AGRICULTURE INFRASTRUCTURE FUND SCHEME: OPPORTUNITIES TO FINANCE
BANKING FINANCE|February 2022
The role of infrastructure is crucial for agriculture development and for taking the production dynamics to the next level. It is only through the development of infrastructure, especially at the post-harvest stage that the produce can be optimally utilized with opportunity for value addition and fair deal for the farmers. Development of such infrastructure shall also address the vagaries of nature, the regional disparities, development of human resource and realization of full potential of our limited land resource.
Vikas Mahangare
AGRICULTURE INFRASTRUCTURE FUND SCHEME: OPPORTUNITIES TO FINANCE

In view of above, the Hon'ble Finance Minister announced on 15.05.2020, Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers. Financing facility of Rs. 1,00,000 crores will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Startups, etc.). Impetus for development of farmgate & aggregation point, affordable and financially viable Post Harvest Management infrastructure.

Accordingly, Department of Agriculture Co-operation and Farmers Welfare (DAC&FW) has formulated the Central Sector Scheme to mobilize a medium - long term debt financing facility for investment in viable projects relating to postharvest management Infrastructure and community farming assets through incentives and financial support.

Objectives of Scheme: a. Farmers (including FPOs, PACS, Marketing Cooperative Societies, Multipurpose cooperative societies):
  • Improved marketing infrastructure to allow farmers to sell directly to a larger base of consumers and hence, increase value realization for the farmers. This will improve the overall income of farmers.
  • With investments in logistics infrastructure, farmers will be able to sell in the market with reduced post-harvest losses and a smaller number of intermediaries.
  • Community farming assets for improved productivity and optimization of inputs will result in substantial savings to farmers.

b. Government

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