Agriculture Infrastructure Fund Expanded

• 04 Sep 2024

Source: TH

Recently, the Union Cabinet expanded the scope of Rs. 1 lakh crore Agricultural Infrastructure Fund (AIF) to provide financial support for Farmers' Producers Organisations (FPOs) to improve their financial security and creditworthiness.

• AIF will now allow all eligible beneficiaries of schemes for creation of infrastructure covered under “viable projects for building community farming assets”, this will boost growth, productivity, farm incomes, and overall agricultural sustainability.
  • It would be redesigned to include financial support for FPOs to enhance their financial security and creditworthiness. 
• AIF: AIF is a financing facility launched in July 2020.
  • It aims to provide all-around financial support to the farmers, agri-entrepreneurs, farmer groups like Self Help Groups (SHGs), Joint Liability Groups (JLGs) etc. and many others to create post-harvest management infrastructure and build community farming assets throughout the country.
• FPOs: FPOs are legal entities formed by a group of farmers who share common interests and goals.

  • They are registered under various legal forms, such as cooperatives, companies, trusts, or societies and aim to provide better access to finance and markets to small and marginal farmers by aggregating their produce and bargaining power.

  • They also provide technical assistance, input supply, value addition, and quality assurance to their members.

Read More: Agriculture Infrastructure Fund, Farmers Producer Organisation