Agriculture Infrastructure Fund

Agriculture Infrastructure Fund was authorised by the Union Cabinet in July 2020 as a pan-India scheme to offer medium to long term debt facilities for investing in harvest-management infrastructure and other farming assets. Through interest funding and financial support, the Agriculture Infrastructure Fund will provide financial assistance for investment in innovative agricultural projects.

The focus of the Agricultural Infrastructure Fund would be to provide for the post-harvest management framework and community farming assets. We have shared further details about this central government fund here.

Agriculture Infrastructure Fund - Overview

In July 2020, the Government of India introduced the Agricultural Infrastructure Fund to offer debt facilities to those who seek to invest in agriculture management assets. This scheme will be in place for a duration of ten years, from FY 2020 to FY 2030. The Agri Infrastructure Fund was introduced by the government after realizing a severe lack of farming infrastructure in India.

This scheme can greatly benefit agricultural entrepreneurs, among others by allowing them to obtain farming assets to manage harvest more efficiently. Here, we have shared an overview of the Agricultural Infrastructure Fund -

Agriculture Infrastructure Fund - Objectives

The main objective of the Agri Infrastructure Fund is to provide financial help to agriculture entrepreneurs so that they can contribute to an overall improved agriculture infrastructure in India. Here are the specific objectives of this central government scheme -

• For Farmers: To help reduce post-harvest losses by improving infrastructure, to boost farming productivity and optimising the entire harvesting system.
• For Government: To provide financial support to Agri entrepreneurs through Agriculture Infrastructure Fund to boost innovation and reduce food wastage.
• For Agri Entrepreneurs: To enable the use of state-of-the-art technology in farming, thus, improving national farming infrastructure.

Agri Infrastructure Fund - Beneficiaries

Agricultural Infrastructure Fund offers a financial benefit of up to ₹2 crores to those investing in agricultural assets. As specified by the Government of India, the beneficiaries of the Agri Infrastructure Fund are mentioned as follows:

• Committee of the Agricultural Produce Market
• Agricultural Entrepreneurs
• Central sponsored Public-Private Partnership Projects
• Farmers
• Farmer Produce Organisations' Federation
• Groups of Joint Liability
• Public-Private Partnership Project sponsored by Local Bodies
• Advertising Cooperative Society
• Cooperative Societies
• Cooperatives' National Federation
• Primary Agricultural Loan Society
• Self Help Groups
• Federations of Self Help Groups
• Start-Ups
• Agencies at the State level
• State Federations of Cooperatives
• Public-Private Partnership Project sponsored by State

Agriculture Infrastructure Fund - Benefits

The government announced the Agri Infrastructure Fund to provide support to agricultural asset investors. The aim of this scheme is to help elevate the agricultural sector in India by offering financial assistance. Here are some of the benefits of the Agriculture Infrastructure Fund -

1. Interest subsidies of 3% per annum will be applied to all mortgages under this financing facility, up to a limit of ₹ 2 crores. This subsidy will be accessible for a maximum of seven years.
2. Through the Agri Infrastructure Fund facility, credit guarantee coverage would also be offered for qualifying borrowers under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to ₹ 2 crores. The government will fund the cost of this coverage.
3. In the case of FPOs, the loan guarantee can be obtained through the Department of Agriculture, Cooperation, and Farmers Welfare's FPO Promotion Scheme (DACFW).
4. Under this financing instrument, the repayment moratorium might be anywhere between 6 months and 2 years.

Agri Infrastructure Fund - How to Apply?

The Agriculture Infrastructure Fund will be instrumental in providing medium to long term debt financial assistance for post-harvest management framework and community farming assets. Agri Infrastructure Fund at farm-gate and aggregation sites would be funded using ₹ 1,00,000 crore financing facility. One can initiate their application procedure for the Agriculture Infrastructure Fund by following the given instructions -

• Visit the official website and register by filling out the registration form.
• Log in to the portal and look for the scheme benefits valid for you.
• Select your scheme and wait for approval.

Agriculture Infrastructure Fund - Documents Required for Application:

The list of documents that are prerequisites for the application process for the Agriculture Infrastructure Fund Scheme is as follows:

1. Customer Request Letter for AIF Loan/Bank Loan Application Form that has been duly filled out and signed
2. Passport-size photographs of the promoter/partners/director
3. Voter ID card/PAN card
4. Certificate of Registration with the District Industries Centre (DIC)/Udyog Aadhar Copy in the case of MSMEs
5. ROC Search Report on the promoter's/firm's/KYC company's paperwork
6. A copy of the previous year's bank statement (If available)
7. Existing loans that have a track record of being repaid (Loan Statement)
8. Promoter's Net Worth Statements

FAQs on Agriculture Infrastructure Fund

Q.1. What is Agriculture Infrastructure Fund?

Agriculture Infrastructure Fund is meant to provide medium to long term debt financial assistance for investment projects in post-harvest management framework and community farming assets through interest subvention and financial support.

Q.2. How to apply for Agriculture Infrastructure Fund?

According to the central government, people can register for the Agriculture Infrastructure Fund online. Here are the steps for the same -

• Visit the official website and register by filling out the registration form.
• Log in to the portal and look for the scheme benefits valid for you.
• Select your scheme and wait for the approval.

Q.3. How can Agribusiness owners benefit from the Agriculture Infrastructure Fund?

Through the Agri Infrastructure Fund, the Agri Entrepreneur can streamline all procedures, from their day-to-day commercial activities to interactions with farmers. The Agriculture Infrastructure Fund also enables Agri entrepreneurs to get a medium to long term debt facility.

Q.4. Under which Ministry was the Agriculture Infrastructure Fund launched?

Agriculture Infrastructure Fund was launched under the Ministry of Agriculture and Farmers Welfare, Government of India. The government of India announced the Agri Infrastructure Fund in June 2020 to provide financial support to those who want to invest in agriculture infrastructure.