The Agriculture Infrastructure Fund (AIF) is a government programme designed to boost the agricultural sector's productivity and efficiency. It focuses on empowering Indian’s agriculturists, enabling them to upgrade their post-harvest management infrastructure, while providing support for advanced packaging and cold storage systems, and driving increased private agricultural investment.
Objectives
The AIF scheme aims to boost agricultural productivity and efficiency by:
- Upgrading post-harvest management infrastructure.
- Providing farmers with modern packaging and cold storage solutions to sell their produce independently.
- Encouraging private sector investments in agriculture.
- Reducing food waste on a national scale.
- Utilising advanced technologies like IoT and AI to drive innovation in agriculture.
- Connecting agri-entrepreneurs and startups with funding and collaboration opportunities.
Eligible Borrowers The Agriculture Infrastructure Fund Scheme is open to a diverse array of individuals and organisations involved in agriculture, including:
- Farmers
- Farmer Producer Organisations (FPOs)
- Primary Agriculture Credit Societies (PACS)
- Agri-entrepreneurs
- Startups
- Self-Help Groups
- Joint Liability Groups (JLGs)
- Marketing Cooperative Societies
- Multipurpose Cooperative Societies
- National Federations of Cooperatives
- State Federations of Cooperatives
- Public-Private Partnership Projects supported by central or state governments or local authorities.
Eligible Projects
The Agricultural Infrastructure Fund supports the financing of projects, including:
- Production of organic inputs
- Bio-stimulant manufacturing units
- Nurseries
- Tissue culture facilities
- Seed processing units
- Custom hiring centres
- Infrastructure for smart and precision agriculture
- Logistics facilities, such as refrigerated vans and insulated vehicles
- Assaying laboratories
- Supply chain services, including e-marketing platforms
- Warehouses and silos
- Cold storage and cold chain facilities
- Packaging units
- Primary processing operation
Additionally, eligible community farming asset projects for farmer groups include:
- Hydroponic farming
- Mushroom farming
- Vertical farming
- Aeroponic farming
- Polyhouse/greenhouse construction
- Logistics facilities, including non-refrigerated and insulated vehicles
Nature of Loan
Term Loan
Quantum of Loan:
- For loans up to ₹2 crore, guarantee coverage and subvention benefits are available. Loans exceeding ₹2 crore may be considered, but benefits under the scheme are not applicable.
Repayment Period:
- Repayment should align with the cash flow of the funded project. The moratorium period for repayment can range from a minimum of 6 months to a maximum of 2 years, with interest payable during this period. The loan tenure will be 7 years.
Scheme Benefit
Credit Guarantee Coverage:
Interest Subvention
Note: The AIF scheme aligns with various State and Central Government schemes, including AMI, ACABC, PMEGP, NHB, MIDH, and PM KUSUM.
- Under the Agriculture Infrastructure Fund (AIF) Scheme, qualified borrowers can benefit from Credit Guarantee Coverage. This is available through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to ₹2 crore.|
- The AIF scheme provides interest subvention to make loans more affordable for small-scale borrowers. Loans approved under this scheme qualify for an annual interest subvention of 3%, within the limits specified by the scheme guidelines.
