Bhubaneswar: Two days ago, Prime Minister Narendra Modi launched a financing facility for agriculture under the Agriculture Infrastructure Fund (AIF) for creation of postharvest management of farm infrastructure.
Rs 1 lakh crore has been allocated under the AIF. However, experts observe that the latest scheme may turn out to be another eye-wash like earlier claims of the Centre like recovering black money and two crore jobs for youths each year.
As per AIF guidelines, banks and financial institutions will provide funds for agri projects with an interest subvention of 3 per cent per annum. The rebate will be provided for loans up to Rs 2 crore. Beyond the ceiling, banks will decide the interest rates. This meant, no big or mega infrastructure projects can be taken up under the scheme.
Under the AIF, the Centre will facilitate investment of Rs 1 lakh crore during the next 10 years (from 2020-21 to 2029-30). Out of this, Rs 2,500 crore has been earmarked for Odisha.
Out of Rs 10,000 crore targeted to be disbursed for this financial year, only Rs 25 crore will be available for Odisha. Questions are being raised as to how many farmers will benefit from this meagre amount.
The Centre will provide credit guarantee to eligible farmers while the banks will examine the projects and approve the DPR. Like the existing system, the applicants will have to approach banks for clearance of projects.
So far, only 11 public sector banks have entered into an agreement with the ministry of agriculture to implement the scheme. Not a single private bank or cooperative bank has agreed to support the scheme.
In Odisha, the performance of banks in providing loans for the development of agriculture infrastructure is very poor. In 2019-20, the State Level Bankers Committee (SLBC) had set a target for all banks to provide loans to the tune of Rs 1,716.22 crore for agri infrastructure development. However, banks gave just Rs 517.97 crore – that worked out to target achievement of just 30 per cent. Given the performances of banks in the state, doubts are being raised whether they will implement the scheme.
Surendra Pasupalak, an agro economist, said the only new thing in the scheme is the 3 per cent interest subvention and credit guarantee by the government. “I did not find anything more in the scheme. The target of Rs 10,000 crore for a year for the whole of India is very little and Odisha’s share in that is also disappointing,” he said.
“To plan and execute an infrastructure development project like cold storage, one needs technical support. Who will guide the farmers?” Pasupalak asked. It seems middlemen and bankers will benefit from the scheme, he opinioned. Commenting on the scheme, Agriculture Secretary Sourabh Garg said, “The scheme was just launched. We are examining it and will see how Odisha will get more benefits from the scheme.”
Biswa Bhusan Mohapatra, OP