Sri Vijaya Puram, June 10: The Directorate of Agriculture has called upon farmers, Farmer Producer Organisations (FPOs), Self Help Groups (SHGs) and agri-entrepreneurs in the Andaman and Nicobar Islands to take advantage of the Agriculture Infrastructure Fund (AIF), a central government initiative aimed at strengthening agricultural infrastructure and improving farmer incomes.
Officials said modern agricultural infrastructure plays a critical role in increasing productivity, reducing post-harvest losses and improving market access. In island territories where transportation and storage challenges often affect agricultural output, investments in infrastructure can significantly enhance the value chain and improve returns for farmers.
The Agriculture Infrastructure Fund is a Central Sector Scheme designed to provide medium and long-term debt financing for viable projects related to post-harvest management and community farming assets. The scheme seeks to support the creation of infrastructure that can improve agricultural efficiency and sustainability.
Under the scheme, loans are provided through banks and financial institutions to a wide range of eligible beneficiaries. These include Primary Agriculture Credit Societies (PACS), marketing cooperative societies, FPOs, SHGs, Joint Liability Groups (JLGs), individual farmers, agri-startups, multipurpose cooperative societies and public-private partnership projects sponsored by government agencies or local bodies.
A key attraction of the scheme is the interest subvention component. Eligible projects can receive interest support of three per cent per annum on loans up to ₹2 crore. The subsidy is available for a period of seven years, making infrastructure investments more affordable for farmers and rural institutions.
Officials said the fund covers a broad spectrum of projects aimed at improving post-harvest management. These include warehouses, pack houses, cold chain facilities, sorting and grading units, assaying centres, logistics infrastructure, ripening chambers and primary processing centres.
The scheme also supports supply-chain services, including digital and e-marketing platforms that can help farmers connect directly with buyers and expand market access.
Apart from post-harvest infrastructure, the fund encourages investments in community farming assets. Eligible projects include organic input production units, bio-stimulant manufacturing facilities and infrastructure supporting smart and precision agriculture technologies.
Agriculture experts note that inadequate storage and processing infrastructure often results in significant losses after harvest, especially for perishable produce. Investments under the scheme could help reduce wastage, improve product quality and enable farmers to secure better prices in the market.
The Directorate of Agriculture has encouraged interested beneficiaries to contact zonal agricultural officers in their respective areas for guidance on preparing project proposals and accessing financing under the scheme.
Officials said the initiative aligns with broader efforts to modernise agriculture in the islands while promoting sustainable farming practices and strengthening rural livelihoods.
Farmers and interested stakeholders can also seek information through the Kisan Call Centre of the Directorate of Agriculture in Sri Vijaya Puram.
