Agriculture sector opportunities

GOLDMINE OF OPPORTUNITIES BY PROVIDING SERVICES TO
AGRICULTURE SECTOR & ENHANCING PRODUCTIVITY :
BENEFIT TO AGRICULTURIST AND NATION

About the Author:
Dr. Rajkumar Adukia left no stone unturned during his career span expanding to more
than 39 years. Having graduated from Sydenham College of Commerce & Economics
in 1980 as 5th rank holder in Bombay University and he has also received a Gold
Medal for highest marks in Accountancy & Auditing. He cleared the Chartered
Accountancy Examination with 1st Rank in Intermediate and 6th
Rank in Final. He
also secured 3rd Rank in the Final Cost Accountancy Course. He has been awarded
G.P. Kapadia prize for best student of the year 1981. He also holds a Degree in law,
PhD in Corporate Governance in Mutual Funds, MBA, Diploma in IFRS (UK), and
Diploma in Labour law and Labour welfare, Diploma in IPR, Diploma in
Criminology.
His mantra is to provide services to clients that help them in building better and
sustainable businesses. He is a knowledge seeker and believes that knowledge needs
to be ingrained and used for the benefit of society at large.

LEVERAGE YOUR EXPERTISE IN NATION BUILDING
Do you know India possess the largest arable area in the world followed by
United States, Russia, China and Brazil. Responsible in providing livelihood to
over 58% of the population and 44% workforce to the country, the sector has
remain dominant for the longest time. With the sector’s immense contribution
it is often considered to be backbone of the economy. The digital and technical
innovations have contributed significantly to the sector’s recent performance.
In last few years the sector has been witnessing the rapid rise in technological
innovation and mushrooming of Agri-Entrepreneurship, AgriTech Start-ups due
to massive influex of investment, thereby enhancing the overall the efficiencies
accross the value chain. The factors such policy reforms such as Atmanirbhar
Bharat; Rashtriya Krishi Vikas Yojana; Pradhan Mantri Fasal Bima Yojana;
New farms laws and advancement of digital technologies have been key drivers
of Agricultural Transformation.
A full package professional guide with added skill o ffinancial expertise,
regulatory and procedural complaince excellency are bitted for the role of
mentoring such agri-preneurs. They may seek assistance of such professionals /
experts in terms of guiding through compliance procedure, fianancial
management and strategies, attracting investors with well buisness plan , so that
they can freely focus upon the core buisness planning. The experts may help in
understanding what type of skills entrepreneurs need at each stage of mentoring
relationship, that is, initiation, cultivation, separation, and redefinition stage.

IGNITE YOUR UNLIMITED GOALS WITHOUT ANY BOUNDARY AND
SHARE YOUR EXPERTISE
If success is an engine then passion is fuel to that engine. Have you ever wondered
how successful people are better able to stick to their plans and achieve even more
success in their life? Well the mantra is
PASSION- START- CONSISTENCY-SHARING THE EXPERTISE-GROW
WITH ALL
As we have said earlier passion tends to drive success, mere passion will not help to
achieve everything you want if you don’t start.
“Everything is created twice, first in the mind than in reality”
 Robin Sharma, The Monk Who Sold His
Ferrari: A Fable About Fulfilling Your Dreams
And Reaching Your Destiny
There is no good time to start than now, things will happen the way you want them to
happen only if you start working on it.
Mere saying that “I Want” won’t let it happen you need to set your goals and
remember there is no limit to your goals. Additionally set goals that motivate you,
meaning such goals that make you happy, that are important to you.
It is equally important that you are committed to your goal, to maximize the likelihood
of success. To make sure this write down all your goals and why they are important to
you this will helps you to refresh again whenever you will lose confidence in your
ability to make it happen.
They say the setting goal is much simpler than being consistent on it, perhaps the
power of consistency may be the only factor that separates successful and
unsuccessful people. Successful people are successful because they chose to be

consistent with their goals, actions, and passion. Remember there is no shortcut to
hard work.
If you make it this far let us now discuss how to share your knowledge.
See having knowledge and expertise is one thing and sharing them among fellow
aspirants is another thing. When you share your knowledge it helps to deepen your
knowledge and engrains what you know.
Be A Leader- Stand Up – Be Vocal About What You Have To Offer
The legendary Greek Philosopher “Aristotle” once said- “Man is by very nature a
social animal; Society is something that precedes the individual.”
Therefore if we know something it becomes our duty to reach out as success is not just
about achieving your goal but to inspire others. We are blessed to be born in the
internet age where we can meet 1000s of people on a single digital platform. It helps
us to reach out to society that needs our services.
Powerful social media tools such as Facebook, Linked-in, Gmail, Youtube, Blogs
websites, Twitter, What’s app, Instagram, e- articles, etc. allows us to share our
knowledge and expertise and helps connecting people even though they are living
miles apart.
Collaborating and knowledge sharing:
The Internet has been the single biggest achievement of humans in the last 20 years
that has removed almost all communication barriers. Social media apps have emerged
as collaborating and knowledge-sharing tools that permit individuals to join a
community share and collect relevant knowledge. The Facebook group can join 6000
groups, similarly, a person can send over 2000 emails daily, and professional expertise
tools such as linked in allows you to be part of 100s of the group. Additionally, a
certain platform such as Twitter, blogs, podcasts helps to put our viewpoints.

Podcast power:
Although there are lots of tools available across the internet for knowledge sharing,
audio content is more digestible and absorbable, than is possible through the podcast.
For whom podcast is beneficial:
Consultant, Advisors, Motivational coach, experts- podcast allows such professionals
who have the desire to motivate others and possess valuable knowledge and expertise
that they can share with society. Not only this will benefit the end-user but their
experience will add to their learning.
You may be a legal professional, or a doctor, or a sports person, and there is no code
of ethics of profession that will debar you from your knowledge sharing. A doctor will
share his health tips, a sportsperson may share his fitness tips and a lawyer may share
his knowledge for general legal awareness.
Before the digital age, book writing, news articles were such few channels of
knowledge sharing, although these are equally important in the present age, with little
technological advancement you will reach your fellow learners perhaps much faster.
We take this opportunity to invite the knowledge-sharing hub as we feel it is our
prime duty to share what we know with society. Let us become members and address
the community which needs our services.
At this juncture, we find it apt to remember English Historian and Geologist Charles
Darwin’s famous quote
“In the long history of humankind those who learned to collaborate and
improvise most effectively have prevailed.”
Introduction:

1. INTRODUCTION
Recent Trends of Agriculture Sector
1. Digital innovation: The digital innovation in agriculture has
applicability in infrastructure development, supply chain management
and technology enablement of areas such as quality, traceability, logistics
and distribution and other areas of the value chain.
2. Leveraging the Farmer Producer Organisations (FPOs): Potential to
monetise the number of farmers getting connected through initiatives
such as FPO's. There could be better insurance terms, transit insurance for
farm produce, quality assessment infrastructure, precision agriculture
solutions for better crop management etc.
3. Foreign Investment in Forestry Sector: Japan International
Cooperation Agency (JICA) signed an agreement with the Government of
India to provide an Official Development Assistance (ODA) loan of
12,287 million Japanese Yen (approximately INR 750 Crore) for the
Project for Sustainable Forest Management Project.
4. Government Support in Forestry Sector: Government of India has
notified 50 items in the list of Minor Forest Produce. The Government of
India has introduced Van Dhan Vikas Karykram under which the Minor
Forest Produce gatherers will be given training in the scientific method of
collection of Minor Forest Produces, their processing, value addition etc.
5. Plantation for Sericulture: Assistance is provided to the Assam,
Arunachal Pradesh, Bodoland Territorial Council (BTC) and Meghalaya
to identify and develop pockets in the forest for intensive plantations of
different food plants of the Muga silkworm and to build the population in
wild habitat for their use in breeding programmes and replenishment of
stocks

6. Startup ecosystem: 2018 saw an inflow of over $1 bn in startups in
India in agriculture
Significance of Agri-Enterpreneurship:
Agri-entrepreneurship has the prospect of social and economic development, for
example, employment generation, poverty reduction, improvements in nutrition,
health and overall food security in the national economy especially in rural
areas. In the face of growing unemployment and poverty in rural areas, there is
urgency of entrepreneurship in agriculture for more productivity and
profitability. Agri-entrepreneurship can be used as chief remedy for the solution
of this complexity such as lower the burden of agriculture, produce employment
opportunities for rural youth, control migration from rural to urban areas, boost
national income, sustain industrial development in rural areas and cut down the
pressure on urban cities.
The feasible opportunities of entrepreneurship in agriculture are: -
i) Agro produce processing units – Here no manufacture of any new
product done and simply the processing of the agriculture produce
occurs Example- rice mills, dal mills, decorticating mills etc.
ii) Agro Produce manufacturing units – Here the entirely new products
produced based on the agricultural produce as the main raw material.
Example- sugar factories, bakery, straw board units etc.
iii) Agro-inputs manufacturing units – Here production of goods done
either for mechanization of agriculture or for increasing manufacturing
plants, Example- fertilizer production units, food processing units,
agricultural implements etc.
iv) Agro service centres –These comprise the workshops and service
centre for repairing and serving the agricultural implement used in
agriculture.

v) Miscellaneous areas – Moreover, the following areas may be hopeful
to establish agri enterprises like setting up of Apiaries ,feed processing
units, seed processing units, mushroom production units, commercial
vermin-compose units, goat rearing farmers club, organic vegetable
and fruits retail outlet, bamboo plantation and jatropha cultivation.
Why Agri-Entrepreneurship are important:
i. Agricultural and Horticultural products are locally available.
ii. These small-scale industries do not require huge infrastructure and
complex scientific technologies.
iii. These small-scale Industries are economically viable and ecologically
sustainable too.
iv. These enterprises do not require huge expenditure.
v. Agri-preneurship development has huge potential of creating new
employment opportunities for rural youth.
vi. Agripreneurship helps in checking migration of rural youth from
villages to urban centers and helps in improving living condition of
farmers by providing alternative source of income.
vii. Availability of land for agricultural purposes.
viii. Requirement of funds for agricultural activities.
ix. Requirement of literate and educated population.
x. Both backward and forward inducements and linkages of agricultural
development for industrial development.

2. WHY AGRI-ENTREPRENEURS NEED PROFESSIONAL
GUIDANCE:
1. Most of the farmers, agriculture is largely a means of livelihood. In the
lack of adequate information, capital, technology and connectivity with the
market, it isdifficult for the uneducated small owner to turn their farming into an
enterprise.
2. Before promoting diverse services by self-employed people, there is a
need to create consciousness among the farmers, who are the customers, about
the benefits of these services.
3. For promotion of services, the present performance of providing free
service by the Government organizations should be discontinued. In fact, lots of
farmers, mainly the
politically associated leaders are of the feeling that the government is
accountable for providing extension and technical advisory services to the
farmers.
4. The self-employed technicians need regular back up services in the form
of technical and business information, contact with the marketing agencies,
suppliers of critical inputs and equipment and research stations who are
involved in the development of modern technologies.
5. There are several legal restrictions and obstacles, which come in the
progress of agribusiness, promoted by the People’s Organizations and
Cooperatives. Private traders engaged in such business tend to ignore these rules
and disturb the fair-trade environment.
6. People’s Organizations often hesitate in taking the risk of making heavy
investments and adoption of modern technologies, which in turn affect the
profitability. With low profitability and outdated technologies, farmer members
lose interest in their own enterprises as well as in that of their leaders.

Hon’ble Prime Minister Shri Narendra Modi has announced the ‘Atmanirbhar
Bharat Abhiyan’ (Self-reliant India Movement) on May 12, 2020 with a special
economic & comprehensive package of Rs 20 lakh crores which was aimed
towards achieving the mission. The Mission focuses on the importance of
promoting local products. The mission is also expected to complement “Make
in India” initiative which intends to encourage manufacturing in India including
agriculture sector which have a great potential. Agriculture plays a very crucial
role in Aatmanirbhar Bharat.
The 11 measures announced favouring agricultural and allied activities include
strengthening infrastructure, logistics, governance and administrative reforms.
The prime minister highlighted the ability to turn this crisis into an opportunity
for the country by ‘going vocal for local’- reinventing the domestic agriculture
supply chain to meet local as well as global demand.
Some requirements of the industry have been addressed in the financial stimulus
package:
 The proposed amendment in the Essential Commodities Act and revision
of the APMC law will enable farmers to get the best price for their
produce, be it local, national, or global markets.
 The INR 1 lakh crore agro infrastructure fund will help in strengthening
farm gate infrastructure for farmers and benefit both supply and demand.
 The provision of INR 50,000 crore for animal husbandry and fishery will
enhance the scope for alternate income avenues for rural population.
 The INR 10,000 crore scheme for the formalisation of micro food
enterprises (MFE) and the cluster-based approach will help in building
capacity at regional levels and better supply chain integration.
 Extension of Operation Green to all fruits and vegetables will enable
farmers to diversify their produce and add much needed quicker cash

generation, which comes with shorter sales cycles of fruits and
vegetables.
 Several additional and emergency working capital funding schemes have
been announced to improve the liquidity with the farmers.
New Farm Laws:
The Union government enacted two new farm laws for agriculture, and
modified the Essential Commodities Act 1951 for agri-food stu, in September
2020. The new acts have been widely acclaimed as historic, path-breaking, and
a “1991 movement” for agriculture.
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation)
Act 2000 (FPTC Act):
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act
2000, enacted by the Central government, gives the freedom to sell and buy
farm produce at any place in the country––within APMC mandis or outside
them. To promote e-commerce in agriculture, the new law also allows the
setting up of an electronic platform for the sale and/or purchase of farm
produce. The Act also has a provision to prescribe modalities for the registration
of traders and trade transactions in trade areas. Thus, if the new system does not
work satisfactorily, then the government can intervene to regulate the system.
Due to inadequacies of the APMC markets, more than half of the marketable
surplus is sold outside the mandis. Such deals lack transparency and fairness as
they are in violation of APMC regulation; due to their underhanded nature,
there is also the constant fear of being busted upon by APMC ocials. The new
Act legalizes such transactions, which is favourable for farmers. The best part of
the new Act is that it allows direct purchase from farmers at their doorstep or
farm, as is the case with milk. For the first time, farmers will have the
opportunity to quote the price for their produce. Although these changes might

appear too good to be true, if reforms are encouraged in the right direction by
the states, it won’t take long for farmer producers or their FPOs to become
“price dictators” rather than remaining “price takers”.
Another relevant question is how smallholders will benefit from the new Act.
Our farm size is getting smaller day by day. If we want our farmers to diversify
to produce high-value crops, they need price assurance and outlet to sell small
lots. Crops like fresh vegetables and fruit do not mature on the same day and are
thus harvested in small lots over time. This requires a collection facility or sale
opportunity near the farm as is the case with dairy production throughout the
country. FPTC will facilitate the creation of the required ecosystem for
diversification at small farms. Traditional supply chains involve six to seven
transactions between the production point and end use (farm to fork). Each
transaction involves cost and margin, leading to a large price spread between
producers and consumers. FPTC will result in compressing the value chains and
eliminating excessive intermediation. In many cases farmers will be able to sell
their produce directly to consumers through their groups. The new policy
environment will create business opportunities for the rural youth, including
farmers’ children, in agriculture trading, as witnessed in denotified crops and
the dairy sector.
Key provision:
Composition:
- Total sections: 20
- Total chapters: V
- Total definitions: 14 [sections 2(a) to (n)]
 Act permits intra-state and inter-state trade of farmers’ produce (section
3) beyond the physical premises of Agricultural Produce Market

Committee (APMC) markets and other markets notified under the state
APMC Acts
 Section 2(e): Inter-State trade: trader of one state buys the farmers
produce from the farmer/trader of another state
 Section 2 (f): Intra-State trade: trader of one state buys the farmers
produce from the farmer/trader of the same state
 Permits the electronic trading of farmers' produce in the specified trade
area.
 Facilitate direct and online buying and selling of such produce
 Section 2(a): electronic trading and transaction platform-
Platform for buying and selling for contract trade and commerce of
farmers produce through network of electronic devices and internet
application and transaction results in physical delivery of farmers
produce.
 Section 2(j): scheduled farmers produce: agriculture produce
specified under any state APMC Act for regulation.
 Trader before trading in schedule farmers’ produce shall have
permanent account number under IT act, 1961 or other document
as govt may specify
 Exemption granted to the farmer producer organisations or
agricultural co-operative society with respect to this.
 Section 6: prohibition on market fee/cess under any state APMC
Act or other state law levied on farmer/trader/electronic trading and
transaction.
 Chapter III: provisions of dispute resolution mechanism for
farmers

 Section 8: for dispute with respect to transaction u/s 4 the parties
may make an application to Sub-divisional magistrate who then
refer dispute to conciliation board
 Subsection (2): conciliation board consist of chairman and not less
than two or more than four member
 Chapter IV: penalties provisions:
- Penalty not less than twenty five thousand rupees extending to five
lakh rupees for contravention of section 4
- Penalty not less than fifty thousand rupees extending to ten lakh
rupees for contravention of sections 5 and 7
 Chapter VI: Miscellaneous provisons;
- Section 16 : act will not apply to the Stock Exchanges and Clearing
Corporations recognised under the Securities Contracts (Regulation)
Act, 1956 and the transactions made there under
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation)
Rules, 2020
- Enacted by virtue of section 17 of the farmers’ produce trade and
commerce (promotion and facilitation) Act, 2020 which empowers
central government to make rules
Composition:
 Total rules: 15
 Total chapters: IV
 Total forms: 6
 Total definitions: 4 [rules 2(a) to (d)]
 Rule 3: trader transacting under section 4 of the act shall make payment
(subject to condition of delivery receipt ) on same day or within 3 days.

 Receipt of delivery contain under form 3
 Rule 4: payment by farmer producer organisation or agricultural
cooperative society o same day or within 14 days (form 1)
 Rule 5: application filed by disputing parties to be as per Form 2 of this
rule within 14 days
 Rule 8: conciliation proceeding to be complete in 30 days
 Rule 9: application (in form 4) by disputing parties to sub-divisional
magistrate if conciliation fails
 Rule 10: appeal to appellate authority in form 5 that should be file within
45 days
 Rule 14: appeal under rule 12 and 13 to be filed in form 6 within 60 days
 Appeal may be allowed in 90 days by appellate authority instead 60 days
if deemed fit
The Farmers’ Empowerment and Protection Agreement on Price
Assurance and Farm Services Act 2000
The Farmers’ Empowerment and Protection Agreement on Price Assurance and
Farm Services Act––or the Agreement on Price Assurance and Farm Services
(APAFS)––is greatly simplified and an improved version of the Contract
Farming Act that has already been adopted by 20 states. The new Act shifts the
balance in the favour of farmers. It removes the complicated system of
registration/licence, deposits, and various other compliances in contract farming
provisions in various states.
State governments have been given the power to make rules for carrying out
provisions of the Act, such as registration of a farming agreement. The Act
keeps scope to remove any diculty in giving eect to the provisions of this Act.
Key provision:

THE FARMERS (EMPOWERMENT AND PROTECTION)
AGREEMENT
ON PRICE ASSURANCE AND FARM SERVICES ACT, 2020
 Act creates a national framework for contract farming through
an agreement between a farmer and a buyer before the
production or rearing of any farm produce
Composition:
Total sections: 25
Total chapters: IV
Total definitions: 16 [sections 2(a) to (p)]
 Section 3(1): empowers farmer to enter into written agreement in
connection with farming produce specifying the terms and conditions of
supply of such produce
 That includes, the time, quality , grade, price, standards and other matters
 Subsection(3): minimum period of such agreement is one crop season/one
production cycle of livestock and maximum five years
 [If cycle period goes longer than 5 years it can be mutually decided]
 Chapter III: dispute resolution provisions
 Chapter IV: Miscellaneous provisions
- Section 16: central government empower to give directions
- Section 21: Act not to apply to stock exchanges and clearing
corporations
- section 23: central government empower to make rule
The amendment brought in the essential commodities act, 1955 by virtue of the
essential commodities (amendment) act, 2020 allow certain economic agent to
stock food articles freely without the fear of being prosecuted for hoarding.

Concern:
- unlimited stocking can lead to artificial price fluctuations and low prices
for farmers after harvest
The Essential Commodities (Amendment) Act, 2020
The Essential Commodities Act has been modified for agriculture and food stu,
including cereals, pulses, potato, onion, edible oilseeds and oils. The
modification says that the Central government may regulate the supply of the
above commodities only under extraordinary circumstances, which may include
war, famine, extraordinary price rise and natural calamities. The modification
lays down a transparent criterion on imposing or regulating stock limit, which is
100% increase in retail price of horticulture produce or 50% increase in retail
price of non-perishable agri-food stu over the price prevailing in the preceding
12 months or average price of last five years, whichever is lower.
The Essential commodities Act, 1955:
 Prevention of hoarding and black marketing of foodstuffs
 Background:
- Country was facing scarcity of foodstuff
- Due to low levels of food grains production
- Country was dependent on imports (such as wheat imported from US
under PL-480) to feed the population
Composition:
Total section: 16
Total schedules: one
Total definitions: 6 [sections (ia) to (e)]

- Ministry of consumer affairs, food and public distribution implements
the act (ministry of agriculture and farmers
- Section 2(A) : essential commodity means commodity specified in
schedule of act
- Act empowers the central government to add or remove a commodity
in the schedule [subsection (2) of section 2(A)]
- Government can control the production, supply and distribution of the
commodity which is declared essential under the act and impose a
stock limit. [section 3]
The Essential Commodities (Amendment) Act, 2020:
- Subsection (1A) in section 3 was added
- Under this, the supply of certain foodstuffs (cereals, pulses, potato,
onions, edible oilseeds and oils) can be regulated only under
extraordinary circumstances ( extraordinary price rise, war, famine,
natural calamity of severe nature)
- Exemption: certain food processors, value chain participants and
exporters subject to limited ceiling
- The expression "value chain participant", in relation to any
agricultural product, means and includes a set of participants, from
production of any agricultural produce in the field to final
consumption, involving processing, packaging, storage, transport and
distribution, where at each stage value is added to the product.’
- Section 3 (1A) (b): to counter extraordinary price rise imposes a stock
limit as below-
 Hundred per cent. increase in the retail price of horticultural
produce

 Fifty per cent. increase in the retail price of non-perishable
agricultural foodstuffs
The amendment brought due to change in the situation. As India has now
become an exporter of several agricultural products.
Comparison:
Production capacity 1955 v 2019
1955 2019
Wheat 10 million ton 100 million ton
Rice 25 million ton 110 million ton
Pulses 10 million ton 25 million ton
The changes in the act seek to free agricultural markets from the limitations
imposed by Agriculture Produced Marketing Co-operative (APMC) with
respect to license for stalking.
The Agriculture Produced Marketing Co-operative (APMC):
- A market board established by a state government in India. The
purpose was to ensure farmers are safeguarded from exploitation by
large retailers, also to ensure that the retail price spread does not reach
excessively high levels.
- Until 2020, the first sale of agriculture produce could occur only at the
market yards (mandis) of APMC
- After the Farmers’ Produce Trade and Commerce (Promotion and
Facilitation) Act, 2020 came into force it allows farmers to sell outside
APMC mandis in India.
Reforms have been passed by the Government of India in form of 3 acts,
namely

1. The Farmers' Produce Trade and Commerce (Promotion and Facilitation)
Act, 2020,
2. Farmers (Empowerment and Protection) Agreement on Price Assurance
and Farm Services Act, 2020 and
3. The Essential Commodities Amendment Act, 2020
[All these acts are explained above]
These acts look to break the monopoly of middlemen in APMCs and create a
free market. Cartelization has been a big problem in these APMCs. But these
acts have been met with skepticism by the opposition and the farmers because
they fear these laws will lead to degradation of APMCs and
eventually Minimum support price [an agricultural product price set by
government of India to purchase directly from the farmer] will be diluted.
List of 23 Commodities covered under minimum support price
1 Cereals:
1. Paddy
2. Wheat
3. Maize
4. Sorghum
5. Pearl millet
6. Barley
7. Ragi
2 Pulses:
1. Gram
2. Tur
3. Moong
4. Urad

5. Lentil
3 Oilseeds:
1. Groundnut
2. Rapeseed-mustard
3. Soyabean
4. Seasmum
5. Sunflower
6. Safflower
7. Nigerseed
4 Commercial crops
1. Copra
2. Sugarcane
3. Cotton
4. Raw jute

3. STARTUP INDIA
The Startup India is a flagship initiative of the Government of India, intended to
build a strong eco-system for nurturing innovation and Startups in the country
that will drive sustainable economic growth and generate large scale
employment opportunities. The Government through this initiative aims to
empower Startups to grow through innovation and design. In order to meet the
objectives of the initiative, Government of India is announcing this Action Plan
that addresses all aspects of the Startup ecosystem.
With this Action Plan the Government hopes to accelerate spreading of the
Startup movement:
 From digital/ technology sector to a wide array of sectors including
agriculture, manufacturing, social sector, healthcare, education, etc.; and
 From existing tier 1 cities to tier 2 and tier 3 citites including semi-urban
and rural areas.
The Action Plan is divided across the following areas:
 Simplification and Handholding
 Funding Support and Incentives
 Industry-Academia Partnership and Incubation
Vide G.S.R. 127 (E) DATED 19th February 2019 notified by DPIIT the government
widening the scope of Startup provided that
An entity shall be considered as a startup(meaning of Startup) if it satisfies all the
following conditions:
i. If it is incorporated/registered as any of the followings:
a. Private Limited Company (as defined in Companies Act, 2013).
b. Partnership Firm (registered under Partnership Act, 1932).

c. Limited Liability Partnership (registered under Limited Liability
Partnership Act, 2008).
d. One Person Company (as defined in Companies Act, 2013).
Provided that such entity is not formed by splitting up or reconstruction of a business
already in existence, further it has not completed ten years since
incorporation/registration as above.
ii. Its turnover for any of the financial years has not exceeded INR 100 Crore.
iii. It satisfies any of the following conditions:
 It is working towards:
- Innovation of new products/processes/services or
- Development of new products/processes/services or
- Improvement of existing products/processes/services
 It is a scalable business model with a high potential of:
- Employment generation or
- Wealth creation.
As a part of the Startup India initiative, DPIIT-recognised startups are eligible to avail
a host of benefits such as selfcertification, access to public procurement relaxations,
tax incentives, etc. Over the span of the last four years, Startup India has initiated
regulatory and policy reforms for startups and startup ecosystem stakeholders, to make
the environment more favourable and attractive to operate in. Startup India has
enabled 39 regulatory reforms with the help of various ministries that are tailored for
entrepreneurs and startup ecosystem stakeholders, to ease regulatory burden and
incentivise capital inflow into startups.
Requiement of recognition:
a) Certificate of Incorporation/Registration and PAN: Incorporation details such
as Incorporation Number, Date of Registration, Permanent Account Number

(PAN), Name of the registered entity (Private Limited company/ Limited
Liability Partnership / Registered Partnership Firm)
b) Total No. of directors/partners and details of each director/partner with respect
to Name, Mobile No., Email ID and complete address.
c) Entity details with respect to Industry, sector and category in which it deals.
d) Details of Authorized Representative ( Name, Designation, Mobile No. and
Email ID)
e) Number of Employees including founders.
f) Whether any awards/recognition received by the entity? if yes, need to upload
document with respect to award/recognition received.
g) What is the problem the startup is solving? It needs to be explained in
maximum 250 words.
Brief about the entity with details on the problem solved, solution provided,
uniqueness, and revenue model adopted
h) How does your startup propose to solve above mentioned problem? It needs to
be explained in maximum 250 words.
i) What is the uniqueness of your solution? It needs to be explained in
maximum 250 words.
j) How does your startup generate revenue? It needs to be explained in maximum
250 words.
k) Links or upload additional document to support your application. (eg. Website
link, Videos, Pitch Deck, Patents, etc.). It is mandatory to provide any one.
l) Proof of concept such as pitch deck/ website link/ video (in case of a
validation/ early traction/ scaling stage startup)
A. Benefits for startups after registration/recognition:

a) Various benefits with respect to Intellectual Property Rights (IPR):
Startups are provided following benefits with respect to intellectual property
rights
i) Startups are provided 80% rebate in filing of patent application and 50%
rebate in filing of trademark application.
ii) Speedy examination & disposal of patent application is provided in respect
of startups.
iii) A panel of facilitators are provided to startups to assist in filing of
application for intellectual property rights such as patents and
trademarks. Central Government bears the entire fees of the facilitators for any
number of patents, trademarks or designs, and Startups only bear the cost of the
statuary fees payable.
As per latest data released by government more than 1000 applicants have
received fee benefits and more than 4000 IPR facilitators available to assist
startups in getting IPRs.
b) Relaxation in Public Procurement Norms for Startups: Generally when a
tender is issued by a government entity or public sector undertaking, it has a
requirement of either prior experience or turnover. Generally, startups fail to
meet the criteria to participate in the tender. In order to promote startups in
manufacturing sector at par with well experienced entrepreneurs/companies
having high turnover government has exempted startups from the criteria of
prior experience or turnover. However, no relaxation has been granted with
respect to quality standards or technical parameters.
c) Self-Certification of Compliance with Labour & Environment Laws: In
order to reduce the regulatory burden on Startups, it has been allowed to self-
certify compliances with certain labour & environment laws for a period of three
years from the date of incorporation.

In respect of labour laws no inspection will be carried out unless they receive a
credible& verifiable complaint of violation, filed in writing and approved by at
least one level senior to the inspecting officer.
Relief in following Labour Laws:
o The Building and Other Constructions Workers’ (Regulation of Employment &
Conditions of Service) Act, 1996
o The Inter-State Migrant Workmen (Regulation of Employment & Conditions
of Service) Act, 1979
o The Payment of Gratuity Act, 1972
o The Contract Labour (Regulation and Abolition) Act, 1970
o The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
o The Employees’ State Insurance Act, 1948
Relief in following Environment Laws:
o The Water (Prevention & Control of Pollution) Act, 1974
o The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
o The Air (Prevention & Control of Pollution) Act, 1981
d) Faster Exit: Due to innovative nature of Startups, unfortunately a significant
percentage of startups fail to succeed.
In the event of a startup failure, it is important to reallocate capital and
resources left to more productive options available and therefore, a swift and
simple winding up process has been set up for Startups.
This will promote entrepreneurs to experiment with new and innovative ideas,
without having the fear of facing a complex and long-drawn exit process where
their capital remain needlessly stuck.
e) Income Tax Exemption under section 80IAC for 3 years: With a view to
stimulate the development of Startups in India and provide them a competitive
platform, tax exemption to recognised startups for 3 years on approval basis has
been allowed.
Startups incorporated on or after 1st April 2016 can apply for income tax
exemption under section 80IAC of the Income Tax Act, 1961.

The Inter-Ministerial Board validates the innovative nature of the business for
granting Income Tax Exemption.
The recognized Startups that are granted an Inter-Ministerial Board Certiﬁcate
are exempted from income-tax for a period of 3 consecutive years out of 10
years since incorporation.
f) Income Tax Exemption under section 56(2)(viib) (Angel Tax) on Investments:
What is section 56(2)(viib) ?: Where a company receives any consideration
for issue of shares which exceeds the Fair Market Value (FMV) of such shares,
such excess consideration is taxable in the hands of recipient as Income from
Other Sources.
What is relief to startups given?: To encourage capital investment in startups
a relief has been provided to startups with respect to section 56(2)(viib).
A DPIIT recognized startup is eligible for exemption from the provisions
of section 56(2)(viib) of the Income Tax Act.
The Startup has to ﬁle a duly signed declaration in Form 2 to DPIIT to claim
the exemption from the provisions of Section 56(2)(viib) of the Income Tax
Act.
Declaration needs to be digitally signed by a person who is authorized to verify
the return of income under section 140 of the Income tax act e.g director of the
company.
Application process:
 A recognised startup fulfilling conditions in para 4(i) and 4 (ii) of the
notification G.S.R. 127 (E), files a duly signed declaration in Form 2
online on the Startup India portal through its dashboard.
 The complete application along with declaration is received by Startup
India, DPIIT.
 On receipt of the same, DPIIT forwards the application to CBDT

 Post review, CBDT (Central Board of Direct Taxes) issues intimation to
the startup with the complete application regarding receipt of declaration
under Form 2.
g) Fund of Funds for Startups: One of key challenges faced by Startups in India
has been access to finance. Often Startups, due to lack of collaterals or existing
cash flows, fail to justify the loans. Besides, the high risk nature of Startups
wherein a significant percentage fails to take-off, hampers their investment
attractiveness. To provide equity funding support for development and growth
of innovation driven enterprises, the Government has set aside a corpus fund of
INR 10,000 crores managed by SIDBI.
The Fund is in the nature of Fund of Funds, which means that the Government
participates in the capital of SEBI registered Venture Funds, who
invest twice the amount in Startups. The ﬂow of funds is Government > SIDBI
> Venture Capitals > Startups.
h) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): The
Credit Guarantee Fund Scheme for Micro and Small Enterprises was launched
by the Government of India (GoI) to make available collateral-free credit to the
micro and small enterprise sector. Both the existing and the new enterprises are
eligible to be covered under the scheme.
i) Tax Exemptions on Capital Gains with an objective to promote investments
into Startups by mobilizing the capital gains arising from sale of capital assets.

4. AGRICUTLURE START-UPS MENTOR
Often it has been seen that most of the enterepreneurs are either unaware of available
schemes / facilities or reluctant to avail it’s benefits due to cumbersome application /
approval process, resulting in shut down of their ventures even in the starting few
years.
Therefore, there is a need of proper mentorship and professional assistance to get the
maximum available benefits from the Government schemes.
The study suggest that due to absence of professional guidance the CEOs and top
management of new buisnesses have to devote 80% of their time towards statutory
and mandatory complaince often this lead to neglect towards the benefits provided by
government, as a result many are not able to avail such benefits.with the constant
updation from the government in terms of statutory requirments many are needing the
assistance of professional who could guide them on the right path and managed all
their complaince, and other necessary work so that this entrepreneurs could
concentrate on core business operations and strategic business planning.
This has in turn created professional opportunity to individuals well versed with the
financial, regualtory, procedural aspects
Recognising the same the government has even provided mentorship facility on
the startup india portal.
The prospective mentors for providing official guidance will have to create a mentor
profile on the portal. As a Mentor, you have access to all registered startups across all
stages on the Hub. The startups may connect with you through a connection request,

post which you can provide your expert advice to the startup on its next steps. A
startup is allowed to send 3 connection requests each week. This is done by simply
clicking on the “connect” button on the mentor’s profile. Once you accept a
connection request, the startup can reach out to you through a simple chat interface.
You can know more about the Startup which has connected with you by clicking on
their profile and reading up about them.
Professional opportunities as mentor for Startups:Apart from helping the nation move
forward, as a mentor, you will have the opportunity to:
 Be recongnised as a Startup India Mentor
 Share your wisdom and experiences
 Evovle your own thinking
 Develop a new relationship
 Deepen your skills as mentor
Process of creating mentorship profile:
 Simply click on 'Register'
https://www.startupindia.gov.in/content/sih/en/registration.html and fill in the
details as required in the registration form. An OTP will be sent to your
registered email address, post submitting which your profile will get created.
 You will have an option to select your profile type. Select “Enabler” as your
persona type, post which you’ll be asked to specify what type of enabler you
are. Select mentor / investor in the drop down box depending on your
objective.
 The profile goes under moderations for 24-48 hrs, and once our Quality
assurance team has done a preliminary check on your mentor creds, your
profile is made live
List of assitance providing service ideas:
1. By assisting start-ups to get recognition through stratup india portal
2. Drafting and creating esssential legal documents such as
a. Trademark

b. Incorporation documents
c. A non-disclosure agreement for dealing between client and investor this
will include certain documents and paper such as
- Employment contract, offer letters etc binding clause
- Confidentiality agreement
- Owning of information
- Obligation with repsect to crucial information
d. Terms and condition of work
e. Company policies etc
3. By laws – definite of working rules and regulations. Security provision etc.
4. Buisness advisor- fund raising options/opportunties, complaince moniterring
other statutory compliance and mandates, periodical check etc.
5. Web portal of buisness-handling online query, improvisation, digital marketing
6. Accounting and finance matter: Taxation and Finance are the key areas
alongwith Secretarial Compliances. Professionals are playing very significant
and crucial role to help smoothen the business operations.

5. AGRICULTURE LOANS IN INDIA
An agribusiness loan is nothing but an overdraft facility that can be used as
working capital for activities related to agriculture like farming and cultivation.
Agricultural loans in India are usually low interest loans that can be availed by
farmers. The repayment tenure of an agricultural loan differs from lender to
lender. The loan can be repaid in monthly, half yearly or yearly instalments.
Uses of Agribusiness loans:
1. Purchasing farming and irrigation equipment
2. Buying cattle and livestock
3. Purchase land for agricultural activities
4. Storage and warehousing expenses
5. Marketing expenses
6. Transportation costs
7. Managing day to day operations.
Sources of Agribusiness loans:
In India, financial institutions like government and private banks, co-operative
societies and Non-Banking Financial Companies (NBFC) like Lendingkart
provide convenient agribusiness loans.
Benefits of Agribusiness loans from Lending kart:
1. Convenient and flexible loan
2. Simplified documentation
3. Easy loan repayment terms as per the borrower’s income
4. Zero hidden costs
5. Attractive interest rates

6. Fast processing
Eligibility criteria for an Agriculture Loan:
1. Applicant should be between 18 – 70 years old.
2. Applicant should utilise the loan for cultivation of agricultural land
Documents required to avail an Agriculture Loan:
1. ID proof – PAN card/Aadhar card/Ration card/Driving license/Voter ID
2. Address proof – Bank statement/No more than 3 months old utility
bill/Ration card/Driving license/Passport
3. Land ownership proof.

6. FUNDING FOR YOUR STARTUPS
It is important that the founder should know the reason as to why they funding. You
may require it for one reason or another some them are listed :
1. Prototype creation
2. Working capital
3. Team hiring
4. Legal and consulting services
5. Marketing and sales
6. Licenses and certification
7. Raw materials and equipments
8. Product development
9. Office spaces expenses
Although there are multiple sources of funding available for startups. The stage of
your startup will have so much impact on the source of fund raising.
A. IDEATION:
This is the stage where the entrepreneur has an idea and is working on bringing it to
life. At this stage, the amount of funds needed is usually small. Additionally, at the
initial stage in the startup lifecycle, there are very limited and mostly informal
channels available for raising funds.
 Bootstrapping/Self-financing: Bootstrapping a startup means growing the
business with little or no venture capital or outside investment. It means relying
on your savings and revenue to operate and expand. This is the first recourse

for most entrepreneurs as there is no pressure to pay back the funds or dilute
control of your startup.
 Friends & Family: This is also a commonly utilized channel of funding by
entrepreneurs still in the early stages. The major benefit of this source of
investment is that there is an inherent level of trust between the entrepreneurs
and the investors
 Business Plan/Pitching Events: This is the prize money/grants/financial
benefits that are provided by institutes or organizations that conduct business
plan competitions and challenges. Even though the quantum of money is not
generally large, it is usually enough at the idea stage. What makes the
difference at these events is having a good business plan.
B. VALIDATION:
A startup will need to conduct field trials, test the product on a few potential
customers, onboard mentors, and build a formal team for which it can explore the
following funding sources:
 Incubators: Incubators are organizations set up with the specific goal of
assisting entrepreneurs with building and launching their startups. Not only do
incubators offer a lot of value-added services (office space, utilities, admin &
legal assistance, etc.), they often also make grants/debt/equity investments.
 Government Loan Schemes: The government has initiated a few loan schemes
to provide collateral-free debt to aspiring entrepreneurs and help them gain
access to low-cost capital such as the Startup India Seed Fund Scheme and
SIDBI Fund of Funds.
 Angel Investors: Angel investors are individuals who invest their money into
high-potential startups in return for equity. Reach out to angel networks such as
Indian Angel Network, Mumbai Angels, Lead Angels, Chennai Angels, etc., or
relevant industrialists for this.
 Crowdfunding: Crowdfunding refers to raising money from a large number of
people who each contribute a relatively small amount. This is typically done
via online crowdfunding platforms.

C. EARLY TRACTION
Funds are raised at this stage to further grow the user base, product offerings, expand
to new geographies, etc. Common funding sources utilized by startups in this stage
are:
 Venture Capital Funds: Venture capital (VC) funds are professionally managed
investment funds that invest exclusively in high-growth startups. Each VC fund
has its investment thesis – preferred sectors, stage of the startup, and funding
amount – which should align with your startup. VCs take startup equity in
return for their investments and actively engage in the mentorship of their
investee startups.
 Banks/Non-Banking Financial Companies (NBFCs): Formal debt can be raised
from banks and NBFCs at this stage as the startup can show market traction
and revenue to validate its ability to finance interest payment obligations. This
is especially applicable for working capital. Some entrepreneurs might prefer
debt over equity as debt funding does not dilute equity stake.
 Venture Debt Funds: Venture Debt funds are private investment funds that
invest money in startups primarily in the form of debt. Debt funds typically
invest along with an angel or VC round.
D. SCALING
Common funding sources utilized by startups in this stage are:
 Venture Capital Funds: VC funds with larger ticket sizes in their investment
thesis provide funding for late-stage startups. It is recommended to approach
these funds only after the startup has generated significant market traction. A
pool of VCs may come together and fund a startup as well.
 Private Equity/Investment Firms: Private equity/Investment firms generally do
not fund startups however, lately some private equity and investment firms
have been providing funds for fast-growing late-stage startups who have
maintained a consistent growth record.
E. EXIST OPTIONS

 Mergers & Acquisitions: The investor may decide to sell the portfolio company
to another company in the market. In essence, it entails one company
combining with another, either by acquiring it (or part of it) or by being
acquired (in whole or in part).
 Initial Public Offering (IPO): IPO refers to the event where a startup lists on the
stock market for the first time. Since the public listing process is elaborate and
replete with statutory formalities, it is generally undertaken by startups with an
impressive track record of profits and who are growing at a steady pace.
 Selling Shares: Investors may sell their equity or shares to other venture capital
or private equity firms.
 Buybacks: Founders of the startup may also buy back their shares from the
fund/investors if they have liquid assets to make the purchase and wish to
regain control of their company.
Steps for Start-up fund raising:
The fund-raising process can be broken down into the following steps:
A. Assessing need for funding:
The startup needs to assess why the funding is required, and the right amount to be
raised. The startup should develop a milestone-based plan with clear timelines
regarding what the startup wishes to do in the next 2, 4, and 10 years. A financial
forecast is a carefully constructed projection of company development over a given
time period, taking into consideration projected sales data, as well as market and
economic indicators. The cost of Production, Prototype Development, Research,
Manufacturing, etc should be planned well. Basis this, the startup can decide what the
next round of investment will be for.
B. Assessing investment readiness:
While it is important to identify the requirement of funding, it is also equally
important to understand if the startup is ready to raise funds. Any investor will take
you seriously if they are convinced about your revenue projections and their returns.
Investors are generally looking for the following in potential investee startups:

 Revenue growth and market position
 Favorable return on investment
 Time to break-even and profitability
 Uniqueness of the startup and competitive advantage
 The entrepreneurs’ vision and future plans
 Reliable, passionate, and talented team
C. Preparation of pitchdeck
A pitchdeck is a detailed presentation about the startup outlining all the important
aspects of the startup. Creating an investor pitch is all about telling a good story. Your
pitch isn’t a series of individual slides but should flow like a story connecting each
element to the other.
D. Investor targeting
 Identify active investors
 Their sector preferences
 Geographic location
 Average ticket size of funding
 Level of engagement and mentorship provided to investee startups
E. Due diligence by interested investors
Angel networks and VCs conduct thorough due diligence of the startup before
finalizing any equity deal. They look at the startup’s past financial decisions and the
team’s credentials as well as background. This is done to ensure that the startup’s
claims regarding the growth and market numbers can be verified as well as to ensure
that the investor can identify any objectionable activities beforehand. If the due
diligence is a success, the funding is finalized and completed on mutually agreeable
terms.
F. Term sheet

A term sheet is a “Non-binding” list of propositions by a venture capital firm at the
early stages of a deal. It summarizes the major points of engagement in the deal
between the investing firm/investor and the startup. A term sheet for a venture capital
transaction in India typically consists of four structural provisions: valuation,
investment structure, management structure, and finally changes to share capital.
 Valuation
Startup valuation is the total worth of the company as estimated by a professional
valuer. There are various methods of valuing a startup company, such as the Cost to
Duplicate approach, Market Multiple approach, Discounted cash flow (DCF) analysis,
and Valuation-by-Stage approach. Investors choose the relevant approach based on
the stage of investment and market maturity of the startup.
 Investment Structure
It defines the mode of the venture capital investment in the startup, whether it is
through equity, debt, or a combination of both.
 Management Structure
The term sheet lays down the management structure of the company which includes a
list for the board of directors, and prescribed appointment and removal procedures.
 Changes to share capital
All investors in startups have their investment timelines, and accordingly they seek
flexibility while analyzing exit options through subsequent rounds of funding. The
term sheet addresses the stakeholders’ rights and obligations for subsequent changes
in the company’s share capital.

KEY FACTORS TO ATTRACT BETTER INVESTMENT FOR YOUR
STARTUPS:
As different investors use different criteria to judge an investment, the importance of
these factors would wary depending on the stage of investment, sector of startup,
management team etc.
Listed below are typical investment criteria used by investors:
1. Market Landscape: This refers to the addressable market which the startup is
catering to.
Factors involved: Market size, obtainable market-share, adoption rate,
historical and forecasted growth rates, macroeconomic drivers, demand supply
2. Scalability and Sustainability: Startups should showcase the potential upscale
in the near future, a sustainable and stable business plan.
Factors involved: Barriers to entry, imitation costs, growth rate, expansion
plans
3. Objective and Problem Solving: The offering of the startup should be
differentiated to solve a unique customer problem or to meet customer need.
Ideas or products that are patented showcase deemed potential in the startups.
4. Customers & Suppliers: Laying out your customers and suppliers, helps
investors understand your business better.
Factors involved: Customer relationships, stickiness to the product, vendor
terms, existing vendors etc.
5. Competitive Analysis: A true picture of competition and other players in the
market working on similar things should be highlighted. There can never be an
apple to apple comparison, but highlighting the service or product offerings of
similar players in the industry is important
Factors involved: Number of players in the market, market share, obtainable
share in the near future, product mapping to highlight similarities or differences
between competitor offerings

6. Sales and Marketing: No matter how good your product or service maybe, but
if does not find any end use, there is no good.
Factors involved: Sales forecast, targeted audiences, marketing plan for the
target, conversion and retention ratio etc.
7. Financial Assessment: A detailed business model that showcases the cash
inflows over the years, investments required, key milestones, break-even point
and growth rates should be made out well. Assumptions used at this stage
should also be reasonable and clearly mentioned.
8. Exit Avenues: A startup showcasing potential future acquirers or alliance
partners becomes a valuable decision parameter for the investor
9. Management and Team: The execution and passion of founder and the
management team to drive the company are equally crucial in addition to the
all the factors mentioned above

8. AGRICULTURE BUSINESS IDEAS WITH LESS INVESTMENT
1) Agriculture farm
If you have an empty land suitable for farming, you can start with an
agricultural farm. Items that are demanded locally can be produced on it.
Maintaining good quality can fetch you high profits.
2) Tree farm
A tree farm grows trees and earns money by selling them. The waiting period of
earning money in this business is quite high as the growing of trees requires
considerable time. This is one of the best small farm business ideas to start. This
might need some maintenance cost.
3) Organic fertilizer production
Vermicompost or organic fertilizer production has become a household
business. It does not require much investment and very easy to initiate with a
little know-how of the production process.
4) Business of fertilizer distribution
This business is suitable for people who live in small towns or rural areas. In
this business, you are required to buy fertilizers from big cities and make them
available in rural areas. This could be one of the best small agricultural
business ideas in India to start in small towns.
5) Dry flower business

The business of dry flowers has flourished over the last 10 years. If you have
vacant land, you can grow flowers, make them dry and sell to craft stores or
hobbyists.
6) Mushroom farming
The business of growing mushrooms can fetch you big profits in a short period
of time. It can be started with low investment and it requires less space also.
Mushrooms are in great demand at hotels, restaurants, and households.
7) Poultry farming
The poultry farming business has transformed into a techno-commercial
industry. In the last few decades, it is one of the fastest-growing industries. If
you are looking for small farm income ideas, this could be best fit for you.
8) Hydroponic retail store
Hydroponics is a new plantation technology that does not use soil for growing
plants. A hydroponic retail store deals in hydroponic equipment and also
develops plants to be sold for both commercial and home use.
9) Organic greenhouse
An organic greenhouse business has good potential to grow because the demand
for organically grown products has been increasing consistently. Beforehand,
this business was done on small family-run farms, but with increasing demand
as people are now buying land for making organic greenhouse.
10) Beekeeping
With the increasing awareness for health, the demand for honey is growing day
by day. This way, beekeeping has become a great business opportunity. This
business demands day-to-day monitoring of the bees with close supervision.
11) Fish farming – Commercial fish farming business is a very lucrative
business that can fetch a huge amount of money. With the implementation of
modern techniques, production and quality can be enhanced to a great deal. This

is one of the most lucrative Agro business ideas that require moderate to high
investment to start.
12) Snail farming – Snail farming business is the process of raising land snails
for human consumption. Snails contain a high rate of protein, iron, low fat, and
almost all the amino acids needed for the human body. Keeping their nutrient
value in mind, they are in high demand. This business opportunity demands
discipline and specific knowledge of modern technology.
13) Fruit and Vegetable export – You can initiate the business of exporting
fruit and vegetables in which you have to collect fresh fruits and vegetables
from local farmers and sell them internationally. For this business, you need to
know the import and export policies as well as local markets. This is one of the
best agriculture export business ideas to start.
14) Become a florist – Selling flowers are a very profitable retail business.
Flower arrangement and bouquets are always in high demand for gifting, at
weddings, etc. With some innovation and creativity. You can do wonders in this
business.
15) Broom production – For centuries, the broom has been used for sweeping
up the floor and removing the dirt and dust in and around workplaces and
homes. The process of broom production is quite simple and the project can be
initiated with low capital investment. Maintaining a good quality and
competitive prices can give you good profits in a short span of time.
16) Fruit juice production – The production process of fruit juice is quite
simple and can be initiated with low investment. This business has a huge
market opportunity. Hygiene, taste, and quality of fruit have to be kept in mind
while starting this business.
17) Groundnut processing – If you can procure good quality raw material
(groundnuts) for this business, you can initiate it with moderate capital.
Processed groundnuts have very good market potential all over the world.

18) Quail farming – Quail farming is about raising quails for profitable eggs
and meat. At the global levels, quail farming business is gaining importance as
it fulfills daily family nutrition demand.
19) Tea plantation – With the increasing demand for tea leaves, this business
has huge potential. Tea plants typically required acidic soil and heavy rainfall,
although they can be grown anywhere from sea level to high altitudes. So, if
your demographic situation is suitable for growing tea, you should go in this
business. This is one of the good agriculture business ideas in India that requires
high capital.
20) Grocery shopping portal – With the advent of technology and E-
Commerce, people find it very wasteful to spend hours buying day-to-day
groceries. They prefer ordering groceries to be delivered at their doorsteps so
one can start with an E-shopping portal that delivers groceries.
21) Farming of medicinal herbs – Growing of medicinal herbs at the
commercial level is one of the most profitable agriculture business ideas. If you
possess good knowledge about the herbs and have sufficient land, you can
initiate the farming of medicinal herbs. You may need to take certain licenses
from local government in the case of medicinal herb business.
22) Cactus arrangement – Cactus has been extensively used as a decor item,
either indoor or outdoor. Many cactus plants can coexist happily in the same
container. So, with a touch of creativity, you can make beautiful cactus
arrangements. It is a very profitable and self-rewarding business.
23) Jatropha farming – Jatropha has been used as a raw material for producing
biodiesel. It is one of the most trending money making agriculture business
ideas in India, as very few people know about it. By doing some research and
gaining some knowledge, you can easily start with this business.
24) Corn Farming – Corn or maize has emerged as one of the most versatile
crops that can be grown under varied climatic conditions. Maize is known as
the Queen of cereals as it has the highest genetic potential amongst the family.

By implementing modern technology and good quality seeds, one can obtain a
bumper crop.
25) Potato powder – potato powder is extensively used in the snack food
industry. It can be used in any recipe where mashed potatoes are required. It is
used as a thickener in ready to eat vegetable gravies and soups.
26) Goat Farming – Goat is one of the main meat-producing animals used
globally. For this reason, goat rearing has been flourishing as an economic
industry with good prospects.
27) Soil Testing – Soil testing is a technique used for monitoring the nutrients
present in the soil is well as for making precise fertilizer recommendations for
different crops. Establishing a soil testing laboratory with Government
certification is one of the best small farm business ideas.
28) Agro blogging – If you possess good knowledge about agriculture with a
niche in writing, you can always try for agro-blogging. It contains blogs related
to agriculture and farming. With the advent of the internet in rural areas,
farmers have started using technology to improve their farming skills. They
need fair advice on their agricultural problems. This is one of the best
agricultural related business ideas to start with zero to low investment.
29) Fodder farming Business – The term fodder is used for the food given to
domestic animals for feeding and not the food they graze by themselves. There
are plants grown particularly for this purpose like barley, oats, alfalfa, etc.
Fodder is used to feed animals like cows, goats, pigs, horses, etc. and always in
great demand.
30) Rose farming – Rose is a flower with high commercial value. It is used in
flower arrangements and bouquets on a large scale. If you are interested in
gardening, you can turn it into a profitable business. It can be initiated on a
small piece of land.

31) Rabbit farming – Rearing of rabbits has been started on a commercial
level. Angora rabbits are mainly raised for their wool and well known for
quality. Rabbits are the best producers of wool on per kg body weight basis.
32) Agriculture consultancy – if you are an expert in a specific field of
farming, you can adopt the business of agriculture consultancy. This business is
flourishing day by day as farmers need expert advice at many stages.
33) Dairy farming – Demand for milk and milk products can never go down.
Commercial dairy farming is one of the most profitable agriculture-based
business ideas. Apart from milk, it produces manure in huge quantities. Hygiene
and quality should be always kept in mind while doing this business.
34) Spice processing – Organic spices are in high demand locally as well as
internationally. The processing and packaging methods are not very complex
and can be initiated with moderate capital.
35) Vegetable farming – If you have sufficient land and manpower, you can
start with vegetable farming. Vegetables produced with good quality seeds and
fertilizers yield good crops and give good returns. If you are thinking about
small farm income ideas, you can shortlist this business idea.
36) Soya beans farming – Soya bean is required to produce soya milk, soya
flour, soya sauce, soya bean oil, etc. If you have small vacant land, soya bean
farming can be initiated to convert it into a profitable business.
37) Landscape expert – Landscape expert is the one who has good knowledge
of landscape architecture. It encompasses activities like site analysis, land
planning, planting design, storm water management, construction specification.
They ensure that the plan meets all the current building codes and all the
statutory compliance.
38) Tilapia farming – Tilapia is a kind of fish whose demand is escalating
steadily especially in the USA. You can start this highly profitable business.
39) Horticulture crop farming – Horticulturists produce fruits, plants, and
vegetables, flowers in greenhouses, and nurseries with highly specialized

knowledge. The selection of the crops and method is very important in this
business.
40) Certified seed dealer – Seed certification is a process of quality check
whereby the seeds are inspected and checked with proper process. In simple
words, the system certifies that a box or packet of seed is in accordance with the
requirements of a certification scheme. You can start a business that sells only
certified seed. There are a few formalities to establish this business. You do not
need any land for it. It can be initiated by contract farming.
41) Greenhouse flower export – Many people establish a greenhouse for
producing only export-oriented flowers. It is one of the most profitable business
ideas it requires substantial capital investment and good knowledge about the
process.
42) Potato chip production – It is a small-scale industry based on making
potato chips and french-fries. The demand for potato chips and french-fries as
an FMCG is increasing steadily in the global market. This is one of the most
profitable money making agriculture business ideas in India to start with low to
medium capital

10.AGRICULTURE MARKETING = DIGITAL MARKETING
Agricultural Marketing is a process which starts with a decision to produce a
saleable farm commodity, and it involves all the aspects of market structure or
system, both functional and institutional, based on technical and economic
considerations, and include pre- and post-harvest operations viz., assembling,
grading, storage, transportation and distribution.
Why digital marketing for Agriculture:
The digital marketing for agriculture and the agribusiness sector provides
businesses with the opportunity to increase visibility and to generate business-
to-business leads more efficiently than ever before. As these industries continue
to grow and continue to modernize, the proportion of operations that take place
online will grow as well.
Digital marketing for agriculture – including search optimization and paid
advertising – gives businesses opportunity for better B2B lead growth as well as
for the digital marketing of agriculture eCommerce products.
Agribusiness and farming businesses tend to rely more on non-digital and
established business growth strategies making digital marketing more of an
accessory. But search engine optimization (SEO) and paid search advertising
offer well-established benefits for long-term business performance and are
proven strategies. They also cater well to agricultural product sales, wholesale
product sales, export/import business and product eCommerce – regardless of
industry.

The potential of digital marketing for agricultural commerce
Search engine optimization as part of digital marketing in the agriculture sector
is ideal for:
 Ensuring long-term business growth and reliable revenue
 Maintaining or growing industry market share
 Promoting brand recognition and building a business’s loyalty base
 Growing traffic to your website across organic, referral, and social
segments
 Gaining authority with improved page-linking and natural backlink
growth
 Improving sales and revenue affordably, without an ad budget
 Generating leads and sales by catching search traffic for customers who
are at the top of the shopping funnel
Paid-ad digital marketing for agriculture
The advantage of this sort of digital marketing in agriculture sectors is that paid
ads provide businesses with more website traffic than organic search alone and
help boost visibility even further.
paid search advertising as a part of digital marketing in agriculture is good for:
 Gaining traffic or revenue during holidays or during short seasonal
periods
 When expanding an agriculture business to a new niche or market
 Rapidly gaining traffic for certain industry keywords

 Quickly gaining visibility to new business sectors and geographical
markets
 Targeting traffic in certain regions, countries, states, or cities
 Generating cash-flow or revenue quickly
 Helping promote farm/agriculture brand recognition or for competing
against a dominate competitor
 Subsidizing a business’s marketing along with SEO content marketing
Paid social media marketing
Popular social media platforms represent one of the fastest growing, and newly
most popular marketing channels on the internet. Likewise platforms like
Facebook, LinkedIn, and Instagram still offer opportunities for business-to-
business and eCommerce growth.
For agriculture this still provides websites with an opportunity to grow online
visibility and revenue.
Social media sites tend to offer a range of ad styles, including:
 Photo and video ads in user feeds
 Messenger ads and mail ads that are designed to reach individuals
 Stories ads
 Shopping and eCommerce focused ads for digital retail opportunity
Social media marketing and paid search ads allow businesses to get the most out
of their existing content and their on-site marketing material to naturally grow
traffic over time. Increase traffic and a greater social presence help feed SEO by
building back-links and boosting website ranking authority.

FOCUS AREAS FOR AGRI-TECH STARTUPS
1. BIG DATA: Data, as we all know, is the new oil and going forward,
development of farm specific, data-driven diagnostics to determine soil
and crop health will be a big opportunity area. Startups are leveraging
drones or tractor-based solutions to get data on field, pertaining to both
weather and agricultural data to determine risk. Growing smartphone
penetration will enable precision decision-making in farming activity to
farmers and help drive increased productivity and revenue while reducing
unit-costs.
Eg.: Agrostar, RML Agtech are investing INR 5 Cr ($776 K) each in
building ground-breaking image recognition technology that enables
farmers to receive real-time data on the pest or disease that has affected a
crop.
2. FARMING-AS-A-SERVICE (FAAS): Agri equipment renting is
another area likely to see market traction. As longer gestation periods are
a typical feature for this sector and modern equipment is expensive and
unaffordable for the average farmer, renting can take the burden of the
input costs away from the farmer.
Eg.: EM3 Agriservices offers farming services and machinery rentals to
farmers on a pay-for-use basis. Other startups include, Goldfarm, Ravgo,
Oxen Farm Solutions and Farmart.
3. MARKET LINKAGE MODELS: Innovations to help farmers with
timely and accurate estimation of sowing and harvesting in sync with
consumer demand patterns.

Eg.: MeraKisan.com helps consumers in India to order fresh food and
goods sourced from local farmers.
4. FINTECH FOR FARMERS: Farm income is mostly in cash and it
presents an opportunity for Fintech startups to digitize payments for
farmers through payment gateways linked to their accounts. Such startups
can also create the credit profile environment for funders and lenders.
5. IOT FOR FARMERS: Smart farming in agricultural business including
concepts like high-precision crop control, data collection, automated
farming techniques will remove inefficiencies and bolster productivity.
Information on crop yields, rainfall patterns, pest infestation and soil
nutrition can be used to improve farming techniques over time.
Eg.: Stellapps leverages cloud computing, data analytics and wearables to
improve agri-supply chain parameters, including milk production,
procurement, cold chain, animal insurance and farmer payments.
Initiative for Development of Entrepreneurs in Agriculture (IDEA)
The scheme intends to promote agri-business ventures in the North-East Region
and assist in establishing agri-business as a profitable venture. It also provides
gainful employment opportunities and makes available supplementary sources
of input supply and services.
Extent and Nature of Assistance
 Composite loan comprising Term Loan and Working Capital.
 Financial assistance will be extended on need basis, depending upon the nature
of the projects and competence of the promoters.
 Maximum project size could be Rs.25 lakhs.

 Term Loan from North Eastern Development Finance Corporation Ltd. =
Maximum upto 75% of the project cost.
 The promoter’s contribution will be at least 25% of the project cost.
Eligibility Criteria
 Graduates and Post graduates in agriculture and allied subjects
 Graduates, Post-graduates from other disciplines having experience and skill to
undertake Agri Business ventures can also be considered.
 The proposed units could be proprietorship, partnership or a company.
 The promoter or their units must not be a defaulter in any government scheme
and /or with any bank or any other agencies.
 The proposed unit for which financial assistance is sought should be located
within any of the eight North-Eastern States.
 How to apply?
 Apply to the Chairman and Managing Director, NEDFi, G.S. Road,
Dispur, Guwahati – 781006 in the prescribed format of NEDFi.
For more details: https://www.nedfi.com/node/97
The Union Government accords very high priority to the agriculture sector. In
order to contribute directly and indirectly to enhancing the income of farmers by
providing opportunites to them and to provide employment to youth, start-ups
are being encouraged. A component, Innovation and Agri-entrepreneurship
Development programme has been launched under Rashtriya Krishi Vikas
Yojana in order to promote innovation and agripreneurship by providing
financial support and nurturing the incubation ecosystem.These start-ups are in

various categories such as agro-processing, artificial intelligence, digital
agriculture, farm mechanisation, waste to wealth, dairy, fisheries etc.
DAC&FW has selected 5 Knowledge Partners (KPs) as Centres of Excellence.
These are -
(1) National Institute of Agricultural Extension Management (MANAGE),
Hyderabad,
(2) National Institute of Agricultural Marketing(NIAM) Jaipur,
(3) Indian Agricultural Research Institute (IARI) Pusa, New Delhi,
(4) University of Agriculture Science , Dharwad, Karnataka and
(5) Assam Agriculture University, Jorhat, Assam
24 RKVY-RAFTAAR Agribusiness Incubators (R-ABIs) from across the
country have also been appointed.
The following are the components of this scheme:
 Agripreneurship Orientation - 2 months duration with a monthly stipend
of Rs. 10,000/- per month. Mentorship is provided on financial,
technical, IP issues etc.
 Seed Stage Funding of R-ABI Incubatees – Funding upto Rs. 25 lakhs
(85% grant & 15% contribution from the incubatee).
 Idea/Pre-Seed Stage Funding of Agripreneurs – Funding up to Rs. 5 lakhs
(90% grant and 10% contribution from the incubatee).
The institutes issue calls for application for their programmes and based on a
rigorous process of selection through various stages and a training of two
months, the final list of start-ups that are to be funded through grants-in-aid are
finalised. Training on technical, finance, intellectual property, statutory

compliance issues etc. is provided. Mentoring of start-ups through monitoring
of milestones and timelines is part of the programme.
Some start-ups that are being incubated offer the following solutions -
 Activx Animal Health Technologies branded as Vetzz, is a network of
Veterinary Doctors which provides immediate connect with customers i.e
animal owners via real time tele consultation and doorstep visits.
 SNL Innovations - InnoFarms provides fruit and vegetable pulp
processed directly at the farm using an in-house developed monoblock
fruit processing platform (on-wheels) to convert fruits to pulp with shelf
life of up to 1 year with complete traceability from farm to customer.
 EF Polymer developed an Eco-Friendly Water Retention Polymer with an
aim to solve the water scarcity crisis for farmers. This startup made a
super absorbent polymer designed to absorb water in the soil, retain it for
a long time, and supply to the crops as required.
 Among the start-ups that have been selected are several start-ups led by
women such as A2P Energy Solution that uses AI to track waste bio-mass
and then works with farmers to collect it. On one side it generates
additional income for farmers and on the other side A2P converts the
collected biomass into Next Gen biofuels like energy pellets, green coal
and bio oil.
 Kyari Innovations is working on mitigating human wildlife conflict pan
India and internationally. They have created an innovative product called
ANIDERS- Animal Intrusion Detection and Repellent System. This
device works like a mechanized scarecrow that can protect farmlands
from animal intrusions.
 Agsmartic Technologies, has a vision to improve crop yield by precise
irrigation and disease management though a data driven approach by
using AI, IoT and computer vision. Their product Croplytics® is a

combination of hardware and software solution that integrates ground
sensor data and satellite imagery to translate data into actionable
information for creating a precise model for irrigation.
Apart from the above mentioned 6 startups, there are many more with
innovative solutions to improve the farming eco system and augment farm
household incomes.
In all, a total of 346 startups in the agriculture and allied sectors are being
funded for a sum of Rs. 3671.75 lakhs in this phase. This fund will be released
in instalments. These start-ups were trained for two months at 29 agribusiness
incubation centres (KPs & RABIs) spread across India. These start-ups will lead
to employment to youth. Besides, they, directly and indirectly, will contribute to
enhancing the income of farmers by providing opportunities to them.

11.THE GOVERNMENT SPONSERED SCHEME
A. CAPITAL INVESTMENT SUBSIDY SCHEME FOR
COMMERCIAL PRODUCTION UNITS FOR ORGANIC/
BIOLOGICAL INPUTS
The scheme is being implemented by the Department of Agriculture,
Cooperation and Farmers’ Welfare (DAC&FW), Ministry of Agriculture &
Farmers’ Welfare, GoI, through National Centre of Organic Farming (NCOF) in
collaboration with NABARD and National Cooperative Development
Corporation (NCDC). NABARD is the subsidy channelising agency for projects
submitted to NABARD.
The increased and indiscriminate use of chemical fertilizers and pesticides and
the deteriorating soil health and productivity is concerning people all over the
world. Growing awareness for safe and healthy food has underlined the
importance of organic farming, which is a holistic system based on the basic
principle of minimising the use of external inputs and avoiding the use of
synthetic fertilizers and pesticides.
In view of these challenges, there is a need in the country to augment the
infrastructure for production of quality organic and biological inputs.
Accordingly, under the National Project on Organic Farming a Capital
Investment Subsidy Scheme for Commercial Production Units for organic/
biological inputs was introduced in 2004-05.
Objectives of the scheme

 To promote organic farming in the country by making available organic
inputs, such as bio fertilisers, bio pesticides as well as fruit and vegetable
market waste compost and thereby generate better return for the produce
 To increase agricultural productivity while maintaining soil health and
environmental safety
 To reduce total dependence on chemical fertilizers and pesticides by
increasing the availability and improving the quality of bio fertilisers, bio
pesticides and composts in the country
 To convert organic waste into plant-nutrient resources
 To prevent pollution and environment degradation by proper conversion
and utilisation of organic waste
 To establish bio fertilisers and bio pesticides production units
 To set up fruit and vegetable waste compost unit
Beneficiaries
 Individuals, group of farmers/growers, proprietary and partnership firms,
co-operatives, fertilizer industry
 Companies, Corporations
 Non-Governmental Organizations (NGOs)
 Agricultural Produce Market Committees (APMCs)
 Municipalities
 Private entrepreneurs Links for downloads
 The confirmation for continuation of the scheme has not been received
from GoI for the year 2021-22.
B. AGRICLINIC AND AGRIBUSINESS CENTRES SCHEME
The ACABC scheme is being implemented by Ministry of Agriculture and
Farmers’ Welfare, Government of India, with NABARD acting as subsidy
channelising agency.

The objectives of the scheme are –
 To supplement efforts of public extension by providing extension and
other services to farmers either on payment basis or free of cost as per
business model of agri-preneur, local needs and affordability of target
group of farmers
 To support agricultural development
 To create gainful self-employment opportunities to unemployed
agricultural graduates, agricultural diploma holders, intermediate in
agriculture and biological science graduates with PG in agri-related
courses.
Agri-Clinics
Agri-Clinics are envisaged to provide expert advice and services to farmers on
various aspects to enhance productivity of crops/animals and increase the
incomes of farmers. Agri-Clinics provide support in the following areas:
 Soil health
 Cropping practices
 Plant protection
 Crop insurancePost-harvest technologyClinical services for animals, feed
and fodder managementPrices of various crops in the market, etc.
Agri-Business Centres
Agri-Business Centres are commercial units of agri-ventures established by
trained agriculture professionals. These ventures may include maintenance and
custom hiring of farm equipment, sale of inputs and other services in agriculture
and allied areas, including post-harvest management and market linkages for
income generation and entrepreneurship development.

The scheme covers full financial support for training and handholding,
provision of loan and credit-linked back-end composite subsidy.
List of Beneficiaries
 Graduates in agriculture and allied subjects from State Agriculture
Universities (SAUs)/Central Agricultural Universities/Universities
recognised by ICAR/UGC. Degree in Agriculture and allied subjects
offered by other agencies are also considered subject to approval of
Department of Agriculture & Cooperation, GoI, on recommendation of
the State Government
 Diploma (with at least 50% marks)/Post Graduate Diploma holders in
Agriculture and allied subjects from State Agricultural Universities, State
Agriculture and Allied Departments and State Department of Technical
Education.
 Diploma in Agriculture and allied subjects offered by other agencies are
also considered subject to approval of Department of Agriculture,
Cooperation & Farmers’ Welfare, GoI on recommendation of the State
Government
 Biological Science Graduates with Post Graduation in Agriculture &
allied subjects
 Degree courses recognised by UGC having more than 60 percent of the
course content in Agriculture and allied subjects
 Diploma/Post Graduate Diploma courses with more than 60 percent of
course content in Agriculture and allied subjects, after B.Sc. with
Biological Sciences, from recognised colleges and universities.
 Agriculture related courses at Intermediate (i.e. plus two) level, with at
least 55% marks.
C. NATIONAL LIVESTOCK MISSION

National Livestock Mission is an initiative of the Ministry of Agriculture and
Farmers’ Welfare. The mission, which commenced from 2014-15, has the
objective of sustainable development of the livestock sector.
NABARD is the subsidy channelising agency for following schemes, under
Entrepreneurship Development & Employment Generation (EDEG) component
of National Livestock Mission.
 Poultry Venture Capital Fund (PVCF)
 Integrated Development of Small Ruminants and Rabbit (IDSRR)
 Pig Development (PD)
 Salvaging and Rearing of Male Buffalo Calves (SRMBC)
 Effective Animal Waste Management
 Construction of Storage Facility for Feed and Fodder
List of Beneficiaries
 Farmers, individual entrepreneurs
 NGOs
 Companies
 Cooperatives
 Groups of organized and unorganized sector which include Self- Help
Groups (SHGs) and Joint Liability Groups (JLGs)
Eligible financial institutions
 Commercial Banks
 Regional Rural Banks
 State Cooperative Banks
 State Cooperative Agriculture and Rural Development Banks
 Other institutions eligible for refinance from NABARD

D. INTEREST SUBVENTION SCHEME
The Honourable Finance Minister in his budget speech (para 49) for 2006-07
announced that the Government had decided to ensure that farmers receive short
term credit at 7% with an upper limit of Rs. 3.00 lakh on the principal amount.
The policy came into force with effect from Kharif 2006-07. The amount of
subvention was to be calculated on the amount of crop loan from the date of
disbursement up to the actual date of repayment of the crop loan by the farmer
or up to the due date of the loan fixed by the banks, whichever is earlier, subject
to a maximum period of one year.
In pursuance of this announcement, the Government of India provided interest
subvention of 2% to Public Sector Banks, Regional Rural Banks (RRBs) and
Co-operative Banks in respect of short-term production credit up to Rs. 3 lakh
provided to farmers out of their own resources, provided that they make
available short-term credit @ 7% p.a. at ground level. Private Sector Banks (in
respect of loans given by their rural and semi urban branches) are also covered
under the scheme from the year 2013-14 with similar terms and conditions.
A. Incentive to farmers on prompt repayments
Since the year 2009-10, the Government of India introduced additional
subvention of 1% to farmers as an incentive for repaying the loans promptly i.e.
on or before the due date or the date fixed by the bank, subject to a maximum
period of one year. It has been increased to 2% for 2010-11 and 3% from 2011-
12.
B. Relief to farmers
To provide relief to farmers affected by natural calamities, Interest Subvention
of 2% has been made available to banks for the first year on restructured

amount of crop loans. Such restructured loans will attract normal rate of interest
from the second year onwards as per the policy laid down by the RBI.
Interest Subvention to Small and Marginal Farmers against Negotiable
Warehouse Receipts
In order to discourage distress sale of produce by farmers and to encourage
them to store their produce in warehouses against warehouse receipts, GoI had
introduced a scheme in 2011-12 for extending concessional loans to the farmers
against negotiable warehouse receipts.
The benefit of 2% interest subvention will be available to banks on their own
funds involved for extending credit support up to Rs 3 lakh at 7% interest per
annum to Small and Marginal farmers (SF/MF) having Kisan Credit Card for a
further period of up to six months post the harvest of the crop against
Negotiable Warehouse Receipts issued on the produce stored in warehouses
accredited with Warehousing Development Regulatory Authority.
SF/MF, who have not availed crop loans through banking system, would not be
eligible.
Interest subvention on working capital to Animal Husbandry and Fisheries
The GoI has extended the Interest subvention Scheme on KCC issued to crop
loan farmers to the KCC issued to Animal Husbandry and Fisheries farmers
from 2018-19. Interest subvention of 2% to banks and 3% to farmers towards
Prompt Repayment incentive is extended on short-term loans up to Rs2 lakh to
animal husbandry and fisheries farmers apart from the existing KCC for crop
loans, provided the loans are extended by banks @7% per annum. In case of
farmers possessing KCC for raising crops and involved in activities related to
Animal Husbandry and/ or Fisheries, the Interest Subvention on short-term loan
is available on an overall limit of Rs.3 lakh per annum.

The Govt of India has issued instruction that Interest Subvention to Banks and
Prompt Repayment Incentive to farmers will be available only against KCCs
from 1 April, 2020.
E. NEW AGRICULTURAL MARKETING
INFRASTRUCTURE(AMI) SUB- SCHEME OF INTEGRATED
SCHEME FOR AGRICULTURAL MARKETING (ISAM)
The Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM is being
implemented by the Ministry of Agriculture and Farmers’ Welfare, Government
of India.
The AMI sub-scheme of ISAM is applicable for new credit linked projects,
where term loan has been sanctioned by eligible financial institutions from
22.10.2018 to 31.03.2021. NABARD is the channelizing agency for release of
subsidy @ 25% to 33.33% of the capital cost for institutions eligible for
refinance by NABARD or any other FI such as State Financial Corporations
(SFCs) approved by DAC&FW.
The scheme is now extended for the term loans sanctioned up to 30.06.2021.
F. FORMULATION OF SPECIAL LONG TERM REFINANCE
SCHEMES
To address the issue of rural migration and to give boost to the agriculture and
rural sector in the post COVID era, NABARD introduced three special
refinance schemes as detailed under.
Special Long Term Refinance Scheme for Transformation of PACSs as
MSC
The scheme intends to develop all the potential PACS as Multi Service Centres
(MSCs) over a period of three years commencing from the year 2020-by
providing concessional refinance to StCBs at 3% to support PACS to create

quality infrastructure (capital assets) and increase their business portfolio in
tune with needs of members. Under this line of credit, NABARD has envisaged
transformation of 35,000 PACS in three years commencing with the
transformation of 5,000 PACS in FY21 and for subsequent years 15,000 PACS
each during FY22 and FY23. Rs.5000 crore have been earmarked under this
special dispensation for the year 2020-21. The ultimate interest rate to be
charged from PACS will not be more than 1% over & above the interest rate
charged by NABARD and will be shared by StCB & CCB as per the mutually
agreed terms. Repayment period of refinance will be up to 7 years.
So far, 3055 PACS were given in-principle sanction with estimated project cost
of Rs.1760.82 cr and estimated bank loan of Rs.1568 cr. by NABARD.
Special Long Term Refinance Scheme for beneficiaries of the watershed
and wadi project areas
The objectives of the scheme is to promote sustainable economic activities,
livelihood and employment opportunities for the beneficiaries in NABARD
supported watershed and wadi project areas by encouraging banks to lend at
concessional rate to these beneficiaries to address the issue of rural migration
and to give boost to the agriculture and rural sector in the post COVID era.
The refinance will be available to all the eligible banks/FIs at 3% for maximum
5 years. The revised ultimate lending rate to be charged by banks/FIs under the
scheme is revise as 06 months MCLR+1% or EBLR+2.5% whichever is lower.
NABARD has earmarked refinance amount of Rs.5000 crore during 2020-21 to
2022-23.
Regional offices of NABARD are finalizing the Banking Plans in collaboration
with the participating Banks.
Special Long Term Refinance Scheme for promoting Micro Food
Processing Activities.

The objectives of the scheme is to encourage banks to lend micro-food
processing activities and create sustainable livelihood and employment
opportunities for rural youth as well as reverse migrants due to COVID-19
pandemic in the rural areas.
The scheme also envisages modernization and enhancing the competitiveness of
the existing individual micro enterprises and ensure their transition to formal
sector in rural areas. The refinance scheme will give fillip to the recently
launched “PM Scheme for Formalisation of Micro food processing Enterprises
(PM FME)” under Aatmanirbhar Bharat Abhiyan by MoFPI, GoI under which
about Rs.25,000 crore investment is expected in the sector. The concessional
refinance at 4% is available to eligible financial institutions viz., commercial
banks, SFBs, StCBs, RRBs and NABARD subsidiaries.
‘Structured Finance and Partial Guarantee Programme to NBFC-MFIs,’
The National Bank for Agriculture and Rural Development (NABARD) has
introduced a dedicated debt and credit guarantee product to ensure unhindered
flow of credit in rural areas hit by the Covid-19 pandemic. The product-
Structured Finance and Partial Guarantee Programme to NBFC-MFIs -entails
providing partial guarantee on pooled loans extended to small and mid-sized
micro finance institutions (MFIs). “The partially guaranteed loan facility will
catalyse much-needed financing to millions of households, agricultural and
business markets to sustain in the post Covid-19 environment.
It will help facilitate Rs 2,500 crore funding in the initial phase and is expected
to be scaled up. The programme is expected to cover over 1 million households
across 28 states and 650 districts, the release said. The pooled loan issuance
(PLI) structure provides the lending bank adequate comfort through
NABARD’s partial credit protection, reduces cost of capital as the rating of the
loans gets notched up and helps lenders meet priority sector goals. This

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