Agriculture Infrastructure Fund boosts agri-marketing infrastructure

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To ensure a fair deal for farmers and enhance possibilities of value addition to agriculture produce, supply chain infrastructure has to be strengthened. Through the Agriculture Infrastructure Fund, the government mobilises Rs. 1 lakh crore to Primary Agricultural Credit Societies, Marketing Cooperative societies, FPOs and agri-entrepreneurs to create post-harvest management infrastructure.

Union Agriculture Minister Narendra Singh Tomar distributed the Agriculture Infrastructure Fund Awards on July 30 to banks that excelled in lending credit to farmers. Besides providing a medium-long term credit facility for investment in creation of post-harvest management infrastructure, the fund also covers creating community farming assets.

In the event, the Union Minister of Agriculture highlighted the various government initiatives to strengthen the agriculture sector. He also underscored the gap of infrastructure in the Indian agriculture sector and talked about how the Agriculture Infrastructure Fund will fill the gap.

Agriculture Infrastructure Fund
India faces a severe gap in post harvest management infrastructure due to which 15 to 20 percent of the yield is getting wasted. In India where around 50 percent of the population is dependent on agriculture and 85% of them being smallholding farmers, private entrepreneurs have to be motivated to invest in this sector.

The scheme which is operational from 2020-21 to 2029-30 aims in this direction. Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years. This facility comes with financial support by way of 3% interest subvention from the Government. It will also provide the fee for getting coverage of 2 crores under Credit Guarantee Fund Trust for Micro and Small Enterprises.

Progress so far
As of now, more than 23,000 applications have been received on the integrated Portal of Agri Infra Fund. 13,700 applicants have been sanctioned amounting AIF loans worth Rs.10,131 crore.

The sanctioned infrastructure projects cover warehouses, assaying units, primary processing units, custom hiring centres, sorting & grading units and cold store & cold chain projects etc. Community farming assets can also be build using this fund for improved productivity and optimization of inputs.

Other financial assistance to private sector
Agritech startups is financed through a fund routed through NABARD, Government extended 100% percent financial assistance for purchase of agricultural drones upto Rs. 10 lakhs to ICAR, KVKs and State Agricultural Universities. 75% assistance is extended to FPO’s for its demonstration on the farmer’s fields.

ICAR has been supporting Agri-based startups using the National Agriculture Innovation Fund. 50 Agri-Business Incubation Centers have been established and are operational in the ICAR network under the NAIF scheme. They incubate the validated technologies and speed up the delivery mechanism to stakeholders.