India’s Agriculture Infrastructure Fund, launched in July 2020, has mobilized over ₹1.15 trillion in investments across 123,650 projects nationwide, according to government sources. The initiative is designed to finance post-harvest crop management and reduce agricultural losses.

Financial institutions provide loans for approved projects, with the central government offering a 3% annual interest subvention on loans up to ₹2 crore for seven years. Additionally, the government covers credit guarantee fees for eligible borrowers. Beneficiaries are required to contribute at least 10% of the total project cost.

As of early September, banks have sanctioned loans worth ₹71,720 crore and disbursed approximately ₹49,500 crore. The fund targets infrastructure creation to improve storage, minimize wastage, enhance value addition, and boost farmer incomes. Government estimates indicate that 6% of India’s crops suffer post-harvest losses, amounting to ₹1.2 trillion annually, with perishable items like fruits and vegetables accounting for a significant portion.

Research by ICRIER highlights that India faced record post-harvest losses of ₹1.53 trillion between 2020 and 2022. Soybean experienced the highest loss rate at 15.34%, followed by wheat, paddy, and maize.

Approved projects include 32,054 custom hiring centers for agricultural equipment, 23,800 processing units, and 16,400 warehouses. The initiative also supports sorting and grading units for horticulture, cold stores, and over 40,450 critical post-harvest assets.

Experts emphasize that the fund not only reduces losses but also modernizes agriculture, improves supply chains, and enhances food security. Farmers account for 46% of beneficiaries, followed by agri-entrepreneurs (42%), with the remaining share going to cooperatives, startups, and other stakeholders.

Top beneficiary states include Madhya Pradesh, Maharashtra, Uttar Pradesh, Punjab, and Gujarat, where the fund is strengthening market linkages and value chains through infrastructure development. The scheme, operational until 2033, features a ₹1 trillion loan provision with a 9% interest cap and targeted disbursement completion by FY26.