Overview of Agri Business Grants
The agricultural sector in India is rapidly evolving, with government initiatives providing substantial funding and support for startups, farmers, and entrepreneurs. Whether you're looking to innovate in agri tech, food processing, or sustainable farming, there are numerous grants, subsidies, and funding programs available to help you succeed.
This comprehensive guide covers government grants, schemes, eligibility criteria, application processes, and key funding opportunities for agricultural businesses in India.
What Are Agri Business Grants?
Financial Support
Grants are non-repayable funds provided by government agencies to support agricultural innovation and business growth.
No Repayment Required
Unlike loans, grants don't require repayment, making them ideal for startups and early-stage businesses.
Startup Agro Fund (Deep Dive)
The Startup Agro Fund, under the Maha Agri-AI Policy, is a focused initiative to make Maharashtra a leader in AI-driven agriculture with clear objectives and two distinct tracks.
Track 1: Discovery & Ideation
Early-stage support
Funding:
Up to ₹40 Lakhs
Duration:
~6 months
Stage:
Idea, concept, PoC, MVP
Support:
Seed funding, mentorship, technical guidance, dataset access
Track 2: Pilot & Validation
Scale-up support
Funding:
Up to ₹2 Crore
Stage:
Working prototype ready for pilot
Support:
Pilot funds, farmer network, commercial readiness
Best For:
Startups ready to test with real farmers
Focus Areas of Maha Agri-AI Policy
Precision Agriculture
- • Crop planning & yield forecasting
- • Smart irrigation & water optimization
- • AI-based pest & disease management
Supply Chain & Market Access
- • Farm-to-market traceability
- • Price discovery & demand forecasting
- • Post-harvest loss reduction
Post-Harvest & Value Addition
- • Sorting, grading, packaging solutions
- • Tech-enabled processing units
Real-Time Monitoring
- • Weather risk alerts
- • Crop health monitoring (satellite, drones, sensors)
Benefits of Startup Agro Fund
Track 1 Benefits
Seed funding, mentor access, datasets, technical infrastructure, clear path to Track 2
Track 2 Benefits
Pilot funding, farmer networks, commercial readiness, policy support, ecosystem access
Expert Guidance
Access to Honda experts, IIT Delhi professors, industry mentors
Tech Infrastructure
State-of-the-art labs, EDA tools, prototyping facilities
Sustainability Focus
Guidance on building sustainable solutions with market access
Networking
Connect with investors, government officials, industry leaders
Eligibility Criteria for Startup Agro Fund
Track 1
- •Individual innovators, early-stage startups
- •Researchers working on AI-based agriculture
- •Stage: Concept, prototype, PoC, MVP
- •Clear problem statement & expected impact
Track 2
- •Registered startups, FPOs, NGOs
- •Working prototype / tested solution
- •Ready for field pilot or scale-up
- •Ability to execute with farmers/FPOs
Who Is Eligible for Agri Business Grants in India?
Documents Required for Agri Business Grants
1️⃣ Entity & Registration
- ✓Certificate of incorporation / registration
- ✓PAN of entity
- ✓GST registration (if applicable)
- ✓Udyam / MSME registration (for MSMEs)
2️⃣ Promoter KYC
- ✓Aadhaar and PAN of founders/directors
- ✓Photograph
- ✓Basic CV / profile
3️⃣ Project Documentation
- ✓Detailed Project Report (DPR)
- ✓Business plan or project proposal
- ✓Master pitch deck
- ✓Problem-solution summary
- ✓Revenue model & pricing strategy
4️⃣ Technical & Product Details
- ✓Description of product/service
- ✓PoC, MVP, or working prototype details
- ✓Screenshots, demos, pilot data (if any)
5️⃣ Financial Information
- ✓Estimated project cost
- ✓3–5 year projections
- ✓Fund requirement and utilization plan
- ✓Bank statements / basic financials (if applicable)
Step-by-Step: How to Apply for Agri Business Grants
Identify the Right Scheme
Check your business model, stage, location, sector. Match it with grants like Startup Agro Fund, RKVY-RAFTAAR, PMFME, AIF, etc.
Prepare Core Documents
DPR / Project proposal, Pitch deck, Company profile, Basic financials. (This is where many applications fail due to weak documentation.)
Register on the Official Portal / Incubator
Fill required fields: company info, founder details, project summary. Upload documents in required formats.
Submit Application
Double-check all fields before submission. Ensure problem statement, solution, impact, and fund utilization are clearly written.
Screening & Shortlisting
Experts evaluate your idea and documents. You may be called for an online or offline pitch.
Incubator / Committee Presentation
Present your solution, business model, impact, and funding ask. Answer questions on market, technology, risk, and scalability.
Approval & Grant Disbursement
If selected, grant is approved. Funds are usually disbursed in milestones linked to progress.
Major Agri Business Grants & Schemes in India
| Scheme Name | Nature of Support | Funding |
|---|---|---|
| Startup Agro Fund (Track 1) | Seed funding, mentorship, PoC stage support | Up to ₹40 Lakhs |
| Startup Agro Fund (Track 2) | Pilot funding, farmer network access, commercial readiness | Up to ₹2 Crore |
| RKVY-RAFTAAR | Grants & incubation support for agri startups | ₹5–25 Lakhs |
| Agriculture Infrastructure Fund (AIF) | Interest subvention & credit guarantee for infra | ₹1 Lakh Crore |
| PM Formalisation of Micro Food Processing (PMFME) | 35% capital subsidy for food processing units | 35% Subsidy |
| NABARD Grants & Support | Grant + soft funding for FPOs & rural projects | Variable |
| Operation Greens / TOP to TOTAL | Grants for value chain in tomato, onion, potato | Variable |
RKVY-RAFTAAR supports innovation and agri-entrepreneurship development through incubators, offering grants for startups and idea-stage projects.
Agriculture Infrastructure Fund (AIF) provides a financing facility of ₹1 lakh crore for warehouses, cold chains, processing units, etc., with interest subvention and CGTMSE-like guarantee support.
Frequently Asked Questions
Ready to Apply?
Take the first step towards securing funding for your agricultural business. Apply to the schemes that best fit your needs and unlock opportunities for growth.