Focus: GS II: Government policies and Intervention
Why in News?
As part of Azadi Ka Amrit Mahotsav, Union Ministers launched the convergence module between the Agriculture Infrastructure Fund (AIF) scheme of the Ministry of Agriculture and Farmers Welfare, Pradhan Mantri Micro Food Enterprises Upgradation Scheme (PMFME) and Pradhan Mantri Kisan Sampada Yojana (PMKSY) of the Ministry of Food Processing Industries.
Agriculture Infrastructure Fund
Nodal: Ministry of Agriculture and Farmers Welfare
- Agriculture Infrastructure Fund is a pan India central sector scheme to inject formal credit into farm and farm-processing based activities.
- The Aim is to provide medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets.
- The fund was initially announced during the Third Tranche of Aatmanirbhar Bharat Economic Stimulus Package
- This scheme provides a good opportunity for start-ups in agriculture to avail the benefits and scale their operations, thereby creating an ecosystem that reaches farmers in every corner of the country.
Details of the Agriculture Infrastructure Fund
- The Agriculture Infrastructure Fund is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.
- The Agriculture Infrastructure Fund will be financed and managed by the National Bank for Agriculture and Rural Development (NABARD).
- Financing will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs and Central/State agencies or Local Bodies sponsored by Public Private Partnership Projects.
About PM-FME Scheme:
Nodal: Ministry of Food Processing Industries(MOFPI).
- It is a centrally sponsored scheme.
- Aim is to modernize and enhance the competitiveness of the existing individual micro enterprises and ensure their transition to formal sector
- To provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
- Duration: The PM-FME scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
- Funding: The expenditure under the PM-FME scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.
- Increase in access to finance by micro food processing units.
- Increase in revenues of target enterprises.
- Enhanced compliance with food quality and safety standards.
- Strengthening capacities of support systems.
- Transition from the unorganized sector to the formal sector.
- Special focus on women entrepreneurs and Aspirational districts.
- Focus on minor forest produce in Tribal Districts.
Pradhan Mantri Kisan SAMPADA Yojana
Nodal: Ministry of Food Processing Industries
- It is a Central Sector Scheme.
- To supplement agriculture.
- To create processing and preservation capacities.
- To modernise and expand existing food processing units with a view to increasing the level of processing.
- To add value leading to the reduction of wastage.
Seven component schemes under PMKSY:
- Mega Food Parks.
- Integrated Cold Chain and Value Addition Infrastructure.
- Infrastructure for Agro-Processing Clusters.
- Creation of Backward and Forward Linkages.
- Creation/Expansion of Food Processing & Preservation Capacities.
- Food Safety and Quality Assurance Infrastructure.
- Human Resources and Institutions.