Assam Government Urges Farmers to Utilize Rs 736 Crore Agriculture Infrastructure Fund

Dispur, India Jul 25, 2026 ALN: With an aim to promote awareness and encourage wider adoption of the Agriculture Infrastructure Fund (AIF) scheme, the Assam government, on Saturday, urged farmers and financial institutions to make greater use of the initiative, describing it as a game changer for the state's agricultural sector.

Addressing a gathering at Jyoti Bishnu Antarjatik Kala Mandir, Assam Chief Minister Himanta Biswa Sarma said the state had secured approvals worth Rs 1,181 crore under the scheme so far, of which Rs 736 crore has come into their account. This financial backing is crucial for the development of agricultural infrastructure in the region, which has traditionally faced challenges in terms of resource allocation and management.

"So far, projects worth Rs 1,181 crore have been approved, and beneficiaries across different districts have availed the scheme. Kamrup has 68 beneficiaries, Biswanath 36, Golaghat 47, Dhubri 67, Dibrugarh 54, Jorhat 49, Udalguri 15, Nagaon 131 and Tinsukia 41, among others," he said. The distribution of beneficiaries across various districts highlights the widespread interest and potential for growth within the agricultural sector in Assam, which is known for its tea plantations, rice production, and a variety of fruits and vegetables.

Referring to his recent meeting with Union Agriculture Minister Shivraj Singh Chouhan, Sarma said Chouhan informed him that Prime Minister Narendra Modi had approved an outlay of Rs 1 lakh crore under the Agriculture Infrastructure Fund. He also expressed confidence that additional funds would be made available in the future. The commitment from the central government reflects a broader strategy to enhance agricultural productivity and sustainability across India, particularly in states like Assam, where agriculture plays a pivotal role in the economy.

"However, merely allocating funds is not enough. They must be utilised effectively so that loans can be repaid to banks and the scheme remains sustainable," he said. This statement underscores the importance of not just securing funds, but also ensuring they are used in a manner that promotes long-term viability for farmers and agricultural enterprises.

Sarma said the Agriculture Infrastructure Fund was launched by Prime Minister Modi with an outlay of Rs 1 lakh crore to strengthen agriculture-related infrastructure across the country. This initiative is part of a larger vision to modernize the agricultural sector, which has historically been underfunded and overlooked in terms of infrastructure development.

"Along with agriculture, agricultural infrastructure is equally important. This includes warehouses, cold storage units, packaging centres, custom hiring centres and several other infrastructure projects. The Prime Minister launched this Rs 1 lakh crore scheme for the farmers of India," he said. The significance of such infrastructure cannot be overstated, as it not only aids in the storage and preservation of produce but also enhances market access for farmers, ultimately improving their income and livelihoods.

The Chief Minister added that nearly Rs 95,000 crore had already been utilised under the scheme, benefiting farmers across the country. This statistic reflects the ongoing efforts to channel resources effectively into agriculture, although it also indicates the need for continued monitoring and evaluation of how these funds are being spent.

Explaining the scheme's key features, Sarma said one of its biggest strengths was its credit guarantee mechanism, which encourages banks to lend to farmers. "Earlier, banks were often reluctant to extend loans to farmers because they sought collateral, which many farmers could not provide. Under this scheme, the credit guarantee assures banks that their money is secure and encourages them to sanction loans," he said. This change is particularly important in a region like Assam, where many farmers operate on a small scale and may lack the assets needed to secure traditional loans.

Highlighting another key benefit, Sarma said the government provides an interest subvention of up to 3 per cent on loans of up to Rs 2 crore. "Once a farmer avails the loan, the government reimburses up to 3 per cent of the interest on loans up to Rs 2 crore. We also try to ensure that the interest rate does not exceed 9 per cent. Farmers availing this scheme can continue to access other government loan schemes as well," he said. This dual approach of providing both credit guarantees and interest subsidies is aimed at making agricultural financing more accessible and affordable.

Sarma said the benefits of the scheme extend beyond individual farmers and are also available to Farmer Producer Organisations (FPOs), Primary Agricultural Credit Societies (PACS), Self-Help Groups (SHGs) and several other eligible institutions. This inclusive approach is designed to foster collective growth and empower farmers by promoting cooperative models that can leverage resources more effectively.

The Centre's push to strengthen agricultural infrastructure comes at a time when Assam is battling severe floods that have inundated thousands of hectares of farmland. The timing of this initiative is particularly critical, as natural disasters like floods can devastate agricultural production and threaten food security in the region.

According to the Assam State Disaster Management Authority (ASDMA), around 57,000 hectares of crop land remained submerged across the state as of Friday night. The impact of such flooding is profound, not only causing immediate loss of crops but also affecting the livelihoods of farmers who depend on these lands for their sustenance. The government’s efforts to bolster agricultural infrastructure through the AIF are intended to mitigate such risks in the future by enhancing resilience against climate-related challenges.

In conclusion, the Assam government's call for farmers to utilize the Rs 736 crore Agriculture Infrastructure Fund is a significant step towards enhancing the agricultural landscape of the state. By focusing on infrastructure development, credit access, and cooperative growth models, the initiative aims to create a more sustainable and productive agricultural sector. However, the success of this scheme will depend on effective implementation and the active participation of farmers and financial institutions alike. As Assam navigates the challenges posed by natural disasters and economic constraints, the Agriculture Infrastructure Fund represents a beacon of hope for the future of agriculture in the region.