Mid-Term Evaluation of AIF Scheme

Summary of the Agriculture Infrastructure Fund (AIF) Scheme Evaluation

The Government of India has conducted a mid-term evaluation of the Agriculture Infrastructure Fund (AIF) scheme, which aims to strengthen infrastructure related to agriculture and enhance farmers’ incomes. The assessment was performed by the Agro Economic Research Centre (AERC) in Pune, with the findings released in December 2023.

Key Findings from the Evaluation:

• Positive Impact on Farmers:
  • The evaluation highlighted increased farmers' income, enhanced agricultural storage capacity, and growth in post-harvest and value addition infrastructure.
  • The scheme has generated employment and fostered agricultural entrepreneurship.

Specific Outcomes:

• Subsidy and Loan Utilization:

  • 31% of the AIF units benefited from government subsidies through convergence under the AIF.
  • Approximately 85% of units started due to the availability of AIF loans, covering about 40% of their project costs.
  • Roughly 70% of units utilized loans to create new agricultural infrastructure.

• Employment Generation:

  • Employment generated by AIF unit activities peaks during the agricultural season.
  • On average, 11 personnel are employed per unit at peak times, which varies by state:
    • Rajasthan: 27 employees per unit (highest)
    • Maharashtra: 5 employees per unit (lowest)
  • Agro-processing units exhibited higher employment numbers.

• Capacity Building:

  • Total capacity created by sample units includes:
    • 879 thousand Metric Tons (MT) for warehouses, cold storage, and silos.
    • 2,900 thousand square feet utilized by these facilities.

• Beneficiary Sentiment:

  • A considerable 54% of respondents acknowledged an increase in farmers' income due to the AIF, with many citing that this increase was significant and satisfactory.
  • Overall, 54% of respondents felt that farmers have benefitted from AIF facilities.

Financial Overview:

• As of June 30, 2025, the AIF has sanctioned ₹66,310 Crores for 1,13,419 projects, mobilizing a total investment of ₹107,502 Crores in the agriculture sector.

Major Projects Sanctioned Under AIF:

• Types of Projects:
  • 30,202 custom hiring centers
  • 22,827 processing units
  • 15,982 warehouses
  • 3,703 sorting and grading units
  • 2,454 cold storage projects
  • 38,251 other post-harvest management projects

Conclusion:

The mid-term evaluation of the AIF scheme indicates substantial progress in enhancing agricultural infrastructure and improving the livelihoods of farmers in India. The government aims to continue this momentum, focusing on effective utilization of funds and infrastructure development to strengthen the agricultural sector.

Important Points:

• Mid-term evaluation conducted by AERC in December 2023.
• AIF showed positive impacts on farmers’ income and agricultural infrastructure.
• 31% of AIF units benefited from government subsidies.
• 85% of units commenced operations due to AIF loans, covering about 40% of project costs.
• Employment generated higher in peak seasons, with notable state-level variations.
• Total capacity created equals 879 thousand MT across various warehouse and storage facilities.
• ₹66,310 Crores sanctioned for 1,13,419 projects as of June 30, 2025.
• Investment mobilized in the agriculture sector totals ₹107,502 Crores.
• Over 30,000 custom hiring centers and significant numbers of processing units and warehouses supported under AIF.