The financial facility will be crucial for farmers, agri-entrepreneurs, startups and farmer groups said the farmers’ body

The ‘Agriculture Infrastructure Fund’ of Rs 1 lakh crore is likely to increase the share of agriculture in India’s GDP, said the Federation of All India Farmer Association (FAIFA). The financing facility of the fund launched by Prime Minister Narendra Modi on Sunday aims at catalyzing the Agri-infra development, said a report by The Financial Express.

The finance facility will help build critical infrastructures like warehouses, cold storage, and nurture farm assets, FAIFA added. The fund is expected to enhance GDP, improve the Balance of Trade, and stimulate the global export potential of the agriculture sector, the report said.

Agriculture contributes to over 14 percent of the national GDP and provides livelihood to over 40 percent of the nation’s workforce.

FAIFA further said that the fund will be important for farmers, agri-entrepreneurs, startups, agri-tech players, and farmer groups looking to boost the country’s agriculture infrastructure.

This infrastructure upgrade will provide direct benefit to the farmers as they will be able to get greater value for their produce, store and sell their crops at appropriate pricing, reduce farm wastage, increase processing time, and overall equip a farm-led New India to compete globally, the farmer’s body added as per the report.

The report quoted National Spokesperson of FAIFA Yashwanth Chidipothu as saying, “This will help the farming sector to plan medium-to-long term debt financing facilities for investment in viable projects for post-harvest management infrastructure and build community farming assets through interest subvention and financial support.”

Read the complete report in The Financial Express