Agriculture Infrastructure Fund (AIF) – Complete Guide for Farmers

The Agriculture Infrastructure Fund (AIF) is a central government initiative aimed at providing financial support to farmers for building and upgrading agriculture infrastructure. Launched under the Agriculture Infrastructure Fund Scheme, it offers both medium-term and long-term credit support to individual farmers, farmer groups, and Farmer Producer Organizations (FPOs). The goal is to improve post-harvest management, reduce crop losses, and enhance the value chain by supporting storage, processing, and marketing infrastructure. By offering concessional loans and interest subvention, AIF enables farmers to invest in infrastructure projects such as cold storage units, warehouses, packhouses, and grading or sorting units. This support not only reduces post-harvest losses but also helps farmers access better prices for their produce by improving quality and marketability.

Key Features of Agriculture Infrastructure Fund

Credit support up to ₹1 crore per farmer or FPO for eligible projects.
Medium-term loans for projects with repayment up to seven years.
Interest subvention of 3% per annum for timely repayment.
Loan guarantee coverage under Credit Guarantee Fund Trust for AIF projects.
Support for a wide range of agriculture-related infrastructure projects.

These features make AIF a transformative scheme for farmers and rural entrepreneurs, empowering them to adopt modern storage, processing, and marketing solutions.

How Farmers Can Apply and Use AIF

Farmers interested in applying for AIF can approach eligible banks, including public sector banks, regional rural banks, and cooperative banks. They must prepare a project plan detailing the infrastructure they want to set up, expected costs, and potential revenue. Individual farmers, groups, and FPOs can all apply.

Key steps include:

Identify the infrastructure requirement, such as cold storage, warehouse, or value addition unit.
Prepare documentation including land proof, identity, project plan, and quotations for materials and equipment.
Submit the application to an eligible bank or nodal agency along with a detailed project report (DPR) if required.
Once approved, disbursement occurs through the bank and interest subvention is applied automatically for timely repayment.
After project completion, maintain records and invoices to ensure eligibility for continued benefits and future loans.

By following these steps, farmers can leverage AIF to improve infrastructure, reduce losses, and increase income.

Benefits for Farmers and Rural Economy

AIF empowers farmers to adopt modern post-harvest management practices and ensures better income through improved storage and processing. With access to cold chains, farmers can prevent spoilage and negotiate better prices for their produce. FPOs and farmer groups benefit from aggregated storage and collective marketing, which increases bargaining power and reduces dependency on intermediaries.

The scheme also encourages entrepreneurship in rural areas by allowing farmers to set up processing units, mini-packhouses, and aggregation points. By integrating AIF with other schemes like PM-KISAN, PMFBY, and MIDH, farmers can secure credit, insurance, and infrastructure support simultaneously for holistic growth.

Official Resources and Support

Farmers can visit the official Agriculture Infrastructure Fund portal to learn more about eligibility, application procedures, and project guidelines. District agriculture offices and state nodal agencies provide on-ground support for application submission and project monitoring.

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