Subsidy for Cotton Industry under Agriculture Infrastructure Fund


Subsidy for cotton industry


Subsidy for Cotton Industry Under Agriculture Infrastructure Fund

Are you planning to invest in cotton industry?

Are you going to set up Cotton Ginning Factory ?


If Yes, then you can plan your business project under AIF.

To promote the cotton industry, Government of India has introduced schemes providing benefits on bank finance and credit guarantee facility for infrastructure development activity in agriculture sector.


Who can apply under AIF:

1. Agri-Entrepreneur
2. Partnership Firm/LLP/Pvt. Ltd.
3. Farmer, Farmer Producers Organization, Federation of Farmer Produce Organizations
4. Marketing Cooperative Society
5. Multipurpose Cooperative Society
6. Start-Up


Primary Processing Activities eligible for Cotton Sector:

1 Cleaning
2 Drying
3 Ginning
4 Pressing & Bailing
5 Lintering


Non-Eligible Activities:

1. Fiber finishing
2. Scouring
3. Purifying
4. Spinning
5. Weaving


Commencement and Applicability:

The scheme is in operation from 2020-21 and will remain in operation 2032-33.

However, the loan disbursement period will be till 2025-26, i.e. the eligible person must avail bank finance till 2025-26 to take benefits under this scheme.


Pattern of Assistance:

1. Interest Subvention Cost:

All loans up to a limit of ₹ 2 crores under this financing facility will have interest subvention of 3% per annum.

2. Credit Guarantee Cost:

Credit guarantee coverage will be available for eligible borrowers from this financing facility. The fee for this coverage will be paid by the Government.

3. Capital Subsidy:

Apart from the above you can avail the capital subsidy as applicable on your project.

If you are interested to invest your funds in above eligible activities for cotton industry, then you can take benefits of the said scheme.


We at KIP Launched the Warehouse Business & Subsidy Updates Plan for the investors/ businessman, who are interested or doing warehouse business.

We at KIP providing WAREHOUSE BUSINESS Services Since 2008.

To know more– https://kipfinancial.com/warehouse-business/

For joining– https://rzp.io/l/warehousebusinesssubsidy


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