Government Backs Vertical Farming with Rs 2 Crore Loans, 3% Interest Subvention
The Central Government has made vertical farming eligible for financial assistance under the Agriculture Infrastructure Fund (AIF), a scheme launched in 2020 to boost modern agricultural infrastructure. Individual farmers and agripreneurs can now avail loans of up to Rs 2 crore with a 3% interest subvention for setting up vertical farming systems, promoting local, climate-friendly food production.
Vertical farming, a method that grows crops in vertically stacked layers using less land and water, can now be implemented on an industrial scale with sustainable conditions. The AIF supports this innovative modular system, ensuring minimum investment costs, quality working conditions, and long-term operation guarantees. Applicants can access financial assistance by following steps including project conceptualization, identifying a lending institution, loan application submission, application on the AIF portal, approval and sanction, and implementation and monitoring. This initiative aligns with the government's push towards sustainable and modern agriculture, aiming to enhance productivity, reduce post-harvest losses, and improve farmers' income.
With the AIF's support, vertical farming projects offer advantages such as interest subvention, credit guarantee, enhanced productivity, and promotion of sustainable agriculture. A diverse range of entities involved in agriculture and allied activities, including farmers, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and agri-entrepreneurs, are eligible to apply. The AIF seeks to facilitate the development of modern agricultural infrastructure, reflecting a focus on decarbonization and circular economy principles.
