Agriculture Infrastructure Fund (AIF)

Introduction

The Agriculture Infrastructure Fund (AIF) is a financing facility launched by the Government of India to provide medium to long-term debt financing for the creation of post-harvest management infrastructure and community farming assets. The scheme aims to strengthen the agricultural sector by ensuring better storage, processing, and logistics solutions, reducing post-harvest losses, and enhancing farmers' income.

Objectives

  • To develop modern agricultural infrastructure to improve supply chain efficiency.
  • To enable farmers and agribusinesses to access affordable credit for infrastructure development.
  • To promote private investment in post-harvest management facilities and value chain projects.
  • To reduce wastage and increase processing capabilities for better price realization.

Benefits

  • Financial Support: Provides subsidized loans with an interest subvention of 3% per annum for up to 7 years.
  • Credit Guarantee: Eligible projects receive credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • Flexible Repayment: Loan tenure of up to 10 years including a moratorium period.
  • Wide Coverage: Supports investments in warehouses, cold storage, silos, pack houses, grading units, and food processing units.

Eligibility

Eligible Beneficiaries:

  • ['Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), Self-Help Groups (SHGs), startups, agri-entrepreneurs, and public-private partnerships (PPP).', 'State agencies and local bodies involved in agri-infrastructure development.']

Application Process

  1. Applications can be submitted through the official AIF portal or through participating banks and financial institutions.

Required Documents

  • Aadhaar Card/PAN Card (for identification).
  • Land Ownership or Lease Agreement (if applicable).
  • Project Proposal & Business Plan.
  • Bank Account Details (for loan processing).

Contact Information