This has huge agriculture potential and totally depends on sound and modern infrastructure. With this onerous requirement, during 2020 the government started National Agriculture Infrastructure Financing Facility, committing ₹1 lakh crore in funds towards the cause. It is one of those tough initiatives that speaks to fierce ambition and regards the challenge thrown up by the task of filling out these gaps in infrastructure to energize value chains in agriculture-specific areas of innovation within the Agri-Tech ecosystem.
At StartupFlora, we believe in helping Agri-Tech startups cross the hurdle of fund-raising and navigate their scaling story. Let's try to understand why NAIFF Scheme is a game-changer and how it fuels your Agri-Tech venture towards growth.
What is NAIFF?
NAIFF, National Agriculture Infrastructure Financing Facility, is an earmarked fund that will be used for long-term credit finance for investment in feasible projects relating to post-harvest management infrastructure and community farming assets through 1 primary agricultural credit societies (PACS), marketing cooperative societies, farmer producer organizations (FPOs), self-help 2 groups (SHGs), joint liability groups (JLG), multi-purpose 3 cooperative societies, agri-entrepreneurs, startups, and central/state agency or local body sponsored public-private partnership 4 projects.
In simple words, NAIFF offers financial assistance to thousands of projects that enhance the infrastructure and productivity of the agricultural sector in India.
Why NAIFF Matters?
NAIFF resolves many of the major problems in the agricultural sector.
Capital access-a big hole where capital flow frequently enters and falls into almost every pocket or basket to almost be sure in this case and the agricultural sectors which barely can boast well-defined assets even that will come up or a credit base, NAIFF Funding Bridge therefore made available this very key gap for the Agri-tech innovation start-ups and improves more on their operations around innovative solutions they develop in place of an idea for market place.
NAIFF finance important agricultural projects on a broad continuum that includes:
Post-harvest management:
NAIFF can be used by post-harvest startups innovating efficient storage, processing, and transport for their agricultural produce to build necessary infrastructure so as to cut post-harvest losses and maximize value retrieved for farmers.
Precision agriculture:
NAIFF invests in start-ups which develop and deploy precision agriculture technologies such as sensor-based irrigation, drone-based crop monitoring and AI-based farm management systems.
Market linkages:
Start-ups that build platforms to connect farmers directly to buyers, online trade, and easy market access can also raise funds for scaling through NAIFF.
Improvement of transport and logistics:
The NAIFF initiatives provide the opportunity to upgrade agricultural produce transport and logistics.
Community asset development in farming:
NAIFF develops community assets for farming and facilitates improvement in resource utilization and farming together.
Advantages of NAIFF for Agri-tech Startups
Availability of Low Cost of Credit:
The most effective benefits through which Agri-Tech start-ups get finance are loans offered with low-cost interest rates with flexible repayment options.
Interest in New Concepts:
NAIFF provides attention towards new concepts or solutions, and technologies which would someday change the face of the agricultural sector and bring in improvements .
Long-term Growth:
Long-term credit finance will scale up the operations of start-ups because it will present an opportunity for infrastructures to be invested in.
Farmer Empowerment
NAIFF also empowers the farmers through an increase in their economic standard since they support projects which give them better market access that enhances productive returns. Apart from this, it reduces losses after harvesting. It further enhances fertile agriculture and resource use.
How to Access Funding through NAIFF
For eligibility, access can be obtained to the NAIFF funds, which can approach any scheduled bank having an MoU with NABARD. This application is through a project proposal submitted outlining the objectives of the project, financial viability, and impact on the agricultural sector.
StartupFlora: Your Guide Through NAIFF
Raising funds is never that easy. The NAIFF scheme is a complex one. A company like StartupFlora supports agri-tech startups at every single step of the process and guides them with the best professionals. Our services include the following:
Understanding guidelines and eligibility criteria for NAIFF
Development of comprehensive project proposals
Contacting relevant financial institutions
Compliance and documentation
With StartupFlora, you get a trusted partner dedicated to success in NAIFF markets. This is a personalized guide and support designed and crafted to help you get through scheme intricacies and bring the finance needed to bring ideas to life.
Don't miss the transformative potential of NAIFF. Contact us today at StartupFlora and help yourself to unlock the necessary funding and support that will revolutionize the Indian agricultural landscape.
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