Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Implementation of AIF...
Date: 2025-07-22 Category: Not Applicable State: Union Government Country: India

Parliament Question: Implementation of AIF

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document pertains to Lok Sabha Unstarred Question No. 376 regarding the implementation of the Agriculture Infrastructure Fund (AIF). It provides details on fund allocation to States and Union Territories since the AIF's inception, with data current as of June 30, 2025. It also addresses the impact of funded infrastructure projects on farmers' income and productivity, with an impact assessment conducted in December 2023. Key Points / Main Content: * **Agriculture Infrastructure Fund (AIF):** * The AIF provides medium to long-term debt financing for post-harvest management infrastructure and farming assets. * It offers a 3% interest subvention and credit guarantee for loans up to Rs. 2 Crores through CGTMSE and NABSanrakshan. * A total of Rs. 1 Lakh Crore is provided by banks and financial institutions as loans. * **Fund Allocation:** * Initial tentative allocation was based on the ratio of the total value output of Agriculture and Allied sectors of States/UTs. * A tentative allocation of Rs 3980 crore was made for Bihar at the scheme's inception. * As of June 30, 2025, Rs. 1440.80 Crore has been sanctioned for 1763 projects in Bihar, with Rs. 914.64 Crore disbursed. * The total project cost for sanctioned projects in Bihar is Rs. 2419 crores. * **Infrastructure Projects in Bihar:** * 1763 projects have been sanctioned in Bihar, including warehouses, processing units, cold stores, sorting and grading units, silos, custom hiring centers, and others. * **Impact Assessment:** * An impact assessment was conducted in December 2023 to evaluate the scheme's performance and gather beneficiary feedback. * The evaluation showed a positive impact on farmers' income, storage capacity, post-harvest infrastructure, employment, and entrepreneurship. * The study included samples from Bihar, and findings were analyzed holistically at the national level. * **Outcomes of Impact Assessment:** * 31% of AIF units also availed government subsidies. * 85% of units cited AIF loan availability as the main reason for starting the unit. * AIF loans covered about 40% of the project cost. * 70% of units took loans for creating new infrastructure. * Employment generated by AIF units was higher in peak seasons, averaging 11 persons per unit. * Warehouse, cold storage, and silo units created a capacity of approximately 879 thousand MT and occupied 2900 thousand sq. ft. * 54% of respondents believed farmers' incomes increased due to AIF units. Impact Analysis: * Farmers: * Impact: Increased income, improved access to storage and processing facilities, and potential for increased productivity. * Action Required: Utilize available infrastructure and financial support to enhance agricultural practices and income. * Agricultural Entrepreneurs: * Impact: Opportunities to establish and expand businesses related to post-harvest management and value addition. * Action Required: Explore and apply for AIF loans and other government subsidies to develop agricultural infrastructure projects. * Government (Ministry of Agriculture and Farmers Welfare): * Impact: Responsible for monitoring and evaluating the AIF scheme's performance and impact on the agricultural sector. * Action Required: Continue to monitor project progress, conduct impact assessments, and make necessary adjustments to the scheme based on feedback and outcomes. * Banks and Financial Institutions: * Impact: Participate in providing loans with interest subvention and credit guarantee support under the AIF scheme. * Action Required: Facilitate loan disbursement for eligible projects and ensure compliance with scheme guidelines.

Key Entities Referenced

Maharashtra: A state in India with a tentative allocation of Funds under AIF SHRI RAMNATH THAKUR: The MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE Agriculture Infrastructure Fund AIF: A medium-long term debt financing facility for investment in viable projects for post harvest management infrastructure and viable farming assets through interest subvention and credit guarantee support. Bihar: A state in India where agriculture infrastructure projects were sanctioned and developed under the AIF scheme. CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises, providing credit guarantee coverage for loans under the AIF scheme. NABSanrakshan: An organisation providing credit guarantee coverage for loans under the AIF scheme. Uttar Pradesh: A state in India with a tentative allocation of Funds under AIF Rajasthan: A state in India with a tentative allocation of Funds under AIF
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GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION No. 376 TO BE ANSWERED ON THE 22nd July, 2025 IMPLEMENTATION OF AIF 376. SHRI SUDHAKAR SINGH: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state: (a) the total allocation of funds under the Agriculture Infrastructure Fund (AIF) to all States and Union Territories since its inception, State/UT-wise and year-wise; (b) the details of key criteria and rationale adopted by the Government in determining the allocation of funds under AIF across different States and Union Territories; (c) the number of agriculture infrastructure projects sanctioned and developed in Bihar under the AIF, detailing the type of infrastructure (e.g., cold storage, warehousing, processing units, irrigation projects) and their respective approved funding; (d) the status of physical and financial progress of each of these infrastructure projects in Bihar as on date; (e) whether the Government monitors and evaluates the impact of these funded infrastructure projects on farmers’ income and productivity; and (f) if so, the details of such evaluations and the outcomes thereof, particularly in Bihar, and if not, the reasons therefor? ANSWER THE 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) & (b): The Agriculture Infrastructure Fund is a medium-long term debt financing facility for investment in viable projects for post harvest management infrastructure and viable farming assets through interest subvention and credit guarantee support. Under the scheme, Rs.1 Lakh Crore is provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE and NABSanrakshan for loans up to Rs.2 Crores. At the inception of the scheme, a tentative State wise allocation of financing facility was made on the basis of the ratio of total value output of Agriculture and Allied sectors of States/UTs. The details of the allocation is mentioned at Annexure-I. (c) & (d): At the inception of scheme, a tentative allocation of Rs 3980 crore was made for the state of Bihar. As on 30th June 2025, Rs.1440.80 Crore have been sanctioned for 1763 projects. Out of this, 914.64 crore have been disbursed under AIF in Bihar state. The total project cost for these sanctioned projects is Rs.2419 crores. Project-wise details of Loans sanctioned and disbursed in the State of Bihar are given in Annexure-II.(e) & (f): An impact assessment was conducted in December 2023 to evaluate the scheme’s performance, gather beneficiary feedback, and suggest improvements. 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. Although a specific evaluation exclusively for the State of Bihar was not undertaken, the study component included samples from Bihar among other States, and findings were analysed in a holistic manner. The outcomes of the study were generalised at the national level to assess the overall impact of the Agriculture Infrastructure Fund (AIF) Scheme across the country, including Bihar. The details of the outcome of the study are enumerated hereunder: i. 31% of the AIF units availed government subsidies also. Thus, they have been benefitted due to Convergence under AIF. ii. Around 85% of the total units, availability of AIF loan was the main reason for starting the unit. 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 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.ANNEXURE-I Tentative Allocation of Funds to all States/UTs at the inception of Scheme (Amount in Rs. Crore) Sr No State Tentative Allocation 1. Uttar Pradesh 12831 2. Rajasthan 9015 3. Maharashtra 8460 4. Madhya Pradesh 7440 5. Gujarat 7282 6. West Bengal 7260 7. Andhra Pradesh 6540 8. Tamil Nadu 5990 9. Punjab 4713 10. Karnataka 4525 11. Bihar 3980 12. Haryana 3900 13. Telangana 3075 14. Kerala 2520 15. Odisha 2500 16. Assam 2050 17. Chhattisgarh 1990 18. Jharkhand 1445 19. Himachal Pradesh 925 20. Jammu & Kashmir 900 21. Ladakh 22. Uttrakhand 785 23. Tripura 360 24. Arunachal 290 Pradesh 25. Nagaland 230 26. Manipur 200 27. Mizoram 196 28. Meghalaya 190 29. Goa 110 30. Delhi 102 31. Sikkim 56 32. Puducherry 48 33. A&N Islands 40 34. Daman & Diu 22 35. Lakshadweep 11 36. Dadra & Nagar 10 Haveli 37. Chandigarh 9 Total 1,00,000ANNEXURE-II Project-wise detail of Loans sanctioned and disbursed in the State of Bihar on 30th June 2025 (Amount in Rs. Crore) Disbursed S.N Project Type Number of Projects Sanctioned Amount Amount 1 Warehouse 712 663.20 404.53 2 Processing Units 334 380.68 247.31 3 Cold Stores and Cold Chain 40 162.00 99.01 4 Sorting & Grading Unit 22 29.81 25.81 5 Silos 4 26.34 13.84 6 Custom Hiring Centre 154 20.12 19.00 7 Organic inputs production 4 15.71 0.61 8 Assaying units 5 4.62 0.47 9 Logistics Facility 4 2.81 2.56 10 Bio stimulant production units 2 8.50 2.50 11 Ripening Chambers 4 2.24 0.92 Infrastructure for smart and 12 8 1.09 1.00 precision agriculture 13 Packaging units 8 0.63 0.53 Supply chain infrastructure for 14 1 0.40 0.00 clusters of crops 15 Composite Project 2 0.31 0.31 16 Others 459 122.34 96.26 Grand Total 1763 1440.80 914.64 *****

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