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Agriculture Infrastructure Fund (AIF) — Govt Scheme for UPSC | Vaidra
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Agriculture Infrastructure Fund (AIF)

Ministry of Agriculture and Farmers WelfareactiveAgricultureLaunched: 2020-08-09

About the Scheme

AIF provides medium-to-long-term debt financing at concessional interest for post-harvest management infrastructure and community farming assets. Launched August 9, 2020. Budget: ₹1 lakh crore. 3% interest subvention; CGTMSE guarantee. 40,000+ projects sanctioned across rural India. Key: cold storage, warehouses, food processing.

Target Beneficiaries: Farmers, FPOs, cooperatives, agri-entrepreneurs, food processing units; all India

Official Website →

✦Key Features

  • ₹1 lakh crore lending fund; 3% interest subvention for 7-year loans
  • Credit guarantee: CGTMSE covers 75% risk for loans up to ₹2 crore
  • 40,000+ projects sanctioned: cold storage, warehouses, sorting/grading, primary processing
  • Eligible: FPOs, cooperatives, SHGs, entrepreneurs, startups, state agencies
  • Budget FY2025-26: ₹500 crore interest subvention; scheme extended to 2032-33
  • One entity can avail loans for up to 25 projects in 25 different locations
  • Complementary to e-NAM: AIF creates storage infrastructure for e-NAM market linkage

₹ Budget Allocation

100000

UPSC Relevance

GS Paper: GS3

Prelims Relevance7%
Mains Relevance8%

Syllabus Tags

AgricultureAgri-InfrastructureFood ProcessingPost-HarvestGS3