Agriculture Infrastructure Fund (AIF) announcement for APMCs

In News -In the Union Budget 2021-22, Finance Minister  announced that APMCs would  become eligible beneficiaries to utilize the 1 lakh crore financing facility under Agriculture Infrastructure Fund (AIF) .

Implications of the announcement:

• With access to low cost credit under AIF,
  • They will be able to  set up post-harvest infrastructure such as sorting and grading units, assaying units, drying yards, cold storages, and warehouses.
    • These facilities will benefit farmers for better price realization of quality produce, ability to store and minimize post harvest losses.
  • It will help the farmers to enhance their income through an effective value chain.

Agriculture Infrastructure Fund (AIF):

• The AIF 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.
• It will be managed and monitored through an online Management Information System (MIS) platform.
• The beneficiaries include farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects, and now APMCs will also be able to access these funds.

What are APMCs?

• APMCs are state controlled markets that are setup to provide market linkages to farmers.
• APMC Yard is any place in the market area managed by a Market Committee, for the purpose of regulation of marketing of notified agricultural produce and livestock in physical, electronic or other such mode. –
  • Market yards or Mandis provide space for auction to ensure that farmers obtain the best possible price for their produce.
  • However, these markets continue to require up gradation and set up of more modern infrastructure.
• Agricultural Produce Market Committee (APMC) Act:
  • APMC Act includes the promotion of National market for agriculture produce through provisioning of the inter-State trading licence, grading and standardisation and quality certification, rationalisation of market fee and commission charges, provision for special commodity market yard and promotion of e-trading to increase transparency.