₹1 Lakh Crore Boost to Agriculture: How Agriculture Infrastructure Fund Is Transforming Rural India

The Government of India’s ambitious Agriculture Infrastructure Fund (AIF), with an outlay of ₹1 lakh crore, is significantly strengthening the country’s agricultural infrastructure. The large-scale creation of cold storage facilities, warehouses, primary processing units, and farm mechanisation centres is helping reduce post-harvest losses by 5% to 15%, while enabling farmers to secure better market prices for their produce. Replying to questions in the Rajya Sabha, Union Minister for Agriculture & Farmers’ Welfare and Rural Development Shivraj Singh Chouhan said that under the leadership of Prime Minister Narendra Modi, the government is committed to the holistic development of farmers, villages, and the rural economy. He emphasized that farmers are not just “food providers” but “life providers,” deserving focused policy support.

Massive Infrastructure Push Under AIF

• 44,243 Custom Hiring Centres

• 25,854 Primary Processing Centres

• 25,565 Farm Harvest Automation Units

• 17,779 Warehouses

• 4,201 Sorting & Grading Units

• 3,549 Smart & Precision Agriculture Infrastructure Units

• 2,827 Cold Storage Facilities

This growing agri-infrastructure network has strengthened supply chains, reduced wastage of fruits, vegetables, and grains, and improved storage capacity—allowing farmers to avoid distress sales and hold produce for better prices.

Equal Development: From Punjab to Tamil Nadu

The Union Minister clarified that there is no discrimination among states in the implementation of AIF. In Punjab, 32,014 applications were received under AIF. Against an initial target of ₹7,425.98 crore, projects worth ₹11,351.54 crore were approved. These projects have improved storage, processing, and mechanisation infrastructure and generated direct employment for 4 to 9 individuals per project—creating large-scale rural job opportunities. Referring to Tamil Nadu, he said the Pulses Self-Reliance Mission is being implemented uniformly across the country, including provisions such as:

• High-quality seed distribution

• Cluster-based production

• Demonstration plots

• Financial assistance of up to ₹10,000 per hectare

MSP at 50% Above Cost & Record Pulses Procurement

On the issue of Minimum Support Price (MSP), the minister stated that the government is implementing the Swaminathan Commission recommendation by fixing MSP at 50% above the cost of production.He pointed out that during the previous UPA government’s 10-year tenure, only 6 lakh metric tonnes of pulses were procured, whereas the current government has procured 1.92 crore metric tonnes.The government has announced 100% procurement of Tur, Masoor, and Urad pulses. Authorized agencies such as NAFED and NCCF have been tasked with procurement. Payments are being transferred directly into farmers’ bank accounts through Direct Benefit Transfer (DBT) for transparency and timely settlement.

Pulses Revolution & Target of Self-Reliance by 2030

The minister noted that until 2016, India was the world’s largest importer of pulses. However, through improved seed varieties, higher seed replacement rates, scientific research, farmer training, and policy support, pulses production reached a record 27.30 million tonnes in 2021–22. The goal is to make India fully self-reliant in pulses production by 2030–31 under the Pulses Self-Reliance Mission.

Crop Residue Management & Sustainable Farming

Addressing stubble burning concerns, the minister said farmers alone should not be blamed for air pollution. Under the Crop Residue Management (CRM) scheme:

• 50% subsidy is provided to farmers for stubble management machinery

• 80% subsidy is provided to FPOs and institutions for Custom Hiring Centres

Over 3.5 lakh machines have been distributed across states including Punjab, Haryana, and Uttar Pradesh, leading to a decline in stubble-burning incidents.

Focus on Crop Diversification & Water Conservation

The government is promoting diversification beyond wheat and rice to pulses, oilseeds, millets, maize, barley, cotton, and agroforestry. Water-efficient techniques like Direct Seeded Rice (DSR) are being encouraged to reduce excessive water usage in paddy cultivation.

With ₹1 lakh crore under the Agriculture Infrastructure Fund, 50% profit-based MSP, 100% pulses procurement, crop diversification programs, and large-scale rural infrastructure creation, the government aims to transform Indian agriculture.

The focus is not only on increasing production but also on reducing post-harvest losses, ensuring remunerative prices, generating rural employment, and building a self-reliant agricultural economy for the future.

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