**Summary:**
A mid-term evaluation of the Agriculture Infrastructure Fund (AIF) scheme, conducted by the Agro Economic Research Centre (AERC), Pune in December 2023, indicates a positive impact on the agricultural sector. The evaluation highlights increases in farmers' income, agricultural storage capacity, post-harvest and value addition infrastructure, employment generation, and agricultural entrepreneurship. Key findings include: approximately 85% of AIF units were initiated primarily due to the availability of AIF loans, which covered an average of 40% of the project cost. Around 70% of units utilized the loans to create new infrastructure. Employment generated by AIF units was higher during peak seasons, averaging 11 persons per unit, with a high of 27 in Rajasthan and a low of 5 in Maharashtra. Agro-processing units reported higher employment numbers. Sampled AIF warehouses, cold storage units, and silos have created a total capacity of approximately 879,000 metric tons, occupying around 2,900,000 square feet. Around 54% of respondents believed that farmers' incomes have increased due to AIF units. As of June 30, 2025, Rs. 66,310 Crores have been sanctioned for 1,13,419 projects under AIF, mobilizing an investment of Rs. 107,502 Crores in the agriculture sector. Major sanctioned projects include 30,202 custom hiring centers, 22,827 processing units, 15,982 warehouses, 3,703 sorting grading units, 2,454 cold store projects, and approximately 38,251 other post-harvest management projects and viable community farm assets. This information was provided by the Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Agriculture Infrastructure Fund (AIF): A government scheme to improve agriculture infrastructure.
Agro Economic Research Centre (AERC), Pune: An agricultural economics research center located in Pune, Maharashtra, which evaluated the AIF scheme.
Rajasthan: A state in India where the average number of persons employed per AIF unit in the peak season was highest.
Maharashtra: A state in India where the average number of persons employed per AIF unit in the peak season was lowest.
Lok Sabha: The lower house of the Parliament of India, where information about the AIF was given in a written reply.
Shri Ramnath Thakur: Minister of State for Agriculture and Farmers Welfare who provided information about the AIF scheme in Lok Sabha.
Ministry of Agriculture & Farmers Welfare
EVALUATION OF PROGRESS OF AIF
Posted On: 19 AUG 2025 5:43PM by PIB Delhi
The Government has undertaken a mid-term evaluation of Agriculture Infrastructure Fund (AIF)
scheme. Agro Economic Research Centre (AERC), Pune evaluated the scheme’s progress and
performance, gather beneficiary feedback, and suggest improvements in December 2023. The evaluation
highlighted positive impact of the scheme in terms of increase in farmers’ income, increase in
agriculture storage capacity, growth of post-harvest and value addition infrastructure for agriculture
produce, generation of employment and encouraging agriculture entrepreneurship. The detail of the
outcomes of the study are as below:
i. 31% of the AIF units availed government subsidies also. Thus, they have been benefitted due to
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Convergence under AIF.
ii. Around 85% of the total units, availability of AIF loan was the main reason for starting the unit.
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iii. On an average about 40% of the project cost of the AIF units was covered by AIF loan.
iv. Around 70% of the units have taken loan for creating new infrastructure.
v. The employment generated by AIF unit activities was relatively higher in peak seasons than in
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slack season. The average number of persons employed per unit in the peak season was found to be
11. The average was highest i.e. 27 in Rajasthan and lowest i.e. 5 in the state of Maharashtra.
vi. Number of persons employed per unit was higher in case of agro processing units.
vii. The total capacity created by sample AIF warehouse, cold storage units and silos is around 879
thousand MT. Also, these units have occupied total area of around 2900 thousand sq. feet.
viii. Overall responses reveal satisfactory demand for products/services of AIF units and satisfactory
income from these units.
ix. Most of the units are situated in the rural areas indicating proximity to the agriculture production
regions and around 54% of the respondents believed that incomes of farmers have increased because of
the AIF units and majority of them reported that the increase in incomes was very high and satisfactory.
x. Around 54% of the respondents felt that overall, the farmers have benefitted due to the AIF facilities.
As on 30th June, 2025, Rs. 66,310 Crores have been sanctioned for 1,13,419 projects under AIF These
sanctioned projects have mobilized an investment of Rs. 107,502 Crores in the agriculture sector. Major
projects sanctioned under AIF include 30,202 custom hiring centres, 22,827 processing units, 15,982
warehouses, 3,703 sorting & grading units, 2,454 cold store projects, around 38,251 other kinds of post-
harvest management projects and viable community farm assets.
This information was given by Minister of State for Agriculture and Farmers Welfare,Shri Ramnath Thakur in
a written reply in Lok Sabha today.
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RC/ KSR/AR
(Release ID: 2158033)