Agriculture Infrastructure Fund:An important Link in Agricultural Reforms

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National News

Nov 30, 2020

7:49PM

Agriculture Infrastructure Fund:An important Link in Agricultural Reforms

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In its direction of agriculture reforms, the Central Government has launched one lakh crore rupees Agriculture Infrastructure Fund (AIF).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 interest subvention and credit guarantee. The duration of the scheme is from Financial Year 2020 to 2029. Under it, farmers can avail benefits from better production and marketing facilities created by this fund.

Under the initiative, a credit guarantee for loans up to two crore rupees is provided by the government. The government also provides three per cent rebate in interest on loans upto two crore rupees for a maximum period of 7 years. Moratorium for loan repayment under this financing facility will be from 6 to 24 months. Under the Fund, agri-entrepreneurs, start-ups, and farmer groups will have access to credit for construction of warehouses, sorting grading unit and packhouses, creation of supply chain and cold chain facilities. Besides, the fund will also help setting up of Primary Agriculture processing centres and strenghtening vision from seed to market.