The Government of India has introduced a new scheme called the Agriculture Infrastructure Fund to improve agricultural infrastructure across the country. This initiative, led by the Ministry of Agriculture & Farmers’ Welfare, aims to provide financial assistance to farmers and agricultural businesses, focusing on post-harvest management and community farming projects.
Key Points of the Scheme:
- Objective:
- The scheme is designed to offer medium- to long-term loans for projects that enhance agricultural infrastructure. The goal is to increase the income of farmers, reduce food wastage, and boost the agricultural sector’s overall efficiency.
- Funding:
- A total of ₹1 lakh crore will be provided as loans through banks and financial institutions. These loans will be available to a wide range of beneficiaries, including farmers, Farmer Producer Organizations (FPOs), cooperatives, and agri-entrepreneurs.
- Eligible Projects:
- The scheme supports a variety of projects, such as building warehouses, cold storage, processing units, and smart agriculture infrastructure. It also encourages projects that connect farmers directly with markets, reducing the role of intermediaries.
- Support to Beneficiaries:
- Beneficiaries will receive interest subvention of 3% per annum on loans up to ₹2 crore for a maximum of 7 years. Additionally, the scheme offers credit guarantees to reduce the risk for lending institutions.
- Implementation Period:
- The scheme will run from 2020-21 to 2029-30, with phased disbursement of funds over four years.
- Monitoring and Management:
- An online platform will be created for loan applications, project monitoring, and transparency. The scheme will be managed at the national, state, and district levels to ensure effective implementation.
This scheme is expected to significantly enhance agricultural infrastructure, benefiting farmers and boosting the agricultural economy in India.