Agriculture Infrastructure Fund

25 AUGUST 2021
Agri Infrastructure Fund launched to solve critical gaps, promote
funding for post-harvest infra, community farming assets

Absence of post- Dependence on Lack of long- Potential to

harvest infra intermediaries term institutional increase funding
funding for startups and
MSMEs
​ 15%+ post ​ 30-50% lower ​ Lack of credit
​ 600+ high
harvest-losses realizations for long term
potential
vis a vis retail investment
agritech
prices
startups
Key Events

Announcement of Rs 1 lakh crore Agri Infrastructure Fund under

Atmanirbhar Bharat Package by Union Finance Minister on 15.05.2020

Approval by the Cabinet Committee on 08.07.2020 chaired by Hon’ble

Prime Minister

Formal Inauguration of the Scheme by Hon’ble Prime Minister

in the presence of Union Agriculture Minister on 09.08.2020
Agriculture Infrastructure Fund setup to drive infra investments; 8
key features
Size of the fund – Rs. 1 lakh Crore, to be released Beneficiaries - Farmers, FPOs, PACS,
on FCFS basis; upto 25 projects per individual Entrepreneurs, Startups, SHG, APMCs, Federation
beneficiary in diff. locations1 etc.

Interest Subvention – 3% p.a. up to loan Rs. 2 Cr Credit Guarantee – Under CGTMSE scheme for
(NABARD loans for PACS at 1% post subvention) loan up to Rs. 2 Crore

GoI support in lending process – facilitate and

Duration – 7 years (Including moratorium period of
drive speedy sanctions through a user-friendly online
upto 2 years)
portal

​Convergence - Allowed to dovetail with several

​Lending Institutions – 24 Commercial Banks,
schemes (across ministries,
40 Cooperative Banks, NABARD, etc.
state govt.)

1. No limit for State Agencies and Federations of FPOs, SHGs, etc.

Modifications approved by Cabinet recently; will help achieve
multiplier effect in driving investments

Eligibility extended to include more beneficiaries –

• APMCs, State Agencies, National & State Federations of Cooperatives, Federations of Farmers Producers
Organizations (FPOs) and Federations of Self-help Groups (SHGs) now eligible under the scheme

Cap on number of projects per beneficiary increased from 1 project to 25 projects –

• Private entities can now submit upto 25 applications under the scheme; projects to be in different locations
having different LGD code
• No limit on applications for State agencies, Federations of farmer groups

APMCs can setup multiple projects in same location of different types –

• Interest subvention for loan upto Rs. 2 crore will be provided for each project of different infrastructure types
e.g., cold storage, sorting, grading and assaying units, silos, etc. within the same market yard

Duration of the scheme extended from 4 to 6 years –

• Period of financial facility has been extended from 4 to 6 years upto 2025-26 and overall period of the scheme
has been extended upto 2032-33
Multiple types of stakeholders eligible under Agri Infra Fund

Farmers Farmer Agri Large State

Groups entrepreneurs businesses agencies
• Individual farmers • Farmer groups (whether • Individual business • FMCG players • Agricultural Produce
registered or owners like millers, • Exporters Marketing Committees
unregistered); few exporters, food processing • Food processors (APMCs)
examples: units, traders, storage • Equipment manufacturers • Federations of FPOs,
• Farmer Producer providers, etc. SHGs, Cooperatives
Organisations • Supply chain players • State Warehousing
• Joint Liability Groups • Smart farming Corporations
• Self Help Groups
• Primary Agricultural Coop
Societies
Multiple post-harvest infra types & community farming assets
eligible under AIF
Non-exhaustive
Post-harvest infrastructure Community farming assets

Storage Parks – Modern Integrated

Warehouses Custom Hiring Centers
silos pack-houses

Modern silos can reduce wastage to Warehouses can reduce wastage to Drive exports by meeting international Mechanization can help reduce
less than 1% and reduce desperate sell less than 5% and improve PHM standards and quarantine safety costs/acre by ~30%

Cold chain infrastructure Community drying yards Refrigerated transportation IoT/ Precision farming assets

Cold storages can reduce post-harvest Yards in every village - Can reduce Ensure long distance fresh produce Promote AI based smart farming
losses to less than 5% post-harvest losses by 5% to 10% transfer; wastage in solutions – can increase yield by
transportation ~5% 10% - 20%
List of primary processing activities eligible under Agriculture
Infrastructure Fund (1/3)

SI. No. Crops Eligible PHM & Primary Processing Activities Not eligible under AIF
• Washing • Blanching for primary • Dehydration
• Cleaning processing • Concentrated products
Fruits and • Drying • Cooling • Canning
1 vegetables • Sorting • Waxing • Juice extraction
• Grading • Conditioning • Sterilization

• Cleaning • Splitting • Canning • Pulse based foods

• De-stoning • De-hulling • Besan • Puffed chickpea
2 Pulses • Drying • Milling • Papads • Pulse polishing
• Sorting & grading • Irradiation
• De-husking

• Cleaning • Tempering • Fermentation • Frying

• De-stoning • Parboiling • Baking • Extrusion
• Sorting & grading • Soaking • Puffing • Blending
Cereals (Wheat, • Hulling • Drying • Flaking • Roasting
3 Paddy, etc. • Milling • Sieving
• Pounding • Irradiation
• Grinding

• Cleaning • Winnowing • By-product utilization

• De-stoning • Oil extraction (ghani, • Refining
Oilseeds • De-husking (decorticating hydraulic press etc.) • Neutralization
4 machines) • Bleaching
List of primary processing activities eligible under Agriculture
Infrastructure Fund (2/3)

SI. No. Crops Eligible PHM & Primary Processing Activities Not eligible under AIF
• Cleaning • Grinding • Roasting
• Drying • Packaging • Sterilizing
• Sorting • Storage • Thermal treatment
5 Spices • Boiling • Irradiation
• Polishing

• Cleaning • Hulling • Roasting

• Drying of cherries • Pulpinq • Grinding
6 Coffee • Washing • Extraction

• Cane unloading • Evaporators

• Cleaning • Centrifugation
7 Sugarcane • Cane breaking • Storage tanks
• Cane milling • Dryers
• Straining

• Cleaning • Pressing & Bailing • Fibre finishing • Spinning

• Drying • Lintering • Scouring • Weavinq
8 Cotton • Ginning • Purifying

• Cleaning • Fermentation of cocoa • Roasting

• Gathering of pods • Drying • Winnowing
9 Cocoa • Sorting • Storage • Alkalization
• Breaking of pods
List of primary processing activities eligible under Agriculture
Infrastructure Fund (3/3)

SI. No. Crops Eligible PHM & Primary Processing Activities Not eligible under AIF
• Cutting • Drying
• Retting • Bailing
10 Jute • Stripping • Packing
• Washing • Storaqe

• Cleaning • Peeling
• Streaming in boiler • Grading
11 Cashew • Shell cutting • Packaging
• Drying

• Washing • Storage
• Drying • Packaging
12 Moringa • Milling

• Cleaning • Fermentation
• Withering • Drying
13 Tea • Rolling • Sorting

• Mastication • Curing • Syrup • Frying

• Mixing • Irradiation • Pills Cream • Distillation
14 Rubber • Shaping • Roasting • Concentration

• Cleaning • Drying
Herbal and • Sorting
15 Medicinal Crops
Convergences allowed with several central and state schemes to
reduce ongoing cost & improve viability of projects
Non-exhaustive

Sub schemes under Mission for Integrated Development of Horticulture

35% – 50% capital subsidy for infra including cooling units, pack house, ripening chambers, reefer vans, etc.

PM Formalisation of Micro Food Processing Enterprises Scheme

35% capital subsidy along with additional support for FPOs, SHGs for working capital, training, DPR preparation

Sub Mission on Agriculture Mechanization (SMAM)

Community farming assets with up to 40% procurement subsidy for establishment of custom hiring service centers

Rashtriya Krishi Vikas Yojana (RKVY)

Convergence with state plan for funds provided by centre under RKVY scheme

Sub-schemes under PM Kisan Sampada (PMSKY)

35% capital subsidy for infra like cleaning, grading, sorting, packaging, drying, IQF etc.

Operation Greens
50% capital subsidy for TOP crops (Tomato, Onion, Potao) consisting of all components of integrated value chain development
project: formation & capacity building of FPOs, quality production, post harvest infra like – sorting, grading, collection center,
agri-logistics, infra at market/consumption points
AIF portal - Simple online application process setup for the
scheme

AIF Platform: https://agriinfra.dac.gov.in/

Max 60 days

Applicant AIF team verifies Bank regularly Application Bank submits GOI transfers
registers on application checks AIF verified by bank, claim to MoA interest
online portal, fills and transfer portal / coordinate registered on on a quarterly subvention
application and to bank branch for with nodal officer CGTMSE & basis for interest & credit
submits DPR appraisal to access sanctioned; subvention & guarantee fee to
submitted disbursements as credit guarantee banks
applications per schedule fee