Cabinet nod to APMCs availing finance from Rs 1 lakh crore agri-infra fund: Tomar

The minister further said the period of financial facility has been extended from 4 to 6 years up to 2025-26

The Modi government on Thursday made a fresh appeal to the agitating farmers to end their seven-month-long protests by extending the Rs 1 lakh crore Agriculture Infrastructure Fund to further strengthen APMC markets.

“The farmers believe that the three farms laws would eventually end APMC markets. The decision to extend AIF to strengthen APMCs will enhance their capacities and not shut them down,” Agriculture Minister Narendra Singh Tomar told reporters here.

The Union Cabinet, at its first meeting after the expansion, on Thursday approved the proposal to modify the central sector scheme of financing facility under the AIF to allow APMC mandis to avail financial support to expand their capacity and provide better facilities to farmers.

“After the Cabinet decision on APMC, the unions should now trust that APMC will not end. There is no such provision (to end APMC) in the laws. APMCs are set under the state laws,” Tomar said, renewing the appeal to farmers’ unions to end the protests.

He said the financial facility under AIF has also been extended to state agencies, national and state federations, farmer producer organisations (FPOs) as well as federation of self-help groups (SHGs).

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So far, individuals, organisations, cooperatives, FPOs and agri-start ups and farmers organisations were eligible to avail subvention of 3% per annum for loans up to Rs two crore, he added.

Among other changes in the scheme, Tomar said that currently, interest subvention for a loan up to Rs 2 crore in one location is eligible under the scheme.

"In case one eligible entity puts up projects in different locations, then all such projects will now be eligible for interest subvention for loan up to Rs two crore," he said.

For a private sector entity, there will be a limit of a maximum of 25 such projects. However, this limitation will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federations of SHGs, he said.