Prime Minister Narendra Modi, on 9th August 2020, launched the Agriculture Infrastructure fund of Rs. 1 Lakh crore.


This fund was the part of the AtmaNirbhar Package announced in the month of May 2020 by the Indian Finance Minister. At the launch, Prime Minister said that this fund will help in the management of post-harvesting and marketing of the agricultural produce. This will also help the agriculturist to get the best market price of their agriculture produce.

He further said that around Rs.17,100 crores have been transferred to the bank account of 8.55 crore farmers under the PM-Kisan direct income assistance scheme. 


The necessary details related to this scheme is given as under

1 Beneficiaries
  • Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies,
  • Farmer Producers Organizations (FPOs), 
  • Self Help Group (SHG), 
  • Farmers,
  • Joint Liability Groups (JLG), 
  • Multipurpose Cooperative Societies, 
  • Agri-entrepreneurs, Startups, 
  • Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored Public-Private Partnership Project
2 Benefits of the scheme

The scheme provides the following benefits:

  1. Farmers will get better warehousing and cold storage facilities, 
  2. As food processing and post-harvest facilities are set up in rural areas, which in turn will help in creating employment opportunities.
  3. Startups will get the benefit in increasing their operations 
  4. India will be able to establish a worldwide mark in organic and fortified food
  5. transparency of interest rates offered by multiple banks, 
  6. scheme details including interest subvention and credit guarantee offered, 
  7. minimum documentation, 
  8. faster approval process 
  9. integration with other scheme benefits.
  10. Reduction in wastage
3 Objectives of the Scheme For post-harvest management Infrastructure, a medium – long term debt financing facility for investment in viable projects and community farming assets through interest subvention and financial support.
4 How the fund will be spent?

The fund will be spent over 4 years by the government. In the following manner, the fund will be allocated –

  • In the year 2020-21 – Rs. 10,000 crores
  • In the year 2021-22 – Rs. 30,000 crores
  • In the year 2022-23 – Rs. 30,000 crores
  • In the year 2023-24 – Rs. 30,000 crores.
5 Moratorium period Minimum of 6 months and a maximum of 2 years.
6 Duration of the Scheme The duration of the Scheme is 10 years i.e from FY2020 to FY2029
7 Who will manage the scheme? The Agri Infra fund will be managed and monitored by an online Management Information System platform. The role of this system is to provide all the necessary assistance to all the qualified entities to apply for a loan under the fund
8 Committee The National, State, and District level Monitoring Committees will be formed to ensure real-time monitoring and effective feedback.
9 Other necessary information
  1. Under this financing facility, all loans will have an interest subvention of 3% per annum up to a limit of Rs. 2 crores. 
  2. Availability of this subvention is for a period of 7 years [maximum].
  3. A credit guarantee coverage of up to Rs. 2 crores will be available for all the eligible borrowers from this financing facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
  4. The Government will bear the applicable fees for the above coverage.
  5. The credit guarantee for Farmer Producing Organization (FPOs)  will be availed from the facility as created under the FPO promotion scheme of the Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
  6. The loan must be used for the purpose of building cold storage, collection center’s and processing units so that the farmers will be able to protect the perishable products for a longer period and can get the best price for the same.


Such initiation will help all the stressed farmers who have to suffer the most by the wastage of their product and are always underpaid.

Edited by Minu Mishra

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