Agricultural Infrastructure Fund

Context

The Union Cabinet approved an expansion of the Agricultural Infrastructure Fund (AIF).

About Agriculture Infra Fund (AIF)

Agriculture Infra Fund (AIF) is a financing facility launched in 2020.
Objective: Creation of post-harvest management infrastructure and community farm assets.
It is a medium - long term debt financing facility for investment in viable projects for post- harvest management infrastructure and community farming assets through interest subvention and credit guarantee support.
Under this scheme, Rs 1 lakh crore is to be disbursed by financial year 2025-26 and the interest subvention and credit guarantee assistance will be given till the year 2032-33.
Eligible beneficiaries: Farmers, Agri-entrepreneurs, Start-ups, Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group (SHG), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Central/State agency or Local Body sponsored Public Private Partnership Projects, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs (Farmer Produce Organizations) and Federations of Self Help Groups (SHGs).

Redesigned Scheme: The AIF will now include financial support for FPOs.
Enhanced Attractiveness: The expansion aims to make the scheme more appealing and impactful.
Infrastructure Development: The initiative focuses on strengthening agricultural infrastructure facilities across the country.
Broader Scope: Expanding the range of eligible projects and integrating additional supportive measures.
Previous Achievements:
Sanctioned Projects: ?47,575 crore sanctioned for 74,508 projects.
Mobilised Investment: ?78,596 crore in the agriculture sector, with ?78,433 crore from private entities.
Employment Generated: Over 8.19 lakh rural jobs created in the agriculture sector.

A farmer producer organisation (FPO) is a legal entity that is owned and managed by farmers (cultivators, dairy producers, fishers, plantation owners, and others engaged in primary production in the agriculture sector).
FPO is a generic term for farmer collectives and can refer to one of the following:
- A company (under the Companies Act)
- A cooperative society (under the Multi-state Cooperative Societies Act)
- A mutually aided cooperative society (under the Mutually Aided Cooperative Societies Act).
FPOs are one type of producer organisation; others include collectives of weavers and artisans. Since most farmer producer organisations in recent years have been registered as producer companies, the terms FPC and FPO are often used interchangeably.