Agriculture Minister Narendra Singh Tomar asked the states to take advantage of the Agriculture Infrastructure Fund so that the benefits can percolate to the small and marginal farmers who lack warehousing and cold storage facilities at the farm gate. 

Tomar and Food and Consumer Affairs Minister Piyush Goyal addressed the second day of the Chief Ministers’ Conference on initiatives and schemes of the ministry of agriculture and farmers welfare.

Key points from the conference:

• On digital agriculture mission, Tomar said it will usher in focused programme delivery, reducing seepages, better policy formulation and smart farming in the country. Database with 5.5 crore farmers is ready and work is progressing for verifying others with land records.

• The Union Cabinet recently approved the National Edible Oil Mission (NMEO-OP) for palm oil with a focus on the northeast region and Andaman and Nicobar Islands. Through this scheme, he said the production of edible oils will be accelerated in the country, thereby reducing the import of edible oils. 

• Goyal said agriculture exports have an important role to play in doubling farmers’ income, and stressed the need for boosting India's outward shipments to be among top-5 nations in farm exports. 

• India’s export of agricultural and allied products in 2020-21 grew by 17.34 per cent to $41.25 billion, as per the government data.

• Under the ‘One District, One Product’ initiative, 106 products have been identified from 103 districts. 

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.

• It was approved by the Union Cabinet on July 8, 2020.  

• 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.

• Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of two years.

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