Lok Sabha Question No. 1313 (UNSTARRED), answered on 2025-02-11
Subject: Agricultural Infrastructure Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Mukeshkumar Chandrakaant Dalal

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

## LOK SABHA UNSTARRED QUESTION No. 1313

TO BE ANSWERED ON THE 11 TH  FEBRUARY, 2025

## AGRICULTURAL INFRASTRUCTURE FUND

## 1313.     SHRI MUKESHKUMAR CHANDRAKAANT DALAL:

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

- (a) the details of budget allocated and spent from Agricultural Infrastructure Fund;
- (b)  the  number  of  projects  approved  under  this  fund  during  the  last  three  years, State/UT-wise, particularly in Gujarat; and
- (c)  the  extent  of  impact  on  agricultural  productivity  and  farmers  income  due  to Agricultural Infrastructure Fund particularly in Surat parliamentary constituency ?

## ANSWER

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

- (a):  In order to enhance the income of farmers, it is not only essential to enhance production and productivity of farm produce but also minimize the post-harvest losses and ensure better realization of prices for farmers through creation of modern postharvest management infrastructure. With an objective to address the existing gaps in post-harvest  management  infrastructure  in  the  country,  the  flagship  scheme  of Agriculture  Infrastructure  Fund  (AIF)  was  launched  in  2020-21  to  strengthen  the infrastructure  in  the  country  through  creation  of  farm  gate  storage  and  logistics infrastructure to enable farmers to store and preserve their farm produce properly and sell them in the market at better price with reduced post-harvest losses and lesser number  of  intermediaries.  Improved  post-harvest  management  infrastructure  like warehouses, Cold stores, sorting and grading units, ripening chambers etc will allow farmers  to  sell  directly  to  a  larger  base  of  consumers  and  hence,  increase  value realization for the farmers. This will improve the overall income of farmers. Further, AIF  scheme  aims  to  benefit  all  stakeholders  in  the  agricultural  ecosystem  by contributing in the holistic development of the Agriculture sector. Under AIF, provision for Rs. 1 Lakh crore loan has been made through lending institutions with a interest rate cap of 9% on loans. The scheme is operational from 2020-21 to 2032-33.

All loans under this financing facility have interest subvention of 3% per annum up to a loan limit of ₹2 crores. This interest subvention is available for a maximum period of 7 years. In case of loans beyond ₹2 crores, interest subvention is limited up to ₹2 crores. Credit  guarantee coverage is also 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 crores. The fee for this coverage is borne by the Government.

Budgetary support is being provided for interest subvention and credit guarantee fee as also administrative cost of PMU. This will be amount to Rs. 10,636 crores over a period of 10 years. The detailed break up is as below.

(b) : State/UT wise details of Projects approved under AIF scheme during the last three years is as below :-

| SL NO.   | Name of Component          | Allotted Fund Amount   |
|----------|----------------------------|------------------------|
| 1        | Interest Subvention Cost   | Rs. 7907Cr             |
| 2        | Credit Guarantee Cost      | Rs. 2629 Cr            |
| 3        | Administration Cost of PMU | Rs. 100 Cr             |
| Total    | Total                      | Rs. 10636 Cr           |

## (Amount in Rs Crore)

|   Sl. | State / UT        | Sanctioned No   | Sanctioned Amount   |
|-------|-------------------|-----------------|---------------------|
|     1 | Madhya Pradesh    | 7,701           | 5,853               |
|     2 | Maharashtra       | 6,860           | 4,151               |
|     3 | Rajasthan         | 1,802           | 2,310               |
|     4 | Gujarat           | 2,072           | 2,215               |
|     5 | Uttar Pradesh     | 3,854           | 3,636               |
|     6 | Haryana           | 2,704           | 2,108               |
|     7 | Punjab            | 12,003          | 3,116               |
|     8 | Telangana         | 1,662           | 2,178               |
|     9 | Karnataka         | 2,208           | 2,148               |
|    10 | Andhra Pradesh    | 680             | 1,116               |
|    11 | West Bengal       | 2,537           | 1,441               |
|    12 | Tamil Nadu        | 5,889           | 1,189               |
|    13 | Chhattisgarh      | 814             | 1,008               |
|    14 | Odisha            | 1,098           | 810                 |
|    15 | Assam             | 409             | 726                 |
|    16 | Bihar             | 848             | 680                 |
|    17 | Kerala            | 1,600           | 604                 |
|    18 | Uttarakhand       | 236             | 315                 |
|    19 | Jharkhand         | 225             | 255                 |
|    20 | Himachal Pradesh  | 347             | 137                 |
|    21 | Jammu And Kashmir | 88              | 198                 |
|    22 | Delhi             | 7               | 10                  |
|    23 | Goa               | 19              | 10                  |
|    24 | Meghalaya         | 2               | 8                   |
|    25 | Chandigarh        | 2               | 8                   |

| 26   | Arunachal Pradesh                            | 5      | 6      |
|------|----------------------------------------------|--------|--------|
| 27   | Tripura                                      | 5      | 10     |
| 28   | Nagaland                                     | 0      | 0      |
| 29   | The Dadra And Nagar Haveli And Daman And Diu | 1      | 1      |
| 30   | Puducherry                                   | 2      | 2      |
| 31   | Manipur                                      | 3      | 1      |
| 32   | Mizoram                                      | 0      | 0      |
| 33   | Sikkim                                       | 0      | 0      |
| 34   | Ladakh                                       | 0      | 0      |
| 35   | Lakshadweep                                  | 0      | 0      |
| 36   | Andaman and Nicobar Islands                  | 0      | 0      |
|      | Total                                        | 55,683 | 36,250 |

- (c) :  An impact assessment study of AIF was conducted by Agro Economic Research Centre,  Gokhale  Institute  of  Politics  and  Economics,  Pune  in  December  2023  to evaluate  overall  performance  of  the  scheme,  primarily  based  on  feedback  from beneficiaries as well as farmers in selected states.  The main findings of the study are as below.
1. Based on this study, till 26th January 2025, investment in the agri sector under AIF has generated more than 9 lakh employment opportunities. Out of the sanctioned projects, nearly 97% of the projects created are in rural areas promoting investment and employment opportunities in rural areas.
2. The average number of persons employed per unit in the peak season was found to be 11. The average was highest i.e. 27 in Rajasthan and lowest i.e. 5 in the state of Maharashtra.
3. Further, the storage infrastructure created under AIF has added nearly 550 LMT of storage capacity which includes approx. 510.6 LMT of dry storage and nearly 39.4 LMT of Cold storage capacities (as on 26.01.2025). This additional storage capacity can save up to 20.4 LMT of food grains and 3.9 LMT of horticulture produce annually.
4. The  Agro  processing  centres  created  under  the  scheme  is  promoting  timely value-addition of farmer's produce resulting in increase in farmer's income up to 20% and reduction of post-harvest losses. Custom hiring centres set up under the scheme is  boosting  farm  mechanization  and  adoption  of  better  crop  residue  management practices.
5. 31 percent of the AIF units have availed of government subsidies also. Thus they have been benefitted due to Convergence under AIF.
6. For around 85 percent of the total units, availability of AIF loan was the main reason for starting the unit.

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