According to Union Minister for Agriculture and Farmers Welfare Narendra Singh Tomar, the Centre has received applications calling for an investment of Rs 23,000 crore under the Agriculture Infrastructure Fund (AIF).
The AIF, established in 2020, aims to provide a medium-long term debt financial facility through interest subvention and financial support through 2025–2026 for investment in viable projects for post-harvest management infrastructure and community farming assets.
AIF will disburse loans of Rs 1 lakh crore by 2025–2026, according to earlier statements from ministry officials.
When asked about the outcome of the two-day National Conference of State Agriculture and Horticulture Ministers, Tomar stated that "so far, we have received proposals worth Rs 23,000 crore, of which the proposals worth Rs 13,000 crore is under review."
According to him, this fund will be lent to those who show interest and have "impressive proposals."
The loan will be provided at a minimal interest rate of 3%, according to Shobha Karandlaje, the Union Minister of State for Agriculture and Farmers Welfare.
The committee decided to concentrate on natural and organic farming during the discussion. "By using fewer chemical fertilizers, the soil's quality will improve, which will enhance the crops' quality. There are currently 4 lakh hectares of natural farming and 38 lakh hectares of organic farming. In the upcoming days, we aim to increase it," he continued.
The drone policy and digital agriculture, which helps farmers in case of a calamity, were discussed during the meeting. He emphasized the production of palm oil and stated that the government plans to raise the amount of land under palm cultivation from the current 3 lakh hectares to 6 lakh hectares by the year 2025.
What is Agriculture Infrastructure Fund (AIF)?
In order to develop the nation's agricultural infrastructure, it is necessary to mobilize a medium-long term debt financing facility for investment in viable projects for post-harvest infrastructure and community farming assets.
