Agriculture Infrastructure Fund Doubled to ₹2 lakh crore

In its first major policy decisions after shifting to Seva Teerth, Prime Minister Narendra Modi approved the doubling of the loan target under the Agriculture Infrastructure Fund from ₹1 lakh crore to ₹2 lakh crore to strengthen India’s agriculture value chain.

About Agriculture Infrastructure Fund (AIF)

Launched in 2020, AIF is a medium-to-long-term debt financing facility designed to build post-harvest infrastructure and farm-gate assets across India.

Objectives

• Reduce post-harvest losses
• Improve farm-gate storage and logistics
• Enhance farmers’ price realization
• Strengthen agricultural supply chains

Infrastructure supported includes warehouses, cold storage, sorting & grading units, ripening chambers, and logistics facilities.

Key Features

• Loan Target: Increased from ₹1 lakh crore to ₹2 lakh crore.
• Interest Subvention: 3% per annum on loans up to ₹2 crore.
• Subvention Period: Up to 7 years.
• Credit Guarantee: Available through Credit Guarantee Fund Trust for Micro and Small Enterprises for loans up to ₹2 crore (fee borne by Government).
• Scheme Duration: 2020–21 to 2032–33, with loan disbursement planned by FY 2025–26.

Beneficiaries

• Individual farmers
• Farmer Producer Organisations (FPOs)
• Cooperatives
• Agri-entrepreneurs
• Panchayats and community farming groups

The scheme ultimately benefits consumers by improving food supply chains.

Recent Expansion Highlights (2024 Cabinet Decision)

• Community farming infrastructure projects eligible.
• Integrated primary & secondary processing units allowed.
• Solar projects under PM-KUSUM Component-A included for eligible entities.