Question : Agriculture Infrastructure Fund

a) the details of the total projects sanctioned from the ''Agriculture Infrastructure Fund'' in the country till date;
b) whether the Government has recently made some modifications in the Central Sector Scheme of financing facility under ''Agriculture Infrastructure Fund (AIF)'';
c) if so, the details thereof;
d) the details of the benefits likely to be accrued to small and marginal farmers due to these modifications in financing facility under AIF;
e) the details of the benefits likely to be accrued to the APMCs by these modifications in the Central Sector Scheme;
f) whether the Government, with a view to remove the apprehensions about weakening of APMCs by the Government, has taken a decision to extend Agriculture Infrastructure Fund to strengthen the APMCs and other SHGs, etc.; and
g) if so, the details thereof?

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a): As on date, total 6542 applications have been sanctioned by lending institutions, including in principle sanction by Cooperative Banks under AIF.

(b) & (c): Yes. Recently, Cabinet has approved the following modifications in AIF to make it more inclusive and effective:

i. Eligibility has been extended to State Agencies/APMCs, National & State Federations of Cooperatives, Federations of FPOs (Farmer Produce Organisations) and Federations of Self Help Groups (SHGs). APMCs (Agricultural Produce Marketing Committees) operating regulated markets for agriculture and allied sector produce including fisheries are also eligible.
ii. A single entity can now set up maximum 25 projects at different locations having separate LGD (Local Government Directory) Code. Each such project will be eligible for interest subvention on loan upto Rs. 2 crores. This limit of 25 projects is not applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federations of SHGs.
iii. APMCs will be eligible for multiple projects of different infra-type within their designated market area.
iv. The period of the scheme has been extended from 10 years (2020-21) to 13 years (2032-33).

(d): Thousands of small and marginal farmers are linked toNational and State level Federations of Cooperatives, FPO Federations and Federations of Self-Help Groups (SHGs). These federations help farmers to achieve scale and build market linkages. Federations also facilitate development of sustainable farmer groups in the state. They provide support in capacity building, technical training, financial intermediation, improving access to post-harvest infrastructure, and market linkage development.

APMC markets are setup to provide market linkages and create an ecosystem of post-harvest public infrastructure open to all farmers and cater to many small and marginal farmers. With better infrastructure facilities at APMCs with the help of Agri Infra Fund, such as sorting and grading facility, storage, and better sheds, all the small and marginal farmers associated with the APMC will be benefited.

Similarly, as private entities are allowed for more number of projects at different villages (LGD code), more number of small and marginal farmers can be benefitted at grass root level through storage of their produce, better primary processing facilities ,contract farming resulting in better remuneration for their produce.

(e): Inclusion of APMCs as a beneficiary of financing facility under Agriculture infrastructure Fund will enable them to upgrade infrastructure. Allowing multiple projects of different infrastructure types for a single APMC, with cap of Rs. 2 crore on each infrastructure type, will help in creation of more and more progressive APMCs in the country, benefiting the farmers.

(f) & (g): APMCs have been included to strengthen APMCs and Federation of Cooperatives, FPOs & Self Help Groups, so they can provide better service to farmers.


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