Agriculture Infrastructure Fund 

#GS3 #Agriculture 

Prime Minister Shri Narendra Modi today launched a new Central Sector Scheme of financing facility under the Agriculture Infrastructure Fund of Rs. 1 Lakh Crore. The scheme will support farmers, PACS, FPOs, Agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure. These assets will enable farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition. 

Agriculture Infrastructure Fund 

  • The Agriculture Infrastructure Fund is a medium - long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.  
  • The duration of the scheme shall be from FY2020 to FY2029 (10 years). Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE scheme for loans up to Rs. 2 Crore.  
  • The beneficiaries will include farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects. 

PM-KISAN 

  • The PM-KISAN scheme was launched in December 2018 to provide income support by way of a cash benefit to all landholding farmers (subject to certain exclusion criteria) to enable them to fulfil their agricultural requirements and support their families.  
  • Under the scheme, the financial benefit of Rs.6000/- per year is provided to eligible beneficiary farmers in three equal instalments. 

A new dawn for the agriculture sector 

  • These steps are the latest in a series of reforms taken by the Government of India under the guidance of the Prime Minister.  
  • These measures will collectively herald a new dawn for the agriculture sector in India and show the government’s commitment to championing the cause of ensuring the welfare and sustainability of livelihoods for the farmers of India. 
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