Agricultural Infrastructure Fund
The Agricultural Infrastructure Fund is a ₹1 lakh crore financing facility launched in July 2020 under the Atmanirbhar Bharat initiative.
It provides medium to long-term debt financing for the creation of post-harvest management infrastructure and community farming assets.
Objectives
- Strengthen farm-gate and aggregation infrastructure
- Reduce post-harvest losses
- Improve supply chain efficiency
- Enhance farmers’ income
- Promote value addition and food processing
Key Features
Financing Support
- Interest subvention of 3% per annum
- Credit guarantee coverage for eligible projects
- Loans through banks and financial institutions
Eligible Beneficiaries
- Farmers
- Farmers’ Producer Organisations (FPOs)
- Primary Agricultural Credit Societies (PACS)
- Self-Help Groups
- Agri-entrepreneurs
- Startups
- Central and State agencies
Eligible Infrastructure
- Warehouses
- Cold storage units
- Grading and sorting units
- Primary processing centres
- Collection centres
- Silos and logistics facilities
Recent Expansion
- Enhanced inclusion and financial security for FPOs
- Improved access to institutional credit
- Strengthened ecosystem for collective farming models
- Increased attractiveness and inclusiveness of the scheme
Significance
- Promotes private and cooperative investment in agriculture
- Bridges infrastructure gaps in rural areas
- Strengthens farmer collectivisation
- Supports agri-value chains
- Contributes to doubling farmers’ income objective
Implementation
- Managed by the Ministry of Agriculture & Farmers’ Welfare
- Integrated with digital monitoring platforms
- Linked with financial institutions and credit guarantee mechanisms
Conclusion
The Agricultural Infrastructure Fund is a structural reform aimed at transforming India’s agricultural supply chain. The expansion to support FPOs strengthens collective bargaining power, enhances credit access, and builds long-term resilience in the agricultural sector.
