Agriculture Infrastructure Fund Scheme Guidelines

1. Introduction:

The Agriculture Infrastructure Fund (AIF) is a ₹1 lakh crore Central Sector Scheme launched in May 2020 to improve post-harvest infrastructure and farm-gate facilities.

The scheme provides medium to long-term debt financing to Primary Agricultural Cooperative Societies (PACS), Farmer Producer Organizations (FPOs), Agri-entrepreneurs, startups, etc.

It aims to reduce food wastage, improve storage and marketing infrastructure, and enhance farmers’ income.

2. Key Objectives:

Provide low-cost financing for investment in post-harvest management and farming assets.

Enable farmers to sell directly to larger markets, reducing intermediaries and post-harvest losses.

Encourage Agri-tech innovation through startups and entrepreneurs.

Boost private sector investment in agriculture by ensuring better credit access.

Reduce national food wastage and make India’s agriculture sector globally competitive.

3. Scheme Implementation Period:

The scheme operates from 2020-21 to 2032-33.

Loan disbursement completes by 2025-26, with ₹43,391 crores sanctioned as of June 2024.

4. Government Support & Financial Benefits:

3% Interest Subvention on loans up to ₹2 crore for 7 years.

Credit Guarantee for loans up to ₹2 crore under the CGTMSE scheme.

Priority given to PACS that have adopted digitization.

5. Eligible Projects:

A. Post-Harvest Management:

Warehouses, cold storage, silos, packaging, ripening chambers, supply chain services.

Logistics (reefer vans, insulated vehicles), e-marketing platforms, processing activities.

B. Viable Farming Assets:

Organic inputs (vermicomposting, biogas plants, bio-stimulants).

Smart agriculture tech (drones, AI-based farm solutions, sensors).

Hydroponics, aeroponics, greenhouse farming, tissue culture, seed processing.

Solar power-based farm infrastructure (PM-KUSUM scheme).

6. Beneficiaries:

PACS, FPOs, SHGs, Agri-Startups, Individual Farmers, State Agencies, Agricultural Produce Market Committees (APMCs), cooperatives, private entrepreneurs.

7. Loan Limit & Project Eligibility:

Interest subvention is provided for one project per location (up to ₹2 crore).

Private entities (farmers, startups, etc.) can apply for up to 25 projects across different locations.

No limit on projects for government entities, cooperatives, and FPOs.

8. Participating Institutions:

Banks, NBFCs, RRBs, Cooperative Banks, NABARD, NCDC provide financing.

Refinance support is available via NABARD.

9. Monitoring & Implementation:

National, State, and District Level Monitoring Committees oversee the scheme.

Projects must be geo-tagged for transparency.

Online MIS platform tracks applications, disbursements, and project progress.

10. State-Wise Allocation of Funds:

Highest allocation: Uttar Pradesh (₹12,831 crore), Rajasthan, Maharashtra.

Lowest allocation: Chandigarh (₹9 crore), Lakshadweep, Dadra & Nagar Haveli.

Conclusion:

The Agriculture Infrastructure Fund (AIF) aims to boost agricultural productivity, reduce wastage, and improve farmers' access to markets through financial support for modern infrastructure. The scheme provides interest subsidies, credit guarantees, and loan benefits for a wide range of post-harvest and farm-related projects, benefiting farmers, cooperatives, entrepreneurs, and startups.