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Nov 30, 2020
7:49PM

Agriculture Infrastructure Fund:An important Link in Agricultural Reforms

AIR Pics
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.

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