Govt transferred Rs. 17,100 crores directly to 8.5 crore farmers' bank accounts: PM Modi

"This is no commission but direct transfer of funds to the bank accounts of the farmers. This is a way to reach out to the farmers' families directly especially during this time of crisis," PM Modi said during his address to launch a financing facility for agri-entrepreneurs, startups, agri-tech players and farmer groups for post-harvest management and nurturing farm assets.

Modi said the government has allocated Rs. 1 lakh crore for the new Agriculture Infrastructure Fund to stimulate the creation of post-harvest management infrastructure and community farming assets such as cold storage, collection centres, processing units, etc.

Under the PM-KISAN scheme, each farmer receives up to Rs. 6,000 annually as minimum income support.

The scheme is totally funded by the Centre.

"The 1 lakh crore fund will be useful in enabling farmers to get greater value for their produce, as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition," PM Modi said.

Announcing relief to farmers, Modi said: "A farmer is now exempted from the purview of the mandi and the mandi tax. Now the farmers have several options."

The fund has been launched in a bid to making farmers self-reliant under PM Modi’s mission of an ‘Atmanirbhar Bharat’.

“Today, our farmers have a choice. If he wants to deal with his produce in his field, he can. Or he can directly connect with the warehouse or whoever pays the higher price,” he said.

Under the scheme, a loan amount of Rs 1 lakh crore will be made available for four years.

An amount of Rs 10,000 crore will be made available in the form of loan to farmers between 2020 to 2021 and remaining Rs 30,000 crore will be provided in the subsequent three years.

Three per cent subsidy on interest will also be provided to farmers on loan amounting to Rs. 2 crores or less up to seven years.

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