NABARD Launches “AgriSURE Fund” And Jammu & Kashmir Bank’s “Kisan Ka Samman” For Financially Disciplined Farmers
Boosting the agriculture and rural sectors in India is crucial for several reasons. A significant portion of the Indian population depends on agriculture for their livelihood, making it a vital industry for employment and income generation. Strengthening this sector can enhance food security and reduce poverty by increasing the productivity and profitability of farmers. Moreover, developing rural areas can lead to balanced economic growth, reduce urban migration, and improve the quality of life for millions living in rural communities. Overall, supporting agriculture and rural development is key to ensuring sustainable growth and equitable development in India.
NABARD launches “AgriSURE Fund ” and Jammu & Kashmir Bank gives “KISAN KA SAMMAN “. Both are made for the develpoment of agriculture and rural sectors.
NABARD Launches AgriSURE Fund of ₹750 Crore to Brace Agricultural Startups
Who is NABARD?
NABARD, or the National Bank for Agriculture and Rural Development, is an institution established under the NABARD Act of 1981. It is fully owned by the Ministry of Finance, Government of India, and was founded on July 12, 1982, with its headquarters in Mumbai.
Objectives of NABARD
Since its establishment in 1982, NABARD has been dedicated to promoting rural prosperity and elevating the standard of living in rural areas for almost four decades. It is a key player in developing rural India by providing financial support and resources for a wide range of projects, including those in agriculture, small-scale industries, village and cottage industries, handicrafts, and other economic activities in rural communities.
Mission of NABARD
- To foster sustainable and fair growth in agriculture and rural areas by offering creative financial and developmental support.
- To increase internal efficiency through technology adoption as well as improving external efficiency of rural financial institutions like banking supervision by NABARD to rural financial institutions like State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks(RRBs) and conducting statutory inspections of these banks.
Summary of NABARD’s 43rd Foundation Day:
On July 12, 2024, NABARD celebrated its 43rd “foundation day” at its headquarters in Mumbai. To mark this occasion, the Ministry of Agriculture & Farmer Welfare (DA & FW) and NABARD jointly launched a new fund named “AgriSURE,” aimed at supporting agricultural startups, agripreneurs, and rural enterprises.
AgriSURE stands for Agri Fund for Start-Ups And Rural Enterprises.
SOURCE: – https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2032838
Key Highlights:
The announcement was made during a pre-launch stakeholder meeting attended by various financial institutions, investors, AIF managers, and agri-startups. Notable guests included Shri Ajeet Kumar Sahu -Joint Secretary of DA & FW, Shri Shaji K.V. – Chairman of NABARD, and Deputy Managing Directors – Shri Govardhan Singh Rawat and Dr. Ajay Kumar Sood.
The objective of the AgriSURE Fund
- The fund’s goal is to foster innovation and sustainability in India’s agriculture sector.
- It is designed to create a robust ecosystem that enhances financial support through innovative solutions, especially benefiting small and marginal farmers.
- The approach emphasizes that beyond credit, growth in the agriculture sector should come from innovative practices supported by both public and private institutions.
Scope of the AgriSURE Fund
- The funding will support agricultural startups and entrepreneurs by investing in both sector-specific and sector-agnostic Alternative Investment Funds (AIFs) and providing direct equity support.
- It will focus on enhancing the agricultural value chain, building rural infrastructure, creating jobs, supporting Farmer Producer Organizations .
- The fund will provide both equity and debt financing, focusing on activities in the agricultural value chain that are high-risk but have the potential for significant impact.
- It will encourage the adoption of technology-based solutions and provide machinery rental services to farmers.
How much is the corpus of the AgriSURE Fund ?
Fund Details:-
AgriSure will operate as a Category-II AIF with an initial corpus of ₹750 crore comprised of:-
- ₹250 crores as provided by the Ministry of Agriculture, Government of India.
- ₹250 crores from the NABARD and the rest
- ₹250 crores from other private institutions.
Fund Manager and Duration of the AgriSURE Fund
NABVENTURES Limited, a subsidiary of NABARD, will manage the fund. The fund will commence operations in August 2024 and is set to run for 10 years, with a possible extension.
What is AgriSURE Greenathon 2024?
In expansion to the support dispatch, NABARD presented the AgriSURE Greenathon 2024, a hackathon occasion outlined to empower inventive arrangements in farming. The last date for registration was July 26, 2024.
By launching the AgriSure Fund and Greenathon, NABARD aims to foster innovation and growth in India’s agricultural sector, providing substantial support to startups and enterprises working in this field.
The AgriSURE Greenathon 2024 is a hackathon aimed at solving three (3) main challenges in the agricultural sector :
- “Smart Agriculture on a Budget” – This challenge seeks affordable solutions for advanced agricultural technologies, making them accessible to small and marginal farmers.
- “Turning Agri-Waste into Profitable Business Opportunities” – This focuses on finding ways to convert agricultural waste into profitable businesses, reducing waste and increasing revenue.
- “Tech Solutions Making Regenerative Agriculture Remunerative” – This challenge is about creating economic solutions that make regenerative farming practices more profitable for farmers.
NABARD invites innovative minds, especially young individuals, to participate and contribute to India’s development and heading towards “Viksit Bharat”, aiming to solve pressing issues in agriculture with their creative solutions.
Who Can Participate in the AgriSURE Greenathon 2024?
The hackathon is open to students, developers, startups, and professional developers. Participation is free of charge, providing a platform for these groups to showcase their innovative ideas. It also serves as a funding opportunity for eligible startups developing AI solutions for India’s agricultural sector.
Prizes for AgriSURE Greenathon 2024
Winners of the hackathon will receive the following cash prizes:
- Winner: ₹3,00,000 /-
- First Runner-Up: ₹2,00,000 /-
- Second Runner-Up: ₹1,00,000 /-
In total, ₹6,00,000 /- will be distributed as prize money to the top contestants, encouraging participants to bring forward their best ideas and solutions for the agricultural sector.
J & K Bank launches the “KISAN KA SAMMAN“ program for financially disciplined farmers
Overview of the “KISAN KA SAMMAN” Program
The “KISAN KA SAMMAN” program is an initiative launched by Jammu & Kashmir Bank to honour and support hard-working farmers in Jammu & Kashmir who have shown financial discipline. This program aims to recognize the efforts of farmers who regularly renew their Kisan Credit Cards (KCCs) and maintain good financial practices in their dealings with the bank.
SOURCE :- https://www.jkbank.com/others/common/bankInNewsItem.php?id=1984
Key Attention of the “KISAN KA SAMMAN” Program
Recognition of Farmers:
The program identifies farmers who consistently renew their Kisan Credit Cards (KCCs) and exhibit financial discipline.
These farmers will be recognised with a “Certificate of Appreciation” at different bank branches, zonal offices, and clusters.
Facilitation using “Kisan Dost Scheme”
The bank will also offer eligible farmers sanction letters for agriculture term loans to help them upgrade their agricultural infrastructure through its “Kisan Dost Scheme.” Additionally, farmers may be offered other loan products, including Agri Term Loan schemes.
Objectives of the J&K Bank’s “KISAN KA SAMMAN” Program
The main goal of the program is to raise awareness about the Prompt Repayment Incentive (PRI) available under the Kisan Credit Card (KCC) scheme, which provides an interest subvention of 3% to eligible farmers. By highlighting this benefit, the program encourages more farmers to take advantage of the government’s interest subsidy.
Example:- Suppose interest payable under KCC is 7% p.a, and interest subvention is 3% for eligible disciplined farmers, then net interest payable for eligible farmers under KCC will be 4% p.a (7%-3%). Interest subvention is nothing but financial support from the government.
Interest subvention refers to financial assistance provided by the government.
Mission of the “KISAN KA SAMMAN” Program
The mission is to acknowledge the vital role of farmers in Jammu & Kashmir and provide them with the necessary support to boost their productivity and sustenance. By enhancing agricultural lending, the bank aims to contribute to the overall economic growth of the region.
Vision of the “KISAN KA SAMMAN” Program
As part of this program, J&K Bank branches will focus on increasing the credit limits of KCC accounts and issuing Digital KCC cards to farmers, aiming to modernize and simplify banking services for the agricultural community.
Duration of the “KISAN KA SAMMAN” Program
The “KISAN KA SAMMAN” program which started at the outset of August will continue until September 30, 2024.
FREQUENTLY ASKED QUESTIONS (FAQ)
Q 1 . What is the Scope of NABARD?
Ans. Development of rural and agriculture sectors, focusing on rural credit and infrastructure like roads, irrigation systems and storage facilities through various schemes and programmes, helps farmers to adopt modern agricultural practices and improve productivity.
Q. 2 . Who is the current Union Minister of Agriculture & Farmers’ Welfare and Minister of Rural Development in India?
Ans. Shivraj Singh Chauhan.
He is a politician from the Bharatiya Janata Party (BJP) and was elected as a Member of Parliament in the 2024 Lok Sabha elections from Vidisha, Madhya Pradesh.
A Master’s degree holder(gold medalist) in Philosophy from Barkatullah University, Bhopal, is also the longest-serving Chief Minister of Madhya Pradesh (M.P)
Q. 3 . Who is an AGRIPRENEUR ?
Ans. An AGRIPRENEUR is an entrepreneur who specializes in agriculture or businesses related to farming. The term combines “agriculture” and “entrepreneur.”
Q. 4 . What is meant by SECTOR AGNOSTIC Fund ?
Ans. A sector-agnostic fund invests in various industries rather than focusing on one specific sector, i.e, “NOT SECTOR SPECIFIC” . This strategy allows for flexibility and diversification by seeking investment opportunities across multiple fields like technology, healthcare, and finance.
Q. 5 . What is meant by Category II – Alternative Investment Fund (AIF)?
Ans. An Alternative Investment Fund (AIF) is a private investment vehicle in India that gathers funds from sophisticated investors, both domestic and international, to invest according to a specific policy for their benefit.
Category II AIFs include real estate funds, private equity funds, and funds for distressed assets, and are allowed to borrow only for operational needs as per SEBI regulations.
Q. 6 . What is a HACKATHON ?
Ans. A hackathon is an event where programmers and tech enthusiasts collaborate over a few days to solve problems or create new software. The term combines “hacker,” meaning a skilled programmer, and “marathon,” signifying a long, endurance-based event.
Q. 7 . What is VIKSIT BHARAT ?
Ans. ‘Viksit Bharat’ means ‘Developed India.’
It refers to the goal of making India a developed nation by 2047, the 100th anniversary of its independence.
The vision focuses on four key areas: youth, the poor, women, and farmers.
Q. 8 . What does J&K Bank stand for?
Ans. J&K Bank refers to Jammu & Kashmir Bank, a private sector bank in India, headquartered in Srinagar, Jammu & Kashmir.
It was founded on October 1, 1938, by Maharaja Hari Singh.
Under the Indian Companies Act, 2013, it is classified as a government company. The bank became a scheduled bank in 1971.
Q. 9 . Who is the Managing Director(MD) and Chief Executive Officer (CEO) of the J&K Bank?
Ans . Baldev Prakash is the current MD & CEO of the J&K Bank. He received the esteemed ‘Times Now India’s Impactful CEO – 2023’ Award.
Q. 10 . What is Kisan Credit Card (KCC) ?
Ans. The Kisan Credit Card (KCC) scheme, launched in August 1998 by the Ministry of Agriculture and Farmers’ Welfare, provides farmers with timely credit for agricultural and non-farm needs. Benefits include short-term credit for crop cultivation, post-harvest expenses, produce marketing loans, household consumption, and working capital for farm activities.
