Agricultural Infrastructure Fund (AIF) Scheme

The government has expanded the scope of the ₹1 lakh crore Agricultural Infrastructure Fund (AIF) scheme to strengthen farm-related infrastructure in the country.

About Agricultural Infrastructure Fund (AIF) Scheme

• It is a Central Sector Scheme launched in 2020 with an operational period from 2020-21 to 2032-33 focused on Agriculture Infrastructure.
• Objective: Provides medium to long-term financing for post-harvest agricultural infrastructure projects.
• Financial Provisions
• • Total Loan Provision: ₹1 lakh crore through lending institutions.
  • Interest Rate Cap: 9% on loans.
  • Interest Subvention: 3% per annum on loans up to ₹2 crore for 7 years.
  • Credit Guarantee: Provided through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• Project Limits: Private Sector Entities (Farmers, Agri-Entrepreneurs, Startups):
  • Can apply for up to 25 projects across different locations.
  • Each project is eligible for a ₹2 crore loan.
  • Multiple projects at one location allowed within the ₹2 crore cap.
• State Agencies, Cooperatives, FPOs, SHGs: No limit on the number of projects.
• Mandatory Borrower Contribution: Applicants must contribute at least 10% of the total project cost.

Eligible Beneficiaries Under AIF

• Individual Farmers : For on-farm storage and processing units.
• Social Inclusion: 24% of total grants-in-aid must be allocated to SC/ST entrepreneurs.
  • 16% for SC.
  • 8% for ST.
• Farmer Producer Organizations (FPOs): For community-based infrastructure.
• Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) : Engaged in agriculture-related activities.
• Cooperative Societies and Primary Agricultural Credit Societies (PACS): For collective farming and value addition.
• Startups and Agri-Tech Companies: Developing post-harvest management solutions.

• State Agencies and PPP Projects: For government-backed rural infrastructure projects.
• Entrepreneurs and Agripreneurs: Involved in food processing and value addition.
• Exclusion: Public Sector Undertakings (PSUs) are not eligible, but PPP-sponsored projects are allowed.

Eligible Projects Under AIF

• Post-Harvest Infrastructure
• • Warehouses, cold storage, silos, drying yards.
  • Sorting and packaging units.
• Processing and Value Addition: Food processing plants, oil mills, flour mills, Cashew and kinnow processing units, etc.
  • Standalone secondary processing units are not eligible (covered under MoFPI schemes).
• Technology-Driven Solutions: Drone projects and hi-tech farm equipment rental centers.
• Renewable Energy: Solar-powered irrigation and cold storage units.
• Integration with Other Schemes: PM KUSUM Component-A can now be integrated with AIF.

Implementation Status of AIF

• Top Performing States (As of February 28, 2025): Punjab has successfully utilized 100% of its allocated ₹4,713 crore and now ranks No.1 in India for AIF implementation.

• Impact of AIF Implementation: 71% of beneficiaries are farmers.
  • 67% of all sanctioned projects cost below ₹25 lakh, ensuring grassroots penetration.

The Agricultural Infrastructure Fund (AIF) scheme has played a crucial role in reducing post-harvest losses, improving farm infrastructure, and enhancing value addition. With the recent expansion of funds  the scheme is set to further boost rural employment, agripreneurship, and agricultural modernization across India.