NABARD Launches Rs 1,000 Crore Fund To Boost Agri-Startups & Rural Enterprises

New Delhi, Mar 19 (KNN) The National Bank for Agriculture and Rural Development (NABARD) announced the launch of a Rs 1,000-crore fund to bolster rural enterprises.

This fund is dedicated to supporting technology-driven agricultural startups facing challenges in scaling up their operations due to limited access to equity and debt instruments.

Shaji K.V., the chairman of NABARD, unveiled this initiative during the Startup Mahakumbh event, emphasising the critical role of technology and investment in empowering rural communities, reported mint.

He highlighted that while substantial funds are allocated for agricultural credit, there remains a gap in ensuring that these funds contribute effectively to the modernisation and diversification of agricultural activities.

"The problem is not the availability of money," remarked Shaji K.V.

He stressed the need for a shift towards investment credit, enabling farmers to utilise funds for diverse production activities beyond conventional farming.

The newly announced fund seeks to address this gap by providing financial support to startups focused on agri-processing, value addition, and technology integration.

Acknowledging the importance of nurturing new ideas and startups, Shaji K.V. revealed plans for additional funds totalling Rs 750 crores for pre-seed investments.

These funds aim to encourage innovation and experimentation in the agricultural sector, paving the way for transformative solutions.

While government initiatives like the agri-infra fund scheme and animal husbandry infrastructure development fund have been instrumental in boosting agricultural infrastructure, Shaji K.V. highlighted the need to channel funds towards emerging players with innovative technologies.

He emphasised the importance of supporting new entrants who bring fresh perspectives and solutions to the table.

Addressing concerns about regional disparities in credit distribution, Shaji K.V. outlined proposals to mitigate credit risks and enhance lending in eastern and central India.

He emphasised the need for systemic changes to ensure equitable access to credit facilities, suggesting mechanisms such as social guarantees or guarantee funds to support lending in underserved regions.

Data from the Union Agriculture Ministry underscores the disparities in credit distribution, with southern states receiving a disproportionate share compared to their contribution to the gross cropped area.

To address this imbalance, NABARD is exploring measures to facilitate credit flow to regions with untapped potential, thereby fostering inclusive growth across the agricultural landscape.

(KNN Bureau)