Assam CM attends state-level workshop on Agriculture Infrastructure Fund (AIF)
Guwahati, July 25
Assam Chief Minister Himanta Biswa Sarma attended the State-level Workshop on the Agriculture Infrastructure Fund at Jyoti Bishnu International Kala Mandir in Guwahati on Saturday.
Farmers, Farmer Producer Organisations (FPOs), agri-entrepreneurs and representatives of banks and financial institutions from across Assam participated in the workshop-cum-awareness programme.
The Agriculture Infrastructure Fund, launched by Prime Minister Narendra Modi on August 9, 2020 under the Atmanirbhar Bharat Abhiyan, is a flagship Government of India scheme that provides interest-subsidised loans for post-harvest management and community farming assets.
Under the scheme, eligible individuals and institutions can avail loans of up to Rs. 2 crore per project with a 3% annual interest subvention for up to seven years, along with collateral-free credit guarantee support.
Addressing the gathering, the Chief Minister said that the scheme was launched to promote value addition to agricultural produce and create modern agricultural infrastructure.
He said the initiative encourages farmers not only to produce crops but also to process, store and market them through facilities such as warehouses, cold storages, custom hiring centres, drones, sensors, pumps, hydroponics, aeroponics, polyhouses, milling units and oil extraction units.
He added that of the Rs. 1 lakh crore allocated nationally under the scheme, nearly Rs. 95,000 crore has already been utilised by farmers across the country.
The Chief Minister said that one of the biggest challenges faced by farmers in accessing institutional credit is the requirement of collateral.
He noted that the Credit Guarantee Fund created under the scheme addresses this concern by providing guarantee cover to banks, thereby enabling collateral-free lending to farmers.
He also observed that Assam's Credit-Deposit Ratio has improved from 32% to 70%, though there remains scope to increase it further to around 90%.
Explaining the financial benefits of the scheme, Sarma said that the Government provides a 3% interest subvention on loans up to Rs. 2 crore and the lending rate is capped at 9%. While beneficiaries are ordinarily required to contribute 10% of the project cost under the scheme, he announced that the Assam Government will bear 5% of the beneficiary contribution. In the case of Farmer Producer Organisations, the State Government will bear the entire 10% beneficiary share.
He further informed that beneficiaries can also simultaneously avail benefits under other Government schemes, including PM-KUSUM, PMFME, MIDH and RKVY.
Referring to Assam's allocation under the Agriculture Infrastructure Fund, the Chief Minister said that the State has been allotted Rs. 2,050 crore, against which loans worth Rs. 1,181 crore have already been sanctioned to 893 farmers, FPOs and agri-entrepreneurs. Of this, Rs. 736 crore has already been disbursed.
He highlighted several successful beneficiaries who have secured loans of up to Rs. 13 crore under the scheme and noted that Nagaon district has recorded the highest number of beneficiaries at 131.
The Chief Minister stated that Assam can still avail nearly Rs. 900 crore from its existing allocation.
He further informed that the Government of India has approved an additional Rs. 1 lakh crore under the Agriculture Infrastructure Fund nationwide and expressed confidence that Assam would strive to secure an allocation of Rs. 4,000 crore in the next phase, up from around Rs. 2,000 crore earlier.
Highlighting Assam's vulnerability to floods, Sarma stressed the need to diversify beyond traditional paddy cultivation and promote horticulture and high-value agricultural products.
He pointed to the growing demand for rice storage facilities across development blocks and the significant potential for expanding mustard oil processing in the State.
The Chief Minister also highlighted opportunities for value addition through processing of ginger and pineapple from Karbi Anglong and Dholai, Assam lemon, Bhut Jolokia, red rice, mushrooms from Kokrajhar and other local agricultural products.
He said traditional organic tea processed using indigenous methods has a distinct market demand and mentioned that tea processing is also an eligible activity under the scheme.
Sharing his recent experience from Japan, Sarma noted the widespread use of eco-friendly bamboo toothbrushes in hotels and said that bamboo can be used to manufacture nearly 180 products, including toothpaste.
He also referred to bamboo oil production at Numaligarh as an example of the State's emerging value-addition potential.
Expressing satisfaction that more than 800 entrepreneurs have already come forward under the scheme, the Chief Minister called upon the youth of Assam to take advantage of the Agriculture Infrastructure Fund and contribute towards building a self-reliant Assam.
— ANI
Reader Comments
Good initiative but the real challenge is implementation at the grassroots level. Many small farmers in remote areas still don't know about these schemes. The state needs more awareness camps in villages, not just in Guwahati. Also, banks need to be more cooperative in sanctioning loans to actual farmers.
Impressive that Rs 736 crore has already been disbursed to nearly 900 beneficiaries. The idea of the state government bearing the 10% beneficiary contribution for FPOs is particularly smart. This could really help small farmer collectives grow. I'm curious to see how the additional Rs 4000 crore allocation plays out for Assam. 📈
BJP is doing a lot for Assam's agriculture. But we need to see if these loans actually reach the small and marginal farmers or just go to big landlords and middlemen. The CD ratio improvement from 32% to 70% is good but why is it still not 90%? Banks need to be more proactive in rural lending.
The emphasis on diversifying from paddy to horticulture and high-value crops like ginger, pineapple and bhut jolokia is exactly right for Assam's flood-prone areas. I love the mention of bamboo toothbrushes from Japan - that's a smart sustainability angle. Hope young entrepreneurs grab this opportunity! 🌿
The scheme sounds great on paper but I've heard from my cousin in Nagaon that the application process is too complicated for ordinary farmers. They need help to fill the forms and understand bank procedures. Also, what about the farmers who don't have land records? They get excluded
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