Context:
The Centre is considering a major expansion of the Agriculture Infrastructure Fund (AIF) by allocating over ₹1 trillion in the upcoming Union Budget to strengthen post-harvest infrastructure and reduce crop losses, especially in perishable produce.
About the Agriculture Infrastructure Fund (AIF)
The Agriculture Infrastructure Fund (AIF) is a Central Sector Scheme launched by the Government of India to provide medium- to long-term debt financing for the creation of post-harvest and community farming infrastructure.
- Launched: July 2020
- Nodal Ministry: Ministry of Agriculture and Farmers Welfare
- Nature: Credit-linked subsidy scheme
- Tenure: FY21 to FY33
Objectives of AIF
- Develop post-harvest infrastructure at farm-gate and aggregation points
- Reduce post-harvest losses
- Improve value realisation for farmers
- Strengthen agri value chains
- Promote private and cooperative investment in agriculture
Key Features
- Loans by banks/FIs for eligible agri-infrastructure projects
- 3% interest subvention on loans up to ₹2 crore for 7 years
- Credit guarantee cover for loans up to ₹2 crore
- Minimum beneficiary contribution: 10% of project cost
Key Features of the AIF
1. Fund Size
- Total financing facility of ₹1 lakh crore
2. Eligible Projects
AIF supports infrastructure such as:
- Warehouses & cold storage
- Silos
- Sorting, grading & packaging units
- Primary processing centres
- Ripening chambers
- Supply chain & logistics facilities
- Smart & precision agriculture infrastructure
Eligible Beneficiaries
- Farmers
- Farmer Producer Organisations (FPOs)
- Primary Agricultural Credit Societies (PACS)
- Self Help Groups (SHGs)
- Agri-entrepreneurs
- Startups
- State agencies & cooperatives
