Draft policy suggests agri startup fund to boost farm exports

The government is considering a proposal to promote agri startups with a view to attracting budding entrepreneurs to the farm sector and boost exports.

The proposal is part of the commerce ministry's draft agriculture export policy on which comments have been invited from all the stakeholders.

According to the draft policy, entrepreneurs needs to be supported to start a new venture in agriculture products exports during their initial period of establishment.

The suggestion assumes significance as the government is taking several steps to promote start-up ecosystem in the country to promote entrepreneurs and innovation.

"A start-up in the agriculture export sector, which is going to work on a new concept/product/ project may submit its proposals.

"All such proposals would be referred to the fund manager for its evaluation and provide funding for the deserving proposals which are going to aid in increasing agricultural exports from the country," it said.

The ministry is seeking views on the policy, which aims at addressing a whole range of issues which could potentially propel India into the top bracket of agricultural exports, till April 5.

The founder and CEO of tea cafe startup Chaayos, Nitin Saluja, said this is the right time for the government to work on this proposal as the sector holds enormous opportunities for budding entrepreneurs.

"Lot of private funds are there to support startups in this sector and the government's effort in this direction would give a further boost," he said.

He added that the move would help farmers to get best price for their produce. Chaayos is directly procuring commodities including tea, ginger, tulsi and cardamom from farmers.

India's share in global exports of agriculture products has increased from 1 per cent a few years ago to 2.2 per cent in 2016.