Lok Sabha Question No. 3666 (UNSTARRED), answered on 2024-12-17
Subject: Improving Infrastructure Facilities in Agriculture Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Navaskani K

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

## LOK SABHA UNSTARRED QUESTION No. 3666

TO BE ANSWERED ON THE 17 TH  December, 2024

## IMPROVING INFRASTRUCTURE FACILITIES IN AGRICULTURE SECTOR

3666.  SHRI NAVASKANI K:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) the major initiatives undertaken by the Government to improve infrastructure facilities in the agriculture sector over the last five years;
- (b) the total funds allocated and utilized for agricultural infrastructure development, year-wise;
- (c) the details of the key projects completed and their impact on farmers;
- (d) whether the Government has undertaken any recent projects for improving irrigation infrastructure;
- (e ) if so, the details of these projects and their current status;
- (f)    whether  the  Government  has prioritized  small and  marginal farmers  in  its agricultural infrastructure development programmes;
- (g) if so, the details of such targeted initiatives; and
- (h) the measures being taken to increase their access to these facilities?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI RAMNATH THAKUR)

- (a)  to  (c):          The  major  initiatives  undertaken  by  the  Government  in  order to address the existing infrastructure gaps and mobilize investment in agriculture infrastructure are 'Agriculture Infrastructure Fund', Agricultural marketing Infrastructure (AMI), National Agriculture Market (e-NAM) scheme, Mission for Integrated Development of Horticulture (MIDH), Rashtriya Krishi Vikas Yojana (RKVY) etc. are being implemented. The brief details of the schemes is as below
- (i) Under  Aatmanirbhar  Bharat  Package.  AIF  was  introduced  with  a  vision  to transform the agriculture infrastructure landscape of the country. The Agriculture Infrastructure Fund is a medium - long term debt financing facility for investment in  viable  projects  for  post-harvest  management  infrastructure  and  community farming assets through 3% interest subvention and credit guarantee support. The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020-21 to FY 2025-26 and the support under the scheme will be provided for the duration of  FY2020-21  to  FY2032-33.  Under  the  scheme,  Rs.  1  Lakh  Crore  will  be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE  and NABSanrakshan for loans up to Rs. 2 Crores. Further, each entity is eligible to get the benefit of the scheme for up to 25 projects located in different LGD codes. As on 30.11.2024, Rs. 51,783 Crore have been sanctioned by lending institutions

for 85,314 projects under AIF, out of this total sanctioned amount ₹39,148 crore is covered under scheme benefits.  These sanctioned projects have mobilized an investment of Rs. 85,208 crore in agriculture sector.

- (ii) 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 in the States to enhance the storage capacity for agriculture produce. AMI is demand driven scheme in which subsidy is provided at the rate of 25% and 33.33% on capital cost of the project based on the category of eligible beneficiary. Assistance under this scheme is available to Individuals, Farmers, Group of farmers/growers, Agripreneurs, Registered Farmer Produce Organizations (FPOs), Cooperatives and state agencies etc. The scheme is demand driven.
- (iii) National  Agriculture  Market  (e-NAM)  scheme,  a  virtual  platform  integrating physical wholesale mandis/ markets of different States/ Union Territories (UTs) to facilitate online trading of agriculture and horticulture commodities to enable farmers to realize better remunerative prices for their produce.
- (iv) Mission  for  Integrated  Development  of  Horticulture  (MIDH)  under  which financial  assistance  for  setting  up  of  Post-Harvest  Management  Infrastructure including cold storage, cold room facilities for horticultural produce @ 35% of the project cost in general areas and 50% in case of hilly and scheduled areas per beneficiary is available. The component is demand/entrepreneur driven through commercial ventures for which Government assistance is credit linked and back ended.
- (v) Rashtriya Krishi Vikas Yojana (RKVY), a Centrally Sponsored Scheme under which the funds are released to the State Governments as Grants-in-Aid on the basis  of  projects  in  Agriculture  &  allied  sectors  approved  in  the  State  Level Sanctioning Committee Meeting (SLSC) headed by the Chief Secretary of the concerned State, which is the empowered body to approve projects under the scheme. In  this  scheme  Sates  has  flexibility  and  autonomy  in  the  process  of selection,  planning,  approval  and  execution  projects  in  agriculture  and  allied sectors as per their priorities. RKVY is primarily a project oriented scheme, the benefit of which is available to all sections of the farming community.  From 201516,  the  funding  pattern  of  RKVY  changed  from  100%  central  share  to  60:40 between Centre and States whereas 90:10 between Centre and North Eastern & Himalayan States.  For UTs it remains 100% as Central share.

Out of 1 Lakh Crore Year wise loan Sanction under AIF

| SN    | Financial Year   | Sanctioned Projects   | Sanctioned Amount (Rs. Cr.)   |
|-------|------------------|-----------------------|-------------------------------|
| 1     | 2020-21          | 5,682                 | 3,838                         |
| 2     | 2021-22          | 5,785                 | 5,749                         |
| 3     | 2022-23          | 15,973                | 13,031                        |
| 4     | 2023-24          | 33,915                | 17,399                        |
| 5     | 2024-25          | 23,959                | 11,766                        |
| Total | Total            | 85,314                | 51,783                        |

(d) and (e):     The Agricultural Infrastructure Fund (AIF) supports projects aimed at  improving  agricultural  infrastructure,  including  irrigation-related  initiatives. Convergence  with  Component-B  &  C  of  the  PM-KUSUM  scheme  with  AIF supports  setting  up  of  solar-powered  pumps  facilitating  irrigation  systems  for farmers.    Under  B  component  AIF  cover  Install  stand-alone  solar  agriculture pumps with a capacity of up to 7.5 HP and under C Component Solarize existing grid-connected agriculture pumps with a capacity of up to 7.5 HP. As on date total  of  1,007  projects  have  been  sanctioned  by  various  lending  institutions involving loan amount of Rs 31.72 crore under PMKUSUM convergence

Per  Drop  More  Crop  (PDMC)  was  implemented  as  a  component  of PMKSY during the year 2015-16 to 2021-22.  From the year 2022-23, PDMC is being implemented under the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY).  PDMC focuses on enhancing water use efficiency at farm level through Micro Irrigation, namely, Drip and Sprinkler irrigation system. Adoption of  Micro  Irrigation results  in  improved  water  use  efficiency,  reduced  fertilizer usage through fertigation, increase in crop yield and enhancement of income of the farmers.  Financial Assistance @ 55% for Small & Marginal farmers and @ 45% for Other farmers is provided by the Government for installation of Micro Irrigation under the Scheme.

Central  Assistance  released  to  States  for  implementation  of  PDMC Scheme during last five years is as under:

| Year                                    |   2019-20 |   2020-21 |   2021-22 |   2022-23 |   2023-24 |
|-----------------------------------------|-----------|-----------|-----------|-----------|-----------|
| Central Assistance released (Rs. in Cr) |   2700.02 |   2562.19 |   1796.12 |   1901.37 |    2103.5 |

(f)  to  (h):      The  schemes  have  been  designed  to  benefit  small  and  marginal farmers by addressing gaps in agricultural infrastructure. Investments in logistics infrastructure  enables  farmers  to  sell  in  the  market  with  reduced  post-harvest losses and a smaller number of intermediaries. This further will make farmers independent and improve access to market. Also modern packaging and cold storage system access enable farmers to further decide when to sell in the market and improve realization. The AIF Scheme benefits comes as a boon for these weaker section of beneficiaries as they benefit from an interest subvention of 3% per annum for a duration of up to seven years for loans up to ₹2 crore. To further support  borrowers,  the  initiative  includes  credit  guarantee  support  by  way  of reimbursement  of  credit  guarantee  fees  for  loans  up  to  ₹2  crore  for  7  years, reducing the financial risks for both lenders and borrowers.  Small and marginal farmers  benefit  indirectly  through  Farmer  Producer  Organizations  (FPOs), cooperatives,  and  self-help  groups  (SHGs)  that  access  this  funding  on  their behalf.

For creating awareness about the schemes various conclaves, workshop, training  programmes  are  conducted.  Further,  widespread  promotion  various activities are undertaken like publicity in social media platforms, participation in various national and regional level events, seminars, exhibitions/ trade fairs, food festival etc.

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