**Executive Summary**
This document is an answer to Unstarred Question No. 654 in Lok Sabha, concerning government credit support for farmers to acquire long-term agricultural assets. The reply from the Minister of State for Agriculture and Farmers Welfare details the Agriculture Infrastructure Fund (AIF), which provides credit support through interest subvention and credit guarantee coverage. It also highlights the findings of an impact assessment study conducted by IIM Ahmedabad. The question was scheduled to be answered on February 3, 2026.
**Key Points / Main Content**
* **Agriculture Infrastructure Fund (AIF)**
* The Government of India provides credit support under the AIF.
* It includes a 3% per annum interest subvention.
* Credit guarantee coverage is provided for loans up to ₹2 crore under CGTMSE and NABSanrakshan.
* **Eligible Beneficiaries**
* Farmers
* Farmer Producer Organizations (FPOs)
* Cooperatives
* Primary Agricultural Credit Societies (PACS)
* Self Help Groups (SHGs)
* Agri-entrepreneurs, start-ups, etc.
* **Supported Infrastructure**
* Post-harvest infrastructure
* Irrigation structures
* Farming assets (e.g., custom hiring centers)
* Warehouses, silos, cold storages, pack-houses
* Sorting and grading units, assaying facilities
* Solar pumps
* Primary processing centers
* Logistics/supply-chain infrastructure
* **Access to Credit**
* AIF is designed to facilitate access to medium/long term institutional credit.
* There is no minimum cap on loan amounts.
* No collateral of land is required for loans up to ₹2 crore.
* **Impact Assessment Study (IIM Ahmedabad)**
* AIF is a strong platform for accelerating agri-infrastructure development.
* Beneficiaries reported better price realization due to mechanization.
* Effective engagement with state departments, district agencies, and financial institutions.
* Lending institutions report excellent portfolio performance with NPAs below 3%.
* Over 97% of supported projects are operational.
* AIF generates 8–9 direct and 4 indirect jobs per unit.
* 12–15% female participation.
* Investments in storage, cold chains, processing units and custom hiring centres have improved operational efficiency and enhanced price realisation.
* AIF has strengthened enterprise credibility, skills, and local recognition.
**Impact Analysis**
**Farmers, particularly small, marginal, and tenant farmers:**
* **Impact:** AIF facilitates access to institutional credit for long-term agricultural infrastructure, benefiting from interest subvention and credit guarantee. The removal of collateral requirements for smaller loans specifically benefits tenant farmers and sharecroppers.
* **Action Required:** Farmers should explore the AIF scheme for financing infrastructure projects, taking advantage of the interest subvention and credit guarantee provisions.
**Farmer Producer Organizations (FPOs), Cooperatives, Primary Agricultural Credit Societies (PACS), Self Help Groups (SHGs), Agri-entrepreneurs, Start-ups:**
* **Impact:** These entities can access credit support to build and improve post-harvest infrastructure, irrigation structures, and farming assets. This enables them to enhance operational efficiency and price realization.
* **Action Required:** These groups should explore the AIF scheme to finance projects related to agricultural infrastructure and processing, leveraging the available credit support and guarantees.
**State Governments, District Agencies, and Financial Institutions:**
* **Impact:** Effective engagement with these entities is crucial for the broad reach and steady expansion of assets under the AIF scheme.
* **Action Required:** Continue to actively engage with and support the AIF scheme to ensure its successful implementation and reach its intended beneficiaries.
Key Entities Referenced
Agriculture Infrastructure Fund (AIF): Scheme providing credit support for creating or acquiring long-term agricultural assets with interest subvention and credit guarantee coverage.
Ministry of Agriculture and Farmers Welfare: The primary ministry responsible for administering policies and programs related to agriculture and farmers' welfare.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Trust providing credit guarantee coverage for loans to Micro and Small Enterprises, including eligible beneficiaries under the AIF.
NABSanrakshan: Organisation that supports Credit guarantee coverage for loans to Micro and Small Enterprises, including eligible beneficiaries under the AIF.
Indian Institute of Management (IIM), Ahmedabad: Institute that conducted a third-party Impact Assessment study of the AIF scheme.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION No. 654
TO BE ANSWERED ON THE 03RD FEBRUARY, 2026
CREDIT SUPPORT TO FARMERS TO ACQUIRE LONG-TERM AGRICULTURAL ASSETS
654. Shri Lavu Sri Krishna Devarayalu:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state :
(a) whether the Government provides credit support to farmers for the creation or acquisition of
long-term agricultural assets such as farm machinery, irrigation structures and post-harvest
infrastructure;
(b) if so, the number of beneficiaries supported under such schemes during the last three years,
year-wise and State-wise specifically district-wise for Andhra Pradesh;
(c) the total quantum of credit disbursed for long-term agricultural investments under Government-
supported credit schemes during the last three years, year-wise and State-wise;
(d) whether the Government has undertaken any assessment of the gaps or challenges faced by
farmers, particularly small, marginal and tenant farmers, in accessing credit for long-term
agricultural infrastructure; and
(e) if so, the details of such findings and the measures taken to enhance credit access for these
categories of farmers?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (c) : The Government of India provides credit support under the Agriculture Infrastructure
Fund (AIF) through 3% per annum interest subvention. Credit guarantee coverage for loans up to
₹ 2 crore is also supported under Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) and NABSanrakshan. This support is available to eligible beneficiaries viz. farmers,
Farmer Producers Organizations (FPOs), Cooperatives, Primary Agricultural Credit Societies
(PACS), Self Help Groups (SHGs), agri-entrepreneurs start-ups etc for creating post-harvest
infrastructure, irrigation structures and farming assets such as custom hiring centers, warehouses,
silos, cold storages, pack-houses, sorting and grading units, assaying facilities, solar pumps,
primary processing centers, and logistics/supply-chain infrastructure etc. The details of
beneficiaries and credit disbursed under AIF over the last three years, year-wise and state-wise,
along with district-wise data for beneficiaries in Andhra Pradesh are at Annexure.(d) & (e): AIF has been designed to facilitate access to medium/long term institutional credit to
wide categories of beneficiaries including small, marginal and tenant farmers. There is no
minimum cap on the loan amount enabling financing of small and need-based infrastructure
assets, which are suitable for small and marginal farmers. Further, no collateral of land is required
for loans up to ₹2 crore, which significantly benefits tenant farmers and sharecroppers.
Government has undertaken a third-party Impact Assessment study which was conducted by
Indian Institute of Management (IIM), Ahmedabad to evaluate access to credit, performance of
assets and overall outcomes under the scheme. The major findings of the assessment report are
as follows:-
(i) AIF has emerged as a strong platform for accelerating agri-infrastructure development across
states. Beneficiaries reported better price realisation driven by mechanisation.
(ii) Effective engagement with state departments, district agencies, and financial institutions has
ensured broad reach and steady expansion of assets.
(iii) Lending institutions report excellent portfolio performance with NPAs below 3%, and over 97%
of supported projects operational, indicating high execution efficiency.
(iv) AIF generates substantial rural employment. Each unit generates 8–9 direct and 4 indirect
jobs, with 12–15% female participation, supporting mid-scale agri-entrepreneurs and promoting
inclusive growth.
(v) Investments in storage, cold chains, processing units and custom hiring centres have improved
operational efficiency and enhanced price realisation
(vi) AIF has strengthened enterprise credibility, skills, and local recognition, fostering agri-
entrepreneurship, reducing youth migration, and indirectly enhancing climate resilience through
modern infrastructure like cold storage, polyhouses, and hydroponics.
****Annexure
The details of beneficiaries and credit disbursed under AIF over the last three years, year-wise and state-
wise along with district-wise data for beneficiaries in Andhra Pradesh
Year wise- State wise Beneficiary and credit disbursed (Am Rs in Crore)
Sr No. State and UT 2022-23 2023-24 2024-25 Total
Beneficiary Am. Beneficiary Am. Beneficiary Am. Beneficiary Am.
Count Count Count Count
1 ANDHRA PRADESH 396 310.42 357 309.55 1362 355.31 2115 975.28
2 ARUNACHAL PRADESH 1 1.51 2 0.92 - 0.00 3 2.44
3 ASSAM 157 205.48 194 245.75 140 136.06 491 587.28
4 BIHAR 435 233.45 409 330.63 752 393.27 1596 957.35
5 CHANDIGARH 1 - 2 1.77 1016 613.39 1019 615.17
6 CHHATTISGARH 325 345.12 513 436.15 1016 613.39 1854 1394.67
7 DELHI 1 0.31 4 6.43 3 7.75 8 14.49
8 GOA 5 1.77 9 3.21 11 22.23 25 27.21
9 GUJARAT 762 662.09 1023 718.88 1498 1270.47 3283 2651.44
10 HARYANA 570 664.32 2061 868.31 3243 1069.16 5874 2601.79
11 HIMACHAL PRADESH 149 37.42 189 51.10 258 62.46 596 150.98
12 JAMMU AND KASHMIR 31 32.65 52 107.01 128 179.36 211 319.02
13 JHARKHAND 90 58.10 112 105.62 194 125.07 396 288.79
14 KARNATAKA 882 814.85 993 864.32 1176 1039.64 3051 2718.80
15 KERALA 687 240.01 954 236.31 1508 299.93 3149 776.26
16 MADHYA PRADESH 2602 1815.98 2864 1402.50 4935 1856.66 10401 5075.14
17 MAHARASHTRA 2502 1407.00 3729 1578.54 3683 1944.41 9914 4929.94
18 MANIPUR 1 0.10 1 0.19 - 0.00 2 0.29
19 MEGHALAYA 2 6.92 - 0.00 1 - 3 6.92
20 NAGALAND 1 1.78 2 1.75 - 0.00 3 3.53
21 ODISHA 303 205.94 965 476.95 1382 607.40 2650 1290.29
22 PUDUCHERRY 1 0.75 1 1.10 4 1.23 6 3.08
23 PUNJAB 2223 619.91 9755 2150.73 10188 1970.66 22166 4741.30
24 RAJASTHAN 536 539.34 1036 697.25 1240 506.11 2812 1742.70
25 TAMIL NADU 2660 669.61 1811 551.85 1185 746.97 5656 1968.43
26 TELANGANA 636 662.38 670 716.27 936 702.69 2242 2081.35
THE DADRA AND
NAGAR HAVELI -
27 AND DAMAN AND DIU 1 1.00 - 0.00 0.00 1 1.00
28 TRIPURA 2 2.18 3 6.40 5 0.59 10 9.17
29 UTTAR PRADESH 1054 941.01 2503 1517.59 5093 2068.61 8650 4527.22
30 UTTARAKHAND 103 109.95 183 126.53 205 178.13 491 414.61
31 WEST BENGAL 757 457.56 1697 537.66 2642 648.84 5096 1644.06
Total 17876 11048.94 32094 14051.28 43804 17419.78 93774 42519.99Year wise District wise Beneficiary counts of Andhra Pradesh
District
2023- 2024-
Sr No. Districts 2022-23 Total
24 25
1 Alluri Sitharama Raju 3 5 8
2 Anakapalli 6 7 40 53
3 Ananthapuramu 19 18 66 103
4 Annamayya 3 1 2 6
5 Bapatla 17 17 36 70
6 Chittoor 12 5 11 28
Dr. B.R. Ambedkar
7 Konaseema 12 5 34 51
8 East Godavari 18 23 124 165
9 Eluru 13 10 69 92
10 Guntur 28 14 28 70
11 Kakinada 9 10 61 80
12 Krishna 4 20 85 109
13 Kurnool 11 9 66 86
14 Nandyal 36 31 132 199
15 Ntr 5 10 71 86
16 Palnadu 15 20 41 76
17 Parvathipuram Manyam 17 28 31 76
18 Prakasam 15 9 20 44
Sri Potti Sriramulu
19 Nellore 34 12 55 101
20 Sri Sathya Sai 7 4 23 34
21 Srikakulam 37 43 86 166
22 Tirupati 10 10 25 45
23 Visakhapatnam 5 9 13 27
24 Vizianagaram 34 19 115 168
25 West Godavari 18 12 91 121
26 Y.S.R. 8 11 32 51
Total 396 357 1362 2115
*****