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Punjab has emerged as a leader in implementing the Central government's Agriculture Infrastructure Fund (AIF) scheme.

About Agriculture Infrastructure Fund (AIF)

It was launched in July 2020 by the Ministry of Agriculture and Farmers’ Welfare.

It is a ₹1 lakh crore fund designed to provide medium-to-long-term debt financing for viable agriculture infrastructure projects.

It aims to reduce post-harvest wastage by improving storage, processing, and distribution facilities, thus increasing farmers’ income and food security.

Initially focused on primary post-harvest processes (grading, packing), the scheme was extended in August 2024 to include secondary processing (e.g., making juices, jams from kinnow oranges), enabling farmers to add value to their produce.

Key Features of the AIF Scheme

A 3% interest subvention is provided on eligible loans for up to 7 years, with a maximum interest rate capped at 9% for loans up to ₹2 crore.

Risk mitigation for lenders through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and NABSanrakshan Scheme, encouraging loans to smaller enterprises.

Projects can combine AIF benefits with other state and Central subsidies (e.g., PM-KUSUM for solar projects), enhancing financial accessibility.

Farmers, agripreneurs, Farmer Producer Organizations (FPOs), start-ups, cooperatives, public-private partnerships (PPPs), and state agencies.

Types of Projects Supported by the AIF

The scheme funds diverse initiatives, particularly in post-harvest management and value addition:

Post-Harvest Infrastructure: Storage facilities (warehouses, cold chains, silos), grading/packaging units, and solar-powered cold stores.
Value Addition: Processing units for fruits, vegetables, spices, and grains (e.g., kinnow juicing, oil extraction, flour mills).
Technology Adoption: Drones for precision farming, smart irrigation systems, and precision agriculture tools.
Community Assets: Organic input manufacturing, biostimulant facilities, and custom hiring centers for shared farm equipment.

Impact of the AIF Scheme

Improved storage and processing facilities have minimized crop spoilage, enhancing food security.
Generated over 19 lakh employment opportunities, boosting rural incomes.
SC/ST entrepreneurs benefit from a 24% quota in grants-in-aid, promoting equitable participation.

Punjab’s Achievements Under the AIF

100% Fund Utilization: Punjab became the first state to fully utilize its ₹4,713 crore allocation, achieving this 15 months ahead of the March 2026 deadline.
Additional Allocation: The Centre raised Punjab’s allocation to ₹7,050 crore in recognition of its performance.
Grassroots Reach:
- 21,740 projects sanctioned (highest in India), with 9 of the top 10 districts under the scheme located in Punjab.
- 71% of beneficiaries are individual farmers, and 67% of projects cost under ₹25 lakh, ensuring small-scale farmers benefit.
Diverse Projects: Kinnow processing units, solar-powered cold stores, cashew processing, and drone-based agriculture solutions are among the initiatives.