This document provides information about the Agriculture Infrastructure Fund (AIF) in Meghalaya, India. It outlines the present challenges facing farmers such as lack of post-harvest management infrastructure and marketing facilities. The AIF aims to address these issues by providing loans to eligible entities to develop agricultural infrastructure like warehouses, sorting/grading units, and supply chain infrastructure. Key features of the AIF include a fund size of Rs. 1 lakh crore over 6 years, 3% annual interest subvention on loans up to Rs. 2 crore, and credit guarantee for eligible loans. National, state, and district level committees will monitor implementation. Initial projects proposed for funding include supply chain services, warehouses, pack houses, and community farming assets

1. Agriculture
Infrastructure Fund
Meghalaya Regional Office

2. Present Challenges
• Lack of Post Harvest Management and direct marketing infrastructure to allow farmers to
have access to remunerative markets.
• Shortage of infrastructure leading to higher post-harvest losses and a higher number of
intermediaries.
• Shortage of modern packaging and grading facilities resulting in low realization of crop
value.
• Holding capacity of farmers is low resulting in low bargaining capacity.
• Inadequate private investment in rural areas results in low employment opportunities
leading to large scale migration.
• There is skewed credit system for farming sector with focus on short term credit while
viable investment in long term assets is missing.

3. Agriculture Infrastructure Fund - Benefits
• For marketing infrastructure allowing farmers to sell directly to consumers
with reduced post-harvest losses and intermediaries
• For Community farming assets for better productivity and inputs use
• Primary Agril Credit Societies (PACS)
• Marketing Cooperative Societies
• Farmer Producers Organizations(FPOs)
• Self Help Group (SHG)
• Farmers, Joint Liability Groups (JLG)
• Agricul Prod Marketing Comm (APMCs)
Loans by banks and financial institutions to
• Multipurpose Cooperative Societies
• Agri-entrepreneurs
• Startups
• Central/State agency or Local Body
sponsored PPP Projects.

4. AIF from GoI – Key Features
Size of the fund – Rs. 1 lac Crore, disbursement
over 6 years
Interest subvention – 3% p. a. up to loan amount of
Rs. 2 Cr
Credit Guarantee – Under CGTMSE scheme for loan
up to Rs. 2 Crore, fee from Government
Refinance – Need based support via NABARD to all
eligible lending entities as per policy

5. AIF - Financial Outlay and Key Features
Participating institutions - All scheduled commercial
banks, Cooperative banks, RRBs, Small Finance banks,
NBFCs, NCDC
Loan ratio – min. of 10% of the project cost to be
mandatory as promoter’s contribution
Duration – 7 years (6 months to 2 years of
moratorium)

6. Implementation of Scheme - National, State and District level
Monitoring Committees
• Secretary (DAC&FW) (Chairman)
• MD SFAC
• MD NCDC
• Special Secretary/Additional
Secretary and FA (DAC&FW)
• Additional Secretary DFS
• Additional Secretary (DAC&FW,GoI)
• Chairman, NABARD or his
representative
• Principal Secretary - State
Government - Four States by rotation
• State Nodal Officers of four States
(by rotation)
• Joint Secretary (DAC&FW) and CEO of
Farmers Welfare Programme
Implementation Society- Member
Secretary
• Chief Secretary –Chairman
• Agriculture Production
Commissioner/Principal Secretary
Agriculture
• Principal Secretary (Cooperation)
• Registrar of Cooperative Societies
(RCS)
• Chief General Manager (CGM),
NABARD
• Regional Director, NCDC
• Officers nominated by State (not
more than three).
• SLBC Convenor.
• State Nodal Officer- Member
Secretary
• District Collector – Chairman
• Chief Executive Officer of District
Panchayat / CDO- Vice Chairman
• District Officer of Agriculture
• District Registrar Cooperative
Societies
• Officers nominated by State (not
more than three)
• Lead District Manager of DLBC
• District Manager NABARD- Member
Secretary
National level Monitoring
Committee (NLMC)
State level Monitoring
Committee
District level Monitoring
Committee

7. Approach for need assessment for investment in infrastructure
• Mapping supply chain
• Identifying required
infrastructure and
existing setup
• Discussion forum with
farmer groups in the
cluster to understand
key challenges w.r.t
infra
• Identifying underlying
issues limiting
investment
• Prioritize projects
based on farmer
coverage, existing
viability gap
• Initiate discussions for
creating project report
• Detail long list of
challenges with
existing infra /
potential to farmer
welfare with new infra
• Identify potential
applicants
Value chain analysis –
identify requirements
Conduct market research
– engage FPOs, PACS
Identify gaps across
value chain infra
Prioritize projects with
high impact, need for VGF

8. Initial list of projects which can potentially be funded
• Supply chain services including e-
marketing platforms
• Warehouses, silos, cold chains
• Pack houses
• Assaying units
• Sorting &grading units
• Logistics facilities
• Primary processing centers
• Ripening Chambers
• Supply chain infra for clusters of
crops
• Infrastructure for smart and
precision agriculture
• PPP community farming assets or
post harvest management
irrigation
• Organic input production
Post harvest
management
Community farming
asset building

9. Credit related aspects
•First yr(20-21):4,000 Cr + Second Yr (21-22): 16,000 Cr
+ Next 4yrs x 20000 Cr = 100000 Cr
•3% Int subvention will be for max 7 yrs, advance IS
payment for every year for the loan outstanding
•Interest rate capped as per MoU Signed with banks(at
6M MCLR + 1% - Max 9%)
•Convergence of other schemes allowed (eg AMI)
•Int Subvention will not available for NPA period

10. Other Points
•Online MIS platform
•Apply for loan
•Transparency of Interest rates offered
•Minimum documentation, faster Approval Process
•Integration with other schemes
•Projects are to be geo-tagged
•Banks can also directly receive application of loan
without prior scrutiny at any level

11. AIF in Meghalaya
•Target set for Meghalaya is Rs 190 Cr
•Supply chain infrastructure – Logistics with Specialized
vehicles
•Pack houses, Sorting & grading units for Farmers
Interest Groups (FIGs)
•Infrastructure for community farming assets
Potential Activities in Meghalaya

12. Experience of AIF Implementation
•Primary Agricultural Credit Societies (PACS) is the major
driving source of AIF in the country.
•PACS as Mutli Service Cetres (PACS as MSC) scheme of NABARD
provides refinance to PACS @ 4%.
•AIF Int Sub 3% makes loan available to PACS @1% only
•PACS / IVCS affiliated to MCAB may avail NABARD assistance
• Cooperative Development Fund (CDF)
• PACS as Multi Service Centers (PACS as MSC)
• Business Diversification and Product Innovation Cell
• PACS Computerization
•This will help farmers of Meghalaya to benefit from AIF

13. Thank You