New Delhi: The Agricultural Infrastructure Fund was launched by Prime Minister Narendra Modi on Monday to supoort post-harvest management and marketing of agricultural produce. This fund of Rupees 1 lakh crore, launched by the Indian government will prove instrumental in increasing the contribution of agriculture sector to the country's Gross Domestic Product (GDP). According to the farmers organization FAIFA, the economy is expected to increase stability, especially in the midst of the recession caused by the corona virus.
The Federation of All India Farmers Association (FAIFA)on Tuesday said that this fund will prove to be important for farmers, agri-entrepreneurs, start-ups, agri-technology companies and farmer groups, with a focus on promoting the country's agricultural infrastructure. Also, the federation claimed to represent the farmers and agricultural workers of commercial crops in Andhra Pradesh, Telangana, Karnataka and Gujarat.
Welcoming the fund, FAIFA President Javare Gowda said, "The fund plans to facilitate medium-to-long-term debt financing to the agricultural sector to invest in profitable projects of its management infrastructure after harvesting. This will help in creating community wealth through interest assistance and financial support."
FAIFA in a statement said, "Currently, agriculture contributes more than 14 percent to the national Gross Domestic Product (GDP) and provides livelihood to more than 40 percent of the country's workforce."
"It is expected to contribute even more to economic stability in 2020-21 amid the economic downturn caused by COVID-19 pandemic."
The farmer organizational body also said, "It will help the agriculture sector to increase its contribution to GDP, improve the balance of trade conditions, encourage the export potential of the agricultural sector and ensure a stable and prosperous life by increasing the income of farmers."