- Why in news
- On 3 February 2026, the Agriculture Minister of State told the Lok Sabha that AIF had sanctioned ₹80,224.15 crore for 1,50,431 projects by 26 January 2026.
- What it is
- The Agriculture Infrastructure Fund is a Central Sector Scheme launched in July 2020. It gives medium and long-term loans through banks and financial institutions for post-harvest management infrastructure and community farming assets. The Government of India supports these loans with interest subvention and credit guarantee cover.
- Nature of scheme
- AIF is a Central Sector Scheme to mobilise medium and long-term debt finance for post-harvest and community farming assets.
- Interest subvention
- Loans carry 3% per annum interest subvention from the Government of India.
- Credit guarantee
- Loans up to ₹2 crore get credit guarantee cover under CGTMSE and NABSanrakshan.
- Progress
- From July 2020 to 26.01.2026, ₹80,224.15 crore was sanctioned for 1,50,431 projects, mobilising ₹1,27,508 crore of investment.
- PM-KUSUM convergence
- Components B and C of PM-KUSUM (grid-connected pump solarisation and standalone solar pumps) became eligible assets under AIF in September 2020.
Don’t confuse with CGTMSE vs NABSanrakshan: Both give credit guarantee cover under AIF for loans up to ₹2 crore. CGTMSE is the trust for micro and small enterprises, while NABSanrakshan is the NABARD-linked guarantee arm for agriculture.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Cuts post-harvest losses by building storage, processing and agri-logistics at farm-gate level.
- Draws private and cooperative investment into agriculture using cheap credit.
Problems
- Uneven spread of projects across states and between large and small borrowers.
- Low convergence so far: only 921 projects under PM-KUSUM Components B and C.
Way forward
- Raise awareness and handholding for FPOs, SHGs and cooperatives to access loans.
- Link AIF assets better with markets and supply chains so they stay in use.
Put in your answer
AIF progress: ₹80,224.15 crore sanctioned for 1,50,431 projects, mobilising ₹1,27,508 crore of investment, till 26.01.2026.
PM-KUSUM convergence: Only ₹29.20 crore was sanctioned for 921 projects under Components B and C, showing limited convergence.
- 2014Mains GS3 · Q4Cooperative credit suitability for villages; agricultural finance constraints and technology role.
- 2026Mains GS3 · Q14Types of government subsidies and supports to agriculture, and related WTO AoA issues.
- 2025Mains GS3 · Q4Scope and significance of supply chain management for agricultural commodities in India.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The Agriculture Infrastructure Fund is a Central Sector Scheme that mobilises medium and long-term debt finance for post-harvest management infrastructure and community farming assets.
- 2.Loans under the Agriculture Infrastructure Fund carry a 3% per annum interest subvention from the Government of India.
- 3.Only Component A of PM-KUSUM has been made eligible for convergence with the Agriculture Infrastructure Fund.
Which of the statements given above is/are correct?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The Agriculture Infrastructure Fund is a Central Sector Scheme.
True. AIF is a Central Sector Scheme.
2.Loans under AIF receive 3% per annum interest subvention from the Government of India.
True. The subvention is 3% per annum.
3.Credit guarantee under AIF is available for loans up to ₹2 crore through CGTMSE.
True. Loans up to ₹2 crore get guarantee cover under CGTMSE and NABSanrakshan.
4.Only Component A of PM-KUSUM has been made eligible for convergence with AIF.
False. Components B and C were made eligible, in September 2020.
5.Groups of farmers such as SHGs, JLGs, Water User Associations and Cooperatives can use the AIF loan component in convergence with PM-KUSUM.
True. These groups can converge the loan component for eligible facilities.
6.The scheme is administered by the Ministry of Food Processing Industries.
False. AIF is under the Ministry of Agriculture & Farmers Welfare.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.