Uttar Pradesh looks to invest in 3,000 agri start-ups

The state government of Uttar Pradesh is mulling to provide further thrust to start-ups in the agriculture sector in the state with even distribution in all its districts. According to reports, the Uttar Pradesh government may invest about Rs 3,800 crore through a new scheme in agri ventures to raise its agricultural value. The investment is meant for the financial year 2023-24. The government has already pioneered the ‘One District, One Product’ scheme and now wants to raise the agri based businesses in all districts.

The new start-ups will be focusing on segments like seeds, fertilizers, warehousing, crop management, soil nutrients etc. According to reports, the scheme

The scheme will cover agricultural and horticultural crops. The key focus will remain on allied farm activities. The scheme will also delve into pisciculture, sericulture, and food processing units in the state.

Uttar Pradesh, the largest in India in terms of population, has 75 districts. The state government will be approving at least five agri ventures and start-ups. This approval will take place every month in every district of UP.

The funds will come from the Agriculture Infrastructure Fund (AIF) scheme created by the Central Government. The AIF provides a boost to farm infrastructure through investments in community agricultural assets at the ground level.

A project that is approved by the Uttar Pradesh government should have a worth of over Rs 1 crore. These projects will be eligible for credit from designated banks. The agri start-ups will get an interest subsidy of 6%. This subsidy will be shared equally by AIF and the Uttar Pradesh government. Projects of upto Rs 2 crore will not require to submit any collateral or guarantee to the banks to avail credit.

The state officials believe that the scheme will help in easing the loan process. This will ultimately provide support to over 3,000 agri-entrepreneurs and young agriculturalists.