The plan for the benefit of farmers is the Agri Infra Fund! Learn everything about it.

"The role of basic infrastructure in taking agricultural development and production dynamism to the next level is crucial. Through the development of basic infrastructure, especially after harvest, optimal utilization of produce can be achieved, leading to value addition and favorable deals for farmers. Keeping this in mind, Finance Minister Nirmala Sitharaman initiated the Agri Infra Fund. Under this, agricultural cooperative societies, farmer producer organizations, agricultural entrepreneurs, startups, etc., will be provided with a financial facility of ₹1,00,000 crores for financing agricultural infrastructure projects at the farm-gate.

What is the Agri Infra Fund?

The Agricultural Infrastructure Fund has been established to provide facilities such as cold storage, processing units, warehouses, packaging units, etc., to farmers after crop harvesting. Additionally, loans are also made available with subsidies under bank guarantees. Eligible beneficiaries receive up to 3% interest subsidy on loans of up to ₹2 crores. The government also provides bank guarantee facility for repayment of the loan within a maximum period of 7 years. This is a ₹2 lakh crore scheme where you can also use the funds to purchase grading, polyhouses, drones, and machinery. Furthermore, under this scheme, special discounts are provided for setting up cold storage, silos, and processing units within agricultural markets. If desired, farmers can use this scheme to engage in agricultural business alongside farming, benefiting other farmers as well.

Objective of the Scheme: The aim of this scheme is to promote improvement in basic agricultural infrastructure in the country. The scheme intends to aggregate financial assistance for post-harvest management in basic infrastructure and community agricultural assets. This financial support facility will fulfill several objectives for stakeholders in agriculture. This scheme will benefit farmers, the government, and agricultural startups alike.

Benefits of Agri Infra Fund:

• Better marketing infrastructure will enable farmers to negotiate better deals directly with consumers. This will lead to increased price realization for farmers and improvement in their overall income.
• With improved infrastructure, farmers will be able to sell in the market with fewer losses and fewer intermediaries after harvesting. This will empower farmers to reach the market more efficiently.
• Modern packaging and cold storage systems will empower farmers to make informed decisions about when to sell in order to maximize profits.
• Due to improvements in basic infrastructure after harvesting, the government will be able to reduce the percentage of national food wastage, making the agricultural sector competitive on a global scale.
• With a dedicated source of funds, entrepreneurs will be able to innovate in the agricultural sector, leveraging the benefits of new-age technologies.

Grant Allocation: The scheme will be in effect from 2020-21 to 2032-33. The distribution of loans under the scheme will be completed within six years, i.e., by the end of the financial year 2025-26. As of December 31, 2022, ₹14,118 crores have been approved, of which ₹9117 crores have been disbursed under the scheme. Between 2022-23 and 2025-26, the remaining ₹90,883 crores out of ₹1 lakh crores will be distributed. The maximum repayment period under the financial support facility will be 7 years, including a moratorium period of up to 2 years."