AGRI
INFRASTRUCTURE FUND SCHEME (AIF) – GEOGRAPHY
News:
Agri ministry asks banks
to promote Rs 1 lakh crore Agriculture Infrastructure Fund
What's
in the news?
● The
Agriculture Ministry asked banks to promote Rs 1 lakh crore Agriculture
Infrastructure Fund (AIF) for creation of necessary infrastructure in the farm
sector.
Agriculture
Infrastructure Fund (AIF):
● Agriculture
Infra Fund (AIF) is a financing facility launched in 2020 for creation of post-harvest management
infrastructure and community farm assets.
Fund:
● Under
this scheme, Rs 1 lakh crore is to
be disbursed by the financial year
2025-26 and the interest subvention and credit guarantee assistance will be
given till the year 2032-33.
Interest
Subvention:
● It
gives 3% interest subvention, credit
guarantee support through CGTMSE for loan of up to Rs.2 crore and facility of
convergence with other Central and State Govt. Scheme
Nodal
Body:
● NABARD
will steer this initiative in association with the Ministry of Agriculture and Farmers Welfare.
Beneficiaries:
● AIF
is providing all around financial support to the farmers, Agri-entrepreneurs,
farmer groups like Farmer Producer
Organisations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs)
etc. and many others to create post-harvest management infrastructure and build
community farming asset throughout the country.
Significance:
● It
provides support facilities to farmers and value chain actors for risk-sharing
and market access.
● Improved
marketing infrastructure will help farmers sell their produce directly.
● With
investments in logistics infrastructure, post-harvest losses can be reduced.
● It
also provides targeting State-specific APMCs and maintenance of sanitary and
phytosanitary standards for organic produce marketing and exports.
● District,
state or national level monitoring committees will reduce the turnaround time
for file processing to less than 60 days.
● The
scheme tries to mitigate spatial and temporal risks in the agribusiness
ecosystem through adequate post-harvest infrastructure facilities.