Can our FPO use AIF to build a shared warehouse and cold store for members?

AIF is a strong fit for FPOs, and FPOs are among the most active users of the scheme. As a registered FPO you can borrow for a shared warehouse, cold store, grading and pack house, primary processing or a custom hiring centre, and get the 3 percent interest subvention up to the ceiling plus credit guarantee on eligible loans. FPOs also often benefit from additional dedicated credit guarantee support, which can mean larger collateral-free loans than an individual would get, and from convergence with FPO promotion and equity grant schemes. A shared asset usually makes better sense for an FPO than for one farmer, because pooled member produce keeps the warehouse and cold store at higher occupancy, which is what makes the project repay. A few things your FPO should get right. First, a clean detailed project report with realistic member throughput, not optimistic guesses. Second, governance, the bank looks at your board, accounts, audit and management capacity. Third, a business plan for who manages the facility, sets storage charges, and handles the produce. Fourth, explore stacking AIF with an FPO equity grant or other support, while keeping costs from being double-claimed. Many FPOs apply through their promoting institution or implementing agency, which can ease the paperwork. Confirm current FPO-specific terms and guarantee support on the official AIF agriinfra portal or with your bank. This is general information and not financial advice.