Lok Sabha Question No. 2325 (UNSTARRED), answered on 2024-12-10
Subject: Investment in Agricultural Infrastructure
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Ashok Kumar Rawat

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

## LOK SABHA

## UNSTARRED QUESTION No. 2325

TO BE ANSWERED ON THE 10 TH  DECEMBER, 2024

## INVESTMENT IN AGRICULTURAL INFRASTRUCTURE

2325.     SHRI ASHOK KUMAR RAWAT:

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

- (a) whether a huge amount is being invested on agricultural infrastructure, if so, the details thereof;

(b) whether the Government proposes to increase the income of the farmers therefrom;

(c) whether the Government is taking any steps to increase the income of small and medium farmers of Misrikh district in Uttar Pradesh; and

(d) if so, the details thereof?

## ANSWER

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

(a) & (b): Yes, Sir. In order to address the existing infrastructure gaps and mobilize investment for infrastructure in agriculture sector to increase the income of  farmers  various Schemes  by  the Government of  India such  as '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) As part of the Atmanirbhar Bharat initiative, the Agriculture Infrastructure Fund  (AIF)  was  launched  in  2020  to  promote  sustainable  agriculture  by supporting  the  development  of  agricultural  infrastructure  across  India.  This initiative  aims  to  empower  farmers  and  boost  their  incomes  by  facilitating medium- to long-term loans through lending institutions at a maximum interest rate of 9%. Under the AIF, loans are offered for infrastructure projects at farmgate and aggregation points, with a target of financing ₹1 lakh crore by 2025-26.

Additionally, the scheme benefits borrowers 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.

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),  is  a capital  investment , open  ended,  Demand  driven  and  credit  linked  scheme  wherein  back  ended subsidy  @  25%  and  33.33%  is  available  based  on  the  eligible  category  of beneficiary. Assistance is available to Individuals, Farmers, Group of farmers/growers,  Agri-preneurs,  Registered  Farmer  Produce  Organizations (FPOs), Cooperatives, and state agencies etc. Under AMI since inception of the scheme and up to October, 2024, a total of 48,611 Warehouses with a capacity of 943.66 lakh MT have been sanctioned and subsidy of Rs. 4,795 crore has been released. In addition, since 20.10.2004 and up to October, 2024, a total of 21,004 Agricultural Marketing Infrastructure Projects (other than storage) have also  been  sanctioned  under  the  scheme  and  subsidy  of  Rs.  2,125  crore has been released.
- (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 assistance is available for development of Post Harvest Management (PHM) for perishable  horticulture  crops  which  includes  establishment  of  pack  house, Integrated pack house, pre-cooling, staging cold room, cold storages, controlled atmosphere  (CA)  storage,  reefer  transport,  primary/mobile  processing  units, setting up of ripening chambers and Integrated cold chain supply system etc.An entrepreneur can avail assistance for individual component or combination of different  components  for  which  assistance  @  35%  of  eligible  project  cost  in general areas and @ 50% in hilly and scheduled area is available as credit linked and  back  ended  subsidy.  For  Primary  Processing  units  assistance  @40%  of eligible project cost in general areas and @ 55% in hilly and scheduled area is available as credit linked and back ended subsidy.

(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 States 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.

(vi) The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector Scheme, being implemented w.e.f. 1st December, 2018. The Scheme aims at providing  financial  assistance  to  all  landholding  farmer  families  across  the country,  subject  to  certain  exclusion  criteria,  to  enable  them  to  take  care  of expenses related to agriculture and allied activities as well as domestic needs. Under the Scheme, an amount of Rs. 6000/- per year is transferred in three 4monthly installments of Rs.2000/- directly into the bank accounts of the farmers.

(c) & (d): Misrikh is a city in Sitapur district of Uttar Pradesh wherein all the schemes e.g. PM-KISAN, AMI, e-NAM, MIDH, RKVY including AIF are being implemented. In Uttar Pradesh under AIF, a total of 6,709 projects have been set up with loans amounting to ₹5,114 crore from various lending institutions since the inception of the Scheme. This has led to an aggregate investment of ₹8,637 crore in Uttar Pradesh.

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