Cabinet Approves Expansion of Agricultural Infrastructure Fund to Enhance Farming and Rural Infrastructure

Since its launch in 2020, the AIF has significantly contributed to the agricultural sector, supporting the creation of 6,623 warehouses, 688 cold storage facilities, and 21 silos.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an expansion of the Central Sector Scheme under the ‘Agriculture Infrastructure Fund’ (AIF). This expansion aims to make the scheme more attractive, impactful, and inclusive, with new measures designed to strengthen agricultural infrastructure and support the farming community.

Key Measures in the Expansion

1. Inclusion of Viable Farming Assets: The scope of the AIF scheme will now cover the creation of infrastructure under 'viable projects for building community farming assets.' This initiative is expected to boost community farming capabilities, enhancing productivity and sustainability in agriculture.

2. Integrated Processing Projects: Integrated primary and secondary processing projects will be added to the list of eligible activities under AIF. Standalone secondary projects will not be included but will be supported under the Ministry of Food Processing Industries (MoFPI) schemes.

3. Convergence with PM KUSUM Component-A: Component-A of the PM-KUSUM scheme will now be allowed to converge with AIF. This alignment will support farmers, Farmer Producer Organizations (FPOs), cooperatives, and Panchayats in adopting sustainable clean energy solutions alongside developing agricultural infrastructure.

4. Expansion of Credit Guarantee Options: In addition to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), credit guarantee coverage for FPOs will now also be extended through NABSanrakshan Trustee Company Pvt. Ltd. This expansion aims to enhance the financial security and creditworthiness of FPOs, encouraging greater investment in agricultural infrastructure.

Achievements and Impact of AIF

Since its launch in 2020, the AIF has significantly contributed to the agricultural sector, supporting the creation of 6,623 warehouses, 688 cold storage facilities, and 21 silos. This expansion has increased the country’s storage capacity by about 500 lakh metric tonnes (LMT), including 465 LMT of dry storage and 35 LMT of cold storage. This additional capacity allows for the annual saving of 18.6 LMT of food grains and 3.44 LMT of horticultural produce.

The AIF has sanctioned Rs. 47,575 crore for 74,508 projects to date, mobilizing a total investment of Rs. 78,596 crore, with Rs. 78,433 crore sourced from private entities. These infrastructure projects have also created over 8.19 lakh rural employment opportunities.

Looking Forward

The expanded scope of the AIF scheme is expected to further drive growth in agriculture, improve productivity, and enhance farm incomes. These measures reflect the government's commitment to strengthening the agricultural sector through comprehensive infrastructure development, fostering sustainability, and supporting rural communities.