In News:

• Recently, the Union agriculture minister Shivraj Singh Chouhan launched two initiatives — a fund aimed at boosting farm-sector startups, and a single-window portal to process investments — as part of a slew of measures being taken by Prime Minister Narendra Modi-led government in its third term to bolster the farm economy.

Key Details:

• AgriSure is a ?750-crore fund established to support agricultural startups.
• Krishi Nivesh Nidhi is a portal designed to expedite the clearance of project proposals.
• Both initiatives aim to enhance farm incomes.

Awards for Credit Disbursal:

• Scheduled banks were recognized for their credit disbursals under the government’s agriculture infrastructure fund.
• First prize: State Bank of India (SBI).
• Second prize: HDFC Bank.
• Third prize: Canara Bank.

Significance of Agriculture Sector:

• Agriculture contributes 16% to India’s GDP.
• Farmers play a crucial role as both producers and consumers in the economy.

PM Modi’s Strategy to Double Farmers’ Incomes:

• The strategy includes:
  • Increasing output.
  • Reducing input costs.
  • Ensuring profitable prices.
  • Promoting crop diversification.
  • Supporting natural farming.
  • Enhancing value addition to crops.

Details of AgriSure Fund:

• Blended capital fund with a total corpus of ?750 crore:
• ?250 crore each from the Department of Agriculture and NABARD.
• ?250 crore to be raised from financial institutions.
• Managed by NabVentures, a subsidiary of NABARD.
• Provides both equity and debt support to startups and agripreneurs.
• Focuses on high-risk, high-impact activities within the agriculture value chain.

Agriculture Infrastructure Fund:

• Mobilized projects worth ?78,000 crore with ?45,000 crore in financing so far.
• Expanded areas of coverage approved by the Union Cabinet on August 28.
• Aims to create durable farm assets, such as warehouses and processing plants.
• Can be used by agricultural produce marketing committees (APMCs) for market facility improvements.

Funding and Loan Details:

• Part of the ?20-lakh crore stimulus package introduced during the Covid-19 pandemic.
• Total funding of ?1 lakh crore over four years:
  • ?10,000 crore for 2020-21.
  • ?30,000 crore each for the subsequent three financial years.
• Provides medium-to-long term debt financing for rural projects.
• Interest subvention of 3% per annum on loans up to ?2 crore for seven years, with the government covering part of the interest.