Can a primary processing unit like a dal mill or oil expeller be funded under AIF?

Primary processing units are generally eligible under the Agriculture Infrastructure Fund. AIF is meant to support value addition close to the farm, so primary processing such as a dal mill, oil expeller, flour or spice grinding, cleaning and milling units typically falls in scope. The distinction the scheme draws is between primary, farm-gate level processing, which AIF supports, and large standalone secondary processing or manufacturing that may belong to other industrial schemes. A small to medium primary processing unit aimed at local aggregation usually qualifies. The loan can cover the building, machinery and installation as appraised, with the 3 percent interest subvention up to the ceiling and credit guarantee on eligible loans. Things to plan carefully. First, raw material supply, a processing unit only earns if it runs at decent capacity, so line up steady throughput from your own produce, an FPO, or local farmers. Second, licences, processing food products usually needs food safety registration and other local permissions. Third, market for the output, decide whether you sell branded, in bulk, or back to buyers. Fourth, byproduct value, husk, bran and oil cake add income, build that into the project report. Confirm that your specific processing line qualifies and check current terms on the official AIF agriinfra portal or with your lending bank. This is general information and not financial advice.