Can an FPO use the Agriculture Infrastructure Fund to build a godown or cold store?

Yes, FPOs are eligible under the Agriculture Infrastructure Fund (AIF), and it is one of the best tools for building post harvest assets. AIF gives medium to long term loans for projects like warehouses, cold storage, sorting/grading units, primary processing, custom hiring centres and other post harvest infrastructure. The main attraction is an interest subvention (the government pays a part of your interest) up to a per project ceiling and for a defined period, plus the loan can be combined with the FPO credit guarantee so collateral demands are lower. The way it works: you prepare a project report, apply through a participating bank on the AIF portal, get sanctioned, build the asset and the interest subvention reduces your effective cost. Make sure the asset actually earns, a godown is only useful if you store and sell at better prices or rent it out, otherwise you just carry a loan. Confirm the current interest subvention rate, ceiling and eligible activities on the official AIF portal before planning, as terms have been updated over time.