Rs 1 Lakh Crore Awaits! Wants To Apply ?? Know Your Eligibility Now For AIF.

The Rs 1 lakh crore Agri Infrastructure Fund (AIF) , announced by Finance Minister Nirmala Sitharaman on May 15, 2020, aims to address crucial needs in the agricultural sector by focusing on farm-gate infrastructure. The financing facility of Rs 1,00,000 crore is specifically designed to support Agriculture Infrastructure Projects at farm-gate and aggregation points, benefiting various stakeholders in the agricultural ecosystem. Here are the objectives and benefits for different participants:

Source:- Linkedin,Ministry of Agriculture & Farmers Welfare, Government of India

Farmers and Farming Organizations:

Improved Marketing Infrastructure:
- Enhanced facilities enable farmers to directly sell to a larger consumer base, increasing value realization and overall income.
Reduced Post-harvest Losses:
- Investments in logistics infrastructure minimize losses and decrease the number of intermediaries, making the selling process more efficient.
Market Independence:
- Access to modern packaging and cold storage empowers farmers to choose optimal selling times, fostering market access and independence.
Community Farming Assets:
- Financing for community farming assets optimizes inputs and boosts productivity, resulting in substantial savings for farmers.

Government:

Priority Sector Lending Support:
- Directed priority sector lending to currently unviable projects with interest subvention, incentives, and credit guarantees.
Reduced Food Wastage:
- Improved post-harvest infrastructure leads to reduced national food wastage, enhancing the global competitiveness of the agriculture sector.
Public Private Partnerships (PPP):
- Facilitating viable PPP projects for agriculture infrastructure development.

Agri Entrepreneurs and Startups:

Innovation Incentives:
- Dedicated funding source encouraging innovation in agriculture through the application of technologies like IoT and AI.
Ecosystem Collaboration:
- Improved avenues for collaboration between entrepreneurs and farmers, fostering technological advancements in the sector.

Banking Ecosystem:

Lower Risk Lending:
- Credit guarantees, incentives, and interest subvention reduce risk for lending institutions, enabling them to expand their customer base and diversify portfolios.
Role of Cooperative Banks:
- Increased role for cooperative banks and Regional Rural Banks (RRBs) through refinance facilities.

Consumers:

Reduced Inefficiencies:
- Improved post-harvest ecosystem leads to a larger share of produce reaching the market, ensuring better quality and prices for consumers.