Agri-SURE Fund by NABARD UPSC Current Affairs for Economy

Description

Agri-SURE Fund

Disclaimer: Copyright infringement not intended.

Context

The National Bank for Agriculture and Rural Development (NABARD) has introduced a new agri fund named Agri-SURE, targeting Start-Ups and Rural Enterprises.
This initiative is designed to bolster innovation and technological advancements in the agricultural sector, with an initial corpus of ₹750 crore.

Funding Structure

Initial Corpus

Total Corpus: ₹750 crore

Contributors

NABARD: ₹250 crore
Ministry of Agriculture: ₹250 crore
Other Institutions: ₹250 crore

Investment Focus

Target Start-Ups

Number of Start-Ups: Approximately 85 agri start-ups
Investment Size: Up to ₹25 crore each

Types of Support

Sector-Specific Investments: Investments tailored to specific agricultural sectors.
Sector-Agnostic Investments: Investments not limited to specific sectors, allowing flexibility.
Debt Alternative Investment Funds (AIFs): Providing debt alternatives for funding.
Direct Equity Support: Direct equity investments in start-ups.

ALL ABOUT ALTERNATIVE INVESTMENT FUNDS: https://www.iasgyan.in/daily-current-affairs/rbi-tightens-norms-for-lenders-investing-in-aifs#:~:text=Alternative%20Investment%20Funds%20(AIFs)%20in,to%20take%20on%20higher%20risks.

ALL ABOUT INDIA’S START UP SECTOR: https://www.iasgyan.in/daily-current-affairs/start-up-in-india

https://www.iasgyan.in/sansad-tv-air-summaries/special-startup-ecosystem-in-india#:~:text=The%20'Startup%20India'%20campaign%2C,mentorship%2C%20resources%2C%20and%20funding.

Focus Areas

Promoting Innovation and Technology

Encouraging technology-driven initiatives in agriculture.
Enhancing the farm produce value chain.
Developing new rural ecosystem linkages and infrastructure.
Generating employment opportunities.
Supporting Farmers Producer Organisations (FPOs).

ALL ABOUT FPOs:

https://www.iasgyan.in/daily-current-affairs/farmer-producer-organization

https://www.iasgyan.in/daily-current-affairs/farmer-producer-organization-33#:~:text=FPO%20stands%20for%20Farmer%20Producer,other%20aspects%20of%20agriculture%20inputs.

IT-Based Solutions and Machinery

Promoting entrepreneurship through IT-based solutions.
Providing machinery rental services for farmers.
Facilitating sustainable growth and development in the agricultural sector.

Additional Initiatives

AgriSURE Greenathon 2024

NABARD has also announced the AgriSURE Greenathon 2024, a hackathon aimed at addressing key problem areas in agriculture. The hackathon focuses on three main problem statements:

Smart Agriculture on a Budget: Solutions for implementing smart agriculture practices cost-effectively.
Turning Agri-Waste into Profitable Business Opportunities: Innovative ways to convert agricultural waste into profitable ventures.
Tech Solutions Making Regenerative Agriculture Remunerative: Technological solutions to make regenerative agriculture financially viable.

Broader Objectives

Addressing Rural Sector Issues: Aimed at solving the ongoing challenges in the agricultural and rural sectors.
Enhancing Productivity: Focus on increasing productivity through technological advancements.
Sustainable Solutions: Support for early-stage innovators to develop sustainable and durable solutions for farmers.

Conclusion

The Agri-SURE fund by NABARD represents a significant initiative to foster innovation, enhance productivity, and promote sustainable growth in the agricultural sector.
Through targeted investments, support for technology-driven initiatives, and additional programs like the AgriSURE Greenathon 2024, NABARD aims to address the critical challenges faced by farmers and rural enterprises, driving forward the next wave of growth in agriculture.

NABARD

Aspect	Details
Overview	Regulatory Body: Central to India's rural banking system Purpose: Enhance rural development through credit provision and regulation- Ownership: Government of India. Establishment: 12 July 1982.
Roles and Responsibilities	Provides investment and production credit for rural development projects Coordinates with government, RBI, state governments, and other institutions. Monitors and evaluates refinanced projects Formulates strategies for rehabilitation schemes and restructures credit institutions Provides training and support to institutions working towards rural upliftment Manages Natural Resource Management Programmes Supports Self-Help Groups (SHGs) through the SHG bank linkage programme.
Functions	Credit Functions: Provides, regulates, and monitors credit flow in rural areas Financial Functions: Offers loans to client banks and institutions aiding rural development Supervisory Functions: Monitors and regulates development activities and projects, overseeing client banks, institutions, and societies involved in rural development Development Functions: Assists rural banks in preparing action plans for development activities.
Impact	Agricultural Progress: Plays a crucial role in the advancement of agriculture Rural Development: Significant impact on rural infrastructure and employment opportunities.

READ ALL ABOUT SELF HELP GROUPS: https://www.iasgyan.in/daily-current-affairs/self-help-groups-shgs

PRACTICE QUESTION

Q. Discuss the objectives and potential impact of the Agri-SURE Fund on rural development and agricultural innovation in India. Critically analyze the role of such funds in addressing the challenges faced by small farmers and rural enterprises.

SOURCE: THE HINDU