Budget 2023: Agriculture accelerator fund to increase productivity

To support agro startups, Nirmala Sitharaman announced the Agriculture Acceleration Fund. It will attempt to implement cost-effective solutions to problems faced by farmers by introducing contemporary technologies and increasing production.

Managing Director of Utkarsh Sinha, Bexley advisors, a boutique investment bank, said: “The government’s fund-of-funds (FoF) strategy has already proven itself with SIDBI’s flagship fund, as well as the ‘SRI. Expanding this model into new industries, such as agriculture (and hopefully manufacturing) will yield positive results and accelerate the formation of agriculture-focused funds and companies.”

“Investment in the private equity sector for agriculture in India is a two-part equation; while we need smaller funds that can seed innovative technologies like hydroponics, vertical farming, etc., we also need funds that can issue large checks that can scale some of these technologies. There is a lack of equity for growth and the Kate stage in agriculture, and this FoF could give impetus to that,” said Utkarsh Sinha.

Kanishk Maheshwari, co-founder of Primus Partners, said: “Agriculture Accelerator Fund is an excellent initiative to integrate the rural economy and develop innovation in the hinterlands of India. Learning should be drawn from the experience of implementing various seed funds previously created by the government.”

Nilaya Varma, co-founder and CEO of Primus Partners, said: “Disclosure of the introduction of technology in agriculture is essential for long-term economic growth, improved productivity and job creation. . This ensures that India and Bharat grow together. The budget target is welcome. However, implementation is key and for this plan to succeed we need to ensure that partnerships between farmers, FPO, SHG, Agri Startup and most importantly Agri research institutes and universities are assured. »

Adarsh ​​Sharma, Managing Director of Primus Partners, said: “The 33% increase in capital investment spending gives the right boost to industry demand and shows that governments are firmly committed to stimulate private investment in the development of the country’s infrastructure.

Dhruv Sawhney, Chief Operating Officer and Chief Business Officer,, said: “This is a positive and welcome move by the government, which will foster, encourage and enable entrepreneurship in the agricultural sector. This will lead to the development of new business models and innovations that will drive digital adoption and also bring technological support and advancements to Indian farmers. »

SOUMYAK BISWAS, Partner – Management Consulting, BDO India said, “The Agriculture Acceleration Fund is a welcome initiative for the agricultural sector. It will act as a catalyst to stimulate the growth of the agricultural technology ecosystem and address some critical challenges along the value chain related to input-output linkages, precision agriculture, ensuring traceability and production quality, to greater added value, among others. This will not only promote entrepreneurship and job creation in this sector, but also unlock value in the agribusiness value chain, which in turn will increase the profitability of farmers and is a good step towards realizing the vision of doubling farmers’ incomes. »

Sanjay Chhabria, Director of Nexdigm said, “The Agriculture Accelerator fund will be set up to encourage agri-startups by young entrepreneurs! The agricultural credit target will be increased by 20 lakh crores. Measures to stimulate more jobs, ideas and entrepreneurs to foster the growth of the agricultural sector.”

Anirudh A Damani, Artha Venture Fund – Managing Partner said, “Learning about the government’s intention to establish an agriculture accelerator fund is exciting. I look forward to further details on how the fund would be managed. Such a fund can provide an enabling environment that can help AgriTech startups grow faster by providing them with resources, exposure, and opportunities for success. Through this effort, the government can provide these startups with more support, ranging from seed funding and mentorship programs to infrastructure grants and appropriate market access. This whole exercise will reinforce this government’s pre-existing efforts to promote rural entrepreneurship. From Artha’s perspective, we are light on AgriTech, and this move will reinforce our overall sentiment to support more AgriTech startups from our funds.”

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