Lok Sabha Question No. 245 (UNSTARRED), answered on 2021-07-20
Subject: Funds for Boosting Agricultural Productivity
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rajeshbhai Naranbhai Chudasama

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

## LOK SABHA UNSTARRED QUESTION NO. 245

TO BE ANSWERED ON 20 TH  JULY, 2021

## Funds for Boosting Agricultural Productivity

245.   SHRI RAJESHBHAI CHUDASAMA:

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

- a)  whether the  Government  has  decided  to  incur/invest  Rs.  25  lakh  crore  in  farm sector in the next three years in order to boost agricultural productivity;
- b)  if so, the details thereof; and
- c)  the total amount reserved for the farmers and farm sector separately for the State of Gujarat?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a)  &  (b):      Government  of  India  has  launched  the  Central  Sector  Scheme  of financing  facility  under  Agriculture  Infrastructure  Fund  (AIF)  to  boost  Agriculture Infrastructure relating to Post-Harvest Management (PHM) and Community Farming Assets in the country.

Under this  scheme  financing  facility  of  ₹1  lakh  crore  is  to  be  distributed  by banks/lending institutions as loans to eligible beneficiaries such as Primary Agricultural  Credit  Societies  (PACS),  Marketing  Cooperative  Societies,  Farmer Producer  Organizations(FPOs),  Self  Help  Groups  (SHG),  Farmers,  Joint  Liability Groups  (JLG),  Multipurpose  Cooperative  Societies,  Agri-entrepreneurs,  Start-ups and  Central/State  agency  or  Local  Body  sponsored  Public  Private  Partnership Projects (PPP), State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs and Federations of  Self  Help Groups (SHGs) for the following PHM and Community Farming Asset projects:-

## (A) Post Harvest Management Projects like:

- (i)  Supply chain services including e-marketing platforms
- (ii)  Warehouses
- (iii)  Silos
- (iv)  Pack houses
- (v) Assaying units
- (vi)  Sorting &grading units
- (vii)  Cold chains
- (viii)  Logistics facilities
- (ix)  Primary processing centers
- (x) Ripening Chambers

## (B) Viable projects for building community farming assets including -

- (i)  Organic inputs production
- (ii)  Bio stimulant production units
- (iii)  Infrastructure for smart and precision agriculture.
- (iv)  Projects  identified  for  providing  supply  chain  infrastructure  for  clusters  of crops including export clusters.
- (v) Projects  promoted  by  Central/State/Local  Governments  or  their  agencies under PPP for building community farming assets or post-harvest management projects.

All loans under this financing facility will have interest subvention of 3% per annum up to a limit of ₹ 2 crore. This subvention will be available for a maximum period of 7 years. In case of loans beyond ₹ 2 crore, then interest subvention will be limited up to ₹ 2 crore. 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 ₹ 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 DA&FW.

- (c): Tentative State wise allocation of financing facility of Rs. 1 lakh under AIF as worked out on the basis of the ratio of total value of output of Agriculture and Allied sectors for the State of Gujarat is ₹7282 cr.

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