AIF Strengthens Farmers’ Income: ₹56,334 Crore Mobilized for 92,393 Projects in Agriculture Sector

With an objective to address the existing gaps in post-harvest management infrastructure in the country, the flagship scheme of Agriculture Infrastructure Fund (AIF) was launched in 2020-21 to strengthen the infrastructure in the country through creation of farm gate storage and logistics infrastructure to enable farmers to store and preserve their farm produce properly and sell them in the market at better price with reduced post-harvest losses and lesser number of intermediaries. Improved post-harvest management infrastructure like warehouses, Cold stores, sorting and grading units, ripening chambers etc will allow farmers to sell directly to a larger base of consumers and hence, increase value realization for the farmers. This will improve the overall income of farmers.  As on 26.01.2025, Rs. 56334 Crores have been sanctioned for 92393 projects under AIF, out of this total sanctioned amount, ₹41996 crores are covered under scheme benefits. These sanctioned projects have mobilized an investment of Rs.91856 crores in agriculture sector.

In state of Andhra Pradesh, ₹2819 cr (Including Rs. 924 in principle sanctions for PACS by NABARD) have been sanctioned for 2686 projects under AIF. The total project cost for these sanctioned projects is ₹4124 crore. The district- wise details of projects identified and approved for providing support under Agriculture Infrastructure Fund (AIF) in the State of Andhra Pradesh is given in Annexure.

As per the MoU signed by The Department with the Banks and other lending institutions, Interest rate on AIF loans should not exceed the cap fixed at 9% per annum. Again, all loans under this financing facility will have interest subvention of 3% per annum up to a limit of ₹ 2 crore. This subvention will be available for a maximum period of 7 years. In case of loans beyond ₹ 2 crore, then interest subvention will be limited up to ₹ 2 crore.

As on 26.01.2025, Rs. 56334 Crores have been sanctioned to applicants for 92393 projects under AIF which leaves an amount of Rs 43,666 crore remain to be sanctioned by the lending institutions by 2025-26.

To achieve the ambitious target of ₹1 lakh crore within the deadline, a series of strategic initiatives have been undertaken. The Union Cabinet has approved the progressive expansion of the Agriculture Infrastructure Fund (AIF). Key measures include allowing viable community farming assets for all eligible beneficiaries, including secondary processing projects integrated with primary processing in eligible activities, and converging AIF with PM-KUSUM Component-A. Additionally, NABSanrakshan is also included in scheme to extend credit guarantee support to FPOs. The recently concluded annual Bankers’ Conclave on 23.01.2025 at NABARD, Mumbai brought together top executives from banks and financial institutions to strengthen commitment and accelerate approvals. Additionally, multiple state-level conclaves are being planned over the coming months to engage regional stakeholders, address challenges, and enhance outreach. Regular interaction with AIF Nodal Officers of banks and state governments is being conducted to boost awareness, streamline processes, and promote the AIF initiative effectively. These efforts aim to create momentum, ensure timely sanctions, and drive funding toward the ₹1 lakh crore target.

Annexure

The district- wise details of projects identified and approved for providing support under Agriculture Infrastructure Fund (AIF) in the State of Andhra Pradesh

(Amount in Rs Crore)

*Information is based on the applications received on AIF portal.

# Excluding the Rs. 924 Crore in principle sanctions for PACS by NABARD

This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Lok Sabha today.