Agriculture infrastructure fund – Benefits, eligibility, and how to apply

09 Jun, 2025

In India, farming is becoming more advanced and beneficial for the farmers. The main reason for this is the Agricultural Infrastructure Fund (AIF). The central government initiated this scheme to support village companies, businesses, and farmers. It also provides them with profits to develop markets, storage areas, and other essential facilities, which can help them generate income for a longer period. Here’s how this scheme can help you in growing your farming business.

What is the Agricultural Infrastructure Fund (AIF)

The Indian government launched the Agricultural Infrastructure Fund (AIF) in 2020. It is an important money program that assists in growing the farming business after the crop harvesting and building farming areas. Also, the government has fixed the amount of ₹1 lakh crore for this plan. This sum is provided as farmer groups, agricultural tech businesses, and loans to farmers to support them in constructing significant things such as markets, storage spaces, and advanced farming technologies. 

Key objectives of the AIF scheme

The AIF program major aims to:

• Increase processing and storage capacity for crops 
• Support companies and farmers associated with loans for useful farming items
• Motivate businessmen to invest in rural agricultural infrastructure 

Types of infrastructure supported under AIF

The AIF program reports several infrastructure forms, including:

• Storerooms and cold storage units 
• Grading, sorting, and cleaning areas
• Post-harvesting, drying, and packing facility units 
• Using advanced tools for farming, such as solar dryers, smart farming, and drip irrigation
• Private mandis and e-marketing programs for farming 

The main motive of these infrastructures is to eliminate wastage and improve the market approach.

Financial support: Loan and interest subsidy details

This plan offers subsidised loans that help people to easily invest in the farming infrastructure:

• Loan Amount: Around ₹2 crore
• Subsidy Interest: Under this plan, to reduce the burden of the loan
• Credit Guarantee: Covered under the CGTMSE
• Loan Period: Maximum of 7 years, with 2-year break duration

These loans and subsidy interest details indicate that groups and individuals can establish advanced farming without worrying about risky loans. 

Eligibility criteria for AIF scheme

Below is a detailed list of eligible candidates for the AIF plan who can apply:

• Agri-entrepreneurs and setups
• Central or state marketing panels
• Associations and self-help groups (SHGs)
• Farmers and farmer producer organisations (FPOs)
• Primary agricultural credit societies (PACS)

Apply for the AIF scheme

Here is the authorised portal: National Agriculture Infra Financing Facility

Steps for Registration:

• Enroll as a beneficiary.
• Propose project aspects and monetary requirements.
• Select a bank or loaning association.
• Track claim and finance authorization online.

These are important documents, and an intense project scheme enhances approval possibilities.

Conclusion

The AIF program is an excellent chance for everyone in agriculture or rural growth. It assists in minimising crop losses, fosters better market relationships, and improves earnings for farmers. Whether you’re a minor farmer or a rural businessperson, you can employ this proposal to develop incredible long-term and valuable income.

The Agricultural Infrastructure Fund (AIF) plan offers you a great opportunity to earn revenue, save income after harvesting, and begin your own agricultural company. Establish better and quicker farming services today to grow your business in the future.

The Agricultural Infrastructure Fund aims to adapt Indian agriculture by financing critical infrastructure. 

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