Indian Economy News

Agriculture Infrastructure Fund crosses US$ 3.7 billion (Rs. 30,000 crores) mark of capital mobilization for projects in the agriculture sector

The Agriculture Infrastructure Fund (AIF), within two-and-a-half years of being implemented, has mobilized more than US$ 3.7 billion (Rs. 30,000 crores) for projects in the agriculture infrastructure sector. AIF is providing all-around financial support to farmers, agri-entrepreneurs, and farmer groups like Farmer Producer Organisations (FPOs), Joint Liability Groups (JLGs) etc.

Mr. Yogesh CB and Mr. Anand Patel are two of more than 20,000 beneficiaries of AIF, whose dream to diversify their profile and take a forward leap in agricultural development has come true through AIF support. Mr. Yogesh CB from Mandya district of Karnataka was looking to set up a primary processing centre for vegetable, whereas Mr. Anand Patel, a farmer from Jabalpur district of Madhya Pradesh realized the importance and need of mechanization in agriculture, especially for small and marginal farmers for whom agriculture machinery is not affordable. AIF is silently changing the landscape of Indian Agriculture through the creation and modernization of much-needed agriculture infrastructure. These infrastructure projects are helping in reducing post-harvest losses, modernizing agriculture packages and practices, and moreover helping farmers in better price realization of their produce.

AIF, which is a financing facility, was launched on July 8, 2020, under the guidance of Prime Minister Mr. Narendra Modi, for the creation of post-harvest management infrastructure and community farm assets. Under this scheme, US$ 12 billion (Rs. 1 trillion) is to be disbursed by the fiscal year 2025-26 and the interest subvention and credit guarantee assistance will be given till the year 2032-33.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.