The Agriculture Infrastructure Fund is transforming rural India by strengthening post-harvest and farm-gate facilities. Launched in 2020–21, this flagship Government of India initiative supports projects that improve agricultural productivity, reduce wastage, and increase farmers’ incomes through better infrastructure.
One shining example is the Sri Maa Majji Gouri Cashew Industry in Kidigam, Odisha. Established in 2022 with a loan of ₹42.75 lakh at just 5.5% interest through the Agriculture Infrastructure Fund, this project now employs 20 people directly and supports 40 local farmers. With an expected annual revenue of ₹2.48 crore, it has become a symbol of how targeted funding can uplift communities.
Large-Scale Impact Across India
Since its launch, the Agriculture Infrastructure Fund has sanctioned ₹66,310 crore for 1.13 lakh projects nationwide, mobilizing an investment of over ₹1.07 lakh crore in the agriculture sector. From warehouses and cold storages to integrated processing units, these projects are enhancing market access and improving price realization for farmers.
More than 2,450 cold storage projects worth ₹8,258 crore have been approved, ensuring better preservation of produce and reduced post-harvest losses.
Objectives for Stakeholders
The Agriculture Infrastructure Fund benefits the entire agricultural ecosystem:
- Farmers & FPOs: Gain access to storage, logistics, and packaging facilities for better market timing and pricing.
- Government: Reduces food wastage and aligns India’s agri-sector with global standards.
- Agri-Entrepreneurs: Encourages innovation and adoption of advanced technologies.
- Banks: Offers low-risk lending through interest subvention and credit guarantees.
- Consumers: Ensures better quality produce at fair prices.
Expanded Scope for Greater Inclusion
In August 2024, the government expanded the Agriculture Infrastructure Fund to cover:
- Integrated primary and secondary processing units.
- Solar-powered projects under PM-KUSUM Component-A.
- Extended credit guarantees for FPOs through NAB Sanrakshan.
- Community farming infrastructure for climate-resilient agriculture.
This expansion encourages sustainable and technology-driven agricultural facilities across India.
Supporting Government Schemes
Several schemes complement the Agriculture Infrastructure Fund, creating a strong ecosystem for agricultural growth:
- Agricultural Marketing Infrastructure (AMI): Strengthens rural storage and marketing facilities.
- Mission Organic Value Chain Development for North Eastern Region (MOVCDNER): Promotes certified organic farming.
- Digital Public Infrastructure (DPI): Builds a unified agri-digital ecosystem for better access to services.
- Pradhan Mantri Matsya Sampada Yojana (PMMSY): Boosts fisheries production and post-harvest facilities.
- Micro Irrigation Fund (MIF): Improves irrigation efficiency.
These initiatives ensure that infrastructure development is both comprehensive and inclusive.
Digital Empowerment for Farmers
The Agriculture Infrastructure Fund works alongside platforms like e-NAM, ONDC, and GeM to give farmers direct access to buyers and institutions. This reduces dependency on middlemen and promotes transparent trade.
The Agriculture Infrastructure Fund is more than just a financing tool—it is a catalyst for rural transformation. By integrating modern infrastructure, sustainable practices, and digital technology, it is boosting farmer incomes, reducing wastage, and ensuring food security.
As these efforts continue, India’s agricultural sector is set to become more resilient, competitive, and inclusive, driving both rural prosperity and national economic growth.
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