India’s Agri-Preneur Scheme Faces Declining Participation Rates

Why in the news?

The Agri-Clinics and Agri-Business Centres (ACABC) scheme reported a sharp decline, with only 35 ventures established in FY25 against a target of 2,605, raising concerns.

India's Agri-Preneur Scheme Faces Declining Participation Rates

Scheme Overview and Objectives:

  • The Agri-Clinics and Agri-Business Centres (ACABC) scheme, part of Krishonnati Yojana, aims to promote agri-entrepreneurship and enhance modern agricultural practices.
  • Launched in April 2022 in collaboration with NABARD, the scheme targets rural employment by supporting unemployed agricultural graduates and professionals.
  • Financial support includes subsidies of ₹20 lakh for individual projects and ₹1 crore for group projects, with additional benefits for exceptionally successful ventures.

Current Performance and Decline:

  • Only 35 ventures have been established under the scheme in FY25, far below the target of 2,605.
  • This is a significant decline compared to 1,702 ventures in FY24 and 1,788 in FY23.
  • Despite an increase in training from 1,878 candidates in FY23 to 4,952 in FY24, the interest in starting new ventures has dropped.
  • Experts attribute this to weak supply chains and a lack of market linkages, making ventures less viable.

Regional Contributions and Challenges

  • Maharashtra leads in ventures established, with 630 in FY23 and 788 in FY24, followed by Uttar Pradesh and Tamil Nadu.
  • States like Madhya Pradesh, Gujarat, and Bihar witnessed sharp declines.
  • Experts suggest stronger integration with existing incubators and improved market linkages to build trust and sustainability among farmers and entrepreneurs.

Strengthening supply chains and ensuring market linkages are crucial to reviving interest and achieving the scheme’s objectives.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times