The Agriculture Infrastructure Fund (AIF) is an initiative by the Indian government that recently crossed a capital mobilisation mark of Rs. 30,000 crores. This fund targets the development of post-harvest management infrastructure and community farming assets in the agriculture sector. Launched in July 2020, AIF offers financial backing to farmers, agri-entrepreneurs, farmer groups such as Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), among others.
Features and Management of Agriculture Infrastructure Fund
As part of its comprehensive support system, the AIF provides a 3% interest subvention and credit guarantee support via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to Rs. 2 crores. The fund also collaborates with other Central and State Government schemes. It aims to lower post-harvest losses through the creation and modernization of agricultural infrastructure, including primary processing centres for vegetables and hi-tech hubs for agricultural machinery rental.
An online Management Information System (MIS) platform monitors and manages the fund. This platform enables all eligible entities to apply for loans under the Fund, while national, state, and district-level monitoring committees ensure real-time monitoring and effective feedback.
Unravelling Post Harvest Management
Post-harvest management involves various practices employed to preserve harvested crops. These include cleaning, sorting, grading, packaging, storage, and transportation. The main objective of these activities is to maintain crop quality and safety and prolong their shelf life for later sale and consumption.
Challenges in Post Harvest Management
However, there are notable challenges, including the lack of access to convenient credit for small and marginal farms. According to the NABARD 2018 survey, farmers with smaller plot sizes rely more on informal credit sources, which are often expensive. Also, ‘on-farm’ burning or stubble burning due to labor shortage and high cost of removing crop residue from fields contributes significantly to air pollution in Northern India. Furthermore, over 30% of produce from the farm gate is lost due to insufficient cold chain infrastructure, leading to significant post-harvest losses.
Strategies to Maximize Returns from Agriculture
Integrating traditional and frontier technologies is one strategy to enhance productivity. This could involve rainwater harvesting and recycling organic waste for plant nutrients, along with advanced techniques like tissue culture and genetic engineering. Upgrading agricultural surplus management, including post-harvest handling and quality regulation, is also fundamental.
Market integration, such as connecting local markets with national and global ones, can also help scale profits. For seamless integration and effective trade liberalisation management, a nodal institution monitoring world and domestic price movements would be beneficial.
UPSC Civil Services Examination Queries Related to Farming
Previous year questions in UPSC Civil Services Examination have touched upon farming themes. Some have been related to differences between permaculture and conventional chemical farming, characteristics of ‘mixed farming’, and the effects of micro-irrigation on fertiliser/nutrient loss and groundwater table. These questions give insight into the examination’s focus on sustainable and integrated farming practices and their impact on agricultural efficiency and environment conservation.
Emerging Challenges and Opportunities in Crop Diversification
Crop diversification faces numerous challenges currently but emerging technologies offer multiple opportunities to overcome these. The technological advancements provide farmers with tools and approaches that make it easier to diversify crops, contributing to sustainable agriculture, food security, and economic profitability. The in-depth exploration of these issues is crucial for policy and decision-making in the agricultural sector.
