Good News for Farmers! Rs 1 Lakh Crore Agri Infrastructure Fund for Farm-Gate, Aggregation Points

In the 3rd tranche of measures on the mega economic stimulus to tackle the coronavirus crisis, Finance Minister Nirmala Sitharaman has announced different plans to strengthen Agriculture Infrastructure Logistics, Capacity Building, Governance and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors. 

As per reports, financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups, etc.).The impetus for development of farm-gate & aggregation point, affordable and financially viable Post Harvest Management infrastructure. Fund will be created immediately, says the Finance Minister on Friday.

Rs 30,000 Crore as Additional Emergency Working Capital Facility through NABARD 

In her opening remarks, the Union Finance Minister said that two significant Agriculture-related measures were also announced yesterday to support farmers, Rs 30,000 crore as Additional Emergency Working Capital facility through NABARD to enable RRBs and Cooperative Banks extending farm loans for Rabi post-harvest and Kharif expenses.

Rs 2 Lakh Crore Credit Boost to the Farm Sector by Covering 2.5 crore PM-KISAN Beneficiaries 

And second, was a mission-mode drive to enable Rs 2 lakh crore credit boost to the farm sector by covering 2.5 crore PM-KISAN beneficiaries under Kisan Credit Card Scheme by December 2020.

Rs 10,000 crore scheme for Formalization of Micro Food Enterprises (MFE)

A Scheme promoting the vision of Prime Minister Narendra Modi: ‘Vocal for Local with Global outreach’ will be launched to help 2 lakh MFEs who need technical up-gradation to attain FSSAI food standards, build brands and marketing. Existing micro food enterprises, Farmer Producer Organizations, Self Help Groups and Cooperatives to be supported. The focus will be on women and SC/ST owned units and those in Aspirational districts and a Cluster-based approach (e.g. Mango in UP, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed.

Moreover, Prime Minister Narendra Modi announced a Special economic and comprehensive package of Rs 20 lakh crore - equivalent to 10% of India’s GDP on 12th May 2020. He gave a clarion call for Self-Reliant India Movement. He also outlined five pillars of Atmanirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.