Agri infra fund benefits extended to APMCs

New Delhi: The Centre on Thursday cleared a proposal to extend the benefit of Agriculture Infrastructure Fund to the Agriculture Produce Marketing Committee (APMCs).

Under the scheme, eligibility of availing the fund also has been extended to State Agencies, National and State Federations of Cooperatives, Federations of Farmers Producers Organizations (FPOs) and Federations of Self Help Groups (SHGs).

The proposal was cleared the Union Cabinet chaired by Prime Minister Narendra Modi.

The Interest subvention for a loan up to Rs 2 crore under the scheme for APMCs will be provided for each project of different infrastructure types e.g. cold storage, sorting, grading and assaying units, silos, et within the same market yard, said a government statement.

“It was earlier said APMCs would be strengthened. Efforts will be made to provide more resources to them and Rs 1 lakh crore allocated under Aatmanirbhar Bharat to the Farmers Infrastructure Fund can be used by APMCs as well,” Agriculture Minister Narendra Singh Tomar told media following the Cabinet decision.

The decision, he said, should put to rest apprehensions about the fate of APMCs after the enactment of the new agri laws. Abolition of APMCs has been one of the main contention of the ongoing farmers agitation.

The modifications in the Scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers, the statement said.

At present interest subvention for a loan upto Rs 2 crore in one location is eligible under the scheme. In case, one eligible entity puts up projects in different locations than all such projects will be now be eligible for interest subvention for loan upto Rs. 2 crore. However, for a private sector entity there will be a limit of a maximum of 25  such projects, the statement said.

This limitation of 25 projects will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs. Location will mean physical boundary of a village or town having a distinct LGD (Local Government Directory) code. Each of such projects should be in a location having a separate LGD code.

The Cabinet also decided to extend the period of financial facility from 4 to 6 years upto 2025-26 and overall period of the scheme has been extended from 10 to 13 upto 2032-33.