An In-Depth Look at the Agri-Infrastructure Fund and Its Benefits

What is the Agri-Infrastructure Fund (AIF)?

The Agri-Infrastructure Fund (AIF) is a government-backed initiative that was launched in May 2020. Its primary purpose is to provide financial support for the development of agricultural infrastructure and to minimize post-harvest losses.

What is the primary goal of the AIF?

The AIF aims to disburse ₹1 lakh crore through banks and financial institutions by FY26. The goal is to enhance marketing, logistics, and storage facilities, ultimately increasing farmers' income.

Who provides the funds under the AIF?

The funds are mobilized from both public and private entities through banks and financial institutions. A notable portion of the investments comes from the private sector.

What are the terms of financial assistance under AIF?

• Loans of up to ₹2 crore are available with a repayment period of 7 years.
• A 3% interest subvention is provided, limited to 9% per annum on investment.
• The fund also covers credit guarantee fees that banks incur.

What types of projects are supported under the AIF?

The AIF supports a diverse range of over 83,000 projects, including:

• Cold storage facilities
• Warehouses
• Value addition facilities
• Clean energy solutions

How does the AIF impact post-harvest losses?

This fund significantly reduces annual post-harvest losses, with a decrease of 1.86 million tonnes in food grains and 3.4 million tonnes in horticultural crops. This not only saves costs but also enhances food security.

How does AIF integrate with other government schemes?

• The AIF converges with PM-KUSUM to promote clean energy in the agricultural sector.
• It aligns with PMFME (Pradhan Mantri Formalization of Micro Food Processing Enterprises) to enhance food processing efforts.

Who is eligible to benefit from the AIF?

The fund is accessible to a variety of stakeholders including farmers, farmer collectives, farmer producer organizations, cooperatives, and panchayats.

What are the broader benefits of the AIF?

• The AIF encourages the industrialization of agriculture.
• It creates employment opportunities.
• It boosts markets for processed agricultural goods.
• Strengthens collaboration between entrepreneurs and farmers.

What is the investment mobilized so far?

As of now, projects worth ₹83,763 crore have been mobilized under the AIF, showcasing its significant impact on agricultural development.