—- Chattanathan Devarajan, Co-Founder, Arya.ag and MD, Aryadhan Financial Solutions Pvt Ltd

India’s agricultural sector has long grappled with a paradox. It produces more food than ever, yet a significant portion is lost after harvest. For decades, inadequate infrastructure meant grains rotted in the open, fruits spoiled before reaching markets, and farmers, lacking storage and market access, sold under distress. But this is no longer a static narrative. A quiet but decisive shift is underway, powered by a new generation of rural infrastructure models designed to fundamentally break this cycle. Much of this transformation starts with finance. Let’s explore further.

The Agriculture Infrastructure Fund (AIF), with its Rs 1 lakh crore corpus, is more than a financing scheme: it’s a structural lever. By lowering interest costs and offering credit guarantees, it has made decentralised warehouses, cold chains, packhouses, assaying labs, and rural processing units commercially viable for the first time at scale. As of date, over 99,000 projects worth more than a lakh of crore have been sanctioned under AIF — translating to more villages with scientific storage, more farmers retaining their harvest till prices improve, and less produce going to waste because someone built a grading or sorting unit just in time.

The Rural Infrastructure Development Fund (RIDF), operated by NABARD, has been filling critical infrastructure gaps for nearly three decades. In states like Uttar Pradesh and Chhattisgarh, investments in minor irrigation and rural roads have turned fallow or inaccessible lands into productive fields. Studies indicate that a single RIDF-backed irrigation project across a cluster of villages can raise farm yields by 30–35  per cent and boost rural employment by up to 25  per cent in the project command areas — a multiplier that extends well beyond agriculture into allied sectors like dairy, logistics, and rural retail.

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