India's Agriculture Future with Agriculture Infrastructure Fund
India's agriculture sector, crucial for socio-economic development, affects over 55% of its population. Despite being the world's second-largest producer, it faces challenges in post-harvest management and market accessibility. In July 2020, the Indian government launched the Agriculture Infrastructure Fund to improve infrastructure, reduce losses, and promote innovation.

Agriculture Infrastructure Fund (AIF) Overview
- Launched by the Indian government, providing ₹1 lakh crore financing for agriculture infrastructure projects.
- Funds post-harvest management infrastructure and community farming assets.
- Available to farmers, agri entrepreneurs, start-ups, state agencies, Primary Agricultural Cooperative Societies, Farmers Producer Organizations.
- Involved in multiple lending institutions including Commercial Banks, Cooperative Banks, RRBs, Small Finance Banks, NCDC, NBFCs.
- Offers credit guarantee for loans up to ₹2 crore.
- Provides a 3% per annum interest subvention, limited to ₹2 crore per project in one location.
- Operational from 2020-21 to 2032-333.
The Agri-Infrastructure Fund (AIF) has significantly impacted rural areas, reducing post-harvest losses and increasing farmers' incomes. The AIF's online portal, which facilitated applications, has become a digital platform for applications. Awareness campaigns and conclaves have spread the word about the scheme, which has integrated around 0.99 lakh bank branches and 1.27 lakh registered applicants. The portal serves as a unified platform for beneficiaries, lending institutions, and other stakeholders, fostering transparency and streamlining the loan application process. This has led to a season of prosperity, supporting over 24,000 agri-entrepreneurs. The AIF portal has also contributed to the growth of the scheme, fostering a smoother financial interaction for all parties involved.
Sl. No. | Crops | Eligible Activities | Not Eligible |
---|---|---|---|
1. |
Cereals & Millets Wheat, rice, sorghum,barley, maize, oat, etc. |
|
(Bread, biscuits, pasta, snack foods, etc. not eligible) |
2. |
Fruits and vegetables |
|
|
3. |
Oilseeds & Oil palms Groundnut, rapeseed & mustard, soybean, sunflower, sesame, safflower, linseed, olives, oil palm etc. |
|
|
4. |
Pulses Bengal Gram , Pigeon Peas, Green Gram, Chick Peas, Black Gram, Red Kidney Beans, Black Eyed Peas, White Peas etc. |
|
|
5. |
Spices Red chilli, Cumin, Clove, Coriander, Cinnamon, Garlic, Ginger, Turmeric, Fenugreek,Cardamom etc. |
|
|
6. |
Cash Crops |
||
Cotton |
|
|
|
Sugarcane |
|
|
|
Jute |
|
|
|
Tea & coffee |
|
|
|
Coconut |
|
|
|
Rubber |
|
|
|
Tobacco |
|
|
|
7. |
Nuts Cashew Almonds Walnuts Pistachios etc. |
|
|
8. |
Herbal, Medicinal & Aromatic Crops Barberry, Liquorice, Bael, Isabgol,Guggal, Kerth, Aonla, Chandan, Senna, Baiberang, Brahmi, Eucalyptus, Jatamansi etc. |
|
|
9. |
Bamboo |
|
|
10. |
Fodder crops Berseem, forage sorghum, etc. |
|
|
11. |
Tuber crops Sweet Potatoes, Cassava etc. |
|
|
12. |
Arecanut |
|
|
The Agriculture Infrastructure Fund (AIF) in India is expected to transform the future of agriculture.
Key impacts include:
• Reducing Post-Harvest Losses: AIF modernizes agriculture infrastructure, reducing post-harvest losses.
• Improving Market Accessibility: AIF enhances market accessibility for farmers, enabling direct sales to a larger consumer base.
• Higher Income for Farmers: AIF's infrastructure projects aid in better price realization of produce, securing 11-14% higher prices.
• Employment Generation: AIF has generated over 5.1 lakh job opportunities.
• Empowering Farmers: AIF provides financial support for infrastructure development and modernization.
• Modernizing Agriculture Practices: AIF aids in modernizing agricultural practices, increasing productivity and sustainability.
What's Your Reaction?






