February 10, 2025: The launch of the Agri Infrastructure Fund (AIF) has emerged as a transformative step in tackling one of India’s most pressing agricultural challenges: post-harvest losses.
With an estimated ₹92,000 crore worth of produce lost every year due to inadequate infrastructure, the AIF has proven to be a game changer in improving post-harvest infrastructure, thereby enhancing value addition and significantly reducing crop wastage across the country.
Launched as part of the Atmanirbhar Bharat package in July 2020, the AIF is designed to support the creation of cold storage facilities, warehouses, and food processing units. Through medium to long-term loans provided by banks and other lending institutions, the scheme enables farmers, entrepreneurs, and cooperatives to invest in the infrastructure needed to minimize wastage and improve the efficiency of agricultural supply chains.
A key feature of the AIF is its emphasis on rural development. With a focus on cold storage and value-added processing facilities, the scheme creates community farming assets that support local economies. These investments also help in reducing the dependency on traditional, inefficient storage methods, which often lead to losses due to spoilage, pests, and improper handling.
Complementing the AIF, the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) has been working tirelessly to boost food processing and cold chain infrastructure in the country. Since its inception in 2016-17, PMKSY has not only aimed at reducing post-harvest losses but also at creating a sustainable and efficient food supply chain from the farm gate to the retail outlet. While PMKSY focuses on large-scale infrastructure development, including integrated cold chains, refrigerated vehicles, and processing units, the Agri Infrastructure Fund’s emphasis on financial assistance for rural infrastructure directly supports small and medium-scale initiatives.
Both schemes have demonstrated significant success, with cold storage and refrigerated transport becoming increasingly accessible to farmers, reducing the spoilage of fruits, vegetables, dairy products, and fisheries. A 2020 evaluation study conducted by NABARD Consultancy Services (NABCONS) highlighted the positive impact of the Integrated Cold Chain and Value Addition Infrastructure Scheme under PMKSY. The study found that wastages in sectors like fruits, vegetables, dairy, and fisheries had decreased substantially, leading to higher profits for farmers and greater market availability of these products.
Agri Infrastructure Fund Helps Cut Post-Harvest Losses by ₹10,000 Crore in 2024
Moreover, the combined efforts of PMKSY and Agri Infrastructure Fund also aim to enhance the export potential of processed foods by improving quality and consistency, making Indian agricultural products more competitive in the global market. These initiatives help India unlock its agricultural potential while creating employment opportunities, particularly in rural areas, thus contributing to economic growth.
Additionally, the Ministry of Consumer Affairs, Food and Public Distribution has taken steps to modernize the country’s grain storage facilities. With the implementation of steel silos under the Public-Private Partnership (PPP) model, the government has already constructed silos with a total capacity of 17.75 LMT, with more in development. This focus on upgrading storage infrastructure complements the AIF’s goal of reducing post-harvest losses and improving food security across the nation.
With the Agriculture Infrastructure Fund and PMKSY working in tandem, India is set on a path toward reducing food wastage, increasing value-added agricultural products, and strengthening the rural economy. These initiatives not only create a more resilient agricultural sector but also provide a platform for long-term growth and sustainability in India’s food processing and storage industries.
This information was provided by Shri Ravneet Singh, the Minister of State for Food Processing Industries, in a written reply to the Rajya Sabha.
