Financial facility under Agriculture Infrastructure Fund
Part of: GS Prelims and Mains II and III – Govt schemes and initiatives; Agriculture; Infrastructure
- PM Modi launched a new Central Sector Scheme of financing facility under the Agriculture Infrastructure Fund of Rs. 1 Lakh Crore.
- The first sanction of over Rs. 1000 Crore was made to over 2,280 farmer societies.
- The scheme will support farmers, Primary Agricultural Credit Society (PACS), Farmer Producer Organisation (FPOs), Agri-entrepreneurs, etc. to build community farming assets and post-harvest agriculture infrastructure.
- It will enable farmers to get greater value for their produce.
- They will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition.
Important Value Additions
About Agriculture Infrastructure Fund:
- The Agriculture Infrastructure Fund is a medium – long term debt financing facility.
- It is a facility for investment 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.
- The loans will have an interest subvention of 3% per annum and credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to Rs. 2 Crore.
- 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.
- The 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).
- The cash incentive was aimed 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.
- The amount is directly transferred into the bank accounts of the beneficiaries through direct benefit transfer (DBT) mode.
- As of July 2019, ₹17,000 crore released to about 8.5 crore farmers under PM-KISAN plan.