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Sahney seeks Rs 5 crore AIF cap, release of Punjab’s RDF
Regarding the AIF, Sahney said the current Rs 2-crore interest-subvention project limit is inadequate for establishing modern cold storage facilities, grading units, and warehouses.
Rajya Sabha MP Vikramjit Singh Sahney urges the Centre to raise the Agriculture Infrastructure Fund project cap to Rs 5 crore and release Punjab’s pending Rural Development Fund during a parliamentary discussion. (Photo: X/@IndianOilcl)
Vikramjit Singh Sahney Friday urged the Centre to enhance the project limit under the Agriculture Infrastructure Fund (AIF) from Rs 2 crore to Rs 5 crore, and to immediately release Punjab’s long-pending Rural Development Fund (RDF). The Rajya Sabha MP raised the matter during a parliamentary discussion.
Regarding the AIF, Sahney said the current Rs 2-crore interest-subvention project limit is inadequate for establishing modern cold storage facilities, grading units, and warehouses. He cited NABARD’s estimates that India incurs post-harvest losses worth nearly Rs 1.5 lakh crore annually, largely due to insufficient storage and supply chain infrastructure.
According to Sahney, increasing the AIF cap to Rs 5 crore would enable Farmer Producer Organisations (FPOs), cooperatives and agri-entrepreneurs.
Responding to the AIF proposal, Union Agriculture & Farmers’ Welfare Minister Shivraj Singh Chouhan reiterated the Centre’s commitment to strengthening agri-infrastructure under the AIF scheme and said the reforms will prioritise reducing post-harvest losses.
Sahney also highlighted the financial strain on Punjab due to the reduction and non-release of RDF and Market Development Fund (MDF) allocations. He said the levy linked to MSP procurement was reduced from six per cent to two per cent in 2022, significantly impacting the state’s rural infrastructure funding.
The AAP MP noted that Punjab handles approximately 18 million tonnes of paddy and 12 million tonnes of wheat procurement annually — a volume substantially higher than that of other states. Despite this, the state’s financial support through RDF/MDF has been curtailed.
He stressed that nearly 64,724 kilometres of rural link roads and 1,936 grain mandis in Punjab rely heavily on RDF and MDF resources for maintenance and development. He also urged urgent Centre-state coordination to resolve the impasse.
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Responding to the concerns, Chouhan acknowledged the importance of Punjab’s role in national food security and assured the House that the RDF’s release would be examined.
Chouhan said the Centre is committed to supporting states in strengthening agricultural infrastructure. He also said discussions would be held to address procedural and financial concerns linked to the RDF mechanism.
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