Agriculture Infrastructure Fund (AIF), launched in 2020–21 has sanctioned Rs 66,310 crore for 1,13,419 projects across India, mobilizing a total investment of Rs 1,07,502 crore by June 30. Among these, 2,454 cold storage projects worth Rs 8,258 crore have been approved, ensuring better preservation, longer shelf life, and reduced post-harvest losses.
The scheme offers 3% annual interest subvention for loans up to Rs 2 crore for a maximum of seven years, with credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). For larger loans, interest subvention is limited to the first Rs 2 crore. The government also bears the guarantee fee, reducing borrowing costs for farmers and agri-entrepreneurs.
The scheme has evolved to become more inclusive and impactful. The Union Cabinet’s August 2024 expansion made integrated primary and secondary processing projects eligible, extended support to solar-powered projects under PM-KUSUM Component-A for entities like FPOs and cooperatives, and broadened credit guarantee coverage for FPOs through NAB Sanrakshan Trustee Company. These measures aim to enhance financial security, creditworthiness, and investment in climate-resilient infrastructure.
Benefits of AIF are widespread. Farmers and their organizations gain improved marketing infrastructure, better logistics, and storage facilities, enabling them to choose optimal selling times and reduce losses. Agri-entrepreneurs access dedicated funding to innovate and adopt new technologies, while banks expand agri-lending portfolios with reduced lending risks. Consumers benefit from improved quality, availability, and pricing of agricultural produce.
The AIF’s success is reinforced by complementary government schemes. The Agricultural Marketing Infrastructure (AMI) scheme has sanctioned 49,796 storage projects with a capacity of 982.94 lakh MT, backed by subsidies worth Rs 4,829.37 crore.
The Mission Organic Value Chain Development for the North Eastern Region (MOVCDNER) supports certified organic farming clusters, providing Rs 46,500 per hectare over three years and benefiting 2.69 lakh farmers in 2024–25. The Digital Public Infrastructure (DPI) initiative aims to create a unified agricultural data ecosystem covering all farmers and farmland within three years, enabling targeted delivery of credit, insurance, inputs, and advisory services.
In fisheries, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) addresses infrastructure gaps with an outlay of Rs 20,050 crore, already releasing Rs 5,587.57 crore from the central share by July 2025, and is expected to generate 46.86 lakh employment opportunities. The Micro Irrigation Fund (MIF) has approved Rs 4,709 crore in loans, with Rs 3,640 crore disbursed, providing 2% interest subvention to encourage water-efficient farming practices.
Digital integration is another major achievement. FPOs have been onboarded onto platforms like the National Agriculture Market (e-NAM), Open Network for Digital Commerce (ONDC), and Government e-Marketplace (GeM), allowing them to connect directly with buyers and institutions, enhancing transparency and price realization. As of June 30, 2025, e-NAM had registered 1.79 crore farmers and 2.67 lakh traders, facilitating trade volumes of 12.03 crore metric tonnes worth Rs 4.39 lakh crore.
At the grassroots level, success stories like the Sri Maa Majji Gouri Cashew Industry in Odisha highlight AIF’s transformative impact. Established in 2022 with a Rs 42.75 lakh subsidized loan under AIF, the unit provides direct employment to 20 people, supports 40 farmers, and expects Rs 2.48 crore in annual revenue—proving how timely financing can create sustainable livelihoods and strengthen rural economies.
By integrating financial support, infrastructure creation, technology adoption, and market linkages, the AIF and allied schemes are reshaping India’s agricultural landscape. They address structural gaps, promote value addition, and foster a sustainable, competitive ecosystem that empowers farmers, attracts private investment, and boosts rural development. As these initiatives scale, they are expected to significantly enhance food security, farmer incomes, and the overall contribution of agriculture to the national economy.
