The Current Scenario in the Agtech Sector
Agtech start-ups are a rapidly growing influence in the Indian agricultural landscape as the need for a healthy blend of agricultural practices and technological integration is ever-mounting.
With the traditional agricultural sector still facing resistance to adopting modern technology and fully integrating, Agtech start-ups have stepped in to work on pre-and post-harvest management systems.
Currently there are more than 450 Agtech start-ups working in the country and considering that the Indian agricultural ecosystem is one of the largest in the world, government-funded schemes like the Rashtriya Krishi Vikas Yojana (RKVY) make a big difference.
What is Rashtriya Krishi Vikas Yojana Scheme?
It is a Central Government funded, state-plan scheme that encourages and enables states to increase public investment in agriculture and allied services.
How Can Agtech Start-ups Benefit from the Scheme?
The advantage of the Rashtriya Krishi Vikas Yojana scheme is that it facilitates the incubation of Agtech start-ups through support services such as seed-funding and bolstering infrastructure, manpower, equipment and upskilling.
- Orientation for start-ups – Agtech start-ups receive a two-month training and orientation during which they gain an additional Rs 10,000 per month. The benefit is that new businesses and owners get a lay of the land while simultaneously receiving mentorship on how to handle finances, technical issues, business planning and networking.
- Seed funds – Businesses under the scheme receive funding of up to Rs 25 lakhs which will cover roughly 85 per cent of the project’s funds while the remaining 15 per cent will be the responsibility of the incubatee.
- Project funding – Agtech start-ups will receive a funding of up to Rs 5 lakhs for the idea stage of their businesses, depending on the scale of the project.
- Customised mentorship – Subject-matter experts help formulate strategic market analysis and structure a business accordingly.
- Infrastructure furnishings – Work-station equipment, Wi-Fi connectivity, conference rooms and high-tech Conference Management Systems (CMS) are provided.
- Filing for intellectual property right – Patents, trademarks and copyrights can be filed under the guidance of the scheme.
- Funding preparations – Agtech start-ups receive aid in applying for Grand, Equity and Debt funding schemes.
- Support in technology development – Incubatees are mentored by industry innovators to help commercialise and develop their technology.
The Rashtriya Krishi Vikas Yojana scheme is essentially an all-inclusive hand-holding guide that can help your Agtech start-up find its feet during the infancy stages.