Lok Sabha Question No. 431 (UNSTARRED), answered on 2020-09-15
Subject: Agriculture Fund to Increase Farmer Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Y. S. Avinash Reddy, Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.431

TO BE ANSWERED ON THE  15 TH  SEPTEMBER, 2020

## AGRICULTURE FUND TO INCREASE FARMER INCOME

431.   SHRI Y.S. AVINASH REDDY: SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the attention of the Government is drawn to the matter of announcement of setting up of one lakh crore Agriculture Fund with a view to increase the income of farmers and to achieve empowerment;
- (b) if so, the details thereof; and
- (c) the detail of the sops and exemptions being given under this scheme?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी ( SHRI NARENDRA SINGH TOMAR)

- (a)  &  (b): Hon'ble  Finance  Minister  announced  on  15.05.2020  a  Rs  1  lakh  crore  Agri Infrastructure  Fund  for  farm-gate  infrastructure  for  farmers.  Accordingly,  Central  Sector Scheme  of  Financing  Facility  under  Agriculture  Infrastructure  Fund  was  approved  by Cabinet on 08.07.2020.

The scheme shall provide a medium - long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support. The duration of the Scheme shall be from FY2020 to FY2029 (10 years).

Under  the  scheme,  Rs.  1  Lakh  Crore  will  be  provided  by  banks  and  financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability  Groups  (JLG),  Multipurpose  Cooperative  Societies,  Agri-entrepreneurs,  Startups and Central/State agency or Local Body sponsored Public Private Partnership Project.

(c) :    All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of 7 years. Further, credit guarantee coverage will be available for eligible borrowers from this financing facility  under  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE) scheme  for  a  loan  up  to  Rs.  2  crore.  The  fee  for  this  coverage  will  be  paid  by  the Government. In case of FPOs the credit guarantee may be availed from the facility created under  FPO  promotion  scheme  of  Department  of  Agriculture,  Cooperation  &  Farmers Welfare (DACFW). Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.

So far as progress under the scheme is concerned, the operational guidelines of the scheme  have  been  circulated  to  all  States/UTs  on  17 th July,  2020.  Various  meetings  to quickly roll out the scheme have been held by DAC&FW with all States/UTs Governments and  other  stakeholders.    Memorandum  of  Understandings  (MoUs) with  all  twelve  public sector banks, IDBI and Yes Bank have been signed by DAC&FW. A portal for the scheme has been created.  The scheme has been formally launched by Hon'ble Prime Minister of India on 09.08.2020 wherein only 30 days after Cabinet formally approved the scheme, the first  in-principle  sanction  of  Rs.  1128  Crore  was  made  to  over  2,280  farmer  societies  by NABARD. So far NABARD has received 3055 proposals of PACs through state cooperative banks in 22 states for which in-principle sanction of  Rs. 1568 Cr. has been accorded.