The central government has introduced several schemes and initiatives to promote entrepreneurship among tribal and rural farmers in the agriculture industry. These schemes are bringing together self-help groups among farming communities and enabling them to become financially independent and technologically savvy.

What is the PMFME scheme?

The Prime Minister’s Formalisation of Micro Food Enterprises (PMFME) scheme is a central and state government scheme for farmers. Under this scheme, aspiring entrepreneurs in the agriculture sector can avail INR 10 Lakh in funding to start their business. Aimed at doubling the income of farmers, PMFME is implemented under the ‘One District One Product’ program. The scheme became operational in 2021-2021 and will go on until 2024-25, facilitating the setup of 2 lakh micro processing units during the period of 5 years.

Support for micro food enterprises

Credit linked subsidy

Micro food processing enterprises will receive upgrade support by the Government through PMFME scheme. The enterprises will be set up or upgraded through credit linked subsidy. The enterprises will also enjoy financial, technical, and business support. Eligible projects can avail credit-linked capital subsidy at 35% of the project cost with a maximum ceiling of INR 10 Lakh per unit.

Capacity building or training support

Enterprises availing capital investment as well as other existing units will be provided capacity building or training support in the following focus areas

Areas of focus

• • • • Entrepreneurship development
      • Marketing
      • Bookkeeping
      • Registration
      • Compliance with FSSAI standards
      • Udyog Aadhar
      • GST Registration
      • General hygiene
      • Other essential functions

Specially designed training

The micro enterprise units will go through specially designed training for focus areas like machine operations, hygiene issues, procurement, packaging, storage, new product development, etc.

Success rate of the PMFME scheme

PMFME is a centrally sponsored scheme under the Aatmanirbhar Bharat initiative by the Ministry of Food Processing Industry (MoFPI). In the span of one year since its launch, PMFME has been implemented in 35 states and Union Territories. Milestones achieved in one year include launch of the GIS (Geographic Information System) digital map for all states and UTs. Agreements and MoUs (Memorandum of Understanding) were signed with 11 banks that are official lending partners of PMFME, and the Union Bank of India which is the Nodal Bank for the scheme. The National Rural Livelihood Mission sanctioned INR 25.25 Cr to 8040 SHG members (Self Help Group) as seed capital. MoUs were signed with NAFED (National Agricultural Cooperative Marketing Federation of India) and TRIFED (Tribal Cooperative Marketing Federation of India) for Marketing and Branding support.

Indian states are creating exclusive programmes for start-ups and budding entrepreneurs. Whether its Tamil Nadu’s Electric Vehicle Policy or Telangana’s MSME Prerna programme, Indian States want to attract investor interest and are in a bid to transform their state into the biggest start-up hub in the country. 

What is the Tamil Nadu Start-up and InnovaTN Mission (TANSIM)?

The Tamil Nadu Start-up and InnovaTN Mission (TANSIM) which is branded as StartupTN is an exclusive platform for Tamil Nadu based start-ups by the state government. It is aimed at supporting start-ups by bringing together stakeholders including mentors, investors, incubators, ecosystem partners, etc., to accelerate start-up growth. StartupTN was established as a ‘Section 8’ (charitable/non-profit) company under the MSME (micro, small, and medium enterprise) department in March of this year. The sole mandate of the mission is to implement the ‘Tamil Nadu Start-up and Innovation Policy 2018-23’ by the Tamil Nadu government. 

Benefits for Start-ups, Micro, Small and Medium Enterprises

Through TANSIM, the Tamil Nadu government is providing concessions to start-ups in the state, based on recommendations by the state’s Mission Director. It provides a fillip to micro, small and medium enterprises through various support schemes and programmes. TANSIM is creating an enabling ecosystem for start-ups in the state. Registered start-ups will obtain concessions for procurements below INR 20 Lakh in value. This implies that registered start-ups will get exemptions from payment of Earnest Money Deposit. They will also be exempted from conditions of poor turnover and prior experience. Start-ups will also enjoy waivers on tender cost. 

TANSEED and how it  is related to TANSIM

TANSEED (Tamil Nadu Start-up Seed Grant Fund) is a seed grant under TANSIM which start-ups can apply to avail seed grant of INR 10 lakh for each start-up. Taking place in the months from July to September of this year, applications are open for start-ups and the last date to register for this second edition of TANSEED, dubbed TANSEED 2.0 is the 20th of August. 20 start-ups stand a chance to win the seed fund grant. TANSEED is an initiative that’s promoting innovation and the start-up culture among budding entrepreneurs.

Agriculture is now a market-driven business in India. Agri-businesses in India include food production, farming, farm machinery, seed supply, fertilisers, Agri-chemicals, irrigation equipment, distribution, processing, marketing, trade, wholesaling and retailing. The Government introduces schemes mainly to bolster the agriculture sector of India and to improve the economic condition of stakeholders. 

Government schemes supporting the Agriculture ecosystem

Atal Innovation Mission

The Atal Innovation Mission fosters innovation and entrepreneurship within the country and is a flagship initiative by the Government of India. Setup by NITI (National Institution for Transforming India) Ayog, it develops programs and policies for various sectors in the economy. The mission collaborates with private companies to nurture innovation across various sectors like agriculture and healthcare, among others. 

NewGen Innovation and Entrepreneurship Development Centres

The NewGen IEDC is a Government Scheme under the Start-up India program which is working to foster an entrepreneurial culture among academic institutions. Under this scheme, students are encouraged to pursue initiatives with commercialisation potential. Sponsored by the National Science & Technology Entrepreneurship Development Board (NSTEDB), its an entrepreneurship development programme for industries like chemicals, networking & telecommunications, Agriculture and Artificial Intelligence, among others. 

Venture Capital Assistance promoted by the Small Farmers’ Agri-Business Consortium 

The Venture Capital Assistance scheme, as the name suggests, provides financial support in the form of interest free loans for Agri businesses in association with the Small Farmers’ Agri-Business Consortium. 

Agriculture Grand Challenges

The Agriculture Grand Challenges are Government initiatives that encourage and identify Agri-innovations by start-ups that address the major problem areas of Indian agriculture. 

Initiative for Development for Entrepreneurs in Agriculture (IDEA)

This Government scheme is part of the NEDFL (North-eastern Development Finance Corporation Ltd) schemes by the Ministry of Development of North-eastern Region aimed at promoting and extending assistance to agri-businesses in the north-east region of India. 

Agri Udaan

Agri Udaan is an agribusiness accelerator programme by the Government. It’s a platform for scale-up stage food & agribusiness start-ups to acquire mentoring, networking and investor access organised by a-IDEA (Association of Innovation Development of Entrepreneurship in Agriculture) in conjunction with NABARD (National Bank for Agriculture and Rural Development).

Innovation and Agri Entrepreneurship Development programme

This scheme was launched under the Rashtriya Krishi Vikas Yojana to support Agri entrepreneurship and Agri businesses by providing financial support for start-ups. It provides employment opportunities to young entrepreneurs thus indirectly working to increase the income of farmers.

How these schemes boost the agricultural ecosystem

These schemes boost the agricultural ecosystem by working to increase agricultural productivity in Indian farming. They directly benefit farmers by prioritising their welfare. It helps agriculture stakeholders to eventually achieve the goal of qualitative improvements in their agricultural yield and products. 

How agriculture start-ups will benefit

Agriculture start-ups will benefit by recognition from the Government and growth achieved through support from these schemes. The agriculture start-up ecosystem will also swell as more start-ups emerge to tap into the potential market opportunity with help from the Government. Apart from the recognition, a number of other benefits like tax exemption and patent support will encourage more start-ups to venture into the agri business.

Fertiliser is one of the prime components of Agriculture or Agri-tech. Without a steady supply of fertiliser, crops won’t grow within the stipulated time and harvest gets impacted. But the global price hike on commonly used fertilisers and their raw materials have forced domestic manufacturers to sell at raised prices. This could have led to a severe farming crisis. With the Government’s timely intervention, farmers will be supported during this price surge so that they can continue acquiring fertilisers at the old rates. 

Government increases Fertiliser Subsidy Outlay

The Government has recently allocated an additional amount of INR 14775 Cr as fertiliser subsidy for farmers. A stimulus package of INR 6.29 Lakh Cr was announced which comprises Government guarantee to banks and microfinance institutions for loans. 

How Agri-Tech will benefit

The fertiliser subsidy will particularly benefit the Agri-Tech sector by helping farmers. It will ensure that the sale price for farmers remains unchanged with the wavering of international prices on inputs. Also, the stimulus package is mainly aimed at helping Covid hit sectors revive, Agri-tech in particular. 

How Farmers from North-Eastern states will benefit

The fertiliser subsidy announcement will also prove to be beneficial for North-Eastern states and farmers in this region. As part of the stimulus package, the Government is also looking to revive the Northeastern Regional Agricultural Marketing Corporation (NERAMAC). This move will help farmers in eight north-eastern states obtain remunerative prices for their agriculture-horticulture produce. 

5 ways the updates will impact stakeholders

• DAP (Di-Ammonium Phosphate) fertiliser has achieved a subsidy hike of 137%. This will balance out the retail price hike previously rolled out by fertiliser manufacturers. The subsidy hike is set at INR 1211.55 for every 50-kilogram bag from an earlier rate of INR 511.55. 
• DAP is the second common fertiliser in the agriculture sector standing second to Urea in terms of sale quantity. The subsidy scheme affects DAP uniquely since the Government has provided a fixed per tonne subsidy to this fertiliser. Which means that the MRP on it is decontrolled, variable and mostly decided by the manufacturers. However, the subsidy remains static.

• All other non-urea fertilisers will attract Nutrient based Subsidy (NBS) with variable rates. Depending on the content of nutrients like Nitrogen (N), Phosphorous (P) and Sulphur (S) in the fertiliser, the per-tonne NBS rates vary. 

• A farming crisis has been thwarted by the Government with the subsidy hike. The raised subsidy of DAP will protect farmers against surging prices of the substance owing to global increase in cost of raw materials. 

• Rise in price of DAP would have severely affected Indian farmers since growing crops like Soyabean that need DAP fertiliser would cost an average of INR 1900 or higher.

With the rising number of start-ups in India, the Government has a huge task of identifying, recognising and rewarding the cream of the crop. By highlighting the success of the best Indian start-ups and bringing them to the forefront of the ecosystem, the Government is paving the way for other start-ups to follow in their wake. The Start-Up India Showcase platform comes under the purview of Start-up India initiative by the Government. 

What is the Start-up India Showcase Platform?

The start-up India showcase platform is an online discovery platform for the most promising Indian start-ups. It offers opportunities to connect on a digital and social level. Every start-up has a dedicated profile which contains an in-depth pitch of their products, innovations and USP (Unique Selling Proposition). The pitch is published on the platform either through the video content format or through PDF links.

Start-ups currently onboarded

 A total of 104 start-ups are currently registered on the Showcase platform, as per the data shared by the Commerce Ministry. Out of these, 74 are product-based start-ups and 30 start-ups belong to the service sector. These start-ups belong to diverse industry sectors including Food-Tech, Green Energy, Defence, Ed-Tech and Health-Tech.

Benefits of getting Shortlisted

The benefits for start-ups getting shortlisted for the platform are numerous including access to pilot opportunities coming from Governments, Corporates and international organisations. Also, you can grab fundraising opportunities from relevant investors. You also gain increased visibility and valuable exposure from being shortlisted. Lastly, shortlisted start-ups will be recognised on India’s All-Star Start-up Repository.

Eligibility Criteria and Application Process

Eligibility Criteria

Indian start-ups that are solving critical problems for their respective industry sectors and target consumers have a high chance of getting shortlisted. Also, start-ups which have brought considerable innovation into their respective industry sectors are also eligible to be onboarded.

Most importantly, start-ups which are already recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Start-up India program are mainly eligible for the programme.

Application process

The application process is simple and straightforward wherein start-ups need to fill a form on the Startup India official website and furnish details about the company, the founding team and submit official documents.

The Micro, Small, and Medium Enterprise sector has reached the brink of exhaustion with the onslaught of the pandemic. The situation is grim as there doesn’t seem to be hope for recovery post the second wave for small businesses without Government Intervention. In this regard, many measures are being taken by the Government, one of which is the Udyam Registration for recognition.

What is the Udyam Registration?

Udyam is a Portal where small enterprises can register themselves. It falls under the purview of the Ministry of Micro, Small and Medium Enterprises (MSME). It’s a portal where enterprises can get registered and recognised by the Government. Registration will facilitate easy access to enterprise information. It will also be helpful in quick linking with other Government schemes, regulations, and compliance norms like Income Tax and GST (Goods and Services Tax).

Why Udyam registration is important for SMEs

Udyam registration is important for SMEs due to the following key reasons

• By registering on Udyam, your enterprise can acquire business tenders.
• Your business can avail bank loans and credit at cheap interest rates of 1.5% lesser than regular bank loans.
• You can also enjoy various tax holidays and exemptions post Udyam registration.
• Small businesses across various industries will benefit from expedited license approvals, certifications, and Government registrations. Udyam registered enterprises will be prioritised over unregistered firms.
• Other benefits include subsidies on tax, tariffs, and capital as well as reduced patent costs.

Eligibility Criteria and Application Process for Small Enterprises

Eligibility Criteria

Enterprises belonging to the manufacturing and services sector are mainly eligible for Udyam Registration. Earlier, wholesale and retail traders were not eligible for Udyam. But after their recent entry into the classification of Micro, Small, and medium enterprises, wholesalers and retailers are also eligible to apply.

Application Process

Here are some crucial pointers on the application process for enterprises.      

• • Irrespective of whether a business is involved in two or more activities, each enterprise needs to have one registration on Udyam.

  • Aadhaar provision

If the enterprise is a proprietorship firm, you need to submit the Aadhaar number of the owner.

If the enterprise is a partnership firm, you need to provide the Aadhaar number of the Managing Partner.

If it is a Hindu Undivided Family (HUF) business, the Aadhaar number of the Karta must be provided.

• • The application process is straightforward and it’s a one-time compliance for businesses.

Who comes under the ambit of micro, small and medium enterprises?

The following enterprises come under the ambit of Udyam Registration.

• Micro enterprises are those having investment up to INR 1 Cr and turnover of up to INR 5 Cr.
• Small enterprises with investment of up to INR 10 Cr and turnover of up to INR 50 Cr.
• Medium enterprises with investment of up to INR 50 Cr and turnover of up to INR 250 Cr.

SME (Small and Medium Enterprises) and small businesses have been worst affected by the pandemic. To revive the sector, the government is working hard to ensure access to a number of schemes under which small business owners can avail loans with minimum collateral and paperwork. The small business sector is a 40% contributor to the Indian GDP (Gross Domestic Product). It’s important for small businesses to take full advantage of the available government schemes to help revive the economy and subsequently scale up their operations.

Mudra

The MUDRA organisation is a Bank backed by the government aimed at providing financial support for the entrepreneurial landscape of India. It comes under the purview of the Pradhan Mantri MUDRA Yojana (PMMY) scheme for small and micro enterprises in India. MUDRA is a refinancing institution that will facilitate loans up to INR 10 Lakh to small businesses via their partner institutions including Commercial Banks, RRBs (Regional Rural Banks), Small Finance Banks, MFIs (Monetary Financial Institutions) and NBFCs (Non-Banking Financial Institutions.

National Small Industries Corporation Subsidy

The National Small Industries Corporation is an enterprise by the Government of India for providing support to Indian small businesses and SMEs. Their loan scheme subsidy provides finance, market, and technology services for small businesses. Categories under the NSIC Subsidy:

The NSIC subsidy is divided into two categories namely, the Marketing Support Scheme, and the Credit Support Scheme. Under the Marketing Assistance Scheme, NSIC helps SMEs organise and participate in Domestic and International Exhibitions and Trade Fairs. They also facilitate buyer-seller meets and conduct Intensive Campaigns and Marketing Promotion Events for small businesses.

Under the Credit Support Scheme, NSIC facilitates credit from a list of partner banks. NSIC does handholding for small businesses to avail credit from these banks by assisting with the application process and doing follow ups.

Credit Link Capital

The Credit Linked Capital Subsidy Scheme provides technology upgradation assistance for Micro and Small Enterprises in India. It provides an upfront capital subsidy of 15% for upgradation of their technology. The scheme is being implemented through nodal banks and agencies including SIDBI (Small Industries Development Bank of India), NABARD (National Bank for Agriculture and Rural Development), SBI (State Bank of India), PNB (Punjab National Bank), BoB (Bank of Baroda), Canara Bank and Corporation Bank, Indian Bank, Bank of India, and TIICL (Tamil Nadu Industrial Investment Corporation Limited).

Credit Guarantee Trust Fund for Micro and Small Enterprises (CGT SME)

The Credit Guarantee Trust Fund for Micro and Small Enterprises is a government loan scheme for small businesses under the Ministry of Micro, Small and Medium Enterprises. The corpus of this trust fund is a joint effort by the Government of India and SIDBI. Under this scheme, small businesses can avail a loan up to INR 200 Lakh. Established small businesses and upcoming firms are both eligible to apply for this business loan.

Stand Up India

Stand Up India is a government run scheme exclusively for small businesses run by Scheduled Caste and Tribe members especially women. The unique aspect of this scheme is that it is also operated by Schedule Caste and Tribe members. Small businesses belonging mainly to the trading and manufacturing sectors can avail a business loan between INR 10 Lakh – 1 Cr. The loans are being facilitated by SIDBI. This scheme is aimed at empowering and fostering entrepreneurship among the marginalised SC/ST communities, especially women from these communities.

Other small business loans under government schemes

A few other notable government backed small business loans include Udyogini for rural women entrepreneurs, and the Subsidy Scheme for Technology Upgradation.