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  • Jul 12, 2021
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Recently, some modifications have been carried out in central scheme of financing under Agriculture Infrastructure Fund. Mention these changes and also explain the nature and objectives of the Agriculture Infrastructure Fund.

Introduction:

Agriculture Infrastructure Fund was launched in 2020 to deal with the Covid-19 crisis. The aim of the scheme is financing the projects related to post harvest management and community farming. It is a 10 year scheme.

Body:

It is a debt-financing scheme with medium term loans. Beneficiaries of the scheme includes

  • Co-operative societies
  • Startups
  • Agriculture entrepreneurs
  • Central Agencies
  • Credit societies related to agriculture
  • Farmers’ production Organizations

Under this scheme, Rs 1 Lakh Cr will be provided for agriculture infrastructure development by banks and financial institutions. Credit guarantee coverage of for loans upto 2 crores has been given. The central idea of the scheme is to develop infrastructures related to agriculture such as godowns, cold storage, processing plants. The supply chain efficiencies will be enhanced when the implementation  of the scheme is done in a proper way. Enterprises which will obtain raw materials directly from farmers will be benefited by the scheme and they can concentrate on distributing it. A large proportion of the agricultural produce is being wasted every year due to lack of market. Small and micro farmers are expected to be benefited the most by this scheme.

Recent Changes to the Scheme:

  • Inclusion of APMC(Agricultural Produce Market Committee): This move is reassuring that the APMC will not be closed after the implementation of new agricultural laws.
  • Extended to self help groups, state agencies: Involves more number of people and reach of the scheme is increased.

Conclusion:

Any scheme related to agriculture will be successful only when the awareness is sufficiently created. There are advertisements regarding this scheme in national television and radio channels. The end benefits of the scheme should reach the farmers and should not only focus on enterprises.