According to data from the agriculture ministry, analysed by Mint, only 35 ventures have been established under the Agri-Clinics and Agri-Business Centres (ACABC) scheme in the current fiscal year. This is far below the FY25 target of establishing 2,605 agri-ventures. The scheme is part of the Krishonnati Yojana, an initiative aimed at enhancing the agricultural sector.
This figure is significantly lower than the 1,702 ventures established during FY24 and1,788 in FY23, the data showed.
The Reserve Bank of India (RBI) anticipates that India’s economic growth will improve in the latter half of FY25, driven by festive activity, rural demand and agricultural growth.
The number of candidates receiving training to establish these ventures has increased from 4,878 in FY23 to 4,952 in FY24. The data for candidates trained under the scheme in the first eight months of current fiscal (2024-25) year is not available on the agriculture ministry’s website.
Enhancing access to modern practices
The scheme, launched in April 2022 in association with the National Bank for Agriculture and Rural Development (NABARD), aims to enhance farmers’ access to modern agricultural practices and generate employment in rural areas by promoting agri-entrepreneurship.
Experts attribute the drastic decline in interest for ventures among agriculture graduates to the lack of a robust supply chain.
According to Rakesh Arrawatia, professor of finance and accounting at the Institute of Rural Management Anand (IRMA), this situation indicates that existing agri-ventures are not receiving significant business, leading to doubts about the need to establish new ones.
“These ventures must be better integrated with incubators that are already working with farmers. A crucial link is missing between those actively working in the sector and the agri-business centres and clinics,” said Arrawatia, an expert in financial inclusion.
“To ensure better results, these ventures need strong market linkages to build trust and confidence among farmers. Strengthening these connections will help improve the viability and impact of agri-entrepreneurship in India,” said Arrawatia.
Supplementing public extension efforts
The ACABC scheme supplements public extension efforts by providing agricultural services tailored to local needs and the affordability of farmers. It supports agricultural development while promoting self-employment for unemployed agricultural graduates, diploma holders, and related professionals, as per the scheme guidelines.
The scheme is open to individuals aged 18 to 60 years and for individual projects, the subsidy ceiling is ₹20 lakh, with an additional ₹5 lakh available for exceptionally successful projects. Group projects, established by at least five trained individuals, have a subsidy ceiling of ₹1 crore.
Under the scheme, individuals are trained to establish agri-clinics that provide expert advice on soil health, cropping practices, plant protection, crop insurance, animal health, post-harvest technology, and market prices. It also supports agri-business centres, which offer services such as farm equipment hiring, input sales, post-harvest management, and market linkages. Financial assistance includes training, handholding, and credit-linked subsidies to help agri-preneurs set up successful ventures.
In the fiscal year 2022-23, a total of 1,788 agri-ventures were established across various states. Maharashtra led with 650 ventures, followed by Uttar Pradesh with 413 and Tamil Nadu with 209. Madhya Pradesh and Rajasthan also contributed significantly, with 197 and 118 ventures, respectively. Karnataka, Andhra Pradesh and Bihar recorded 65, 31, and 20 ventures, respectively.
The dip in agri-ventures
In FY 2023-24, the total number of agri ventures established was 1,702. Maharashtra continued to lead with 788 ventures, followed by Uttar Pradesh with 314 ventures. Tamil Nadu and Karnataka contributed 220 and 100 ventures, respectively. Madhya Pradesh saw a decrease in the number of ventures, with 90 established in this fiscal year. Other states like Gujarat, Bihar, and Telangana had 7, 37, and 8 ventures, respectively.
In fiscal year 2024-25 (April-November), only 35 ventures were established, with the majority coming from Uttar Pradesh (23 ventures) and Tamil Nadu (8 ventures), while Madhya Pradesh had 4 ventures.
Queries emailed to the Ministry of Agriculture and NABARD remain unanswered as of press time.
“The government needs to provide linkages with key stakeholders, including suppliers, distributors, and financial institutions, to create a more supportive ecosystem for agri-entrepreneurship. Without these connections, agriculture graduates are often left with limited opportunities to establish successful ventures, which impacts the growth of the sector,” said Abhash Kumar, assistant professor, economics, Delhi University.
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