The Agriculture Infrastructure Fund (AIF) was introduced by the Government of India in 2020 to extend medium- to long-term financing for the creation of post-harvest management infrastructure and community farm assets. The scheme is meant to enhance the agricultural value chain and minimize post-harvest losses through enhanced storage, processing, and marketing facilities.
Loans are made to farmers, Primary Agricultural Credit Societies (PACS), Farmer Producer Organizations (FPOs), cooperatives, start-ups, and agri-entrepreneurs with 3% interest subvention per annum and credit guarantee cover for eligible borrowers under AIF. The overall outlay of the fund is ₹1 lakh crore, which is to be distributed within a period of 10 years from 2020 to 2032.
The scheme funds project categories including cold storage, warehouses, grading and sorting facilities, food processing facilities, and supply chain units. It helps bridge farmers with markets, facilitating better realization of prices and minimizing wastage.
AIF helps drive modern agri-infrastructure and supports the vision of Atmanirbhar Bharat by facilitating farmers’ transition from conventional practices to a value-oriented, technology-driven system of agriculture.