Launched by the Government of India in July 2020, AIF  is a financing facility aimed at catalyzing the development of post-harvest management infrastructure and community farming assets. With a substantial corpus of ₹1,00,000 crore, the fund seeks to provide medium to long-term debt financing facilities for investment in viable projects related to post-harvest management infrastructure and community farming assets through interest subvention and financial support. It offers several features to support the development of agriculture infrastructure and promote agricultural growth.

What are it's key features?

1. Convergence with government schemes: The AIF is designed to converge with all schemes of the central or state government, streamlining the financing process and ensuring that beneficiaries can access multiple sources of funding.
2. Online single window facility: The AIF provides an online single window facility in collaboration with participating lending institutions, making it easier for beneficiaries to apply for loans and access various resources and support.
3. Interest subvention: The scheme offers an interest subvention of 3% per annum up to a limit of ₹2 crore for all loans under this financing facility, helping to reduce the cost of borrowing for agriculture infrastructure projects.
4. Credit guarantee: The AIF provides a credit guarantee for loans up to ₹2 crore under the Credit Guarantee Scheme for Term Loans (CGTMSE) scheme, ensuring that lending institutions have a safety net in case of default.
5. Eligible projects: The AIF covers a wide range of agriculture infrastructure projects, including but not limited to, warehouses, assaying units, sorting and grading units, cold storage, pack-houses, collection centers, ripening chambers, and logistics facilities.
6. Multiple lending institutions: The AIF is available through various lending institutions, including commercial banks, cooperative banks, RRBs, small finance banks, NCDC, NBFCs, and others, ensuring that beneficiaries have access to diverse funding options.
7. Offline mode application: Although the AIF primarily offers an online application process, it is also possible to apply for the loan through offline mode. However, it is mandatory for lending institutions to make the necessary arrangements for offline applications.
8. Support: The AIF provides project management and handholding support for projects, including project preparation, ensuring that beneficiaries receive the necessary guidance and resources to successfully implement their projects.

Significance of AIF in India's Primary and Secondary Sectors

1. Enhancement of Agricultural Infrastructure: By financing projects such as cold storage, processing units, and warehouses, AIF aims to reduce post-harvest losses, thereby increasing the income of farmers and ensuring better price realization.
2. Promotion of Agribusinesses: The fund supports agri-entrepreneurs, startups, and farmer groups, fostering innovation and value addition in the agricultural sector, leading to the growth of agribusinesses.
3. Employment Generation: The development of infrastructure and allied activities under AIF is expected to create employment opportunities in rural areas, thereby contributing to rural  development and poverty alleviation.
4. Boost to the Secondary Sector: By strengthening the supply chain and providing quality  raw materials, AIF indirectly supports industries such as food processing, thereby boosting the secondary sector.

Recent Developments 

1. As of October 2023, Punjab ranked first in India in terms of the number of applications sanctioned under the AIF scheme. By January 2025, the state had sanctioned over 20,000 projects, reflecting the successful promotion and implementation of the scheme by the Department of Horticulture. 
2. In January 2025, Government announced a 15% increase in its agriculture budget, raising it to approximately $20 billion. This marks the most significant increase in six years and underscores the government's commitment to enhancing agricultural infrastructure and supporting rural incomes.