AgriSure Fund

AgriSure Fund

On September 3, 2024, Union Minister for Agriculture and Farmers' Welfare Shivraj Singh Chouhan launched the AgriSure Fund in New Delhi. This fund aims to promote innovation and development in agriculture and rural enterprises.

Key Facts About the AgriSure Fund:

• The AgriSure Fund or Agri Fund for Start-ups and Rural Enterprises is a Category-II Alternative Investment Fund (AIF) registered under the Securities and Exchange Board of India (SEBI).

• Its goal is to support innovation in agriculture and rural enterprises by providing financial assistance to start-ups.

• The fund will be managed by the National Bank for Agriculture and Rural Development (NABARD) and will be regulated by SEBI.

Fund Structure:

• Total Fund: ₹750 crore

• Government Contribution: ₹250 crore (through the Ministry of Agriculture and Farmers' Welfare)

• NABARD Contribution: ₹250 crore

• Remaining Amount: Provided by banks, insurance companies, and private investors.

• Duration: 10 years, extendable by up to 2 years if needed.

Two Main Schemes Under the AgriSure Fund:

1. Fund of Funds (FoF) Scheme:

• Objective: This scheme will invest in other alternative investment funds and debt alternative investment funds that specifically invest in agriculture and rural development-focused start-ups.

• Fund Amount: ₹450 crore for the FoF scheme.

2. Direct Scheme:

• Objective: This scheme will directly invest in the equity capital of agriculture and rural development-focused start-ups.

Fund Amount: ₹300 crore for the Direct Scheme.