Executive Summary:
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 352 regarding the AgriSure Fund, answered on July 22, 2025. The AgriSure Fund aims to promote technological innovation in the agriculture sector by investing in startups and Alternative Investment Funds. The fund's corpus is ₹750 crore, and investments are made across India, with no state-specific targets.
Key Points / Main Content:
* **AgriSure Fund Objectives:**
* Provides investment support to early-stage startups offering innovative, technology-driven solutions to farmers in the agriculture and allied sectors.
* Achieves this by directly investing in startups and contributing to Alternative Investment Funds (AIFs) for investment in startups.
* **Fund Allocation:**
* The total corpus of the fund is ₹750 crore.
* The Department of Agriculture & Farmers Welfare and NABARD each contribute ₹250 crore.
* The remaining ₹250 crore is to be raised from banks, financial institutions, and other private investors.
* No specific allocations are made for agricultural insurance, data analytics, smart equipment, or digital solutions.
* **Eligibility Criteria:**
* The AgriSURE Direct Scheme invests only in startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) and incorporated in India.
* Investment decisions are made by an Investment Committee based on the fund's investment policy and operational guidelines.
* **Fund Utilization:**
* Investments are made in startups and Category I and Category II Alternative Investment Funds (AIFs) in the agriculture and rural sectors.
* Startups providing insurance, crop monitoring solutions, and technical services may be benefitted if deemed investable according to the fund's policy.
* **Geographic Scope:**
* The fund will invest across India.
* There are no state-specific targets.
* **Monitoring Mechanism:**
* The AgriSURE Fund is SEBI-registered and regulated by SEBI AIF Guidelines, 2012.
* The monitoring mechanism is outlined in the fund's Operational Guidelines, approved by the Department of Agriculture & Farmers Welfare (DAFW).
* Banks and insurance companies, as Limited Partners, can monitor investee companies.
* The fund's progress is periodically reported to the Government of India (GoI) DAFW.
* **Benefits to Farmers:**
* The fund does not offer grants or technical assistance.
* Solutions provided by supported startups aim to benefit small and marginal farmers by making innovative solutions available at an affordable cost.
Impact Analysis:
* **Startups:**
* Impact: Eligible startups in the agriculture and allied sectors can receive investment support to develop and scale their innovative, technology-driven solutions.
* Action Required: Startups need to be recognized by DPIIT, incorporated in India, and meet the investment policy criteria of the AgriSure Fund.
* **Farmers (Especially Small and Marginal):**
* Impact: Farmers are intended to benefit from affordable access to innovative solutions provided by the startups supported by the AgriSure Fund.
* Action Required: No direct action is required, but farmers can potentially benefit from adopting the technologies and services offered by the supported startups.
* **Banks and Financial Institutions:**
* Impact: Banks and financial institutions have the opportunity to invest in the AgriSure Fund as Limited Partners and monitor the investee companies.
* Action Required: Consider investing in the fund to support agricultural innovation and potentially benefit from returns on investment.
* **Government of India (Department of Agriculture & Farmers Welfare):**
* Impact: The department is responsible for overseeing the fund's operations and monitoring its progress towards achieving its objectives.
* Action Required: Continue monitoring the fund's performance and ensure it adheres to its operational guidelines and investment policy.
Key Entities Referenced
AgriSure Fund: A fund established to promote technological innovation in the agriculture sector and help farmers manage risks by investing in startups.
Department of Agriculture and Farmers Welfare: The government department responsible for agriculture and farmers' welfare, contributing to the AgriSure Fund.
NABARD: National Bank for Agriculture and Rural Development, contributing to the AgriSure Fund.
Farmer Producer Organization FPOs: Organizations of farmers who may be eligible for funding under the AgriSure Fund.
State Governments: State administrative bodies that may be eligible for funding or partnership under the AgriSure Fund initiative.
Jharkhand: A state in India for which targets were inquired about regarding the AgriSure Fund. No state-specific targets exist.
Alternative Investment Funds AIFs: Investment funds that AgriSure Fund contributes to, for investment in Startups as per the objectives of the Fund.
SEBI AIF Guidelines, 2012: The regulatory framework under which the AgriSure Fund operates, ensuring compliance and governance.
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 352
TO BE ANSWERED ON 22ND JULY, 2025
AGRISURE FUND
352. SHRI DULU MAHATO:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण मं(cid:287)ी
be pleased to state:
(a) whether the objective of the AgriSure Fund is to promote technological innovation in the
agriculture sector and help farmers manage risks, if so, the details thereof;
(b) whether an amount of Rs. 500 crore has been allocated under this fund, which focuses
on agricultural insurance, data analytics, smart equipment and digital solutions;
(c) whether the Farmer Producer Organization (FPOs), startups, State Governments and
agri-tech companies fulfil the eligibility criteria in this regard;
(d) whether the funds are utilised for insurance, crop monitoring and technical service, if so,
the details thereof;
(e) whether any targets have been set for the State of Jharkhand, if so, the details thereof;
(f) whether any monitoring mechanism has been set up by partnering with banks insurance
companies and State agencies; and
(g) whether small and marginal farmers are being accorded priority and benefited through
grants and technical assistance, if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण रा(cid:207)य मं(cid:287)ी (SHRI RAMNATH THAKUR)
(a): The objective of the AgriSure Fund includes providing investment support to early
stage Start-ups providing innovative, technology-driven solution to farmers in agriculture
and allied sector.The Fund intends to achieve this by directly investing in startups as well as by
making contributions to other Alternative Investment Funds (AIFs) for investment in
Startups as per the objectives of the Fund.
(b): The total corpus of the Fund is ₹750 crore. Department of Agriculture & Farmers
Welfare, Government of India and NABARD contributing ₹250 crore each. Remaining ₹250
crore is to be mobilised from Banks, Financial Institution and other private investors.
The Objectives of the Fund include investment in Start-ups working in agriculture and allied
sector to promote digital and innovative solutions and emerging technologies like IoT, AI,
Pressing farming, climate smart technologies etc. No separate allocation focusing
exclusively on agricultural insurance, data analytics, smart equipment and digital solutions
has been made.
(c): The AgriSURE Direct Scheme of the Fund shall invest only in Start-ups recognized
by Department for Promotion of Industry and Internal Trade (DPIIT) and incorporated in
India, subject to being found suitable for investment as per the investment policy of the
Fund. The investment decisions of the Fund are made as per the Investment policy of the
Fund by an Investment Committee in line with the Operational guidelines of the Fund.
(d): The investments from the Fund are made as per the objectives of the Fund into
Start-ups as well as Category I and Category II Alternative Investment Funds (AIFs) in
Agriculture and Rural sector. Start-ups providing Insurance, crop monitoring solution and
technical services may be benefitted out of the Fund, if found investible as per fund policy.
(e): The Fund will make investment across India with no state specific target.
(f): The AgriSURE is the SEBI registered Fund, regulated by SEBI (AIF) Guidelines,
2012. The monitoring mechanism has been prescribed in the Operational Guidelines of the
Fund, as approved by DA&FW. The Banks and Insurance Companies, when acting as
Limited Partners, have the right to monitor the investee companies. The progress of the
Fund is reported to GoI (DA&FW) on a periodic basis.
(g): The Fund does not have any component for grant and technical assistance.
However, the solutions provided by the start-ups supported under the Fund are intended to
benefit small and marginal farmers to make them available innovative solution at affordable
cost.
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