The Agriculture Infrastructure Fund scheme is aimed at enabling the farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition. A loan of up to Rs. 2 Crore will be provided under the Agriculture Infrastructure Fund.

Credit Guarantee Coverage in Agri Infrastructure Fund Scheme

Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DACFW.

Objectives of Agriculture Infrastructure Fund Scheme

This financing facility will have numerous objective for all the stakeholders in the agriculture eco-system.

Farmers (including FPOs, PACS, Marketing Cooperative Societies, Multipurpose cooperative societies)

• Improved marketing infrastructure to allow farmers to sell directly to a larger base of consumers and hence, increase value realization for the farmers. This will improve the overall income of farmers.
• With investments in logistics infrastructure, farmers will be able to sell in the market with reduced post-harvest losses and a smaller number of intermediaries. This further will make farmers independent and improve access to market.
• With modern packaging and cold storage system access, farmers will be able to further decide when to sell in the market and improve realization.
• Community farming assets for improved productivity and optimization of inputs will result in substantial savings to farmers.

Salient Features of Agriculture Infrastructure Fund Loan Scheme

• Size of the financing facility – Rs. 1 lakh Cr.
• Credit Guarantee for a loan up to INR 2 crore.
• Interest subvention of 3% p.a., limited to INR 2 crore, though loan amount can be higher.
• Cap on lending rate, so that benefit of interest subsidy reaches the beneficiary and services to farmers remain affordable.
• Project Management Unit to provide handholding support for projects including project preparation.
• Multiple lending institutions including Commercial Banks, Cooperative Banks, NCDC, NBFCs etc.
• Online single window facility in collaboration with participating lending institutions.
• Convergence with all schemes of central or state government.
• Disbursement in four years starting with sanction of Rs. 10,000 crore in the first year and Rs. 30,000 crore each in next three financial years.
• Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.
• Need based refinance support will be made available by NABARD to all eligible lending entities including cooperative banks and RRBs as per its policy.

Who can Apply for Agriculture Infrastructure Fund Scheme

• Primary Agricultural Credit Societies (PACS).
• Marketing Cooperative Societies.
• Farmer Producers Organizations(FPOs).
• Farmers.
• Self Help Group (SHG)
• Joint Liability Groups (JLG).
• Multipurpose Cooperative Societies.
• Agri-entrepreneurs, Startups.
• Central/State agency or Local Body sponsored Public-Private Partnership Projects.

Eligible Projects under Agriculture Infrastructure Fund Scheme

Viable projects for building community farming assets including

• Organic inputs production
• Bio stimulant production units
• Infrastructure for smart and precision agriculture

Projects on hub and spoke model

• Projects identified for providing supply chain infrastructure for clusters of crops including export clusters.
• PPP projects promoted by Central/State/Local Govts. or their agencies.

Post-Harvest Management Projects like

• Supply chain services including e-marketing platforms
• Warehouses
• Silos
• Packaging units
• Assaying units
• Sorting & Grading units
• Cold Stores and Cold Chain
• Logistics facilities
• Primary processing centers
• Ripening Chambers
• Waxing plants