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Agri Fund: Loan Target Doubled to ₹2 Lakh Crore
8 Mar
Summary
- Government to double Agriculture Infrastructure Fund target to ₹2 lakh crore.
- Approval expected by mid-April, possibly with guideline reforms.
- Focus on primary processing, warehouses, and cold stores for AIF loans.
The Indian government is fast-tracking procedures to double the Agriculture Infrastructure Fund (AIF) target to ₹2 lakh crore, with cabinet approval expected by mid-April. Sources indicate potential guideline reforms to accelerate achievement of this goal. Launched in 2020, the AIF provides beneficiaries with loans at a 6% interest rate, supported by a 3% interest subsidy from the central government.
This expansion aims to bolster India's agricultural value chain. Major areas of interest for AIF loans include primary processing centers, warehouses, and cold stores, which represent a significant portion of sanctioned amounts. The fund also supports custom hiring centers, contributing to the mechanization of farming practices across the country.
While the increased target is a positive step, experts caution that achieving it within a set timeframe presents a real challenge. As of March 8, 2026, the government has approved credit worth ₹84,034 crore for over 1.67 lakh projects, with disbursals totaling ₹61,823 crore. Concerns remain about the scheme's saturation in some districts and the need for potential relaxations to ensure the commercial viability of AIF projects.
