The Agriculture Infrastructure Fund (AIF), launched in 2020-21, has emerged as a transformative initiative aimed at bridging critical gaps in post-harvest management and strengthening rural agricultural infrastructure. By providing financial support for farm gate storage, logistics, and processing facilities, AIF is helping farmers gain direct market access, reduce losses, and improve income. With a total allocation of ₹1 lakh crore, the fund offers loans with an interest cap of 9%, and eligible projects receive a 3% annual interest subvention for seven years, along with credit guarantee coverage for loans up to ₹2 crore. The initiative is set to run until 2032-33, ensuring long-term support for agricultural growth.
To ensure transparency and track progress, the government has implemented a robust multi-tiered monitoring system. The AIF online portal allows real-time tracking of project approvals, fund disbursements, and geo-tagging of infrastructure, helping assess their on-ground impact. Independent evaluations and field surveys have also been conducted to analyze the efficiency of projects, their role in employment generation, and their success in reducing post-harvest losses. A recent impact assessment study by the Agro-Economic Research Centre (AERC), Pune, examined the scheme’s effectiveness across key parameters such as improved farm mechanization, enhanced storage capacity, and reduced dependence on middlemen.
The study highlighted several positive outcomes. Projects supported under AIF have led to the creation of new storage facilities, averaging 7,000 metric tons per project, and have generated an average of 11 employment opportunities per unit. Investment in agricultural infrastructure has increased significantly, with private investments nearly 1.5 times the loan amounts sanctioned. More than 70% of AIF projects have been focused on building new agri-infrastructure, ensuring better access to modern facilities in rural areas. Additionally, 97% of the infrastructure created has been decentralized, catering to small and marginal farmers across the country.
AI-driven analytics have further revealed that AIF-backed projects have contributed to better price realization for agricultural produce, increased mechanization, and overall farm-level employment generation. The study also found that farmers had easy access to loans under the scheme, with lending banks displaying a high level of awareness and cooperation. Significantly, many entrepreneurs stated that their decision to establish agri-infrastructure projects was largely influenced by the availability of AIF funding.
While the scheme does not have a separate allocation for remote and difficult regions, the government has ensured that funds are distributed across states based on their agricultural output. The North Eastern states, for instance, have received a tentative allocation of ₹3,516 crore, with Assam receiving ₹2,050 crore, followed by Tripura, Arunachal Pradesh, and other states in the region. These funds aim to support the creation of essential agricultural infrastructure in areas that often face logistical and market access challenges.
Overall, the Agriculture Infrastructure Fund has proven to be a game-changer in enhancing rural economies, reducing post-harvest losses, and empowering farmers with better facilities and financial support. With continued implementation and refinement, AIF is expected to further revolutionize India’s agricultural landscape, creating a more resilient and prosperous farming community.
