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sufficient nor suitable to address the changes. To begin with Key highlights of Union budget 2020-
the storage space is inadequate.. Earlier, the warehouses
were largely in the public sector and cooperative sector, but 2021 of Govt.of India towards to AMI
now the private sector has also made rapid strides in Y Viability gap funding for creation of efficient warehouse
providing these services. Yet there is a necessity to ramp up on PPP mode.
scientific storage space, including silos and facilitate Y SHGs run village storage scheme to be launched.
financing of stored goods to farmers.
Y Financing on Negotiable Warehousing Receipts to be
integrated with e-National Agricultural Market
Cold storage and cold chain management is another
important area that requires immediate attention and Y Kisan Rail and Krishi udaan to be launched by Indian
investment. Most of the horticultural produce is wasted due railway and ministry of civil aviation respectively for a
to lack of cold stores and refrigerated transport vehicles. seamless national cold supply chain for perishables.
Investors and private entrepreneurs who have set up cold Y NABARD refinancing scheme will be further expanded.
storages and controlled atmosphere storages have reported Agricultural credit target has been set-up at 15 lakh crores.
issues of poor returns due to absence of material for
storage. Suggestion for Improvement of AMI
finance
On the other hand, farmers face the problem of distress sale
since there are no cold storages near the selling centres. Y Publicity programmes by distributing leaflets booklets
and posters by organizing film and video shows, and
Unlike a regular warehouse, climate controlled warehouses
seems to need more intricate business planning. The conduct meeting at village, chaupal level with
government can play a role in this by enabling cluster-based participation of Farm women, SHG, farmer club on
benefits of scientific storage of food grains.
approach of growing vegetables, fruits and flowers. This
provides a ready market for the producers, supply of Y The farmers may be encouraged to store their
horticultural produce for consumers, processors while the agricultural produce in registered warehouses to get
excess production can be stored, thus creating a win-win better return. They are eligible to get credit facilities
situation for all stakeholders. by pledging the negotiable warehouse receipts.

Infrastructure Funded by NABARD
Infrastructure Year of Corpus Outstanding as on Activities Covered
Fund/ Scheme Inception (Rs. in crores) 31 March 2019
(Rs. in crores)
Warehouse Infrastructure 2013-14 5000 4984.00 Warehouses, Silos, Cold
Fund (WIF) Storages & Cold Chain

Food Processing Fund (FPF) 2014-15 2000 276.00 Setting up notified food parks
and food /Cold chains and
supply logistic/food processing unit

Agri-Market Infrastructure Fund Y Financing at reduced interest rate is desirable
for minimizing intermediation, providing for
The Union Budget 2018-19 announced the setting up of
Agri-Market Infrastructure Fund with a corpus of Rs.2000/ pan-India market and to free the farmers from
the clutches of money lenders and also empower
- crore in NABARD for developing and upgrading agriculture
them to quote their own price for sale of their
marketing infrastructure in 22000 Grameen Agriculture
Markets (GrAMs) and 585 APMCs. This fund will help in goods.
creating further scope for financing market infrastructure Y The negotiable warehouse receipt system will
projects to small and marginal farmers. encourage scientific storage of agricultural commodities

32 | 2021 | JANUARY | BANKING FINANCE