SRINAGAR: Jammu and Kashmir has emerged as a significant beneficiary of the Centre’s Agriculture Infrastructure Fund (AIF), with 361 projects sanctioned involving a total loan amount of Rs 636.47 crore, the Lok Sabha was informed on Tuesday.
The data, presented by Union Agriculture Minister Shivraj Singh Chouhan in a written reply, indicates steady progress in the creation of post-harvest infrastructure in the Union Territory, aimed at strengthening supply chains and improving farmers’ income realisation.
The AIF-supported projects in Jammu and Kashmir span critical segments such as warehouses, cold storage units, primary processing centres and logistics facilities. These assets are designed to reduce post-harvest losses, improve storage capacity and enable better price discovery for farmers by allowing them to defer sales and access wider markets.
At the national level, the Agriculture Infrastructure Fund has sanctioned 1,70,241 projects with a total outlay of Rs 84,502.78 crore as of March 11, 2026. Of this, Rs 62,219.10 crore has already been disbursed in phases linked to project milestones, reflecting ongoing implementation across States and Union Territories.
The scheme provides medium to long-term debt financing for investment in viable agricultural infrastructure projects. Beneficiaries include farmers, Farmer Producer Organisations (FPOs), cooperatives and agri-entrepreneurs. To support uptake, the government has extended interest subvention amounting to Rs 1,431.44 crore and credit guarantee coverage of Rs 476.96 crore.
According to the government, disbursement under the scheme is proceeding in line with prescribed timelines, with funds released in stages based on project progress.
An impact assessment conducted by the Indian Institute of Management Ahmedabad found that AIF interventions have led to measurable gains across the agricultural value chain. Post-harvest losses have declined by an estimated 5 to 15 per cent due to improved storage and processing facilities. Enhanced logistics and aggregation infrastructure have improved market access by 10 to 25 per cent, while about 38 per cent of beneficiaries reported better integration into end-to-end value chains.
The study also noted that 63 per cent of beneficiaries achieved better price realisation, with income gains ranging from 11 to 25 per cent, particularly in projects involving cold chains, processing and integrated infrastructure.
The government said no major systemic challenges have been reported in the implementation of the scheme, though some beneficiaries indicated issues such as lower loan coverage relative to project costs, the need for greater handholding and market-related fluctuations. These concerns are being addressed through facilitation measures.
The Agriculture Infrastructure Fund, launched to catalyse investment in post-harvest management and community farming assets, is aimed at modernising India’s agricultural supply chain and reducing inefficiencies in storage, transportation and market access.
