Agriculture Infrastructure Fund (AIF): Empowering India’s Agri Entrepreneurs
The Agriculture Infrastructure Fund (AIF) is a flagship initiative launched by the Government of India to transform the agriculture sector by providing financial support for infrastructure development in the agricultural value chain. This scheme is helping farmers, FPOs, agri-entrepreneurs, and startups build a modern and sustainable agricultural economy.
🎯 Objective of the Scheme
To provide medium to long-term debt financing facilities for investment in viable projects related to post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee support.
🗓 Duration of the Scheme
- Implementation Period: 2020–21 to 2032–33
- Disbursement Deadline: Loans to be disbursed up to FY 2025–26
- Total Outlay: ₹1 Lakh Crore
👤 Who Can Apply?
- Individual Farmers
- Farmer Producer Organizations (FPOs)
- Primary Agricultural Credit Societies (PACS)
- Startups
- SHGs & Cooperatives
- APMCs
- Agri-Tech companies
- Central/State Agencies
- Private Entrepreneurs
- Warehouse Operators, Custom Hiring Centers
- Joint Liability Groups (JLGs)
🧱 Eligible Infrastructure Projects
- Warehouses, Cold Storages
- Grading, Sorting, and Packing Units
- Processing Units
- Bio-Stimulant and Fertilizer Plants
- Irrigation Systems
- Farm Machinery Banks
- Logistics and Supply Chain Infrastructure
- Digital infrastructure in agriculture (e.g. sensors, AI-based platforms)
- Organic input production
- Renewable energy facilities for agriculture
- Smart/Hi-Tech farming technologies
- Custom hiring centers and Precision farming tools
💰 Key Benefits
- Interest Subvention
- 3% interest subvention per annum on loans up to ₹2 Cr
- Maximum benefit for 7 years
- Loans above ₹2 Cr not eligible for interest subsidy
- Credit Guarantee
- Coverage through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and Central Government Credit Guarantee Scheme
- Available for loans up to ₹2 Cr
- Moratorium Period
- Repayment moratorium of up to 2 years depending on the project
- Repayment Tenure
- Loans repayable in up to 7 years, post moratorium
📈 Current Status (as per 2024 data)
- Over ₹43,000 Cr worth of loans sanctioned
- More than 71,000 projects across India
- Significant participation from FPOs, PACS, and startups
📋 How to Apply?
- Visit www.agriinfra.dac.gov.in
- Register and log in as an eligible entity
- Submit required documents and project proposals
- Loan processed through partnering banks and NBFCs
- Interest subvention and credit guarantee automatically applied
🌟 Why It Matters?
India’s agriculture sector has long suffered from post-harvest losses and inadequate infrastructure. AIF aims to:
- Reduce wastage and improve quality
- Increase value addition and farmer incomes
- Promote private investment in rural infrastructure
- Encourage modern technology adoption
🔚 Conclusion
The Agriculture Infrastructure Fund is a game-changing initiative that empowers rural India to build a modern, self-sufficient, and sustainable agri-economy. Whether you are a farmer or an agri-startup, AIF offers both opportunity and support to turn your vision into reality.
Need expert help in applying under AIF? Contact SkillWorth for step-by-step support in project planning, documentation, and funding assistance.
Blog by Dipti Warma
