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Agriculture Infrastructure Fund applications cross Rs. 8,000 crore mark

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    30th Apr, 2021

Context

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.