Cabinet Expands Agricultural Infrastructure Fund Scheme

On 28th August, 2024, the Union Cabinet approved an expansion of the Agricultural Infrastructure Fund (AIF) aiming to enhance financial support for Farmers' Producers Organisations (FPOs) and boost farm infrastructure across India.

Key Points

Scope Expansion: The Rs. 1 lakh crore scheme will now include financial support for FPOs, enhancing their financial stability and creditworthiness to strengthen agricultural infrastructure.
Redesign for Inclusivity: The redesigned AIF will broaden the range of eligible projects and incorporate additional supportive measures to build a more robust agricultural infrastructure ecosystem.
Current Utilization: To date, Rs. 47,575 crore has been sanctioned for 74,508 projects under AIF, generating a total investment of Rsw. 78,596 crore, with Rs. 78,433 crore sourced from private entities.
Employment Generation: AIF-funded projects have created over 8.19 lakh rural jobs in the agriculture sector, demonstrating significant impact on rural employment.
Enhanced Impact; The expanded AIF scheme is expected to drive growth, boost productivity, improve farm incomes, and contribute to the overall sustainability of Indian agriculture.