Context:
Union Cabinet redesigns Agri Infra Fund to cover FPOs.
Agriculture Infrastructure Fund:
- A Central sector scheme aimed at injecting formal credit into farm and farm-processing activities.
- Part of the over Rs. 20 lakh crore stimulus packages announced in response to the Covid-19 crisis.
- Aim – To provide medium to long-term debt financing for investment in viable projects related to post-harvest management infrastructure and community farming assets.
- Scope of Funding – The fund supports the establishment of various facilities, including Cold stores and chains, Warehousing, Grading, and packaging units, E-marketing points linked to e-trading platforms and PPP projects for crop aggregation sponsored by central, state, or local bodies.
- Duration – Financial Year 2020 to 2029.
- Financial Support – Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans to various entities including
- Primary Agricultural Credit Societies, Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Groups (SHGs) and farmers, Joint Liability Groups (JLGs), Multipurpose Cooperative Societies and Agri-entrepreneurs
- Central/State agencies or Local Bodies sponsored by Public Private Partnership Projects.
- Moratorium and Interest Subvention – The moratorium for repayment may vary but will be subject to a minimum of 6 months and a maximum of 2 years.
- Loans will have an interest subvention of 3% per annum up to a limit of Rs. 2 crore, available for a maximum period of 7 years.
- Credit Guarantee Coverage – Eligible borrowers can avail credit guarantee coverage from the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to Rs. 2 crore.
- In the case of Farmer Producer Organizations (FPOs), credit guarantee may be availed from the facility created under the FPO promotion scheme.
- Management and Monitoring – Through an online Management Information System (MIS) platform.
- National, state, and district-level monitoring committees will ensure real-time monitoring and effective feedback.
Source: The Hindu
Previous Year Question
With reference to the circumstances in Indian agriculture, the concept of “Conservation Agriculture” assumes significance. Which of the following fall under the Conservation Agriculture?
1. Avoiding the monoculture practices
2. Adopting minimum tillage
3. Avoiding the cultivation of plantation crops
4. Using crop residues to cover soil surface
5. Adopting spatial and temporal crop sequencing/crop rotations.
Select the correct answer using the code given below:
[UPSC Civil Service Exam – 2018 Prelims]
(a) 1, 3 and 4 only
(b) 2, 3, 4 and 5 only
(c) 2, 4 and 5 only
(d) 1, 2, 3 and 5 only
Answer: (c)
Explanation:
Monoculture is the agricultural practice in which only one type of crop is grown at a time. It deplete the soil’s nutrients and destroy the soil microorganism diversity and reduces the biodiversity of a specific area so, it is not related to concept of “Conservation Agriculture”. Avoiding the cultivation of plantation crops also is not related to ‘conservation agriculture’.
