Assam Chief Minister Himanta Biswa Sarma on Saturday, 25 July announced that the state government will bear 5 per cent of the beneficiary contribution for loans availed under the Agriculture Infrastructure Fund (AIF), while Farmer Producer Organisations (FPOs) will receive complete support — with the state covering their entire 10 per cent contribution. The announcement was made at a state-level AIF workshop held in Guwahati.

What the State Government Has Committed

The move is aimed at reducing the financial burden on farmers, agri-entrepreneurs, and FPOs, encouraging them to invest in modern agricultural infrastructure and value-added activities. By absorbing the beneficiary contribution, the state seeks to lower the entry barrier for smaller farmers who may otherwise be unable to access the scheme.

Sarma noted that Assam has been allocated ₹2,050 crore under the AIF, of which loans worth ₹1,181 crore have already been sanctioned to 893 beneficiaries, including farmers, FPOs, and agri-entrepreneurs. Of this, ₹736 crore has been disbursed, leaving the state with the potential to utilise nearly ₹900 crore from the existing allocation.

Assam Eyes ₹4,000 Crore in Next Phase

Expressing confidence in securing a larger allocation, Sarma said the state would seek approximately ₹4,000 crore in the next phase, following the Centre's approval of an additional ₹1 lakh crore for the scheme nationwide. This would more than double Assam's current allocation and significantly expand the scheme's reach across the state.

What the AIF Scheme Offers

The Agriculture Infrastructure Fund was launched by Prime Minister Narendra Modi in August 2020 under the Atmanirbhar Bharat Abhiyan. It provides loans of up to ₹2 crore per project, with a 3 per cent annual interest subvention for seven years, along with collateral-free credit guarantee support.

The scheme enables beneficiaries to establish warehouses, cold storage units, custom hiring centres, food processing facilities, oil extraction units, polyhouses, hydroponic and aeroponic systems, drone infrastructure, and other post-harvest facilities.

Diversification Beyond Paddy — Sarma's Push

Highlighting Assam's recurring vulnerability to floods, Sarma stressed the urgency of diversifying agriculture beyond traditional paddy cultivation. He pointed to significant commercial opportunities in processing ginger, pineapple, Assam lemon, Bhut Jolokia, red rice, mushrooms, and organic tea, while also underlining bamboo-based industries as a major avenue for rural entrepreneurship.

The Chief Minister called upon young entrepreneurs to utilise the AIF scheme and urged ministers, legislators, banks, and the Agriculture Department to intensify awareness campaigns for wider participation across the state.

Key Attendees

Agriculture Minister Pijush Hazarika and several cabinet ministers, Members of Parliament, MLAs, senior government officials, bankers, and agri-entrepreneurs attended the workshop. The broad representation signals a coordinated push to accelerate AIF uptake before the next allocation cycle.

With nearly ₹900 crore still to be utilised under the current allocation and a bid for ₹4,000 crore in the pipeline, Assam's ability to convert workshop momentum into ground-level disbursements will be the real measure of this initiative's success.