🌾 Introduction: Transforming India’s Agricultural Landscape
India’s agribusiness sector has long been the backbone of its economy, yet it has grappled with critical gaps in post-harvest infrastructure, leading to massive post-harvest losses, low value realization, and limited market access for farmers. Recognizing this, the Government of India launched the Agriculture Infrastructure Fund (AIF) in 2020-21 — a transformative initiative aimed at bridging these infrastructural gaps and catalyzing growth in the agricultural value chain.
At Shiva Consultancy Group, we specialize in helping agri-entrepreneurs, FPOs, cooperatives, and agri-based enterprises tap into the immense financial potential of AIF, driving forward India’s vision of a self-reliant and globally competitive agribusiness sector.
📊 Understanding the Agriculture Infrastructure Fund (AIF)
The Agriculture Infrastructure Fund (AIF) is a medium to long-term debt financing facility that focuses on the creation of post-harvest management infrastructure and community farming assets. With an ambitious target of ₹1 lakh crore to be sanctioned by 2025-26, AIF offers a unique opportunity for stakeholders to invest in high-potential projects with government-backed financial incentives.
Key Milestones of AIF (as of January 26, 2025):
• Total Sanctioned Amount: ₹56,334 crore
• Total Number of Projects Sanctioned: 92,393
• Total Investment Mobilized: ₹91,856 crore
• Remaining Funds Available: ₹43,666 crore
• Interest Subvention: 3% per annum up to ₹2 crore for 7 years
• Interest Rate Cap: 9% per annum
• Credit Guarantee Support: Through NABSanrakshan for FPOs
This leaves a substantial corpus available for new projects, providing a golden window of opportunity for stakeholders to secure funding before the scheme’s deadline.
🏆 Success Stories: AIF Impact Across States
The AIF has been pivotal in driving agri-infrastructure development across India. Let’s delve into specific success metrics:
🔹 Andhra Pradesh – AIF Front Runner:
• Total Sanctioned Amount: ₹2,819 crore
• In-Principle Sanctions for PACS by NABARD: ₹924 crore
• Total Number of Projects: 2,686
• Total Project Cost: ₹4,124 crore
🔹 National Trends:
• Cold Storage & Warehousing: 40% of total sanctioned projects
• Agri-Processing Units: 25% focusing on value addition
• Supply Chain & Logistics: 15% invested in reefer vans, pack houses, and logistics hubs
• FPO-Focused Projects: 10% of projects aimed at farmer collectives
• Renewable Energy Integration: Increasing adoption through PM-KUSUM convergence
💡 Eligible Projects Under AIF: Avenues for Agribusiness Growth
The AIF covers a wide spectrum of agribusiness ventures, offering funding for:
1. Post-Harvest Management Facilities:
• Warehouses, Cold Storage Units, Ripening Chambers, Sorting & Grading Units
2. Supply Chain & Logistics:
• Reefer Vans, Transport Hubs, Collection Centers
3. Value Addition & Processing Units:
• Food Processing Plants, Bio-Stimulant Units, Waste-to-Energy Facilities
4. Farmer-Centric Infrastructure:
• Farm Gate Collection Centers, Custom Hiring Centers, Integrated Farming Units
5. Renewable Energy-Based Infrastructure:
• Solar-Powered Cold Storage, Biogas Plants under PM-KUSUM Convergence
6. FPO and Cooperative-Based Projects:
• Community Farming Assets, Primary & Secondary Processing Units
💰 Financial Benefits for Applicants: Unlocking Subsidies, Grants & Credit Guarantees
The AIF offers significant financial advantages:
• Interest Subvention of 3% for loans up to ₹2 crore, reducing borrowing costs.
• Maximum Loan Tenure: 7 years, promoting long-term infrastructure development.
• Credit Guarantee Support via NABSanrakshan for Farmer Producer Organizations (FPOs), eliminating the need for collateral.
• Interest Rate Capped at 9%, ensuring affordable financing options.
• Integration with Other Schemes:
• PM-KUSUM Component-A for renewable energy-linked agri-infrastructure.
• Convergence with State-Level Subsidies and NABARD-backed programs for additional benefits.
👥 Who Can Apply?
AIF is open to a wide range of stakeholders involved in agriculture and allied sectors:
• Farmers & Farmer Producer Organizations (FPOs)
• Primary Agricultural Credit Societies (PACS)
• Agri-Entrepreneurs & Startups
• Self-Help Groups (SHGs)
• Agri-Based Cooperatives
• Agri-MSMEs & Private Sector Entities
• Marketing Boards & Local Bodies
🔍 Shiva Consultancy Group: Your AIF Success Partner
Navigating the complexities of government schemes can be daunting. That’s where we come in.
At Shiva Consultancy Group, we provide end-to-end consultancy services to ensure our clients capitalize on every opportunity under AIF.
Our Services Include:
✅ Project Identification & Feasibility Studies
✅ Detailed Project Report (DPR) Preparation
✅ End-to-End Application Management
✅ Banking & NABARD Liaison for Loan Sanction
✅ Subsidy & Grant Application Support
✅ Post-Approval Compliance & Monitoring
✅ Strategic Financial Planning & Risk Management
With a deep understanding of the AIF landscape, coupled with strong industry networks and regulatory expertise, we ensure that your project not only secures funding but thrives in the long run.
🚀 The Opportunity Awaits – Seize It Now!
With ₹43,666 crore still up for grabs under AIF and the 2025-26 deadline fast approaching, there’s never been a better time to invest in agriculture infrastructure. Whether you’re planning a modern cold storage facility, an agri-processing unit, or a renewable energy-integrated agri-project, Shiva Consultancy Group is your trusted partner in turning your vision into reality.
📞 Let’s Get Started Today!
Rakesh Jha – Co-Founder
📍 SF 34, 4D Square Mall, Motera, Ahmedabad – 380005, India
📞 +91 9979021275 | 📧 rksjha@live.in
💬 Final Thoughts: Building India’s Agri Future Together
The AIF represents more than just financial assistance — it’s a catalyst for rural transformation, increased farmer incomes, and sustainable agri-business growth. At Shiva Consultancy Group, we are committed to guiding you at every step of your agribusiness journey, ensuring you not only tap into these financial opportunities but also build lasting value for India’s agricultural economy.
Let’s turn opportunities into outcomes — with Shiva Consultancy Group.