Centre Eyes ₹1 Trillion Boost for Agriculture Infrastructure to Curb Crop Losses

The Central government is considering an additional ₹1 trillion allocation under the Agriculture Infrastructure Fund (AIF) in the upcoming Union Budget, as per Mint reports.  

The primary objective is to strengthen post-harvest storage and logistics, aiming to minimise losses and improve value realisation for farmers across India. 

₹1 Trillion Fund Expansion to Address Infrastructure Gaps 

The proposed additional allocation is intended to be spread over 5 years and will complement the existing AIF corpus of ₹1 trillion. The focus remains on boosting investment in farm-gate storage, cold chains, processing hubs, and warehousing.  

As of December 24, 2025, ₹78,743 crore worth of loans have been sanctioned, while approximately ₹57,608 crore has been disbursed. Projects like custom hiring centres and post-harvest facilities have benefited over 1,46,000 initiatives nationwide. 

Efforts to Reduce Post-Harvest Crop Losses 

Government data highlights that post-harvest losses stand at nearly 6% annually, particularly among perishable produce. Based on reports from ICRIER, ₹1.53 trillion in annual losses occurred from 2020 to 2022, largely due to insufficient infrastructure.  

The planned funds aim to tackle these issues by enabling extended storage time, better market access, and reduced supply chain inefficiencies. 

Read More: Kisan Diwas 2025: Top 10 Government Schemes Empowering India’s Farmers! 

State-Level Implementation and Key Beneficiaries 

States such as Maharashtra, Madhya Pradesh, Uttar Pradesh, Punjab, and Gujarat are the leading recipients of this scheme. Projects range from cold storage units and primary processing facilities to warehousing and automated farming services.  

Data from the agriculture ministry includes 41,625 custom hiring centres, 23,155 automation projects, 17,585 warehouses, 4,095 sorting units, and 2,775 cold storage assets sanctioned across these regions. 

Scheme Mechanics and Disbursement Structure 

Under the AIF scheme, banks offer loans of up to ₹2 crore with a 3% interest subvention for 7 years. Borrowers are required to contribute at least 10% of the project cost. Credit guarantee support is also provided.  

While asset purchases receive upfront payment, construction-based loans are released in stages aligned with project progress. 

Conclusion 

The proposed ₹1 trillion AIF expansion reflects the government's ongoing focus on building resilient agricultural infrastructure. By investing in storage and processing facilities, it seeks to lower farm-level losses and stabilise farmer incomes through better supply chain management. 

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