Connect with us

Hi, what are you looking for?

[t4b-ticker]

India

New Cabinet OKs Rs 1 Lakh Crore Agriculture Infra Fund Loans to Boost APMC System

Narendra Tomar
Union Minister Narendra Singh Tomar addresses a Press Conference on Cabinet decisions, at NMC in New Delhi-(PTI Photo)

New Delhi: Agricultural Produce Market Committees (APMCs) mandis will be eligible to avail financial support from the Rs 1 lakh crore Agriculture Infrastructure Fund to expand the regulated markets’ capacity and provide better facilities to farmers, Agriculture Minister Narendra Singh Tomar said on Thursday (July 8).

Tomar asserted that the decision to further strengthen APMCs allays protesting farmers’ fear that these mandis will get scrapped with the implementation of three new agriculture laws.

ALSO READ: Covid-19: Pfizer Seeks US Nod for Third Booster Shot For Better Protection Against Variant

Briefing the media, Tomar said: “During the Budget (2021-22), we had told that APMCs will not end, rather they would be strengthened further. Keeping that in mind, the Cabinet today decided to allow APMC to utilise the Rs 1 lakh crore financing facility under Agriculture Infrastructure Fund (AIF).”

The minister reiterated that the regulated mandis will not end. “After implementation of the three farm laws, APMC will get funds from this agri-infra fund.”

For APMCs, interest subvention for a loan up to Rs 2 crore will be provided for each project of different infrastructure types like cold storage, sorting, grading and assaying units and silos within the same market yard, he added.

APMC markets are set up to provide market linkages and create an ecosystem of post-harvest public infrastructure open to all farmers.

Not only APMCs, Tomar said the financial facility under this fund has been extended to state agencies, national and state federations, farmer producer organisations (FPOs) as well as federation of self-help groups (SHGs).

Till now, individuals, organisations, cooperatives, FPOs and agri-start ups and farmers organisations were eligible to avail subvention of 3 per cent per annum for loans up to Rs 2 crore, he added.

Under the AIF, a medium to long-term debt financing facility is provided for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and financial support.

Advertisement. Scroll to continue reading.

Among other changes in the scheme, the minister said that currently interest subvention for a loan up to Rs 2 crore in one location is eligible under the scheme.

“In case one eligible entity puts up projects in different locations, then all such projects will be now be eligible for interest subvention for loan up to Rs 2 crore,” he said.

However, for a private sector entity, there will be a limit of a maximum of 25 such projects. However, this limitation will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs, he said.

ALSO READ: Centre Announces Rs 23,000 Crores Emergency Response Package to Fight Covid-19

Location will mean physical boundary of a village or town having a distinct LGD (Local Government Directory) code. Each of such projects should be in a location having a separate LGD code.

The minister further said the period of financial facility has been extended from 4 to 6 years up to 2025-26. The overall period of the scheme has been extended from 10 to 13 years up to 2032-33.

In a separate statement, the government said the power has been delegated to the Union Agriculture Minister to make necessary changes with regard to addition or deletion of beneficiaries in such a manner so that basic spirit of the scheme is not altered.

The modifications in the scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers, it said.

You May Also Like

India

Amarinder Singh also took on the newly elected chief minister, Charanjit Singh Channi, and questioned his promises of free water and power to the...

India

Chief Justice N.V. Ramana has made strong observations about how the sedition law is being misused to curtail free speech, but the Supreme Court...

India

A hearing was going on in the courtroom when shots were fired in Rohini court premises, police have said.

India

Saying it doesn’t want women to be denied their rights, the SC said it had already passed interim orders and that "armed forces are...

Advertisement