The Union Cabinet on Wednesday approved creation of a Rs 2,000-crore Agri-Market Infrastructure Fund (AMIF) for development and upgradation of rural agriculture markets.

The corpus of Rs 2,000 crore will be created with NABARD, an official statement said.

"The CCEA has given its approval for the creation of a corpus of Rs 2000 crore for Agri-Market Infrastructure Fund (AMIF) to be created with NABARD for development and upgradation of agriculture marketing infrastructure in Gramin Agriculture Markets and Regulated Wholesale Markets," the statement said.

It further said AMIF will provide the state/UT governments subsidised loans for their proposal for developing marketing infrastructure in 585 Agricultural Produce Market Committees (APMCs) and 10,000 villages.

States can access AMIF for innovative integrated market infrastructure projects, including through public-private partnerships.