Agriculture Infrastructure Fund (AIF)

✦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

✓Eligibility Criteria

• Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, and Farmer Producers Organizations (FPOs).
• Individual farmers, Agri-entrepreneurs, and startups engaged in post-harvest management activities.
• Self Help Groups (SHGs), Joint Liability Groups (JLGs), and Multipurpose Cooperative Societies.
• State agencies or Central/Local Body sponsored Public-Private Partnership projects dedicated to farm-gate infrastructure.

★Benefits

• Interest subvention of 3% per annum on loans up to a limit of ₹2 crore for a maximum period of seven years.
• Credit guarantee coverage for eligible loans up to ₹2 crore through the CGTMSE scheme, with fees paid by the government.
• Moratorium for repayment of the loan ranging from a minimum of 6 months to a maximum of 2 years.
• Access to capital for constructing essential infrastructure like cold stores, warehouses, and sorting units.
• Improved market access and reduced post-harvest losses, leading to higher price realization for farmers.

▶Application Process

• Register on the Agriculture Infrastructure Fund (AIF) online portal and upload the project summary.
• Apply for a loan from any of the participating scheduled banks or financial institutions through the portal.
• Submit the Detailed Project Report (DPR) for appraisal by the lending institution.
• After the bank sanctions the loan, the Ministry of Agriculture verifies the eligibility for interest subvention.
• The loan amount is disbursed by the bank, and the interest subvention is credited quarterly to the beneficiary's account.

₹ Budget Allocation

100000

Funding Ratio (Centre:State): Central Sector Scheme (100% funding for interest subvention and credit guarantee from Central Govt)

Historical Context

Launched in 2020 as part of the Rs. 20 Lakh Crore Atmanirbhar Bharat package to mitigate COVID-19 impact on the agri-sector.

Sub-Schemes

Challenges

• Low awareness among small and marginal farmers
• Stringent collateral requirements by banks despite the Credit Guarantee fund
• Regional disparity in fund utilization

Reforms & Recommendations

• Creating a single-window clearance for AIF-linked projects
• Allowing state-run agencies to act as facilitators for FPOs to access AIF
• Expanding the scope to include climate-smart agriculture technologies

Performance Statistics

SDG Linkages

Constitutional Backing

Technology Used

Success Stories

Key Takeaways

• Rs. 1 Lakh Crore debt financing facility
• 3% per annum interest subvention for loans up to Rs. 2 Crore
• Credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crore
• Duration: 13 years (FY2020 to FY2032)

Convergence Schemes

• PM-Kisan Sampada Yojana
• One District One Product (ODOP)
• Mission for Integrated Development of Horticulture (MIDH)

Sector Tags