Agriculture Infrastructure Fund (AIF) provides a 3% interest subvention on loans, lowering borrowing costs for agricultural projects and making investments more affordable for farmers and agri-entrepreneurs.
The fund offers credit guarantees for loans up to Rs. 2 crores through CGTMSE, reducing lenders' risks and improving access to financing for agricultural initiatives.
AIF supports the creation of infrastructure like warehouses and cold storage, which helps reduce post-harvest losses and maintain crop quality, thereby increasing farmers' income.
By financing assets such as organic input production and precision farming infrastructure, AIF enhances productivity and sustainability for entire farming communities.
Investments in logistics infrastructure and e-marketing platforms under AIF help farmers reach broader markets, minimizing intermediaries and improving price realization.
AIF incentivizes private sector participation in agriculture, encouraging innovation and the introduction of advanced technologies into the sector.
The fund reserves a portion of grants for SC/ST entrepreneurs and supports diverse farmer groups, promoting equitable distribution of benefits across the agricultural community.