Mid-Term Review Finds Agriculture Infrastructure Fund Boosting Farmer Incomes, Rural Jobs: Govt

New Delhi, August 20: The government’s mid-term evaluation of the Agriculture Infrastructure Fund (AIF) has highlighted its significant role in raising farmers’ incomes, creating storage and processing capacity, and driving rural employment.

The study, conducted by the Agro Economic Research Centre (AERC), Pune, found that nearly 85% of AIF-supported units were established primarily due to the availability of loans under the scheme. On average, about 40% of the project cost was financed through AIF loans, while 31% of units also availed government subsidies through convergence benefits.

Around 70% of beneficiaries used the loan to create new infrastructure, including warehouses, cold storage facilities, silos, and agro-processing units. The evaluation revealed that these projects collectively added about 879,000 metric tonnes of storage capacity and covered nearly 2.9 million square feet of operational space.

Employment generation was reported to be higher during peak seasons, with an average of 11 people employed per unit, rising to 27 in Rajasthan. Agro-processing units accounted for the largest share of employment opportunities.

Importantly, 54% of respondents believed that farmers’ incomes had increased significantly due to the facilities created under AIF, while most units reported strong demand for their services.

As of June 30, 2025, the scheme had sanctioned ₹66,310 crore for 1,13,419 projects, mobilizing an investment of ₹1,07,502 crore in the agriculture sector. Key sanctioned projects include 30,202 custom hiring centres, 22,827 processing units, 15,982 warehouses, 3,703 sorting and grading units, and 2,454 cold storage projects.

Minister of State for Agriculture and Farmers Welfare Ramnath Thakur shared the details in a written reply in the Lok Sabha on Tuesday.