Lok Sabha Question No. 1529 (UNSTARRED), answered on 2022-07-26
Subject: Agriculture Infrastructure Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Jayant Sinha, Margani Bharat

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

## LOK SABHA UNSTARRED QUESTION No.1529

To BE ANSWERED ON THE 26 TH  JULY, 2022

## AGRICULTURE INFRASTRUCTURE FUND

1529.  SHRI JAYANT SINHA: SHRI MARGANI BHARAT:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a):     the aims and objectives of Agriculture Infrastructure Fund (AIF);
- (b):     the details of the size of fund and interest subvention, if any;
- (c) the extent to which farmers and Farmer Producer Organisations (FPOs) are going to be  benefited through this in view of stiff competition  from private entrepreneurs, Start-Ups, federations, etc.;
- (d):        whether  the  Government  is  likely  to  earmark  a  fixed  percentage  of  AIF  to farmers and FPOs and if so, the details thereof and if not, the reasons therefor; and
- (e):    the number of applications received so far under AIF from farmers and FPOs from Andhra Pradesh along with the status thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री (SHRI NARENDRA SINGH TOMAR)

- (a):    Agriculture Infrastructure Fund was launched to provide medium to long term financing  facilities  for  creation  of  post-harvest  management  infrastructure  and community farming assets.

The scheme aims at developing Agri-infrastructure at farm gate level in order to reduce post-harvest losses, to enhance productivity, improve resource utilization, technology  adoption,  better  price  realization  and  accessibility  of  market  to  the farmers.

(b): Size of fund is Rs 1 Lakh Crore. All loans upto ₹ 2 crore per project under this financing  facility  have  interest  subvention  of  3%  per  annum.    This  subvention  is available for a maximum period of 7 years.

(c): Both farmers  and  FPOs  are  eligible  to  avail  financial  support  under  AIF  for creating eligible agri infrastructure. Each of them can avail interest subvention of 3% and credit guarantee support under the scheme for setting up maximum 25 projects at  different  locations.  AIF  also  allow  convergence  with  other  schemes  so  that benefits from other Centre/State government scheme can also be availed along with AIF.  Prioritizing  farmers  and  FPO,  Government  of  India  had  launched  various schemes and initiatives to promote farmers and FPO of the country. AIF through its unique feature of convergence with all such schemes  and  initiatives  make infrastructure projects more viable and also creates a healthy environment for FPO and  farmers  to  compete  with  private  entrepreneurs,  start-ups  and  other  eligible entities.

(d): As of now, Government has not earmarked any percentage of AIF to farmers and FPO. The reason being that any infrastructure created under AIF by any eligible beneficiary  whether agri-entrepreneur, Federations, FPO etc. will  ultimately benefit the farmers only.

(e): Details of applications of farmers and FPOs  received form Andhra Pradesh are given in the table below.

( Rs.In crores)

| SN   | Beneficiary Type              | Received   | Received   | Sanctioned   | Sanctioned   | Disbursed   | Disbursed   |
|------|-------------------------------|------------|------------|--------------|--------------|-------------|-------------|
| SN   | Beneficiary Type              | No.        | Amt.       | No.          | Amt.         | No.         | Amt.        |
| 1    | Farmer                        | 69         | 33.032     | 24           | 10.805       | 19          | 7.227       |
| 2    | Farmer Producers Organization | 27         | 8.031      | 8            | 1.616        | 4           | 0.537       |
|      | Grand Total                   | 96         | 41.063     | 32           | 12.421       | 23          | 7.764       |

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