The Government of India has undertaken a mid-term evaluation of the Agriculture Infrastructure Fund (AIF) scheme to assess its progress and impact on the agriculture sector. The evaluation, conducted by the Agro Economic Research Centre (AERC), Pune in December 2023, highlights the scheme’s significant contribution to improving farmers’ income, boosting storage and post-harvest infrastructure, generating employment, and promoting agri-entrepreneurship across the country.
According to the report, 85% of AIF units stated that access to AIF loans was the primary reason for starting their projects, while on average, 40% of project costs were financed through AIF loans. Nearly 70% of beneficiaries utilized these loans to create new infrastructure. Importantly, 31% of units also availed government subsidies, benefitting from the convergence of support schemes.
The study also recorded a strong employment impact, with AIF-supported units providing an average of 11 jobs per unit during peak seasons. Rajasthan reported the highest employment generation, averaging 27 persons per unit, while Maharashtra recorded the lowest at 5. Employment was notably higher in agro-processing units compared to others.
On the infrastructure front, the AIF-backed warehouses, cold storages, and silos in the sample study created a combined capacity of 879,000 metric tonnes and occupied nearly 2.9 million square feet of space. Demand for products and services from these units was reported as satisfactory, with incomes described as sustainable and encouraging.
The evaluation further found that most units are located in rural areas, ensuring direct benefits to farming communities. Nearly 54% of respondents confirmed that farmers’ incomes had increased due to AIF facilities, with the majority rating this increase as both significant and satisfactory.
As of June 30, 2025, the AIF has sanctioned projects worth ₹66,310 crore covering 1,13,419 initiatives, mobilizing an overall investment of ₹1,07,502 crore in the agriculture sector. The major sanctioned projects include:
- 30,202 custom hiring centres
- 22,827 processing units
- 15,982 warehouses
- 3,703 sorting and grading units
- 2,454 cold storage projects
- 38,251 other post-harvest management projects and community farm assets
The findings reaffirm AIF’s role as a transformational scheme in strengthening India’s agricultural infrastructure, enabling farmers to access modern facilities, reduce post-harvest losses, and improve profitability through value addition.
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