Context: Department of Agriculture & Farmers’ Welfare (DA & FW) is implementing the Innovation and Agri-Entrepreneurship Development programme under Rashtriya Krishi Vikas Yojana (RKVY) to promote innovation and agri – entrepreneurship.
Innovation and Agri-Entrepreneurship programme:
- Aim: To promote innovation and agripreneurship by providing financial support and nurturing the incubation ecosystem, a new component.
- Launched: In 2018-19 under revamped scheme Rashtriya Krishi Vikas Yojana- Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY-RAFTAAR).
- Financial support: Up to Rs. 5 lakh at the idea/pre-seed stage and up to Rs. 25 lakh at the seed stage is provided to agri startups to launch and scale their products, services, and business platforms.
- Training: Start-ups receive training & incubation from 5 Knowledge Partners (KPs) and 24 RKVY Agribusiness Incubators (R-ABIs) designated under the programme.
Rashtriya Krishi Vikas Yojana (RKVY)
- Launched: In 2007-08, under DA & FW, Ministry of Agriculture & Farmers Welfare.
- Aim: To make farming a profitable economic activity by supporting farmers’ efforts, mitigating risks, and promoting agri-business entrepreneurship.
- Target: To achieve 4% annual growth in agriculture during XIth Plan. However, an annual growth rate of 3.64% was achieved, up from 2.46% in Xth Plan.
- The scheme has been revamped as RKVY-Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY-RAFTAAR).
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Agri-startups in India:
- Start-ups are undertaking projects in various agriculture and allied sectors, including:
- Precision agriculture (including applications of sensors, Artificial Intelligence (AI), Internet of Things (IoT), Information & Communication Technology (ICT), & drone).
- Farm mechanisation, post-harvest.
- food technology and value addition, supply chain and logistics, agricultural inputs.
- Waste to wealth, green energy, organic farming, animal husbandry, dairy, fisheries, and secondary agriculture.
- Economic Survey 2023-24: The push towards digital agriculture in India is backed by a robust ecosystem supporting over 1,000 agri-tech startups.
- As of February 2024, 554 agritech start-ups, including 387 women-led start-ups, are working in the agriculture and allied sector.
- Agriculture Accelerator Fund: The Agriculture Accelerator Fund is a new initiative announced in the Union Budget 2022-23 to encourage agri-startups by young entrepreneurs in rural areas.
- It aims to bring innovative and affordable solutions for challenges faced by farmers.
- It will bring in modern technologies to transform agricultural practices, increase productivity and profitability.
- Significance: Entrepreneurship in agriculture can help address challenges like low farm incomes, fragmented supply chains, and climate change.
- Market Demand: Rising demand for quality agricultural products, both domestically and in the export market, which presents significant opportunities for agri-startups.
- Emerging Trends: Emergence of new business models such as farm-to-fork supply chains and IoT-led innovations, which are transforming the agricultural landscape.
- Barrier to Growth: Despite the opportunities, agri-startups face challenges such as limited access to finance, inadequate infrastructure, and policy hurdles that hinder their scaling.
- Investment in Agri-Startups in India: In 2021 only, India saw 46 new unicorns, becoming the third-largest unicorn hub with a total of 90, behind the US and China.
- Indian startups raised $42 billion, up from $11.5 billion the previous year.
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