{"id":123480,"date":"2022-11-02T16:45:46","date_gmt":"2022-11-02T11:15:46","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=123480"},"modified":"2022-11-03T15:12:02","modified_gmt":"2022-11-03T09:42:02","slug":"agriculture-infrastructure-fund-aif-meaning-provisions-features-and-challenges","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/government\/agriculture-infrastructure-fund-aif-meaning-provisions-features-and-challenges","title":{"rendered":"Agriculture Infrastructure Fund (AIF): Meaning, Provisions, Features And Challenges"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">The Agriculture Infrastructure fund (AIF), which was launched for the financial year 2020-2029, has crossed the limit of the 8000 crore mark. The central government moved the fund and was released in July 2020.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">What is the Agriculture Infrastructure Fund (AIF)?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">The agriculture union government released an agriculture infrastructure fund intending to provide medium- and long-term debt financing facilities. It also launched some projects for post-harvest management infrastructure.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Along with the fund, the government also released guidelines. According to the guidelines, this fund will be provided as packaging units and e-market points linked with e-trading platforms. People who will avail of this fund by the central government will be called &#8220;Agripreneurs&#8221; (agriculture entrepreneurs).<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Provisions under the Agriculture Infrastructure Fund:<\/span><\/strong><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">\u00a0 Interest rate\u00a0<\/span><\/strong><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">This support by the central government comes with a 3% interest subvention from the government annually. Not only this, but the government also guaranteed credit with a limit of fees of up to two crore rupees.<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">\u00a0Tenure for the loan\u00a0<\/span><\/strong><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">This loan will be disbursed in the next four years, which starts with the sanction of Rs 10,000 crore in the same year. <\/span><span data-preserver-spaces=\"true\">Similarly, the remaining money will be available in the next three financial years. In total, this process will take four years.<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Period of the loan\u00a0<\/span><\/strong><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">As per the government, the loan&#8217;s interest rate will be low for the farmers. The maximum time for the subvention should not be more than the period of seven years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Features of the Agriculture Infrastructure Fund<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">Three major features of this agriculture infrastructure fund issued by the union government. The features are as follows:<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">Memorandum of understanding\u00a0<\/span><\/strong><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Banks or any other institution who want to avail the interest subvention for their borrowers must sign a memorandum of understanding (MoU) with the &#8220;National bank for agriculture and rural development&#8221;. <\/span><span data-preserver-spaces=\"true\">This memorandum of understanding will also be signed by the department of agriculture (DAC).<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Eligibility and availability\u00a0<\/span><\/strong><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">The next feature of this fund is that the project will be eligible for a grant under the existing union or state government scheme.<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">\u00a0Provision of targets<\/span><\/strong><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">This feature of the scheme provides indicative targets for the states as well as union territories.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Challenges with the fund\u00a0<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">Along with the features, there are some issues and challenges which are being faced by the fund.<\/span><\/p>\n<ol>\n<li><strong><span data-preserver-spaces=\"true\">Inadequate number of farmers&#8217; producer organisations (FPO)\u00a0<\/span><\/strong><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">In India, there are only a limited number of farmer-producer organisations. To manage them, the number has to be doubled. Currently, in India, there are only 5000 organisations.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There is a mismatch in the numbers of the organisations. Farmers&#8217; organisations exist only on paper.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">2. <\/span><strong><span data-preserver-spaces=\"true\">Lack of capital for FPO\u00a0<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">Forest producer organisations require technical handholding support and adequate capital and infrastructure facilities to sustain the business.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">3. <\/span><strong><span data-preserver-spaces=\"true\">Missing agri-futures market\u00a0<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">To reduce the risks in the market, an idea of a standard future market is necessary. While in other countries like China or the United States, the number of markets is doubled compared to India. <\/span><span data-preserver-spaces=\"true\">According to the report of PIB, &#8220;States which are leading the front with applications are Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Karnataka and Rajasthan.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Agriculture Infrastructure fund (AIF), which was launched for the financial year 2020-2029, has crossed the limit of the 8000 crore mark. The central government moved the fund and was released in July 2020. What is the Agriculture Infrastructure Fund (AIF)? The agriculture union government released an agriculture infrastructure fund intending to provide medium- and [&hellip;]<\/p>\n","protected":false},"author":21836,"featured_media":126337,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12287,12384,12394,12420,11432,12374,4,11315,12390,12205,12341],"tags":[],"class_list":{"0":"post-123480","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-agriculture","8":"category-banking","9":"category-crops","10":"category-economy","11":"category-finance","12":"category-finance-2","13":"category-government","14":"category-india","15":"category-scheme","16":"category-schemes","17":"category-service"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/123480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21836"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=123480"}],"version-history":[{"count":3,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/123480\/revisions"}],"predecessor-version":[{"id":126230,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/123480\/revisions\/126230"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/126337"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=123480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=123480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=123480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}