Prime Minister Narendra Modi on Sunday launched a financing facility of Rs 1 trillion under the Agriculture Infrastructure Fund for agri-entrepreneurs, startups, agri-tech players and farmer groups for post-harvest management and nurturing farm assets.
The scheme will provide better warehousing and cold storage facilities for farmers, Modi said, adding that it will also help create new jobs as food processing and post harvest facilities are set up in rural India.
The fund was launched with ₹1,128 crore of new loans disbursed to over 2,200 cooperative societies. The prime minister also transferred ₹17,100 crore to farmers under the PM-Kisan direct income assistance scheme.
Under the infrastructure scheme, banks and financial institutions will provide ₹1 trillion in loans to cooperative societies, farmer producer companies, self help groups, entrepreneurs, start-ups, and infrastructure providers.
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 scheme has also been instrumental in supporting farmers during the COVID-19 pandemic, through the release of nearly Rs 22,000 crore.