Agriculture Infrastructure Fund: How to Avail Benefits

03 January 2025, New Delhi: The Government of India has launched the Agriculture Infrastructure Fund (AIF) to strengthen the agricultural sector by providing financial support for the development of farm-gate infrastructure and post-harvest management projects. This initiative aims to enhance farmers’ income and reduce post-harvest losses by improving storage and processing facilities.

Key Features of the Scheme

• Financial Facility: AIF provides a financing facility of ₹1,00,000 crore for funding agriculture infrastructure projects at farm-gate and aggregation points. Eligible beneficiaries can avail loans with an interest subvention of 3% per annum up to a limit of ₹2 crore. Additionally, credit guarantee coverage is available for eligible borrowers.
• Eligible Projects: The scheme covers a wide range of projects, including supply chain services like e-marketing platforms, warehouses, silos, pack-houses, assaying units, sorting and grading units, cold chains, logistics facilities, primary processing centers, ripening chambers, and other viable projects for building community farming assets.
• Repayment Period: The repayment period for loans under AIF is up to 7 years, including a moratorium period ranging from 6 months to 2 years.

How Farmers Can Benefit

1. Enhanced Infrastructure: By availing loans under AIF, farmers can develop or upgrade infrastructure such as warehouses and cold storage facilities, reducing post-harvest losses and ensuring better price realization.
2. Value Addition: Establishing processing units enables farmers to add value to their produce, leading to higher income and access to new markets.
3. Access to Modern Technology: The scheme facilitates the adoption of modern technologies in agriculture, improving productivity and efficiency.

Application Process

• Online Registration: Farmers can apply online through the AIF portal by registering with their mobile number and Aadhaar number. After registration, they can fill out the application form and upload a Detailed Project Report (DPR).
• Project Appraisal: The submitted application is verified by the Central Project Management Unit and then forwarded to the selected lending institution for appraisal. The lending institution assesses the project’s viability before sanctioning the loan.
• Disbursement and Benefits: Upon loan disbursement, the government releases the interest subvention and credit guarantee fee to the lending institution based on their claim.

The Agriculture Infrastructure Fund is a significant initiative by the government to empower farmers by providing financial support for developing essential infrastructure. By leveraging this scheme, farmers can enhance their productivity, reduce losses, and increase their income, contributing to the overall growth of the agricultural sector.

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