Cabinet Approval for Agriculture Infrastructure Fund

In News

The Union Cabinet approved the ‘Agriculture Infrastructure Fund, a Central Sector Scheme.


  • The Union Cabinet chaired by Shri Narendra Modi had approved a new pan-India Central Sector Scheme named ‘Agriculture Infrastructure Fund’.
  • Under the scheme, the banks and financial institutions will provide Rs. One Lakh Crore as loans for developing agriculture infrastructure.
  • The loan beneficiaries under the scheme- Primary Agricultural Credit Society (PACS), Marketing Co-operative Societies, Farmers Producers Organizations (FPO), Self Help Group (SHG), Joint Liability Groups (JLG), Multipurpose Cooperative Society, Startups, Agri-entrepreneurs, Farmers, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored by the Public-Private Partnership Project.
  • For the current year Rs. 10,000 crore is sanctioned and Rs. 30,000 crore each for the next three financial years.
  • The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme will facility credit guarantee coverage for eligible borrowers, for a loan up to Rs. 2 crore.
  • The FPO promotion scheme of the Department of Agriculture, Cooperation and Farmers Welfare (DACFW) provides the credit guarantee for FPOs.
  • The total budgetary support outflow by the Government of India is Rs. 10,736 crore.
  • The moratorium under this scheme is a minimum of 6 months and a maximum of 2 years.
  • The scheme is monitored and managed by an online Management Information Systems (MIS) platform.
  • The MIS platform provides benefits such as scheme details, transparency of interest rates, minimum documentation, faster approval process and integration with other schemes.
  • To ensure real-time monitoring and effective feed-back the National, State and District level monitoring schemes will be set up.

Features of the Scheme

  • The Agriculture Infrastructure Scheme provides a medium-long term debt financing facilities.
  • Provides interest subvention and financial support for projects like post-harvest management infrastructure and community farming assets.
  • The interest subvention under this scheme is 3% per annum up to limit of Rs 2 crore and for seven years.
  • The project provides formal credit to farm and farm processing based activities.
  • Provides job opportunities in rural areas.


There is a huge in India’s agriculture infrastructure, be it for pre-harvest or post-harvest activities. Due to the lack of such infrastructure, Indian farmers are unable to increase their yields and are losing their produce. The new scheme is set to augment agri-infrastructure and a dedicated fund means results will be achieved soon.

About Classic IAS Academy 504 Articles
Classic IAS Academy is at the forefront of providing best IAS coaching in delhi, India. The Academy helps the aspirants to tap their innate analytical power to become successful in the exam.

Be the first to comment

Leave a Reply