Agriculture Infrastructure Fund (AIF)

Here’s a short note on the Agriculture Infrastructure Fund (AIF):

1. Introduction:
   • The Agriculture Infrastructure Fund (AIF) was launched on 15th May 2020 by the Government of India.
   • It is a Central Sector Scheme aimed at providing medium to long-term debt financing for agricultural infrastructure projects.
2. Objective:
   • To develop post-harvest management infrastructure and community farming assets.
   • To reduce post-harvest losses, improve value addition, and enhance farmers’ income.
3. Corpus and Tenure:
   • The total corpus of the fund is ₹1 lakh crore.
   • The scheme will be operational from 2020-21 to 2032-33, with loan disbursement to be completed by 2025-26.
4. Key Features:
   • Interest Subvention: Loans up to ₹2 crore are eligible for an interest subvention of 3% per annum for a maximum period of 7 years.
   • Credit Guarantee: Loans up to ₹2 crore are covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), with the fee paid by the government.
   • Eligibility: Beneficiaries include farmers, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), agri-entrepreneurs, startups, and state agencies.
5. Scope of Projects:
   • The fund supports projects like warehouses, cold storage, silos, pack houses, grading units, ripening chambers, and e-marketing platforms.
   • It also includes infrastructure for organic input production, smart agriculture, and export clusters.
6. Implementation:
   • The scheme is implemented by the Ministry of Agriculture and Farmers Welfare.
   • Financial institutions such as scheduled banks, cooperative banks, Regional Rural Banks (RRBs), and NBFCs participate in the scheme.
7. Achievements:
   • As of 2024, the fund has supported the creation of 6,623 warehouses, 688 cold stores, and 21 silo projects.
   • It has generated an additional storage capacity of 500 lakh metric tonnes, including 465 LMT of dry storage and 35 LMT of cold storage.
8. Integration with Other Schemes:
   • The AIF is integrated with the PM-KUSUM scheme to promote sustainable energy solutions.
   • It complements other initiatives like the FPO Promotion Scheme and Digital Agriculture Mission.
9. Impact:
   • The fund aims to reduce post-harvest wastage, improve agricultural exports, and enhance global competitiveness.
   • It is expected to create employment opportunities and strengthen the rural economy.
10. Academic Relevance:
    • The AIF is a case study in agricultural policy, rural development, and public-private partnerships.
    • It highlights the role of financial incentives and infrastructure development in transforming the agricultural sector.

This comprehensive initiative is a cornerstone of India’s efforts to modernize agriculture and ensure sustainable growth.

Here are some multiple-choice questions (MCQs) based on the Agriculture Infrastructure Fund (AIF):

1. When was the Agriculture Infrastructure Fund launched?
   • 2018
   • 2019
   • 2020
   • 2021
   Answer: 2020
2. What is the total corpus of the Agriculture Infrastructure Fund?
   • ₹50,000 crore
   • ₹75,000 crore
   • ₹1 lakh crore
   • ₹1.5 lakh crore
   Answer: ₹1 lakh crore
3. What is the tenure of the Agriculture Infrastructure Fund?
   • 2020-2025
   • 2020-2030
   • 2020-2032
   • 2020-2028
   Answer: 2020-2030
4. Which ministry implements the Agriculture Infrastructure Fund?
   • Ministry of Rural Development
   • Ministry of Commerce and Industry
   • Ministry of Agriculture and Farmers Welfare
   • Ministry of Finance
   Answer: Ministry of Agriculture and Farmers Welfare
5. What is the interest subvention provided under the Agriculture Infrastructure Fund?
   • 2% per annum
   • 3% per annum
   • 4% per annum
   • 5% per annum
   Answer: 3% per annum
6. Who are the beneficiaries of the Agriculture Infrastructure Fund?
   • Only farmers
   • Farmers, FPOs, SHGs, and agri-entrepreneurs
   • Only startups
   • Only state agencies
   Answer: Farmers, FPOs, SHGs, and agri-entrepreneurs
7. Which projects are supported by the Agriculture Infrastructure Fund?
   • Cold storage, silos, and warehouses
   • Residential housing projects
   • Urban transport infrastructure
   • Industrial zones
   Answer: Cold storage, silos, and warehouses
8. What additional scheme is the Agriculture Infrastructure Fund integrated with?
   • PM-KUSUM Scheme
   • Digital India Mission
   • Swachh Bharat Abhiyan
   • Ayushman Bharat
   Answer: PM-KUSUM Scheme
9. What key output has the AIF achieved as of 2024?
   • Construction of 6,623 warehouses
   • Establishment of 1,000 schools
   • Development of 1,500 factories
   • Creation of 800 hospitals
   Answer: Construction of 6,623 warehouses
10. What is the expected impact of the Agriculture Infrastructure Fund?
    • Increased post-harvest wastage
    • Strengthened rural economy and reduced wastage
    • Lower agricultural exports
    • Decline in employment opportunities
    Answer: Strengthened rural economy and reduced wastage