Lok Sabha Question No. 309 (STARRED), answered on 2021-08-10
Subject: Storage Facility for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: N.K. Premachandran, Sukhbir Singh Jaunapuria

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

## LOK  SABHA STARRED QUESTION NO. 309

TO BE ANSWERED ON THE  10 TH  AUGUST, 2021

## STORAGE FACILITY FOR AGRICULTURAL PRODUCE

- *309.     SHRI N.K. PREMACHANDRAN: SHRI SUKHBIR SINGH JAUNAPURIA:

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

- (a) whether the Government proposes to provide adequate storage facility for agricultural produce and if so, the action taken thereon;
- (b) whether it has come to the notice of the Government that farmers are facing difficulties due to lack of storage facility and if so, the action taken thereon;
- (c) whether the Government proposes to construct sufficient storage facility in the country considering the demands of farmers;
- (d) if so, the details thereof particularly in Rajasthan;
- (e) whether  the  Government  proposes  to  provide  interest-free  loans  to  farmers  for building sufficient storage facility;
- (f) if so, the details of the action taken thereon; and
- (g) the details of the action taken by the Government during the last five years for making more storage facilities for agricultural produce?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (g): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (g)  OF  LOK  SABHA STARRED QUESTION NO. 309   DUE FOR REPLY ON 10 TH  AUGUST, 2021.

(a) to (d): The Government is implementing Agricultural Marketing Infrastructure (AMI), a sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM) under which assistance is provided for construction/ renovation of godowns/ warehouses in the rural areas of various States  to  enhance  the  storage  capacity  for  agriculture  produce.  Under  the  scheme, Government provides subsidy at the rate of 25% and 33.33% on capital cost of the project based on the category of eligible beneficiary.

Since  inception  of  the  scheme  and  up  to  30.06.2021,  a  total  of  40,641  storage infrastructure  projects  (Godowns),  with  storage  capacity  of  699.3  Lakh  MT  have  been assisted  under  AMI  sub-scheme  in  entire  country.  A  total  of  1546  projects,  with  storage capacity of 30.2 Lakh MT have been assisted in Rajasthan State under AMI sub scheme.

In addition to schemes mentioned above, Department of Food and Public Distribution, Government of India, deals with creation of storage facilities for foodgrains procured under the  Public  Distribution  System.  Depending  on  requirement  in  specific  areas  and  for modernization  of  the  storage  facilities,  the  Government  implements  Private  Entrepreneurs Guarantee (PEG) scheme & Central Sector Scheme (erstwhile Plan Scheme).  Under PEG Scheme,  144.19  Lakh  MT  capacity  has  been  created  out  of  which  2.35  Lakh  MT  is  in Rajasthan  region.    Further,  6.51  Lakh  MT  capacity  is  under  construction.  Under  Central Sector Scheme, a capacity of 2.03 Lakh MT has been created and 0.61 Lakh MT capacity is under construction.

(e) & (f): Government has approved a new central sector scheme for Financial Facility under Agriculture Infrastructure Fund (AIF) of Rs. 1,00,000 Crore to provide a medium-long term    loan     facility for  investment in viable projects for post-harvest market infrastructure

including warehousing facility and community farming assets through interest subvention and financial support. AIF provides financial support in terms of Interest Subvention and Credit Guarantee on loans for post harvest management projects like Warehouses, Cold Chains, Silos etc. and building community farming asset projects.

Under the scheme, Rs. 1 Lakh  Crore is 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 and

Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups Central/State agency or Local Body sponsored Public Private Partnership Project.

All loans under this financing facility have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention is available for a maximum period of 7 years. Further, credit guarantee coverage is 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. So far, Rs 3576.2 Crore have been sanctioned for 3898 warehouse projects.

(g): To promote more storage facilities for agricultural produce, Government is providing assistance  through  AMI  sub-scheme  of  ISAM.  During  the  last  five  years,  2,956  storage infrastructure projects (Godowns), with storage capacity of 79.7 Lakh MT have been assisted under the scheme across the country.

As  per  the  information  received  from  Department  of  Food  and  Public  Distribution, Government of India, during the last five years, 36.32 Lakh MT storage capacity have been created in PEG scheme/ Central Sector Scheme/ Silos.

As  mentioned  above,  so  far,  Rs  3576.2  Crore  have  been  sanctioned  for  3898 warehouse projects under AIF.

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