UP Govt Set to Invest Rs 3,800 Crore in Agricultural Start-ups

In a bid to strengthen the agricultural sector and enhance the state's agricultural value, the Uttar Pradesh government has announced plans to invest approximately Rs 3,800 crore in agricultural start-ups during the financial year 2023-24.

The initiative aims to support various ventures focusing on seeds, fertilizers, warehousing, soil nutrients, harvest/post-harvest crop management, and food processing units.

Under the scheme, which covers agricultural and horticultural crops along with allied farm activities, special attention will be given to pisciculture, sericulture, and food processing. The state government intends to approve a minimum of five agricultural ventures and start-ups every month in each of the 75 districts, with the goal of benefiting more than 3,000 agricultural entrepreneurs and young farmers.

To fund these projects, the Uttar Pradesh government plans to utilize the Agriculture Infrastructure Fund (AIF) scheme initiated by the central government. The AIF scheme focuses on investing in medium- and long-term community agricultural assets at the local level, thereby ramping up basic farm infrastructure.

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To be eligible for a credit line from designated commercial banks, the proposed projects must have a value exceeding Rs 1 crore. Under the scheme, beneficiaries will receive an interest subsidy of 6 percent, which will be equally shared by the AIF and the state government.

Importantly, the loaning process for prospective ventures up to Rs 2 crore will not require collateral or a guarantee. This move aims to ease access to finance and encourage the growth of small-scale agricultural enterprises.

A senior official from the agriculture department emphasized that the primary objective of the initiative is to facilitate a profitable post-harvest value chain, ensuring farmers and agricultural entrepreneurs receive lucrative prices for their produce.

To facilitate the implementation of the scheme, the central government has signed a memorandum of understanding with nearly a dozen public sector banks to provide loans to eligible applicants.

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Agriculture plays a pivotal role in Uttar Pradesh's economy, and the state's farm exports witnessed a growth of 5.5 percent, reaching approximately Rs 19,000 crore in the fiscal year 2022-23 compared to around Rs 18,000 crore the previous year. The exports comprised a variety of agricultural and horticultural crops, including fruits, vegetables, food grains, and oilseeds, particularly those promoted by the Agricultural and Processed Food Products Export Development Authority.

The investment of Rs 3,800 crore in agricultural start-ups demonstrates the state government's commitment to transforming the agricultural landscape of Uttar Pradesh, encouraging entrepreneurship, and fostering innovation in the sector.

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