Agricultural Infrastructure Fund
Prime Minister Shri Narendra Modi’s leadership, the Union Cabinet has recently sanctioned the significant expansion of the Central Sector Scheme for financing under the ‘Agricultural Infrastructure Fund’ (AIF). This decision aims to strengthen agricultural infrastructure across the country and enhance farmers’ incomes. The scheme is a significant step towards promoting structural development in the agricultural sector and supporting the farming community.
What is the Agricultural Infrastructure Fund?
The Agricultural Infrastructure Fund (AIF) is a Central Sector Scheme launched in 2020, aimed at developing the necessary infrastructure for the agricultural sector across India. The scheme provides financial assistance to farmers, Farmer Producer Organizations (FPOs), cooperatives, agripreneurs, startups, and other entities. Loans and grants are offered under this scheme for the construction of warehouses, cold storages, processing units, and other agriculture-related infrastructure.
Integrated Processing Projects:
The AIF scheme encompasses both primary and secondary processing initiatives. However, independent secondary projects will not be eligible for financial assistance under this scheme; instead, they will be funded through the Ministry of Food Processing Industries (MoFPI) programs. This step will enable farmers to add value to their produce and sell it at a fair price in the market.
Coordination with the PM-KUSUM Scheme:
The integration of Component-A of the PM-KUSUM Scheme with the Agricultural Infrastructure Fund (AIF) has been authorized. This integration aims to promote the development of agricultural infrastructure and sustainable, clean energy solutions, ultimately benefiting farmers and reducing energy consumption.
Current Achievements Under the AIF Scheme:
So far, the AIF scheme has facilitated the construction of 6,623 warehouses, 688 cold storages, and 21 silo projects, resulting in an additional storage capacity of approximately 50 million metric tons nationwide. This includes 46.5 million metric tons of dry storage and 3.5 million metric tons of cold storage capacity. The new storage facilities help secure about 1.86 million metric tons of food grains and 0.344 million metric tons of horticultural produce annually, reducing crop wastage and enhancing farmers’ profits.
How the Scheme’s Expansion Influences Its Impact:
The expansion of the scheme is expected to further stimulate growth in the agricultural sector. It will open up new opportunities, increase farmers’ income, and contribute to the sector’s sustainability. The measures announced by the government aim to widen the scope of the AIF scheme and integrate additional supportive measures to strengthen the agricultural infrastructure ecosystem.
Rural Employment Opportunities: The infrastructure projects approved under the AIF scheme have created over 819,000 rural employment opportunities. The scheme not only encourages investment in the agricultural sector but also provides new job opportunities in rural areas, thereby promoting rural development and strengthening the rural economy.
Conclusion: The expansion of the Agricultural Infrastructure Fund Scheme is a vital step toward structural development in the agricultural sector and improving the economic condition of farmers. This scheme not only strengthens agricultural infrastructure but also boosts farmers’ income and provides employment opportunities in rural areas.
