Recent Changes in the Agricultural Infrastructure Fund (AIF): How You Can Benefit

There have been some significant changes in the AIF as of 2024. These changes not only broaden the scope of the fund but also provide more opportunities for businesses to benefit from it.

1. Coverage of Primary and Secondary Processing:

Earlier, the AIF only covered primary processing of agricultural crops (such as wheat cleaning, storage, sorting, etc.). Now, secondary processing has also been included. For example, if you process wheat and then use it to make biscuits or other food products, this will now also be covered under the AIF.

Here are some other examples:

• Cotton: Previously, cotton ginning and cleaning were covered. Now, if you make fiber from cotton, it will also be covered under the AIF.
• Oil: If you extract oil from oilseeds and also refine it, that business will now be covered under the AIF.

This change is a huge opportunity for farmers and businesses looking to invest in secondary processing, as it adds value to their products and enables them to earn more profits.

2. Sinking of Central Schemes:

Now, if there are any central-level subsidy schemes that are applicable to agriculture-based projects, these can also be combined with the AIF. For example, if you are availing the NABARD subsidy for warehousing activities, you can now also benefit from the AIF.

Furthermore, the PMEGP Scheme (Prime Minister’s Employment Generation Program), which covers projects up to ₹50 lakh, is also now integrated with the AIF. This means that you can avail both capital subsidy and interest subsidy under both schemes for agriculture-based projects.

3. Budget Allocation:

The total budget for the AIF is ₹1 lakh crore, out of which ₹50,000 crore has already been sanctioned. The remaining ₹50,000 crore is still available for sanctioning. Since the scheme is valid until 31st March 2026, there is approximately 1.5 years left to avail these funds. If you are planning an agriculture-based project, it is advisable to apply for AIF funding as soon as possible before the remaining budget is fully allocated.