The Agriculture Infrastructure Fund (AIF) is a vital initiative launched under the Atmanirbhar Bharat Abhiyan to address infrastructure gaps in agriculture and accelerate rural development. This scheme aims to mobilize investments and create a robust infrastructure framework for agricultural growth in India.
Why in the News?
A new campaign called ‘BHARAT’ (Banks Heralding Accelerated Rural & Agriculture Transformation) was recently introduced under the AIF scheme. The campaign aims to speed up infrastructure development in the agriculture sector.
Quick Facts About AIF
- Purpose: To bridge agricultural infrastructure gaps and attract investments.
- Type: Central Sector Scheme.
- Implementing Agency: National Bank for Agriculture and Rural Development (NABARD).
- Tenure: The scheme will run until 2032-33.
Objectives of the Agriculture Infrastructure Fund
The primary goal of the AIF is to provide medium- to long-term financing for:
- Post-harvest management infrastructure, such as storage and processing units.
- Community farming assets, including equipment and facilities that support farming clusters.
Key Features of AIF
Background
The Agriculture Infrastructure Fund was introduced in May 2020 as part of the government’s Self-Reliant India Campaign. It focuses on reducing post-harvest losses and improving the supply chain for agricultural products.
Beneficiaries
The scheme supports a wide range of stakeholders, including:
- Farmers.
- Primary Agricultural Credit Societies (PACS).
- Farmer Producer Organizations (FPOs).
- Self-Help Groups (SHGs).
- State Agencies and Agricultural Produce Market Committees (APMCs).
Financial Assistance
- Loan Facility: A provision of ₹1 lakh crore in loans through banks and financial institutions.
- Interest Subvention: A 3% annual interest subvention on loans.
- Credit Guarantee: Coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to ₹2 crore.
Eligible Projects
Projects under AIF focus on enhancing supply chain infrastructure and include:
- Facilities for clusters of crops, including those aimed at exports.
- Organic input production and bio-stimulant manufacturing units.
- Infrastructure for smart and precision agriculture.
- Public-Private Partnership (PPP) initiatives promoted by Central, State, or local governments.
Monitoring and Management
- Real-Time Monitoring: Managed through an online Management Information System (MIS) platform.
- Monitoring Committees: National, State, and District-level committees oversee project implementation and provide feedback.
BHARAT Campaign
The BHARAT campaign is a critical component of the AIF, designed to:
- Maximize the scheme’s benefits for farmers and rural communities.
- Create a competitive environment among banks and lending institutions to expedite loan approvals for agricultural projects.
Benefits of the Agriculture Infrastructure Fund
For Farmers
- Reduces post-harvest losses and minimizes reliance on intermediaries.
- Enhances income by enabling direct access to markets.
For the Government
- Promotes the inclusion of unviable projects under priority sector lending.
- Encourages the development of agri-entrepreneurs and start-ups.
For Consumers
- Provides access to affordable and high-quality agricultural products.
Conclusion
The Agriculture Infrastructure Fund (AIF) is a transformative initiative aimed at modernizing India’s agricultural landscape. By addressing infrastructure challenges and fostering rural growth, AIF is empowering farmers, enhancing supply chain efficiency, and promoting entrepreneurship in the agriculture sector. The integration of campaigns like BHARAT further accelerates the scheme’s impact, ensuring that India’s agricultural community remains competitive and self-reliant in the global market.
By improving agricultural infrastructure, the AIF contributes significantly to the government’s vision of an Atmanirbhar Bharat, benefitting all stakeholders across the agricultural value chain.