• Recently, the Union Cabinet approved some modifications in the Central Sector Scheme of Financing Facility under ‘Agriculture Infrastructure Fund’.


  • Government launched a new Scheme of financing facility under the Agriculture Infrastructure Fund (AIF) of Rs. 1 Lakh Crore.
  • The Agriculture Infrastructure Fund is a medium – long term debt financing facility for investment in projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.
  • The scheme will support Agri-entrepreneurs, Farmer Producer Organization (FPO), and Primary Agricultural Credit Society (PACS).
  • Objective – The key objective of the Agriculture Infrastructure Fund (AIF) is to provide financial support for agriculture entrepreneurs in order to improve agriculture infrastructure in the country.
  • Beneficiaries Agriculture Infrastructure Fund (AIF)
    • Farmers
    • SHG – a self-help group
    • Agri-entrepreneurs
    • Startups
    • Primary Agricultural Credit Society (PACS)
    • Marketing Cooperative Societies
    • Farmer Producer Organization (FPO
    • Joint Liability Groups (JLG)
    • Multipurpose Cooperative Societies
    • Central/State agency or local Body sponsored Public-Private Partnership Projects
  • Interest Subvention – Loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crores. This subvention will be available for a maximum period of seven years.
  • CGTMSE Scheme – A credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crores.


  • AIF will improve the overall income of farmers
  • The Improved marketing infrastructure will farmers to sell directly to a larger base of consumers and hence, increase value realization for the farmers
  • AIF will make farmers independent and improve access to market
  • Farmers can able to decide when to sell in the market and improve realization using
  • the modern packaging and cold storage system access
  • With a dedicated source of funding, entrepreneurs will push for innovation in the agriculture sector by leveraging new-age technologies including IoT (internet of things), AI (artificial intelligence), etc.
  • AIF will improve avenues for collaboration between entrepreneurs and farmers.

Contact Us

    Enquire Now