Prime Minister Narinder Modi is to launch financing facility of ₹ 1 lakh crore under Agriculture Infrastructure Fund through virtual conferencing. Along with the facility the PM will also release sixth installment of funds of ₹ 17,000 crores. This is to benefit more than 8.5 crore farmers under Pradhan Mantri Kisan Samman Nidhi scheme.
The funding facility is to catalyse creation of post-harvest management community and infrastructure farming assets such as collection centres, cold storage, processing units, etc. The assets will enable farmers to get greater value for their produce. The farmers will be able to reduce wastage, store and sell at higher prices and also increase processing and value addition.
Around 11 of 12 Public Sector Banks have signed memorandum of understanding with Department of Agriculture Cooperation and Farmers Welfare in order to implement the above financing facility.
Pradhan Mantri Kisan Samman Nidhi scheme
The sixth instalment of Rs 2 thousand under Pradhan Mantri Kisan Samman Nidhi is to be sent to more than 10 crore beneficiaries. Under the scheme, the Indian Govt sends Rs 6,000 annually to the registered farmers.
In 2018, The PM Kisan Samman Nidhi was launched. It provides direct cash benefit transfer of Rs 75,000 crores.
Agriculture Infrastructure Funds
In July 2020, Union Cabinet lead by PM, had approved Agriculture Infrastructure Fund. It provides medium long term debt financing facility for investment. The loans under the funds are to be provided to Marketing Cooperative Societies, Primary Agricultural Credit Societies, Farmer Producer Organizations, Joint Liability Groups, Self Help Groups, Multipurpose Cooperative Societies.
The loans issued under the funds will have interest subvention of 3 per cent per annually. The funds provide following benefits
- The credit guarantee can be availed from the facility created under Farmer Producer Organization promotion scheme.
- The subsidised interest of 3 per cent is to be available for a maximum period of 7 years.
- The repayment under the financing facility is subjected to a minimum of six months and maximum of 2 years.
Modi to launch financing facility