The Centre said on April 28 that it has so far received 8,665 applications seeking subsidised loan worth Rs 8,216 crore under the Agriculture Infrastructure Fund (AIF) scheme launched to augment post-harvest infrastructure in the country.

The ministry of agriculture said over Rs 4,000 crore has been sanctioned so far.

Maximum applications have been received from Primary Agricultural Credit Societies (PACS) followed by agri-entrepreneurs and individual farmers.

States leading the front are Andhra Pradesh (2,125 applications), Madhya Pradesh (1,830), Uttar Pradesh (1,255), Karnataka (1,071) and Rajasthan (613).

While most of these states are leveraging their strong cooperatives network to take the lead, Madhya Pradesh stands out with the highest non-PACS applications.

Agriculture Infrastructure Fund

• Agriculture plays a vital role in India’s economy. About 54.6 per cent of the total workforce is engaged in agricultural and allied sector activities (Census 2011) and accounts for 17.8 per cent of the country’s Gross Value Added (GVA) for the year 2019-20 (at current prices).

• Given the importance of the agriculture sector, the government of India has taken several steps for its development in a sustainable manner. Steps have been taken to improve the income of farmers. 

• Agriculture Infrastructure Fund (AIF) is a central sector scheme of financing facility and is operational from 2020-21 to 2029-30.

• The aim is creation of infrastructure at the farm gate. 

• The scheme shall provide 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 financial support. 

• Under the scheme, Rs 1 lakh crore will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Groups (SHG), farmers, Joint Liability Groups (JLG), multipurpose cooperative societies, agri-entrepreneurs, startups and central/state agency or local body sponsored Public Private Partnership Project.

• All loans under this financing facility will have interest subvention of 3 per cent per annum up to a limit of Rs 2 crore. 

• This subvention will be available for a maximum period of seven years. 

• Further, credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs 2 crore.

• The fee for this coverage is paid by the government.

• In case of FPOs, the credit guarantee may be availed from the facility created under FPO promotion scheme of Department of Agriculture, Cooperation & Farmers Welfare.

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