AGRICULTURE INFRASTRUCTURE FUND (AIF)

NEWS: The Prime Minister has announced the doubling of the Agriculture Infrastructure Fund (AIF) loan target from ₹1 lakh crore to ₹2 lakh crore.

ABOUT AIF

• A medium-long term debt financing facility for investment in viable projects
• For post- harvest management infrastructure and community farming assetsà through interest subvention and credit guarantee support.
• Central Sector Scheme
• Implementation: From 2020-21 to 2029-30.
• Loans with interest subvention of 3% per annum and credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises for loans up to ₹ 2 Crores.
• Eligible Beneficiaries
  • Primary Beneficiaries such as Farmers, Primary Agricultural Credit Societies (PACS), Farmers Producer Organizations (FPOs), Self Help Groups (SHGs),etc
  • Government/Agencies such as Agricultural Produce Market Committees.

Significance

• Strengthens cold storage, warehousing, grading, and supply chains → reduces post-harvest losses and improves farmers’ income
• Encourage investment by farmers, FPOs, PACS, and SHGs in agri-infrastructure.
• Promotes Agricultural Modernization & Value Addition