What is the news –

The National Bank for Agriculture and Rural Development (NABARD) is set to launch a ₹1,000-crore fund to bolster technology-driven agri-startups and rural enterprises.

NABARD has already established a ₹750-crore fund, which will be followed by another ₹1,000 crore, to support startups in this regard.

What are Agri-Startups?

Agri-startups are entrepreneurial ventures focused on innovating and revolutionizing various aspects of agriculture and allied sectors.
These startups leverage technology, data, and modern farming practices to address challenges in the agricultural value chain and promote sustainable farming practices.
They offer a wide range of products and services aimed at improving productivity, efficiency, and profitability for farmers, as well as enhancing food quality and safety for consumers.

Precision Agriculture: Utilizing data-driven technologies such as IoT, drones, and satellite imagery for precision farming, soil health monitoring, crop monitoring, and yield optimization.
Agritech Solutions: Developing innovative technologies and tools for pest and disease management, water management, greenhouse farming, and hydroponics.
Farm Management Software: Providing digital platforms and mobile applications for farm management, crop planning, inventory management, and market intelligence.
Agri-Marketing Platforms: Connecting farmers directly with buyers, retailers, and consumers through online marketplaces, e-commerce platforms, and farm-to-fork initiatives.
Supply Chain Management: Streamlining logistics, transportation, and warehousing operations to reduce post-harvest losses, improve market access, and ensure traceability and transparency in the supply chain.
Food Processing: Developing value-added products, food processing technologies, and packaging solutions to enhance the shelf life, nutritional value, and marketability of agricultural produce.

NABARD was established on July 12, 1982, by an Act of Parliament to promote sustainable rural development and agricultural growth in India.
It operates as a statutory body under the Reserve Bank of India (RBI) Act, 1934, with its headquarters located in Mumbai, Maharashtra.
It was established on the recommendation of the Sivaraman Committee and has its headquarters in Mumbai.
Its primary mission is to facilitate credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
It is governed by a Board of Directors appointed by the GoI, with (1) representatives from the RBI, (2) central and state governments, and (3) experts in various fields related to rural development and finance.

Refinance Support: NABARD provides refinance facilities to banks and financial institutions for agricultural and rural development activities, including crop loans and rural infrastructure projects.
Direct Lending: It extends direct loans to institutions for specific rural development projects, such as agricultural production, rural infrastructure development, and agri-processing units.
Research and Training: NABARD promotes research and development in agriculture, supports capacity building and training programs for rural stakeholders, and facilitates technology transfer initiatives.
Scheme Implementation: The organization administers government schemes and funds like Rural Infrastructure Development Fund (RIDF), Watershed Development Fund (WDF) to finance rural infrastructure projects and watershed development activities.
Credit Planning: NABARD collaborates with central and state governments, RBI, and other stakeholders to formulate credit policies and plans for agriculture and rural sectors.
Financial Inclusion: It promotes financial inclusion by expanding banking services in rural areas, supporting SHGs, FPOs, and MFIs, and facilitating access to credit for rural communities.
Priority Sector Lending: NABARD plays a crucial role in channelling credit to priority sectors such as agriculture, small-scale industries, and rural infrastructure, in alignment with the Reserve Bank of India’s priority sector lending guidelines.

In the budget for FY23, plans for a blended capital fund were announced for ‘Sunrise Sectors’ to finance startups for agriculture and rural enterprises.
The fund aims to support startups facing challenges in scaling up their operations due to limited access to equity and debt instruments.
It also seeks to foster new linkages in the rural ecosystem, both forward and backwards.

Agriculture Accelerator Fund (2023): It was announced by Finance Minister in the union budget for 2023-24, as a significant initiative designed to support agritech startups and young entrepreneurs hailing from rural areas.
Innovation and Agri-Entrepreneurship Development Program (2018-19): To increase farmers’ income, GOI started this Program under the umbrella of Rashtriya Krishi Vikas Yojana (2007). Startups receive financial assistance at different stages, with Rs. 5.00 lakh at the idea/pre-seed stage and Rs. 25 lakh at the seed stage.

Q.Priority Sector Lending by banks in India constitutes the lending to: (2012)