Fund seeks to channel institutional and private capital into start-ups and rural enterprises that can enhance value-chains, create jobs, and raise rural incomes.
The programme’s central purpose is to cultivate a robust ecosystem where innovation, technology, and finance converge to empower rural and agri-based entrepreneurs. It aims to make agriculture more attractive to young entrepreneurs and investors while strengthening farmer-centric business models such as Farmer Producer Organisations (FPOs) and cooperative ventures.

Structure and Size

The AgriSURE Fund has a total corpus of ₹750 crore, structured as a blended-capital model combining government and institutional contributions.

• ₹250 crore is contributed by the Government of India through the Ministry of Agriculture and Farmers Welfare.
• ₹250 crore comes from NABARD.
• The remaining ₹250 crore is to be mobilised from other financial and private sector investors.

Registered as a Category II Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI), AgriSURE is managed by NABVENTURES Ltd., a subsidiary of NABARD. The fund has an operational tenure of ten years, extendable by a few years if required, ensuring long-term investment flexibility.

Components of the Fund

The Fund operates through two principal components:
1. Fund of Funds (FoF) SchemeThis component has a corpus of ₹450 crore and invests in SEBI-registered Alternative Investment Funds (AIFs) that in turn invest in eligible agri-start-ups. The Fund of Funds model ensures a multiplier effect by encouraging other AIFs to participate in agriculture-related ventures. Investments under this component are capped at a specified proportion of each AIF’s corpus, ensuring broad-based exposure and risk diversification.
2. Direct Investment SchemeWith a corpus of ₹300 crore, this component directly invests in early-stage, DPIIT-recognised start-ups engaged in agriculture or rural enterprises. These start-ups may operate in fields such as agri-technology, supply chain management, food processing, farm mechanisation, and renewable energy for rural areas. Individual investment limits are set to maintain equitable distribution and to reach a wide range of innovative enterprises.

Priority Sectors and Beneficiaries

The AgriSURE Fund supports start-ups and enterprises working in a variety of sectors, including:

• Digital and precision agriculture technologies.
• Food and agri-processing industries.
• Animal husbandry, dairy, and fisheries.
• Farm mechanisation and equipment innovation.
• Agri-logistics, warehousing, and supply chain solutions.
• Renewable energy and waste-to-wealth initiatives in rural contexts.
• Farmer Producer Organisations (FPOs) and Farmer Producer Companies (FPCs).

Beneficiaries include young entrepreneurs, rural innovators, and technology start-ups seeking to bring scalable solutions to the farming sector. The Fund also aims to support nearly 85 start-ups over its operational period, thereby creating a measurable impact on employment and rural income diversification.

Objectives and Expected Impact

The AgriSURE Fund is designed with clear developmental and economic objectives:

• To create a conducive investment climate for agriculture and rural start-ups.
• To improve access to risk capital for agri-innovation and rural enterprises.
• To encourage the integration of technology into the agricultural value-chain for higher efficiency.
• To promote entrepreneurship among rural youth and prevent migration from agricultural occupations.
• To strengthen value-chain linkages, both backward and forward, ensuring better price realisation for farmers.
• To enhance employment opportunities in rural areas through new-age agri-business ventures.

By supporting innovative, technology-driven solutions, the Fund seeks to modernise traditional agricultural systems and improve overall farm productivity. It also bridges the financing gap that often prevents promising start-ups from scaling up their operations.

Significance and Policy Linkages

The AgriSURE Fund marks a paradigm shift from traditional subsidy-based support to an investment-driven model that attracts private participation in agriculture. Its blended-capital structure encourages collaboration between public institutions and private investors, thereby creating a sustainable funding ecosystem.
The Fund aligns with broader national initiatives such as the Atmanirbhar Bharat Abhiyan, the Agriculture Infrastructure Fund, and the Digital Agriculture Mission, reinforcing the government’s vision of transforming agriculture into a profitable, technology-led sector. It also supports India’s Sustainable Development Goals by promoting inclusive growth, innovation, and responsible production practices.

Implementation and Process

NABVENTURES Ltd. serves as the investment manager and oversees both components of the Fund. It evaluates potential investment proposals, conducts due diligence, and monitors project implementation to ensure alignment with the Fund’s objectives.
Eligible start-ups or AIFs can apply for investment consideration through NABVENTURES or NABARD by submitting business proposals, financial statements, and innovation details. Evaluation criteria typically include scalability, technological relevance, social impact, and potential for value-chain enhancement.
In addition to capital infusion, the Fund also facilitates capacity-building programmes, mentoring support, and networking opportunities for start-ups, thus ensuring long-term viability and sustainability of funded enterprises.

Challenges and Considerations

While the AgriSURE Fund holds significant promise, it faces several operational and structural challenges:

• Mobilising the private investment component to achieve the full ₹750 crore corpus.
• Ensuring equitable access to funds for smaller or less formal rural enterprises.
• Balancing financial returns with social and developmental outcomes.
• Monitoring the impact of investments in diverse agro-climatic regions.
• Encouraging technology adoption among smallholder farmers, who often remain risk-averse.

Addressing these challenges will be vital for maximising the Fund’s impact and ensuring long-term sustainability of the supported enterprises.

Broader Economic and Social Relevance

The AgriSURE Fund plays a transformative role in shaping India’s agri-entrepreneurship ecosystem. By integrating innovation and investment, it strengthens rural value-chains, supports digitalisation of farming practices, and empowers a new generation of agri-entrepreneurs. The Fund also contributes to job creation, diversification of rural income sources, and sustainable economic growth.