Assam Government Promotes Agriculture Infrastructure Fund for Farmers

The Assam government is actively promoting the Agriculture Infrastructure Fund (AIF) to enhance agricultural development and support farmers. Chief Minister Himanta Biswa Sarma highlighted the scheme's potential as a transformative initiative, with significant funds already allocated. The AIF aims to strengthen agricultural infrastructure, providing essential support to farmers, especially during challenging times like the current flooding crisis. With a focus on effective utilization of funds and credit guarantees, the government seeks to ensure sustainable agricultural growth in the state. This initiative not only benefits individual farmers but also extends to various agricultural organizations, making it a comprehensive approach to improving the agricultural sector in Assam.

By Narendra Chaudhary Jul 25, 2026, 16:21 IST

Promoting Agricultural Development in Assam

CM Sarma at Jyoti Bishnu Antarjatik Kala Mandir, Guwahati on Saturday

Guwahati, July 25: In an effort to enhance awareness and encourage the utilization of the Agriculture Infrastructure Fund (AIF), the Assam government has called upon farmers and financial institutions to leverage this initiative, which is seen as transformative for the agricultural landscape of the state.

During an event at Jyoti Bishnu Antarjatik Kala Mandir, Chief Minister Himanta Biswa Sarma announced that the state has received approvals totaling Rs 1,181 crore under this scheme, with Rs 736 crore already disbursed.

He detailed that various districts have benefited from the scheme, with Kamrup having 68 beneficiaries, Biswanath 36, Golaghat 47, Dhubri 67, Dibrugarh 54, Jorhat 49, Udalguri 15, Nagaon 131, and Tinsukia 41, among others.

In a recent discussion with Union Agriculture Minister Shivraj Singh Chouhan, Sarma was informed that Prime Minister Narendra Modi has sanctioned an allocation of Rs 1 lakh crore for the Agriculture Infrastructure Fund, with expectations of further financial support in the future.

“However, it is crucial that these funds are utilized effectively to ensure that loans can be repaid to banks, maintaining the sustainability of the scheme,” he emphasized.

Sarma explained that the Agriculture Infrastructure Fund, initiated by Prime Minister Modi, aims to bolster agricultural infrastructure nationwide with a budget of Rs 1 lakh crore.

“Infrastructure related to agriculture, such as warehouses, cold storage facilities, packaging centers, and custom hiring centers, is equally vital,” he added.

He noted that nearly Rs 95,000 crore has already been utilized under this initiative, benefiting farmers across India.

One of the scheme's significant advantages is its credit guarantee mechanism, which incentivizes banks to provide loans to farmers.

“Previously, banks hesitated to lend to farmers due to collateral requirements, which many could not meet. This scheme assures banks of the security of their funds, encouraging loan approvals,” he stated.

Additionally, the government offers an interest subsidy of up to 3 percent on loans up to Rs 2 crore.

“Once a farmer secures a loan, the government reimburses up to 3 percent of the interest on loans up to Rs 2 crore, ensuring that the interest rate remains below 9 percent. Farmers can also access other government loan schemes concurrently,” he explained.

Sarma highlighted that the benefits of this scheme are not limited to individual farmers but also extend to Farmer Producer Organisations (FPOs), Primary Agricultural Credit Societies (PACS), Self-Help Groups (SHGs), and other eligible entities.

This initiative to enhance agricultural infrastructure comes at a critical time as Assam faces severe flooding, affecting thousands of hectares of farmland.

As reported by the Assam State Disaster Management Authority (ASDMA), approximately 57,000 hectares of agricultural land were submerged as of Friday night.