Farmers Movement Archive

Agriculture infrastructure fund loans to boost APMCs

NEW DELHI: In a decision intended to bolster its promise that new farm laws will not result in dismantling of “mandis”, the Cabinet on Thursday approved modifications to financing under the ‘agriculture infrastructure fund’, allowing it to be used for strengthening state-regulated agriculture markets. The fund has a kitty of Rs 1 lakh crore for financing different farm-related infra works through easy and low-interest loans up to Rs 2 crore under ‘interest subvention’ scheme. The move comes at a time when the Centre renewed its appeal to agitating farm unions to return to the table even as it ruled out repeal of the laws. Under the modification, eligibility has now been extended to state agencies/APMCs, National & State Federations of Cooperatives, Federations of Farmers Producers Organisations (FPOs) and Federations of Self-Help Groups (SHGs). If an eligible entity takes up projects in different locations, all such efforts will be eligible for 'interest subvention' for loans up to Rs.2 crore. However, there will be a maximum limit of 25 such projects for a private sector unit. “For APMCs, interest subvention for a loan up to Rs 2 crore will be provided for each project of different infrastructure types such as cold storage, sorting, grading and assaying units, silos, etc within the same market yard,” said an official statement on the Cabinet’s move. Welcoming the move, taken at the first meeting after the expansion of the Cabinet, home minister Amit Shah said the Modi government is committed to agriculture and prosperity of farmers. He said that this historic decision is a reflection of the resolve of the government to further strengthen the APMC system. “This decision will not only further empower the APMCs but will also increase employment opportunities and benefit more and more people,” said Shah, who has also been made the minister of the newly created ministry of cooperation. The decision to allow this fund to be used for APMCs is also a signal to protesting farmers that the ‘mandis’ and the mechanism to procure crops at minimum support price (MSP) won’t end as feared by farmers in the wake of passing of the new farm laws. Emphasising on how the Centre intended to strengthen the ‘mandi’ and procurement system, agriculture minister Narendra Singh Tomar said the government was committed to reform the farm sector so that farmers across the country get benefitted from it. Allaying concerns of farmers agitating for repeal of the three farm laws, Tomar said that his ministry’s offer to resume talks with farmer unions stand as he announced several times provided the unions don’t press for repeal of farm laws. The Cabinet also approved amendment in the Coconut Board Act, making it possible to allow non-official persons such as farmers’ representatives to head the Board.

The Times of India

2021-07-09

Business