AGRICULTURE INFRASTRUCTURE FUND
- Recently, the Union Cabinet approved some modifications in the Central Sector Scheme of Financing Facility under ‘Agriculture Infrastructure Fund’.
AGRICULTURE INFRASTRUCTURE FUND (AIF)
- Government launched a new Scheme of financing facility under the Agriculture Infrastructure Fund (AIF) of Rs. 1 Lakh Crore.
- The Agriculture Infrastructure Fund is a medium – long term debt financing facility for investment in projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.
- The scheme will support Agri-entrepreneurs, Farmer Producer Organization (FPO), and Primary Agricultural Credit Society (PACS).
- Objective – The key objective of the Agriculture Infrastructure Fund (AIF) is to provide financial support for agriculture entrepreneurs in order to improve agriculture infrastructure in the country.
- Beneficiaries Agriculture Infrastructure Fund (AIF)
- SHG – a self-help group
- Primary Agricultural Credit Society (PACS)
- Marketing Cooperative Societies
- Farmer Producer Organization (FPO
- Joint Liability Groups (JLG)
- Multipurpose Cooperative Societies
- Central/State agency or local Body sponsored Public-Private Partnership Projects
- Interest Subvention – Loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crores. This subvention will be available for a maximum period of seven years.
- CGTMSE Scheme – A credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crores.
- AIF will improve the overall income of farmers
- The Improved marketing infrastructure will farmers to sell directly to a larger base of consumers and hence, increase value realization for the farmers
- AIF will make farmers independent and improve access to market
- Farmers can able to decide when to sell in the market and improve realization using
- the modern packaging and cold storage system access
- With a dedicated source of funding, entrepreneurs will push for innovation in the agriculture sector by leveraging new-age technologies including IoT (internet of things), AI (artificial intelligence), etc.
- AIF will improve avenues for collaboration between entrepreneurs and farmers.