India’s agriculture sector is undergoing a major transformation. This change is being driven by government policies that focus on strengthening post-harvest infrastructure, improving value addition, ensuring better market access, and making farming more sustainable. These efforts are aimed at increasing farmer incomes, reducing losses, and creating a competitive and resilient agricultural economy.

A recent success story from Odisha illustrates the potential of such initiatives. In Kidigam, Gajapati District, the “Sri Maa Majji Gouri” Cashew Industry was set up in 2022 to provide local employment and stable markets for farmers. The project cost ₹57 lakh and was supported with a ₹42.75 lakh loan from Bank at just 5.5% interest per annum, made possible through the Agriculture Infrastructure Fund (AIF). Today, it directly employs 20 people, supports 40 local farmers, and is expected to generate ₹2.48 crore in annual revenue.

Understanding the Agriculture Infrastructure Fund (AIF):

Launched in 2020–21, the Agriculture Infrastructure Fund (AIF) is a medium- to long-term debt financing facility aimed at building post-harvest management and farm-gate infrastructure.

Key Features:

• • • • Loan provision: ₹1 lakh crore through lending institutions.

      • Interest rate capped at 9% per annum.

      • Interest subvention and credit guarantee support.

      • Supports infrastructure like warehouses, cold storage, grading units, and ripening chambers.

Progress so far:

As of 30 June 2025, ₹66,310 crore has been sanctioned for 1,13,419 projects across India.

Objectives:

• • • • Reduce post-harvest losses.

      • Strengthen storage and logistics facilities at the farm gate.

      • Minimise dependence on intermediaries.

      • Improve farmers’ ability to access better prices through value addition.

Significance of Agricultural Infrastructure:

1. Reduces Post-Harvest Losses – Better storage and processing facilities preserve quality and extend the selling period.

2. Increases Farmer Income – Value addition and direct market access help farmers get better prices.

3. Promotes Diversification – Schemes like PMMSY and MOVCDNER encourage fisheries and organic farming, diversifying rural incomes.

4. Improves Water Use Efficiency – MIF promotes micro-irrigation, reducing wastage and improving yields.

5. Encourages Private Participation – Government-backed financing reduces risk for private investors.

6. Drives Digital Transformation – DPI and digital market platforms create a transparent, data-driven agricultural economy.

Key Government Initiatives Strengthening Agri Infrastructure:

1. Integrated Cold Chain, Food Processing and Preservation Infrastructure Scheme

Implemented by the Ministry of Food Processing Industries under Pradhan Mantri Kisan Sampada Yojana (PMKSY), it aims to:

• • • • • Reduce post-harvest losses in horticultural and non-horticultural produce.

        • Improve storage, transportation, and processing facilities.

        • Ensure remunerative prices for farmers.

2. Capital Investment Subsidy for Modernisation of Cold Storages

Supports credit-linked back-ended subsidies to modernise cold storage infrastructure for horticultural produce, extending shelf life, reducing wastage, and improving marketability.

3. Agricultural Marketing Infrastructure (AMI) Scheme

Part of the Integrated Scheme for Agricultural Marketing (ISAM), this scheme funds construction and renovation of godowns and warehouses.

Progress: 49,796 projects sanctioned across 27 states (as of 30 June 2025).

4. Mission for Integrated Development of Horticulture (MIDH)

Provides financial assistance for post-harvest infrastructure such as pack houses, cold storages, refrigerated transport, and processing units—especially in North Eastern and Himalayan states.

5. Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)

Launched in 2015–16 with a ₹400 crore outlay to promote certified organic farming in North Eastern states. Builds production clusters, develops complete value chains, and promotes exports.

6. Digital Public Infrastructure (DPI)

Aims to create a unified digital ecosystem for agriculture by integrating:

• • • • • Land records

        • Crop patterns

        • Farmer profiles
          This supports targeted interventions, transparency, and efficient decision-making.

7. Pradhan Mantri Matsya Sampada Yojana (PMMSY)

Launched in 2020 to boost fish production, strengthen post-harvest infrastructure in fisheries, and ensure sustainable growth in the sector.

8. National Agriculture Market (e-NAM)

An online platform that integrates physical mandis across India to:

• • • • • Provide transparent and competitive market access.

        • Help farmers secure better prices.

9. Micro Irrigation Fund (MIF)

Supports innovative irrigation projects with 2% interest subvention to states.
Progress: ₹4,709 crore loans approved; ₹3,640 crore disbursed.

10. Digital Empowerment of Farmers

Farmer Producer Organisations (FPOs) are being onboarded onto platforms like:

• • • • • e-NAM

        • Open Network for Digital Commerce (ONDC)

        • Government e-Marketplace (GeM)
          This expands market reach and enables efficient transactions.

Issues with Agriculture Infrastructure in India:

Despite these schemes, there are critical gaps in agricultural infrastructure that need to be addressed for sustained growth.

Production and Initial Processing:

• • • • • Inadequate irrigation infrastructure: About 51% of India’s net sown area is still rainfed, making agriculture vulnerable to monsoon variability.

        • Low farm mechanisation: Mechanisation stood at only 47% in 2022, leading to low productivity compared to global standards.

        • Limited soil testing facilities: Inadequate access to soil health services limits the ability to optimise crop nutrient management.

        • Insufficient cold storage: A significant portion of perishable produce is lost due to lack of temperature-controlled storage at the production stage.

Post-Harvest, Processing, and Distribution:

• • • • • Limited food processing capacity: Only a small percentage of agricultural produce undergoes processing, limiting value addition.

        • Inefficient supply chain management: Weak transport and storage linkages increase costs and losses.

        • Poor market intelligence: Lack of timely data leads to phenomena like the ‘cobweb effect’, where farmers overproduce certain crops in one season and face price crashes in the next.

Conclusion:

India’s agricultural sector stands at a turning point. Flagship programmes like AIF, PMKSY, MIDH, PMMSY, and e-NAM are making a visible difference by addressing infrastructure gaps, improving market linkages, and enabling value addition. The Odisha cashew unit is proof of how targeted support can transform rural economies.

However, to fully realise the potential of these schemes, India must address persistent bottlenecks—such as inadequate irrigation, low mechanisation, limited soil health services, insufficient cold storage, poor supply chains, and weak market intelligence. Bridging these gaps will not only make agriculture more productive and resilient but also secure rural livelihoods, strengthen food security, and position India as a globally competitive agricultural economy.