Union Minister of Agriculture & Farmers’ Welfare Shri Narendra Singh Tomar holds discussion with Chief Ministers and State Agriculture Ministers on recent agriculture reforms and implementation of Agri Infrastructure Fund

Union Minister of Agriculture & Farmers’ Welfare, Rural Development & Panchayati Raj, Shri Narendra Singh Tomar, today held a detailed discussion with Chief Ministers and State Agriculture Ministers on recent agriculture market reforms and the new Central Sector Scheme of financing facility under the Agriculture Infrastructure Fund of Rs. 1 Lakh Crore. The event was conducted through Video Conference and Chief Minister of Uttar Pradesh Shri Yogi Adityanath, Chief Minister of Maharashtra Shri Uddhav Thackeray, and Agriculture Ministers of Rajasthan, Kerala, Chhattisgarh and Telangana, and Union Ministers of State for Agriculture Shri Purshottam Rupala and Shri Kailash Choudhary participated in the discussion.


During the discussion, Shri Tomar emphasized that the focus of the fund is to improve post-harvest management infrastructure and availability of community farming assets, and it is to be ensured that small and medium farmers receive the full benefit. The Chief Ministers and State Agriculture Ministers gave full assurance that no stone will be left unturned in ensuring utilization of the Rs 1 lakh crore fund, and new infrastructure will be created in all the villages.



The Union Agriculture Minister said that the Government of India under the guidance of the Hon’ble Prime Minister is committed to ensuring the welfare and sustainability of livelihoods for the farmers of India. He said that the new ordinances brought in by the government are farmer-welfare- oriented and are the latest in a series of farmer-centric reforms taken by the government.


Shri Tomar shared the aspirational vision for agriculture under “Atmanirbhar Bharat”, highlighting the focus on transforming farmers into entrepreneurs and doubling farmers’ income. He noted several other pathbreaking schemes and initiatives launched by the Department of Agriculture Cooperation & Farmers’ Welfare over the last year. He highlighted a few key initiatives including the Rs. 6,865 Crore scheme for “Formation and Promotion of 10,000 FPOs”, three recent Ordinances, benefits released under PM-KISAN, KCC saturation drive for the farmers, and the increased focus on Digital Agriculture. The Union Minister said FPOs will have a big role in increasing production, productivity and value realization, and reducing the cost of cultivation of the small farmers.


The Union Minister, Chief Ministers and State Agriculture Ministers discussed the benefits of the scheme and how it will help states drive growth in investment, create new jobs in the agriculture and allied sectors, and improve farmer income. There was a detailed discussion on the opportunity across states to invest in post-harvest management solutions and community farming assets like modern silos, cold chains, integrated pack-houses, and IoT/ precision agriculture. The group also exchanged views on how different groups, including FPOs, PACS, and start-ups, can avail the benefits under the scheme, thereby creating an ecosystem that reaches farmers in every corner of the country.


Shri Tomar emphasized how states should explore convergence with multiple central and state schemes to improve the economics of the investments under the Agriculture Infrastructure Fund. He highlighted a few schemes to explore convergences including capital subsidy sub-schemes under the Mission for Integrated Development of Horticulture, state plan for funds provided under RKVY, and capital subsidy for the setup of organic input production units under the National Mission for Sustainable Agriculture.


Assuring that the UP Government will work with full dedication for welfare of farmers under the AtmaNirbhar Bharat package, Chief Minister of Uttar Pradesh Shri Yogi Adityanath informed that more than 2.14 crore farmers have benefitted under the PM-KISAN scheme in the state. 12 lakh new KCCs are being given in addition to the 1.44 crore KCCs already issued. One FPO is being formed in each of the 825 blocks in the state. Chief Minister of Maharashtra Shri Uddhav Thackeray expressing gratitude towards the Prime Minister and Union Agriculture Minister for formulating and implementing a national scheme for agricultural development at a fast pace. He said that to make the farmers self-reliant, it is essential to create basic facilities for them, for which provision has been made in the Agri Infrastructure Fund.  


Finally, the Union Minister discussed the implementation of the scheme with the Chief Ministers, highlighting the importance of comprehensively identifying projects that can address current infrastructure gaps, and assuring them full cooperation of the Centre for fast-track implementation. The Chief Ministers assured expeditious implementation of the scheme in the states to enable farmers to realize benefits.


Mr. Vivek Agrawal, Joint Secretary, Ministry of Agriculture and Farmers welfare made a presentation on the plan and suggested to create a Project Management Unit in the States.


The Agriculture Infrastructure Fund is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee. The duration of the scheme shall be from FY2020 to FY2029 (10 years). Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crore. The beneficiaries will include farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.


The Agriculture Infrastructure Fund is one of the latest steps in a series of reforms undertaken by the Government of India in the agriculture sector. The scheme will support farmers, PACS, FPOs, agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure. These assets will enable 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. The guidelines of the scheme have been issued and a portal has also been launched.



    Source PIB