Agri-Entrepreneurship Support: How to Get Government Funding for Startups
Introduction
India’s agricultural sector is undergoing a transformation with the rise of agri-entrepreneurship. Startups in agriculture are leveraging technology, innovation, and sustainability to revolutionize farming practices. Recognizing the potential of agribusiness, the Indian government offers various schemes and financial support to agri-startups.
If you are an aspiring agri-entrepreneur, this guide will help you navigate the available government funding schemes, eligibility criteria, and application processes to secure financial assistance for your agribusiness.
Why Invest in Agri-Entrepreneurship?
Agri-startups play a crucial role in modernizing agriculture by introducing precision farming, smart irrigation, AI-driven crop management, and supply chain optimization. Here’s why agri-entrepreneurship is the future:
- Increased Efficiency – Use of modern technology boosts productivity.
- Sustainability – Promotes eco-friendly practices such as organic farming.
- Market Expansion – Bridges the gap between farmers and consumers through digital platforms.
- Employment Generation – Creates jobs in rural and semi-urban areas.
- Government Support – Various funding options and incentives are available.
Government Schemes Supporting Agri-Startups
1. Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVY-RAFTAAR)
The RKVY-RAFTAAR scheme aims to promote agricultural innovation and entrepreneurship.
Key Benefits:
- Offers seed-stage funding up to ₹25 lakh.
- Provides mentorship and incubation support.
- Encourages technology-driven solutions in agriculture.
Eligibility:
- Startups working in agritech, food processing, and rural development.
- Must be registered in India and comply with government norms.
How to Apply:
- Applications can be submitted through State Agricultural Universities (SAUs) or recognized agribusiness incubators.
- The selection process includes pitch presentations and business viability assessments.
2. Agri-Clinics and Agri-Business Centres (ACABC) Scheme
This initiative by NABARD and the Ministry of Agriculture supports individuals setting up agri-based businesses.
Key Benefits:
- Credit-linked subsidy of up to 36% (44% for women and SC/ST entrepreneurs).
- Training programs on business planning, technology implementation, and market strategies.
Eligibility:
- Entrepreneurs with a degree in agriculture or allied sciences.
- Small-scale startups offering farm advisory, agribusiness solutions, and soil testing services.
How to Apply:
- Register with NABARD-approved training institutes.
- Apply for loans through designated banking institutions.
3. Startup India Seed Fund Scheme (SISFS)
This scheme provides financial assistance to early-stage startups in various sectors, including agriculture.
Key Benefits:
- Grants up to ₹50 lakh for agri-entrepreneurs.
- Funding covers prototype development, product validation, and commercialization.
Eligibility:
- Startups recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
- Must be less than two years old at the time of application.
How to Apply:
- Applications are accepted via the Startup India portal (www.startupindia.gov.in).
- Selection is based on business innovation, scalability, and impact potential.
4. Pradhan Mantri Formalization of Micro Food Processing Enterprises (PM-FME) Scheme
PM-FME supports food processing startups, enhancing value addition and marketability.
Key Benefits:
- Credit-linked subsidy of 35%, up to ₹10 lakh.
- Technical training, branding, and marketing support.
Eligibility:
- Individual entrepreneurs, FPOs, SHGs, and cooperatives.
- Startups involved in food preservation, packaging, and organic food production.
How to Apply:
- Apply through the Ministry of Food Processing Industries (MoFPI) portal.
- Business plans undergo evaluation for viability and impact.
5. National Agriculture Market (e-NAM) Scheme
e-NAM is a digital trading platform that connects farmers with buyers, eliminating middlemen.
Key Benefits:
- Provides financial assistance for setting up agri-tech solutions.
- Encourages digitization of agricultural trade and logistics.
Eligibility:
- Startups working on farm-to-market platforms, blockchain in agriculture, and agri-fintech.
- Must integrate with the e-NAM digital ecosystem.
How to Apply:
- Register through e-NAM’s official website.
- Partner with agriculture marketing boards and state governments.
Step-by-Step Guide to Securing Government Funding
Step 1: Identify the Right Scheme
- Choose a scheme that aligns with your startup’s focus (e.g., agritech, food processing, farm advisory).
Step 2: Prepare a Solid Business Plan
- Include details on market potential, revenue model, technological innovation, and sustainability.
Step 3: Apply Through the Official Channels
- Submit applications via government portals or accredited incubation centers.
- Ensure all necessary documents, such as business registration certificates, financial statements, and project reports, are included.
Step 4: Pitch and Follow Up
- Shortlisted startups may need to present their business ideas to selection committees.
- Regularly follow up on application status and comply with any additional requirements.
Challenges Faced by Agri-Entrepreneurs & Solutions
1. Lack of Awareness about Funding Opportunities
- Solution: Participate in agribusiness summits, workshops, and online forums.
2. Complex Application Processes
- Solution: Seek guidance from FPOs, agribusiness incubators, and government helplines.
3. Limited Market Access
- Solution: Use e-NAM and other digital platforms to expand reach.
4. Scaling and Infrastructure Costs
- Solution: Explore private-public partnerships and additional funding from angel investors.
Conclusion
Agri-entrepreneurship is a key driver of sustainable agricultural development and rural economic growth. The Indian government is offering multiple funding schemes, subsidies, and technical support to empower startups in this sector.
If you have an innovative agri-startup idea, take advantage of these government schemes to transform your vision into reality. Visit official portals, consult industry experts, and apply for financial assistance today!
Call to Action:
Do you need assistance in applying for government funding? Drop your questions in the comments, and let’s help you grow your agribusiness! 
