Mobilizing a medium-long-term debt financing facility to invest in feasible post-harvest management projects Infrastructure and community farm assets via incentives and financial efforts to improve agricultural infrastructure in the country.
This funding facility will also have a set of tasks for all stakeholders in the agricultural ecosystem.
The objectives of Agriculture Infrastructure Fund
A. Farmers (including FPOs, PACS, Marketing Cooperative Societies, Multipurpose cooperative societies)
- Enhanced marketing infrastructure to enable farmers to sell directly to a larger consumer base and thus generate revenue for farmers. This will boost farmers’ total incomes.
- With investments in logistics infrastructure, farmers will be able to sell on the market with lowered post-harvest losses and fewer middlemen. This will also make farmers independent and strengthen market access.
- With newer packaging and availability to a cold storage system, farmers will be able to further decide when to sell on the market and improve their earnings.
- The Community agricultural assets for productivity improvements and the optimization of inputs will lead to significant savings for farmers.
B. Government –
- The government would be able to guide priority sector loaning to currently unsustainable projects by providing support via interest subsidies, incentives, and loan guarantees. This will open the cycle of innovation and private sector investment in agriculture.
- -By improving post-harvest infrastructure, the government would be able to decrease the portion of national food waste, enabling the agricultural sector to compete with current global levels.
- -Central / State Government Agencies or local authorities will be able to construct viable PPP projects to encourage investment in agricultural infrastructure.
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C. Agri entrepreneurs and startups
- With a devoted means of finance, entrepreneurs will move for innovation in the agriculture sector by utilizing new-age technologies, such as LoT, AI, etc.-also link ecosystem players and thus enhance opportunities for collaboration among entrepreneurs and farmers.
D. Banking ecosystem
- With the Credit Guarantee, opportunity and interest-based lending institutions will be able to borrow at a lower risk. This scheme will help to expand the customer base and diversify the portfolio. -The refinancing facility will make it possible for cooperative banks and RRBs to play a bigger role.
- With decreased inefficiencies inside the post-harvest ecosystem, a larger proportion of products reach the market, and thus better quality and prices will become a key advantage for buyers. Conclude, investment in agricultural infrastructure through the financing facility will profit all players in the eco-system.