Lok Sabha Question No. 3546 (UNSTARRED), answered on 2021-08-10
Subject: Agriculture Infrastructure Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ravneet Singh, Y. S. Avinash Reddy

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

## LOK SABHA UNSTARRED QUESTION NO. 3546

TO BE ANSWERED ON 10 th  August, 2021

## Agriculture Infrastructure Fund

3546.  SHRI RAVNEET SINGH BITTU: SHRI Y.S. AVINASH REDDY:

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

- 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?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (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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