31 Aug Prelims Bits: The Agriculture Infrastructure Fund.
This article covers “Daily Current Affairs” and the topic details the Agriculture Infrastructure Fund.
Syllabus mapping:
GS-3: Agriculture: policies related to agriculture development.
For Prelims:
What is The Agriculture Infrastructure Fund? What are the policies related to Agriculture?
For Mains:
What are the issues with Indian Agriculture? What advantages does the Agriculture Infrastructure Fund offer?
Why in the News?
The Union Cabinet has approved the progressive expansion of the Agriculture Infrastructure Fund, a Central Sector Scheme. This expansion will greatly bolster and enhance agricultural infrastructure across the country, offering substantial support to the farming community. Initially launched in 2020 with a budget of ₹1 lakh crore, the Agriculture Infrastructure Fund is designed to provide comprehensive financial assistance to farmers.
Objective:
The Agriculture Infrastructure Fund launched in July 2020, aims to improve agricultural infrastructure by providing financial support for post-harvest management projects and community farming assets. This includes facilities such as warehouses, cold chains, processing centers, and smart agriculture infrastructure.
Key Features:
Financing: Loans up to ₹2 crores per project are available with a 3% annual interest subvention for up to 7 years.
Eligible Entities: Agri entrepreneurs, farmers, cooperatives, Farmer Producer Organizations (FPOs), start-ups, and state agencies.
Coverage: Projects in post-harvest management, supply chain services, organic input production, and other agricultural infrastructure are eligible.
Operational Period: The scheme runs from 2020-21 to 2032-33, with loan disbursements completed by the end of the Financial Year 2025-26.
Contribution: Borrowers must contribute at least 10% of the project cost.
Benefits:
Better Marketing: Enhanced infrastructure helps farmers sell directly to consumers, increasing their income.
Reduced Losses: Investments in logistics and cold storage minimize post-harvest losses.
Improved Sales Timing: Modern systems allow farmers to choose the best time to sell.
Cost Savings: Community assets improve productivity and save costs.
Government Support: Priority sector lending is encouraged for currently viable projects.
Reduced Food Waste: Improved infrastructure helps reduce national food wastage.
Investment Attraction: Viable Public-Private Partnership (PPP) projects can attract investment.
Lower Risk for Lenders: Credit guarantees and interest subventions reduce lender risk and expand their customer base.
Refinance Support: Cooperative banks and Regional Rural Banks (RRBs) benefit from refinance facilities.
Eligibility:
Institutions: Participating banks and financial institutions will decide on borrowers based on project viability.
SC/ST and Women Entrepreneurs: 24% of grants should support SC/ST entrepreneurs (16% SC, 8% ST) and prioritize loans for women and other weaker sections.
Exclusions: PSUs: Public Sector Undertakings (PSUs) are not directly eligible but can participate in PPP projects.
Prelims Question:
Q. Consider the following entities:
1. Agri-entrepreneurs
2. Central-sponsored Public-Private Partnership Projects
3. Individual Farmers
4. Farmer Producers Organizations (FPOs)
5. Multipurpose Cooperative Societies
6. The Rashtriya Chemicals and Fertilizers Limited (RCF)
How many of the above-mentioned entities are eligible for benefits under the Agriculture Infrastructure Fund?
A. Only three
B. Only four
C. Only five
D. All six
ANSWER: C
No Comments