The government won’t lift restrictions on export of wheat before the next crop, which arrives in March-April, keeping in mind how production was hit last year due to early onset of summer in March impacting the Food Corporation of India’s procurement target. The Centre is also likely to take a call soon on the sale of wheat from its stock in the open market to cool down prices, which touched a record high on Tuesday because of less availability.

 

Sources said though there has been demand to relax wheat export, the priority for the government is to see that the price of the staple food grain doesn’t increase exorbitantly in the domestic market. 'There is no scope for allowing export when we have less availability. We will soon offer wheat for open market sale,' said an official. The flour millers have been demanding early release of wheat from the stocks of Food Corporation of India (FCI) in the open market to moderate the prices.

 

The data from government’s Price Monitoring Cell shows that the average retail price of wheat on Tuesday was Rs 33.3 per kg, which is 17.6% more than last year and 40.3% higher that what it was five years back. Similarly, the average retail price of atta (wheat flour) on Tuesday was Rs 37.8 per kg, which is 19.8% more than last year and 44.2% higher than the price at which it was selling five years back.

 

The consumer affairs ministry’s data also show that the modal retail price (most common price across centres) of wheat and atta on Tuesday rose to Rs 29 and Rs 35 per kg respectively, from Rs 22 and Rs 28 a kg six months ago.

 

The trend is similar in wholesale prices of atta as well.

 

Meanwhile, the trend show that across major mandis of Madhya Pradesh, Haryana, Punjab and Rajasthan, wheat prices are ruling 41%–44% above the minimum support price (MSP) of Rs 2,015 per quintal for the current season because of supply constraints. Last year’s low output and spike in export of wheat in the first few months due to Russia-Ukraine have been the main contributors for short supply.

 

Data show that the wholesale wheat prices on Tuesday crossed Rs 2,900 per quintal at Sehore, which is one of the biggest mandis in Madhya Pradesh and in Delhi it was selling at Rs 2,815. The arrival of wheat has been less as farmers have little stock with them.

The India International Science Festival concluded today in Bhopal, Madhya Pradesh. On this occasion, the Union Agriculture and Farmers Welfare Minister, Shri Narendra Singh Tomar said that science and technology are developing rapidly in the country under the leadership of Prime Minister Shri Narendra Modi. The application of Science and Technology has increased in every field. This sector is one of the priorities for the Central Government.

 

Union Minister Shri Tomar said that Vigyan Bharti, State Government and Central Government together provided an efficient platform for students, scientists and start-ups from across the country through this event. A large number of students and youth were invited to the festival. He said that our country is a young country. Youth energy is the biggest strength of our country. As Prime Minister Shri Narendra Modi has termed it, - our country is going through Amritkaal. This is the time when the country can fulfill the biggest expectations and goals, drawing on the strength of the young population. For this, the Government of India is promoting science and technology. Shri Tomar said that when we came into Government, the budget for Science & Technology was around Rs 2,000 crore, which Prime Minister Shri Modi increased to more than Rs 6,000 crore. The priority of the government can also be understood from the fact that the then former Prime Minister Shri Lal Bahadur Shastri had given the slogan of Jai Jawan-Jai Kisan, and later Prime Minister Shri Atal Bihari Vajpayee included Science and given the slogan Jai Jawan-Jai Kisan-Jai Vigyan, now Prime Minister Shri Modi has included Anusandhan and now it has become Jai Jawan-Jai Kisan-Jai Vigyan and Jai Anusandhan.

 

Shri Tomar said that science has a great impact upon our lives. Today its utility can be felt all over the world including in our country. India also has the ability to achieve a position in today's competitive world, but to reach there and be able to go ahead, we should know the scientific importance of even the smallest thing. Only then we will be able to go ahead in the world competition.

 

Shri Tomar said that today no field is untouched by science and technology. In the agriculture sector too, due to technology, work has become easier, losses are being reduced and time is being saved. The use of drone technology is being made accessible to farmers. Farmers will get huge benefits through Digital Agriculture Mission, he said. Based on the way research is being done in the agriculture sector, we can say that in the coming days, India will increase its production and productivity by using technology. Along with fulfilling the country’s needs, we will also be successful in discharging our responsibilities toward the world.

 

Madhya Pradesh' Science and Technology Minister Shri Omprakash Saklecha also addressed the function. On this occasion, Union Science and Technology Secretary Dr. Chandrashekhar, Secretary, Department of Space, Shri S.K. Somnath, Vigyan Bharti General Secretary Shri Sudhir Bhadauria, Madhya Pradesh Secretary Shri ikunj Srivastava, Dr. Sudhanshu Vritti and Dr. Anil Kothari were among dignitaries present.

India’s overall oilmeal exports so far during the current financial year – April to December – were 60 per cent higher year-on-year at around 2.82 million tonnes, data compiled by vegetable oil industry body, The Solvent Extractors’ Association of India (SEA), showed.

 

Oilmeals are basically the residue left over after the extraction of oil from oilseeds, and they are widely used as livestock feed the world over.

 

Till November, the total exports were at 2.39 million tonnes.

 

In December alone, exports of India’s oilmeal were provisionally reported at 4,33,430 tonnes, up 153 per cent from 1,70,869 tonnes the same month last year, data showed.

 

Notably, the country’s rapeseed exports during the first nine months of the current financial year set a new record and broke the earlier highest record export of 1.24 million tonne in 2011-12. So far in 2022-23, the total rapeseed exports were at 1.67 million tonne.

 

'Currently India is the most competitive supplier of rapeseed meal to South Korea, Vietnam, Thailand and other Far East Countries at USD 255 per tonne FOB (free on board) India while rapeseed meal Hamburg ex-mill quoted at USD 405 per tonne,' SEA said in a release earlier this week.

 

Also, the release said the better price realization from rapeseed (mustard) oil and export of rapeseed meal not only supported the domestic price of mustard seed but also encouraged larger sowing area under the mustard crop during the current rabi season.

 

India sowed mustard crop across 97.0 lakh hectares compared to 90.0 lakh last season, it said.

 

Export of soybean meal too saw a revival.

 

'With fall in local soybean price to the level of Rs 5,650 per quintal, local soybean meal price has also fallen to Rs 42,800 per tonne from the level of Rs 53,000 tonne in June 2022; which has made (its) export attractive,' SEA said.

A UK Foreign Office minister mentions in Parliament that the negotiations between Britain and India for the ambitious Free Trade Agreement (FTA) are moving further along, with the next round of talks set to take place very soon. He asserted the importance of a strong deal, stating that it could boost the country's economy.

 

UK Foreign Office minister for South Asia, Lord Tariq Ahmad also said that Britain's relationship with India is central to its foreign policy as it is one of the world's biggest economies, is a key partnership.

 

Ahmad was responding to the debate entitled 'The Importance of the Relationship Between the United Kingdom and India' in the House of Lords on Thursday, tabled by British Indian peer Baroness Sandy Verma.

 

He confirmed that negotiations for a bilateral free trade agreement (FTA) are 'well advanced', with the next round of negotiations set to commence very soon.

 

'It is true that, as we set up and strengthen this relationship, the United Kingdom's relationship with India is central to UK foreign policy,' said Ahmad.

 

'As one of the world's biggest and fastest-growing economies, India is a key partner to the UK... We are also looking at lowering non-tariff barriers on medical devices to benefit British exporters, and are well advanced in our negotiations for an ambitious and balanced free trade agreement,' he said.

 

A strong trade deal with India could boost the UK economy by billions of pounds over the long term, helping families across the country, he said.

 

'Cutting red tape and high tariffs could also make it easier and cheaper for UK companies to sell in India, driving growth and supporting jobs,' he added.

 

As part of a review of the progress across all sectors of bilateral cooperation, including defence, health and climate action, the minister also addressed the issue of timelines related to a UK-India FTA.

 

'As an update, we have now completed six rounds of negotiations for a trade deal and will begin the next round very soon... Several noble Lords talked about timelines.

 

'I assure them that we are working those through specifically, but it was very much by mutual agreement to ensure that the trade deal signed is not rushed but properly thought through, and that all chapters are discussed in an exhaustive manner so that we reach a deal that is of mutual benefit to both countries and their peoples,' the minister said.

 

As per the official UK government data, the India-UK bilateral trade currently stands at around 29.6 billion pounds a year. Both sides formally launched FTA negotiations in January last year with former prime minister Boris Johnson announcing a Diwali deadline for its conclusion.

 

However, Prime Minister Rishi Sunak committed to working 'at pace' towards an FTA that does not 'sacrifice quality for speed' after that October deadline was missed amid political turmoil in the UK.

 

The sixth round of negotiations to finalise the deal concluded last month with detailed draft treaty discussions across 11 policy areas over 28 separate sessions.

 

The UK government has said its target for the FTA is to achieve a deal to cut tariffs and open opportunities for UK services such as financial and legal, making it easier for British businesses to sell to the Indian economy.

 

Verma opened the debate by highlighting the recent creation of the India (Trade and Investment) All Party Parliamentary Group (APPG), backed by the British Indian think tank 1928 Institute as its secretariat. She revealed that the cross-party group is scheduled to take its first delegation to India in April.

 

'We believe that the group will provide a strong Parliament-wide link that will not just strengthen political engagement and understanding but will build on what will become the free trade agreement for us to make this century one of the strong foundations, strong collaborations and new partnerships,' she said.

 

Lord Karan Bilimoria spoke of the need for large prime ministerial delegations to India and called on Prime Minister Sunak to lead one 'as soon as possible'.

 

'Today India has the presidency of the G20. Today India has a vision to become, in the next 25 years, the second-largest economy in the world with a GDP of USD 32 billion,' he said.

 

'The Indian express has left the station. It is now the fastest train in the world-the fastest-growing major economy in the world. The UK must be its closest and most trusted friend and partner in the decades ahead,' he added.

Malaysia has emerged as the new market for India’s eggs exports with a shipment of 5 million eggs last month from Namakkal, Tamil Nadu, considered the country’s hub.

 

Industry sources said with the robust demand from Malaysia, India is likely to ship another 10 million eggs each in January and February, 2023 to the south-east Asian country.

 

Malaysian Minister of Agriculture and Food Security Mohamad Sabu recently visited Namakkal to assess facilities at hatcheries for egg imports to the country.

 

According to Valsan Parameswaran, Secretary, All India Poultry Products Exporters Association, India exports around 1.5 million eggs daily from Namakkal to mostly middle east countries including Oman, Qatar, United Arab Emirates, Bahrain and Kuwait.

 

'Opening up of egg exports to Malaysia would give us market access to south-east Asia,' Parameswaran told FE. The eggs were exported using Chennai port while traditionally India sent shipments through  Tuticorin port.

 

Last month, the Agricultural and Processed Food Products Export Development Authority (APEDA) and the Animal Quarantine and Certification Services (AQCS) expedited the certification process and facilitated ‘first ever trial shipment of eggs’ from Namakkal to Malaysia.  A consignment of 0.1 million eggs were airlifted from the Tiruchirapalli airport last month to Malaysia.

 

Following the approval of Malaysian authorities, 10 containers of eggs (5 million pieces) were shipped last month.

 

According to an official note, the Malaysian Agriculture and Food Security Minister approached the Indian Embassy at Kuala Lumpur, seeking to import Indian eggs to their country as it faces a shortage of table eggs for the past few months.  'As chicken and eggs are part of their staple food, it is considered as a serious food security issue by the Malaysian Government,' the note stated.

 

'With the commencement of shipments of eggs to Malaysia, opportunities to expand shipment of eggs would expand across other south-east Asian countries including Singapore, Indonesia and Philippines,' M Angamuthu, Chairman, APEDA, said. He said that talks will be initiated with these countries for expanding egg exports.

 

In Namakkal, around 50-60 million eggs are produced daily by around 1000 layer birds firms and around 3% of eggs produced here  are exported. In addition, Namakkal supplies around 12 million eggs daily to Kerala, six million eggs to Tamil Nadu government’s noon meal and rest are supplied to other states

 

Meanwhile amidst the rising exports of eggs, the eggs prices have witnessed an increase because of domestic demand during the winter months. Inflation in eggs in December, 2022 was reported at 6.91%.

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal asked businesses to adopt a sustainable and green approach in business practices. He asked them to use the forum of B20 along with G20 to look at how we can collectively work towards a sustainable and equitable future agenda. He was addressing the Inception Meeting of Business 20 (B20), the official G20 dialogue forum with the global business community in Gandhinagar today.

 

Shri Goyal paid his tributes to Netaji Subhash Chandra Bose on his birth Anniversary today and said that he was one of the leading lights of our freedom struggle. The Minister said that Netaji envisioned a nation where every single citizen of the nation had a share in its prosperity.  

 

The Minister applauded the Prime Minister Shri Narendra Modi’s vision of ‘Vasudhaiva Kutumbakam’, of peace and dialogue, orderly and inclusive growth and humane approach and said that India wanted to be a responsible global citizen, be it in the sphere of climate change or digital public infrastructure. Shri Goyal said that through the theme of G20 in India- ‘one earth one family one future’ - we wished to inspire the world to care for each other, to have a greater degree of dialogue and greater concern for the planet and the future of our children.

 

Quoting Mahatma Gandhi, he said that we had inherited this world as trustees and it is our duty to leave behind a better world for next generation. We have to respect intergenerational equity- we do not have the right to use up all the resources of this planet, he added.  

 

The Minister highlighted that India had always stood for sustainable development. He mentioned that it was one of the top 5 countries in the world in terms of adopting and implementing environmental goals. India regularly files UNFCCC report and has already exceeded its goal for 2030, of having a 40 percent share of renewable energy in its installed capacity in 2021. India takes each sustainable development goal very seriously, he said.

 

Speaking of India’s amazing journey of growth, Shri Goyal said that India had grown almost 12 times in the last three decades inspite of several black swan events. He added that transformational steps had been taken by the government to take inclusive growth to every section of society without discrimination and to the remotest corners of the nation.

 

The Minister noted that the Prime Minister had relentlessly focussed on 4 ‘I’s of investment in infrastructure, integrity, inclusive development and international outlook to lend wings to Indian economy. He spoke of some of the transformational initiatives of the government. He said that the Digital India  Mission had ensured that the levels of connectivity we have in telecom today and what is being planned over the next 2 years would catapult us to amongst the top 5 or 6 countries in terms of technology. It will help us achieve inclusive economic growth smartly.

 

He stressed that the government had succeeded in securing the basic needs of life such as food, shelter, clothing, education, healthcare etc. to people, enabling, empowering and inspiring them to aspire for the better things in life. He noted that even during the heights of the pandemic, no death due to starvation had taken place in the country, thanks to several government initiatives including the mission to provide more than adequate foodgrains to almost 800 million across the country. He underscored that India had the world’s largest and successful free healthcare program, covering 500 million people. He said that 35 million families who were at the bottom of the pyramid, who were the most deserving, yet the most deprived, have been given homes with all the basic amenities. He added that the government had also succeeded in raising farmers’ income.

 

Shri Goyal noted that the while the world was worried about how India would cope with the pandemic, it had converted that fear into hope and emerged as a bright spot in the global economy. No other market in the world as large as the India opportunity today, he said and added that India hoped to power the world economy through collaborations and cooperation amidst competition and asked both Indian and foreign companies to serve the world using India as the base.

 

The Minister said that businesses that come to India have always succeeded because of our competitiveness. He opined that India offered the rule of law, inspiring and decisive leadership, transparent government policies, no opaque models and no hidden subsidies. He cited the example of a British Company that was manufacturing in UK, supplying to a few countries, and achieving a modest turn over. A few years ago, this company set up manufacturing in India and due to the competitiveness of Indian manufacturing and our ability to launch newer products through design and innovation, the company now supplies products to over 110 countries around the world from India at affordable and competitive prices, he said. He also spoke of another tech-giant which already has 5-7 percent of manufacturing happening in India and plans to scale it upto 25 percent.

 

He expressed hope that by August, we would have a robust framework for B20 and we succeed in taking a message of responsibility, care and concern, a message of togetherness and oneness, a message that we will all work together for a better future for our children, from India to the world.

 

India assumed the Presidency of the G20 from 1 December 2022. G20 is a premier forum for international economic cooperation. Established in 2010, B20 is among the most prominent Engagement Group in G20, with companies and business organizations as participants. B20 leads the process of galvanizing global business leaders for their views on issues of global economic and trade governance and speaks in a single voice for the entire G20 business community.

 

B20 will operate through 7 Task Forces and 2 Action Councils entrusted to develop consensus-based policy recommendations to the G20.

 

Shri Ashwini Vaishnaw, Minister of Railways, Communications and Electronics & Information Technology; Shri Amitabh Kant, G20 India Sherpa and Shri N Chandrasekaran, Chairman Tata Sons, who is the Chair of B20 India, Shri Anurag Jain, Secretary, DPIIT, Ministry of Commerce and Industry and other dignitaries were present at the gathering. More than 200 overseas delegates including CEOs and business executives, from G20 member countries and invitee countries apart from more than 400 delegate from within the country took part in the B20 India Inception Meeting.

B20 deliberations would see discussions on broad areas of climate action, innovation, digital global cooperation, resilient global value chains, fostering financial inclusion, empowering societies etc. The B20 Inception Meeting will culminate on 24 January 2023.

India has emerged as one of the top three countries in the world where the area under organic agriculture expanded the maximum in 2020, according to latest data.

 

The total increase under organic cultivation globally in 2020 was 3 million hectares (mh), out of which Argentina accounted for 7,81,000 hectares (up by 21 per cent), followed by Uruguay at 5,89,000 hectares (28 per cent) and India at 3,59,000 hectares (16 per cent), according IFOAM -Organics International data.

 

Of the world’s total 74.9 mh under organic farming, Australia has the highest at 35.7 mh, whereas India has 2.8 mh. In contrast, out of total 34 lakh organic producers in the world, 16 lakh farmers in India are into certified organic farming.

 

Experts said unless and until the government takes concrete steps, the growth in organic agriculture may not see any significant improvement. Issues such as the certification process and its costs are key to the growth and there is no one particular department or agency for it. Works are fragmented and span across several organisations and ministries, experts said.

 

Aid for farmers

As reported by businessline in December 2022, the Cabinet is yet to approve Agriculture Ministry’s Rs.2,481-crore proposal to launch the National Mission on Natural Farming (NMNF). The mission is supposed to be implemented from the current fiscal until 2025-26, with a target to bring on fold 7.5 lakh farmers to practice non-chemical natural farming on 7.5 lakh hectares. Under the scheme, farmers will get a maximum of Rs.15,000/hectare (until 2025-26) depending on loss in income, if any, after switching over to natural farming.

 

The target realisation of enrolling 7.5 lakh farmers will take at least four years since the entire process of capacity building of farmers through formation of clusters, their certification and also organising them as FPOs is very slow, officials said. Since certification will also be there for these farmers, experts wonder how these products would get exported unless they are labelled as ‘organic.

 

For the export purpose, the government needs to take a call on branding under either organic or natural farming or some other name so that no one gets confused and the crops receive better prices in the market, said an expert.

Several food companies are taking advantage of the International Year of Millet in 2023, including Britannia, Wholsum Foods, and Symega Food Ingredients, by either expanding their product lines or improving their existing products using millets, according to stakeholders.

 

There are many new items coming out this year, according to Shauravi Malik, Co-founder, Wholsum Foods Pvt Ltd, which owns the millet-based food brands Slurrp Farm and Millé.

 

She said, 'We plan to introduce millet-based snacks, ragi cookies, and other items under our kids’ brand Slurrp Farm. As for Millé, we want to bring millets to the center of people’s plates; the idea is to make millet a ubiquitous ingredient.'

 

Malik added, 'An increased level of awareness about eating millets, the need for both nutrition and food security, and the importance of having food that we can grow without a lot of water, pesticides, or fertiliser has led to the growth and popularity of millet-based products.'

 

FMCG giant Britannia, which sells millets-based products under the NutriChoice brand, says it will continue to build the brand through product innovation.

 

Sudhir Nema, Chief Development & Quality Officer, Britannia Industries Limited said, 'We are innovating on functional ingredients and foods by incorporating more super grains, seeds, nuts, and fruits with whole grains and processing technologies. We are also engaging with our partners and looking for appropriate opportunities in this evolving space.'

 

‘Superfoods’

In 2020, India produced 12,490 million tonnes of millets, and accounted for 41 per cent of the world’s share, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).

 

'Millets are referred as superfoods for being gluten-free and for having micronutrients. Moreover, millets are rich in dietary fibre and have a resistant starch that works as a prebiotic. In fact, people are willing to pay a premium, often to the tune of more than 50 per cent, in their conscious pursuit of optimum nutrition,' said Nema.

 

The global superfoods market size in 2020 was $172 billion, and it is expected to reach $287 billion by 2027, he added.

 

Symega Food Ingredients, which is engaged in manufacturing and marketing natural colours, flavours and savoury blends, has added alternative milk from various kinds of grains and millets.

 

'As this year is the International Year of Millets, we see a lot of traction on millet-based products. In fact, we have developed milk out of various millets like Jowar, Bajra, Barley, and more,' said Santosh Stephen, Managing Director, Symega Food Ingredients.

 

It offers its products by partnering with brands and start-ups, and co-develop and co-manufacture them under their label.

 

Consumer acceptance

Tata Consumer Soulfull Pvt Ltd, a wholly owned subsidiary of Tata Consumer Products Limited, also sells millet-based food products under the Tata Soulfull brand.

 

While participating in the fourth edition of Millets & Organics-International Trade Fair 2023, held in Bengaluru, Prashant Parameswaran, MD and CEO, Tata Consumer Soulfull, said, 'We expect that millets will gradually evolve to become a mainstream category, and with 2023 being celebrated as the International Year of Millets, the acceptance for this grain will significantly grow among consumers.'

 

Parameswaran added, 'Our product range, which includes snacking, mini meals, and breakfast cereal, is positioned to cater to the trend, and we look forward to making our products available to more consumers across the country.'

The Department of Agriculture and Farmers Welfare, Government of India, in association with Department of Agriculture, Government of Rajasthan, is organizing a two-day event, – ‘Krishi-Mahotsav: Pradarshani evam Prashikshan’ scheduled to be held on 24th-25th January 2023 at Dussehra Ground, Kota, Rajasthan to make Kota Division of Rajasthan advanced and leading in the field of agriculture and rural development. Lok Sabha Speaker Shri Om Birla, Union Minister of State for Agriculture and Farmers Welfare, Shri Kailash Choudhary, Union Minister of State for Animal Husbandry & Fisheries, Dr. Sanjeev Balyan, Rajasthan state Minister of Agriculture and Animal Husbandry, Shri Lalchand Kataria, and Rajasthan Minister of State, Department of Cooperation, Shri Udaylal Anjana will be present in the inaugural ceremony. Apart from them, senior officers of Central Government, State Government and Indian Council of Agricultural Research and about 35,000 farmers, Agri startups, Corporate bankers, extension workers and employees of private agricultural institutions will also be present.

 

Through the exhibition organized in Krishi Mahotsav, information about the various schemes of Central and State Government will be disseminated through exhibitors. Also, private sector companies/institutions related to supply of various inputs of agriculture will display their products through stalls. In this exhibition, 150 stalls will be set up to provide updated information related to agriculture to the farmers. Keeping in view the need for Startups in the field of agriculture, 75 stalls of Startups will be set up, which is one of the main features of this exhibition.

 

During this Krishi Mahotsav, a programme to train about 5,000 farmers on subjects related to agriculture, horticulture and animal husbandry is also being organized in two sessions. A special workshop on Agriculture Infrastructure Fund is also being organized for the benefit of farmers. Scientists from agricultural research institutes, agricultural universities, agricultural zonal centers and all officers and employees of the Agriculture Department as well as about 35,000 farmers are expected to participate in this two-day grand event.

 

The specialty of this event is to get more and more participation of farmers interested in adopting new technology in agriculture and adopt modern innovative agriculture practices. All farmers are being encouraged and trained to adopt advanced agricultural production system, new agricultural technology and advanced agricultural machinery to make farming a profitable enterprise.

 

Lok Sabha Speaker Shri Om Birla, Union Minister of Agriculture & Farmers Welfare, Shri Narendra Singh Tomar and Union Minister of Animal Husbandry & Fisheries, Shri Parshottam Rupala, Union Minister of State for Agriculture and Farmers Welfare, Ms. Shobha Karandlaje and Rajasthan state Minister of Agriculture and Animal Husbandry, Shri Lalchand Kataria will be present at the closing ceremony. It is important to organize such events from time to time and give the right direction to the farmers of the region to help in enhancing the income of farmers and also make farming sustainable.

Within two-and-a-half years of the implementation of the Agriculture Infrastructure Fund (AIF), the scheme has mobilized more than Rs.30,000 crore for projects in the agriculture infrastructure sector with a sanctioned amount of Rs.15,000 crore under AIF. With support of 3% interest subvention, credit guarantee support through CGTMSE for loan of upto Rs.2 crore and facility of convergence with other Central and State Govt. Scheme, AIF is providing all around financial support to the farmers, agri-entrepreneurs, farmer groups like Farmer Producer Organisations (FPOs), Self Help Groups (SHGs),  Joint Liability Groups (JLGs) etc. and many others to create post-harvest management infrastructure and build community farming asset throughout the country.

 

Understanding the demand supply gap between the need of the consumers and supply of primary processed vegetables from the farmers, Yogesh CB from Mandya district of Karnataka was looking to setup a primary processing centre for vegetable. While looking for the support available from Government, he came across the AIF scheme in the year 2020. He applied for a loan of Rs.1.9 cr. on AIF portal, which got verified by the Ministry of Agriculture and Farmers Welfare and sanctioned by Bank of India very quickly in December 2020.  He was able to ground his vision with the help of AIF and Ariant Veg Private Limited came into the existence. Through the interest subvention provided under AIF he was able to secure the finance at an effective Rate of Interest (RoI) of just 5.45% which is much lower than the open market rate. At present, Ariant Veg supports more than 250 local farmers by providing them seeds and the technology to grow quality vegetables, then they collect the yield from the farmers at a fair price which is then cleaned, sorted, graded, and packed in the processing centre before reaching to the end consumer on a daily basis. 

 

Similarly, Anand Patel, a farmer from Jabalpur district of Madhya Pradesh realized the importance and need of mechanization in agriculture especially for small and marginal farmers for whom agriculture machineries are not affordable. He then established a hi-tech hub where agriculture machineries are provided on the rental basis to the local farmers. This Hi-tech Hub has 12 Farm machinery including combine harvester, thresher, laser land leveler, tractors, zero till seed cum fertilizer drill, mulcher etc. that costs around Rs. 60.82 Lakhs which seemed a lot for a farmer like Mr. Patel. But through Agriculture Infrastructure Fund and its unique feature of convergence with other Central Govt. and State Govt. schemes, Mr. Patel was not only able to secure a loan of Rs. 45.62 Lakhs at an interest rate of just 5.4% but also got the benefit of capital subsidy of 40% of the total project cost under Sub-Mission on Agriculture Mechanization (SMAM) scheme of MoA&FW. Now he is providing services of these machines to more than 100 small and marginal farmers which helped them in saving a lot of effort, time and money.

 

Yogesh and Anand are two of more than 20,000 beneficiaries of AIF, whose dream to diversify their profile and take a forward leap in agricultural development has come true through AIF support. AIF is silently changing the landscape of Indian Agriculture through creation and modernization of much needed agriculture infrastructure. These infrastructure projects are helping in reducing post-harvest losses, modernizing agriculture package and practices and moreover helping farmers in better price realization of their produce.

 

Agriculture Infra Fund (AIF) is a financing facility launched on 8th July 2020 under the visionary guidance of the Prime Minister Shri Narendra Modi, for creation of post-harvest management infrastructure and community farm assets. Under this scheme, Rs 1 lakh crore is to be disbursed by financial year 2025-26 and the interest subvention and credit guarantee assistance will be given till the year 2032-33.

 

In order to create awareness about AIF amongst various stakeholders, MoA&FW has been organising multiple conclaves and workshops; Images clockwise, (1) Joint Secretary , DA&FW, Incharge of AIF scheme, Shri Samuel Praveen Kumar addressing bankers at National AIF Bankers’ Conclave titled  ‘Bankers are Anchors’, (2) Maharashtra State AIF Conclave at Pune, (3) AIF workshop for faculties of bank training institutions and (4) Uttar Pradesh State AIF conclave at Lucknow