Understanding Kerala govt’s agricultural infrastructure loans: Key details and benefits

Kannur: In a move in the right direction, 75 percent of the projects funded last year through the Kerala government's Agriculture Infrastructure Fund (AIF) are now operational, with the remaining projects still in their initial stages. The state had allocated Rs 300 crore in loans for these initiatives. Since 2020, about Rs 450 crore has been approved for approximately 1,450 applications from farmers and agri-entrepreneurs in the state. The information is detailed in the AIF report on the project.

Launched by the Union government in July 2020, the AIF scheme aims to reduce post-harvest losses, introduce modern agricultural techniques, and cut reliance on middlemen. The scheme gained traction in January 2023 with the inclusion of diverse projects such as honey processing, sericulture, spirulina production, farm waste management, and compressed biogas plants.

Under the scheme, loans are available for 24 types of projects, including primary processing centers, warehouses, custom hiring centers, cold storage facilities, smart agriculture infrastructure, and packaging units. The maximum interest rate for these loans is nine percent, with a potential three percent discount available. More than 150 farmer associations are currently involved in various initiatives under this scheme in the state.

What projects can be started?

You can use the loan to build cold storage facilities, processing units, and other community-based agricultural assets and post-harvest infrastructure facilities. The goal is to minimize post-harvest losses. The scheme also supports projects involving artificial intelligence in farming, drying yards, mechanized farming systems, and converting existing infrastructure to solar energy.

The project is being implemented under the Department of Agriculture in Kerala. The project management unit, led by NABARD’s consulting company, NABCONS, is also actively involved.

How do I apply for a loan?

For projects up to Rs 2 crore, a three percent interest concession and government credit guarantee are available. The loan tenure is seven years, with a two-year moratorium period. Besides the interest concession, applicants can also benefit from various central and state government schemes.

To apply, visit https://agriinfra.dac.gov.in or contact the support team at 7907118539 or 9544835094 for more information.