Agriculture Infrastructure Fund, no doubt is a huge push to India’s agri infra helping many to boost their business. One such story that is making headlines these days is from Gajapati District of Odisha, where the “Sri Maa Majji Gouri” a cashew industry established with the aim to create a primary cashew processing unit. However, who knew this cashew industry will soon make headlines.
Established in 2022 the industry set their total project cost of ₹57 lakh, and soon the promoters secured a loan of ₹42.75 lakh from UCO Bank at a highly subsidised interest rate of 5.5% per annum, made possible through the Agriculture Infrastructure Fund (AIF).
Agriculture Infrastructure Fund Helped Many Secure Employment
Backed by the affordable and timely financing through Agriculture Infrastructure Fund helped the unit stand their business and provide direct employment opportunities to 20 individuals and support 40 local farmers. The unit has a secured expected annual revenue of Rs 2.48 crore, and moreover the enterprise is not just a source of income—it is also a cornerstone of community development and agricultural progress.
This success story of Sri Maa Majji Gouri cashew industry reflects the broader impact of Modi’s Govt. initiatives for the farmers of the nation. And, the intent of the Agriculture Infrastructure Fund (AIF), a visionary scheme launched in 2020–21 to strengthen post-harvest and farm-gate infrastructure. AIF aims to boost farmer income through value addition and efficient logistics. Back in 2020-21 government launched AIF to strengthen agricultural infrastructure across India. It is a medium-long-term debt financing facility by govt. to help farmers and entrepreneurs in their post-harvest management infrastructure and viable farming assets.
Key Takeaways from Agriculture Infrastructure Fund (AIF)
Under AIF, a loan provision of Rs 1 lakh crore has been made through lending institutions, with a capped interest rate of 9% on loans. The scheme is operational for a period of 13 years, from 2020–21 to 2032–33. However, loan disbursement under the scheme will complete in six years i.e. by the end of FY 2025-26. All loans under this financing facility have interest subvention of 3% per annum up to a loan limit of Rs 2 crores. This interest subvention is available for a maximum period of 7 years. In case of loans beyond Rs 2 crores, interest subvention is limited up to Rs 2 crores.
Credit guarantee coverage is also available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs 2 crores. The fee for this coverage is borne by the Government.
- As of30th June 2025, a total of Rs 66,310 crore has been sanctioned under the Agriculture Infrastructure Fund (AIF) for 1,13,419 projects across India. These projects have successfully mobilized an investment of Rs 1,07,502 crore in the agriculture sector. Also, a total of 2,454 cold storage projects has been sanctioned under the AIF, with a cumulative sanctioned amount of Rs 8,258 crore.This large-scale infrastructure push is expected to enhance storage, reduce wastage, improve value addition, and ultimately increase farmer incomes.