Agriculture is the backbone of India's economy. However, this vital sector often lacks the necessary infrastructure, hindering its growth. This is where the Agriculture Infrastructure Fund in India comes into play. Let's dive into its facets, from the basic definition to its application process, and then clarify some common queries.
What Is the Agriculture Infrastructure Fund in India?
The Agriculture Infrastructure Fund in India is a central sector scheme. Launched by the Government of India in 2020, this scheme aims to provide a financial boost to the agricultural sector by promoting infrastructure development. Know more about Agriculture Infrastructure Funds in India. The government has committed an impressive₹1 Lakh crore (or 1 trillion rupees) towards this scheme over a period of ten years.
Objectives of the Agriculture Infrastructure Fund in India
- This scheme gives long-term loans for projects about community farming and post-harvest work.
- The fund helps in setting up online marketing points, cold storages, warehouses, and partnership projects for gathering crops.
To apply for the fund, you need to meet some conditions.
To apply for the Agriculture Infrastructure Fund, individuals must meet certain eligibility requirements
Eligibility Criteria for Agriculture Infrastructure Funding in India
The fund is open to a wide array of entities involved in the agricultural sector:
- If you are a farmer, part of a farming group, or own a new company in agriculture, you can apply.
- The decision on who can get the money is made by the bank and the National Agriculture Bank (NABARD).
- Other money lending groups, like cooperative banks or commercial banks, need to have an understanding with NABARD to give out money.
- When you apply for the Agriculture Infrastructure Fund, you have to give some papers.
- To get the fund, you should be doing something after the harvest like managing the crop or processing it into food.
Documents Required for Agriculture Infrastructure Fund in India
The applicants will need to provide:
- Proof of identification (like Aadhaar Card, PAN Card)
- Proof of address
- Proof of land ownership
- Documents supporting the agricultural activity
- Project report
Who Can Apply for an Agriculture Infrastructure Fund in India?
- Agri-entrepreneurs
- Central, state agency or local body sponsored Public-Private Partnership projects
- Farmer producer organisation
- Farmers
- Joint liability groups
- Marketing cooperative societies
- Multipurpose cooperative societies
- Primary agricultural credit society
- Self-help group
- Start-ups
How to Apply for Agriculture Infrastructure Financing in India?
- Go to the official website of the National Agriculture Infra Financing Facility. Click on ‘register’ in the ‘beneficiary’ section.
- Fill in the form. You’ll need to give details like your mobile number, name, and Aadhaar number.
- Click on ‘Send OTP’. You’ll get a pin on your mobile for verification. After registering, you can access the application form.
- Choose the scheme you prefer. To continue with the application, enter your email ID or beneficiary ID and password.
- Fill in details about your project, like cost and land status, and loan details. Upload the form and click ‘Submit’.
- After you apply, the ministry will check your details. Then they will send your application to the lender you chose for approval. If the lender thinks your project is good, they will approve the loan. You’ll get updates on your mobile.
What Are the Benefits of Agriculture Infrastructure Funds India?
The benefits include:
- Financial support for infrastructure development
- 3% interest subvention for loans up to ₹2 Crore for a maximum period of seven years
- Credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to ₹ 2 Crore
FAQs
What is agriculture infrastructure fund in India?
The Agriculture Infrastructure Fund is a central sector scheme in India that provides financial support for infrastructure development in the agriculture sector.
What is the amount of agriculture infrastructure fund?
The government has earmarked a total amount of ₹ 1 Lakh crore (or 1 trillion rupees) for the Agriculture Infrastructure Fund.
What is the interest subsidy of the Agri infrastructure fund?
The scheme provides 3% interest subvention for loans up to ₹ 2 Crore for a maximum period of seven years.
Who is eligible for agriculture infrastructure fund?
Farmers, FPOs, PACS, agri-entrepreneurs, and public-private partnership projects linked with post-harvest management or micro-food processing activities can apply.
Who is eligible for Agri Invest?
AgriInvest is a different program, typically available in countries like Canada. In India, similar schemes are available under different names such as PM-Kisan.
Is investment in agriculture is tax-free?
In India, agricultural income is exempt from income tax subject to certain conditions, under Section 10(1) of the Income Tax Act, 1961.
What is the limit on AgriInvest?
You may deposit up to 100% of your annual Allowable Net Sales, with the government matching the first 1%. The annual cap on government matching contributions is set at $10,000 (₹8,19,520.5).
Who is exempt from agriculture income?
Agricultural income is generally exempt from income tax in India. However, it should be noted that it can indirectly increase the tax liability of a taxpayer when the individual has a non-agricultural income exceeding the basic exemption limit.
Read more:-
- Who is Eligible for FPO?
- Role of Farmer Producer Organisation
- How Farmer Producer Organisation is helpful to farmers?
