New Delhi: In a significant development, the Agriculture Infrastructure Fund (AIF), a medium to long-term debt financing facility scheme initiated in 2020 for investment in post-harvest management infrastructure and community farming assets, has witnessed noteworthy progress in budget disbursement.
As of the latest available data, a total of Rs. 32,472 Crores has been sanctioned for 43,318 projects under AIF. Out of this sanctioned amount, Rs. 20,102 crores have already been disbursed, mobilizing a substantial investment of Rs. 55,248 Crores in the agriculture sector.
During the financial year 2022-23, an allocation of Rs. 500 crores as Budget Estimate (B.E.) and Rs. 150 crores as Revised Estimate (R.E.) was made for payment of interest subvention and Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) fee to banks and financial institutions.
The initial years of the AIF Scheme faced challenges due to the widespread impact of the Covid-19 pandemic, hindering progress and awareness. Despite the slow pace of disbursement, there has been a remarkable growth of around 251% in the fiscal year 2022-23 compared to the previous year, FY 21-22.
The ongoing fiscal year 2023-24 is expected to bring positive results, with Rs. 9,854 crores sanctioned and Rs. 7,272 crores disbursed as of December 1, 2023. The Department of Agriculture and Farmers Welfare actively engages with various stakeholders, including periodic review sessions, participation in AIF Conclaves, and organizing Bankers Conclaves to spread awareness.
The allocation of financing facilities is tentatively State-wise, based on the ratio of the total value of output of Agriculture and allied sectors of States/UTs. This update was provided by the Union Minister of Agriculture and Farmers’ Welfare, Mr. Arjun Munda, in a written reply in Lok Sabha today.