KSUM inks pact with KERA project; over 40,000 farmers to benefit

Trivandrum / June 21, 2025

Thiruvananthapuram, June 21: Kerala Startup Mission (KSUM) has inked a Performance-Based Condition (PBC) agreement with the agriculture department's KERA Project to provide innovative solutions tailored to the needs of local farmers and agri-food enterprises. 

Under this PBC agreement, KSUM will select 150 agri-tech startups across the state to address specific challenges.

KSUM CEO Shri Anoop Ambika and KERA Additional Project Director Shri P Vishnuraj, IAS, signed a Memorandum of Understanding (MoU) on the initiative, which will benefit at least 40,000 farmers. KERA is a World Bank funded project under its Investment Project Financing (IPF) for the agriculture sector of the state.

The PBC framework represents an innovative, results-driven approach to funding allocation. In this model, funds or payments to the implementing agency are disbursed only after achieving predefined results. 

“This performance-oriented strategy not only encourages optimal performance but also allows the implementing agency considerable autonomy in how to utilise funds to meet set targets,” Shri Anoop said. “It promotes greater accountability by directing resources to frontline operations, enabling decision-making and strategic resource allocation based on real-time performance indicators.”

Selected startups will receive a grant of Rs 25 lakh each. An initial grant of Rs 20 lakh will be allocated for product development (PBC1), which covers idea development (innovation/seed fund), research and development, product testing, technology commercialisation, production, scaling up existing facilities, working capital for business operations, and other related activities.

The subsequent grant of Rs 5 lakh will support product adoption by end users (PBC2), addressing product demonstration, market testing, pilot product launch, sales and marketing, and other related activities.

A core team within KSUM will manage and execute everyday project activities. The team will oversee operational aspects such as the startup selection process, provide ongoing guidance, monitor grant utilisation, and ensure product adoption by end users.

The objective is to implement a nationwide awareness programme that effectively communicates the KERA project's goals and opportunities to potential startups. This will ensure broad outreach, targeted engagement, strategic partnerships, and continuous communication.

“Kerala's agricultural and food sectors face unique challenges due to the region’s specific climate, geography, and socio-economic conditions,” Shri Vishnuraj said. “Addressing these challenges necessitates innovative solutions specifically tailored to the needs of local farmers and agri-food enterprises.”

The signing ceremony was attended by KSUM Senior Manager Shri Ashok Panjikkaran, KERA Administrative Officer Shri Santhosh R, Finance Officer Smt Nisha S, KSUM representatives Shri Vishal B Kadam and Shri Varun G.

The project allows a deeper understanding of the real issues the entrepreneurs face. User research workshops will equip startups with effective methodologies for gathering insights. 

Also, detailed user personas will be developed to understand end users' needs and preferences better. 

It envisages problem statement-specific user testing labs, facilitating direct interactions with potential end users.

Startups will receive mentorship on user-centric design principles, allowing them to develop solutions iteratively with continuous feedback from the labs. 

Additionally, startups will be supported in developing pilot programmes with mentoring, execution support, and resource access. 

By leveraging partnerships with industry stakeholders and organising pitching events that involve user participation, startups will have enhanced opportunities to engage with their target audience.

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