Modi announces ₹1L cr support for agriculture sector
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The agriculture infrastructure fund will provide better warehousing and cold storage facilities and is a step towards doubling of farm income.
NARENDRA MODI, Prime Minister
nNEWDELHI:PRIME Minister Narendra Modi on Sunday launched a ₹1 lakh crore agriculture infrastructure fund to boost investment in the farm sector, especially in cold storages, warehousing and markets for farmers.
The scheme was first announced by finance minister Nirmala Sitharaman as part of a ₹20 lakh crore economic stimulus and relief package in the wake of the coronavirus disease pandemic. Modi also transferred the sixth instalment of the cash payment for farmers under the PM-KISAN scheme, making the announcement via video conferencing. Under the sixth instalment, ₹17,000 crore has been deposited into the bank accounts of 85 million farmers.
According to the guidelines for the agriculture infrastructure fund, all loans up to ₹2 crore will be disbursed with a 3% interest subsidy. The loans will be disbursed in the next four years with a sanction of ₹10,000 crore in 2020-21 and ₹30,000 crore in the next three years.
“The agriculture infrastructure fund will provide better warehousing and cold storage facilities for farmers and is a step towards doubling of farm income,” Modi said. The fund will also create new jobs as investments will flow into food processing and post-harvest facilities in rural India.
The fund was launched with ₹1,128 crore of new loans given to over 2,200 cooperative societies.
Under the infrastructure fund, banks and financial institutions will provide up to Rs1 lakh crore in loans to cooperative societies, farmer producer companies, selfhelp groups, entrepreneurs, startups, and infrastructure providers.
Through videoconferencing, Modi interacted with farmers from Karnataka, Madhya Pradesh, and Gujarat. He urged farmers to stop the indiscriminate use of chemical fertilisers like urea to improve soil health.
“The Prime Minister had an engaging discussion with the representatives of these societies to understand their current operations and how they plan to utilise the loan. The societies informed the Prime Minister about their plans to build godowns, set up grading and sorting units which will help member-farmers secure a higher price for their produce,” an official statement said.
Releasing the latest instalment of Pm-kisan, Modi said: “No middlemen or commission, it went straight to farmers. I am satisfied because the objective of the scheme is being fulfilled.”
“Indian agriculture has always depended more on subsidies than investments. The new fund will help correct that. It is important that the fund is managed in a way that farmers are able to achieve scale and connect with markets efficiently,” said Ananth Kumar of the Tamil Nadu Agricultural University.