Two years on, Centre’s Agriculture Infrastructure Fund yet to gain popularity in Punjab

Two years on, Centre’s Agriculture Infrastructure Fund yet to gain popularity in Punjab

The Rising Panjab Bureau

The lack of awareness among farming community and banks is severely hampering the asset creation in agriculture and allied activities in Punjab, thus affecting the farmers’ income.

The role of infrastructure is crucial for agriculture development and for taking the product dynamics to the next level. It is only through the development of infrastructure especially at the post-harvest stage that the produce can be optimally utilised with opportunities for value addition and fair deal for the farmers.

Taking into consideration at the prevailing issue, the Union Finance Minister announced on May 15, 2020, rupees one lakh crore “Agri Infrastructure Fund” for farm gate infrastructure for farmers. Out of the total, Rs 4,713 crore has been allocated for Punjab. However, more than two years have been passed but the scheme is yet to gain popularity in the state.

Up to June 30, 2022, Banks in the state have received 341 applicants under the scheme and sanctioned 234 applications out of them. As far disbursement is concerned, only Rs 153 crore has been disbursed to 208 applicants. The remaining 107 applications are still under process. Perturbed over the issue, in a recently held State Level Bankers Committee meeting, Banks were requested to source maximum proposal under the scheme.

According to insiders, senior functionaries in the state have sought the intervention of centre government that if the Agriculture Infrastructure Fund Scheme should be customised for the state and the existing limit can be revised, then state will be in better position of utilising the funds allocated.

For example, Punjab is a producing state but there is lack of modern facility due to which the chances of produce getting subjected to vagaries of nature become very high. So, Nabard has come up with a scheme that there should be godowns at local level, but the limit prescribed for investment in project for claiming interest subvention is rupees two crore, which is too low.

Agriculture and allied activities are the primary source of income for approxiately 58 per cent of total population of the country. In Punjab, Agriculture and allied sector are a source of livelihood for 26 per cent of the working population in the state. The country has limited infrastructure connecting farmers to markets and hence, 15-20 per cent of the yield is wasted. Investment in agriculture in India has been stagnant with less than two per cent Compounded Annual Growth Rate over last five years.

In view of the same, the Central Sector Scheme was formulated to mobilise medium long-term debt financing facility for investment in viable projects relating to post harvest management infrastructure and community farming assets through incentives and financial support. The financing facility will be provided for funding Agriculture Infrastructure Projects at farm gate & aggregation points (such as Primary Agriculture Credit Society, Farmers Producer Organisations, Agriculture entrepreneurs, Start-ups etc), Impetus for development of farm gate and aggregation point, affordable and financially viable Post Harvest Infrastructure.