Agricultural Infrastructure Fund (AIF)
Agricultural Infrastructure Fund (AIF)
Agricultural Infrastructure Fund (AIF) - Introduction
The Agriculture Infrastructure Fund (AIF) is a ₹1 lakh crore financing facility announced in May 2020. It aims to build farm-gate and post-harvest infrastructure, improve value chains, and raise farmers’ incomes through better storage, processing, and marketing systems. It provides medium to long-term debt with interest subvention and credit guarantee support.
Objectives
The scheme mobilizes finance for viable projects in post-harvest management infrastructure (like storage, primary processing, logistics) and community farming assets. It strengthens infrastructure to improve price realization and benefit stakeholders such as farmers, FPOs, and agri-entrepreneurs.
Quantum of Assistance
- Financing Facility: Up to ₹1 lakh crore.
- Interest Subvention: 3% per annum on loans up to ₹2 crore for a maximum period of 7 years.
- Credit Guarantee: Coverage up to ₹2 crore under CGTMSE or similar arrangements.
Eligible Activities
- Post-Harvest Infrastructure: Warehouses, cold stores, primary processing units (cleaning, grading, sorting, de-stoning), and packaging units.
- Modern Systems: Hydroponic farming, mushroom farming, vertical farming, precision agriculture, organic input units, and value-chain/logistics projects.
Eligibility Criteria
Eligible entities include Primary Agricultural Credit Societies (PACS), FPOs, agri-entrepreneurs, startups, Joint Liability Groups, cooperative societies, and PPP projects. Projects integrating digital solutions and green energy are encouraged.
Application & Disbursement
Applications are filed through the dedicated AIF online portal. Applicants must submit a Detailed Project Report (DPR) and proof of eligibility. Funds are disbursed in line with project milestones after appraisal by lending institutions.
Role of Wealth Design LLP
Wealth Design LLP helps farmers, FPOs, and agri-entrepreneurs structure bankable projects, prepare DPRs, align proposals with AIF guidelines, and coordinate with banks to secure finance and interest subvention benefits.
Impact & Future Prospects
AIF reduces post-harvest losses, improves storage and logistics, and increases farmers’ income through better market access. Future enhancements may widen eligible activities and refine credit guarantee coverage.