Agri-Business Government Schemes for Rural Entrepreneurs in India
Agriculture has always been the backbone of India’s rural economy. However, in recent years, the focus has shifted from traditional farming to agri-business and rural entrepreneurship. With increasing demand for food processing, storage, logistics, dairy, fisheries, and agri-technology solutions, the Government of India has launched several schemes to encourage rural youth, farmers, women, and startups to build sustainable agri-based enterprises. These schemes aim to improve income, generate employment, and strengthen the agricultural value chain.
The Need for Agri-Business Support
Some of the common challenges that rural entrepreneurs are likely to experience include unavailability of capital, infrastructures, access to markets and lack of technical knowledge. The government schemes are important to help in solving these problems to provide financial support, subsidies, training, incubation, and market linking support. Through agri-business development, such developments not only boost farmers earnings, but also minimize rural-urban migration and result in inclusive development.
Agriculture Infrastructure Fund (AIF)
Agri-business infrastructure is one of the most important activities that have been increased through the Agriculture Infrastructure Fund (AIF). It provides initiatives associated with post-harvest management including warehouses, cold storage, primary processing units, sorting and grading facilities, and supply chain infrastructure.
According to this scheme, small business people will have access to loans of up to 2 crore at a subvention of 3 percent over a maximum period of seven years. The coverage of credit guarantee also minimizes the risk amongst the borrowers. AIF is very helpful to Farmer Producer Organizations (FPOs), cooperatives, startups, and rural entrepreneurs because it helps them to develop modern infrastructure and minimize the losses associated with post-harvest.
Rashtriya Krishi Vikas Yojana (RKVY – RAFTAAR)
RKVY Remunerative Approaches to Agriculture and Allied Sector Rejuvenation (RAFTAAR) is concerned with innovation, agri-entrepreneurship, and startup. The scheme grants incubation, mentoring and training to agri-startups and rural enterprises.
RKVY promotes novelty in agriculture, horticulture, animal husbandry, fishery and agri-technology. The scheme assists rural entrepreneurs to transform ideas into businesses by financing the incubators and agribusiness accelerators.
Agri-Clinics and Agri-Business Centres (AC&ABC)
Agri-Business Centres Scheme and Agri-Clinic Scheme are especially targeting the agriculture graduates. It also facilitates self-employment through the development of agri-service centers by graduates including soil testing centers, custom hiring centers, crop advisory centers, seed and fertilizer stores, and veterinary centers.
The scheme trains, hands holding and subsidizes loans, allowing the educated rural young people to initiate service-oriented agri-businesses which have direct positive impacts on the farmers.
PM Formalisation of Micro Food Processing Enterprises (PMFME)
The PMFME Scheme is meant to empower micro food processing plants within the rural setting. It targets individual business persons, Self Help Groups (SHGs), Farmer Producer Organizations and cooperatives.
The scheme will provide credit based subsidies, skill training, branding, packing and marketing. It also encourages the One District One Product (ODOP) strategy that assists in the local food products to be recognized and marketed. The PMFME particularly helps females in business and small rural processors.
Startup India Seed Fund Scheme (SISFS)
Agri-startups often struggle during their early stages due to lack of funding. The Startup India Seed Fund Scheme addresses this gap by providing seed funding of up to ₹20–25 lakh for idea validation, prototype development, product trials, and market entry.
Agri-tech startups working on precision farming, supply chain solutions, digital platforms, and sustainable agriculture can leverage this scheme to scale their innovations.
NABARD and NABVENTURES Support
NABARD is also instrumental in financing the rural businesses. NABARD offers financing of agribusiness and rural startups, both in equity and growth, through its venture capital fund, NABVENTURES.
Moreover, NABARD also facilitates schemes like Dairy Entrepreneurship Development Scheme (DEDS) where capital subsidies are provided to start dairy farms and milk processing units and milk chilling facilities.
Skill Development and Livelihood Schemes
Schemes like Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and DAY-NRLM strengthen rural entrepreneurship by providing skill training, credit linkages, and enterprise development support. These initiatives help rural youth and SHG members develop business skills and improve livelihoods through agri-based activities.
Conclusion
Government schemes for agri-business play a transformative role in empowering rural entrepreneurs in India. By offering financial assistance, infrastructure development, skill training, and startup support, these initiatives encourage innovation and sustainable growth in the agricultural sector. For aspiring rural entrepreneurs, understanding and effectively utilizing these schemes can be the key to building successful agri-business ventures and contributing to rural economic development.
Best 10 Government Programs to Start a Business in India : https://businessfounded.com/best-government-programs-to-start-a-business/
