Agriculture Infrastructure Fund applications cross Rs. 8,000 crore mark
- Posted By
30th Apr, 2021
Agriculture Infrastructure Fund has crossed the eight thousand crore mark. The investment will give a boost to several agricultural projects which will unlock value for farmers across the country.
What is Agriculture Infrastructure Fund?
- The Agriculture Infrastructure Fund was established in 2020 for farm-gate infrastructure for farmers.
- It is a Central Sector Scheme.
- It is a medium – long term debt financing facility.
- Duration: Financial Year 2020 to 2029.
- Under the scheme, one lakh crore rupees will be provided by banks and financial institutions as loans with interest subvention of 3 per cent per annum and credit guarantee coverage for loans up to two Crore rupees.
- Eligible beneficiaries: Farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.
The record applications
- Agriculture Infrastructure Fund has crossed the Rs. 8000 crore mark after receiving 8,665 applications worth Rs. 8,216 crores.
- The largest share of the pie is contributed by
- Primary Agricultural Credit Societies (PACS) (58%)
- agri-entrepreneurs (24%)
- individual farmers (13%)
- States leading the front are Andhra Pradesh (2,125 applications), Madhya Pradesh (1,830), Uttar Pradesh (1,255), Karnataka (1,071) & Rajasthan (613).
Significance of the Scheme
- The Agriculture Infrastructure Fund has brought farmers and agri-businesses together with newer partnership models.
- The fund will facilitate medium and long-term debt financing facilities for investment in agricultural projects through interest subvention and credit guarantee.