Assam Chief Minister Himanta Biswa Sarma attended a workshop focused on the Agriculture Infrastructure Fund (AIF) on July 25, 2026, at Jyoti Bishnu International Kala Mandir in Guwahati. The event served as both a workshop and an awareness programme, drawing participation from farmers, Farmer Producer Organisations (FPOs), agricultural entrepreneurs, and representatives from banks and financial institutions across the state.

The Agriculture Infrastructure Fund was inaugurated by Prime Minister Narendra Modi on August 9, 2020, as part of the Atmanirbhar Bharat Abhiyan initiative. This scheme aims to bolster post-harvest management and develop community farming assets through interest-subsidised loans.

Under this initiative, eligible participants can secure loans of up to Rs. 2 crore for each project, benefitting from a 3 per cent annual interest subvention over a maximum term of seven years, alongside collateral-free credit guarantee support.

Key Benefits and Financial Assistance

During his address, Chief Minister Sarma articulated that the AIF aims to enhance value addition to agricultural produce while establishing modern agricultural infrastructure. The initiative is designed to motivate farmers to engage not just in production, but also in processing, storage, and the marketing of their products. Facilities endorsed by the scheme include warehouses, cold storage, custom hiring centres, and advanced farming technology like drones and sensors.

One of the primary obstacles for farmers seeking institutional credit is the requirement for collateral, a concern addressed by the Credit Guarantee Fund associated with the scheme. This fund provides banks with guarantee cover, facilitating collateral-free lending for farmers.

The Chief Minister noted improvements in Assam’s Credit-Deposit Ratio, which has risen from 32 per cent to 70 per cent, while suggesting further potential growth towards 90 per cent. He clarified the financial advantages of the AIF, which include a 3 per cent interest subvention on loans up to Rs. 2 crore and a lending rate capped at 9 per cent. The Assam Government will subsidise 5 per cent of the typical beneficiary contribution of 10 per cent for individual projects, whereas FPOs will have their entire contribution covered by the state.

State Allocation and Future Prospects

Regarding Assam’s specific allocation under the AIF, the state has been granted Rs. 2,050 crore. So far, loans amounting to Rs. 1,181 crore have been approved for 893 agricultural stakeholders, of which Rs. 736 crore has already been disbursed. The Chief Minister highlighted success stories where beneficiaries received loans up to Rs. 13 crore, citing Nagaon district as having the highest number of beneficiaries, at 131.

Chief Minister Sarma indicated that Assam could still access approximately Rs. 900 crore from its existing allocation, with the Government of India approving an additional Rs. 1 lakh crore nationwide. He expressed optimism regarding securing Rs. 4,000 crore in the upcoming phase, an increase from the previous allocation of around Rs. 2,000 crore.

Recognising Assam’s susceptibility to flooding, the Chief Minister underlined the necessity for diversifying agricultural practices beyond traditional paddy cultivation. He pointed towards the rising demand for rice storage facilities and the potential for mustard oil processing in the state.

The Chief Minister also remarked on the opportunities for processing local products such as ginger, pineapple, and various native agricultural goods. He noted the distinct market for traditional organic tea processed using indigenous techniques and confirmed that tea processing qualifies as an eligible activity under the AIF. Sarma encouraged the youth to engage with the AIF, emphasising its role in fostering a self-reliant Assam.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share