In May 2020, as India faced the economic shock of the COVID-19 lockdown, the Government of India announced a ₹20 lakh crore economic package under the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission). Agriculture and allied sectors received a significant share of the attention, with measures aimed at farm credit, post-harvest infrastructure, dairy, fisheries, animal husbandry and food processing.
We first wrote about the package shortly after it was announced. Six years later, several of its agriculture measures have become long-running schemes that continue to shape rural India. This updated article explains what the package included for agriculture, what has happened since and what it means for agri businesses and the brands that market to farmers.
What Was the ₹20 Lakh Crore Package?
The Prime Minister announced the Atmanirbhar Bharat package on 12 May 2020. Worth about ₹20 lakh crore, or roughly 10 per cent of India’s GDP at the time, it combined new measures with relief already announced earlier in the lockdown, including the Pradhan Mantri Garib Kalyan package of around ₹1.7 lakh crore for vulnerable households and liquidity measures announced by the Reserve Bank of India.
The Finance Minister set out the details in five tranches between 13 and 17 May 2020. The second and third tranches were the most important for agriculture and rural India.
Relief for Farmers During the Lockdown
Alongside the new package, the government highlighted support already provided to the farm sector during the first two months of the lockdown. As announced at the time, this included:
- Minimum support price (MSP) purchases of about ₹73,300 crore.
- PM-KISAN transfers of about ₹18,700 crore to farmers’ bank accounts.
- Crop insurance claim payments of about ₹6,400 crore.
- Additional milk procurement by dairy cooperatives to offset a sharp fall in demand, supported by an interest subvention of 2 per cent per year for dairy cooperatives in 2020-21, with an additional 2 per cent for prompt repayment.
These measures were designed to keep cash flowing into rural households while markets and supply chains were disrupted.
Credit Support for Farmers (Second Tranche)
The second tranche, announced on 14 May 2020, focused on farm credit:
- ₹2 lakh crore in concessional credit through Kisan Credit Cards, targeting around 2.5 crore farmers, including fishermen and animal husbandry farmers.
- ₹30,000 crore in additional emergency working capital through NABARD for rural cooperative banks and regional rural banks, to meet crop loan requirements for around 3 crore small and marginal farmers.
Agriculture and Allied Sector Measures (Third Tranche)
The third tranche, announced on 15 May 2020, was dedicated to agriculture and allied activities. It included measures worth about ₹1.5 lakh crore, along with policy reforms.
| Measure | Allocation | Purpose |
| Agriculture Infrastructure Fund | ₹1,00,000 crore | Financing for farm-gate and aggregation-point infrastructure such as cold storage, warehouses and processing units |
| Formalisation of micro food enterprises (PMFME) | ₹10,000 crore | Support for small food businesses using a cluster-based approach |
| Pradhan Mantri Matsya Sampada Yojana | ₹20,000 crore | Development of marine and inland fisheries, infrastructure and exports |
| Animal disease control programme | ₹13,343 crore | Vaccination of cattle, buffalo, sheep, goats and pigs against foot and mouth disease and brucellosis |
| Animal Husbandry Infrastructure Development Fund | ₹15,000 crore | Investment in dairy processing, value addition and cattle feed infrastructure |
| Promotion of herbal cultivation | ₹4,000 crore | Bringing 10 lakh hectares under medicinal plant cultivation over two years |
| Beekeeping initiatives | ₹500 crore | Infrastructure, training and market support for around 2 lakh beekeepers |
| Operation Greens extension | ₹500 crore | Transport and storage subsidies extended from tomatoes, onions and potatoes to all fruits and vegetables |
The third tranche also announced three governance reforms: changes to the Essential Commodities Act, a central law to allow barrier-free inter-state trade in farm produce, and a legal framework for farmers to enter agreements with processors, aggregators, large retailers and exporters.
What Has Happened Since 2020
The Agriculture Infrastructure Fund Has Become a Major Scheme
The Agriculture Infrastructure Fund (AIF) is the most visible long-term outcome of the package. The Finance Minister announced it on 15 May 2020 as a ₹1 lakh crore financing facility for farm-gate and aggregation-point infrastructure, benefiting primary agricultural cooperative societies, farmer producer organisations (FPOs), agri entrepreneurs and start-ups.
The scheme offers a 3 per cent interest subvention and credit guarantee support for loans of up to ₹2 crore, with these benefits available until 2032-33.
Uptake has grown steadily. According to the Ministry of Agriculture and Farmers Welfare, as of 26 January 2026 the AIF had sanctioned ₹80,224.15 crore for 1,50,431 projects, mobilising total investment of ₹1,27,508 crore. By June 2025, 2,454 cold storage projects alone had been sanctioned under the fund, with a combined sanctioned amount of ₹8,258 crore.
Allied Sector Schemes Continue
The fisheries, animal husbandry and micro food enterprise schemes launched or expanded under the package have continued to fund projects across the country, supporting dairy processing, feed plants, fish farming infrastructure, and the formalisation and branding of small food businesses.
The Farm Reform Laws Were Repealed
The governance reforms announced in the third tranche were enacted as three farm laws in September 2020. They led to sustained protests by farmer groups, particularly in Punjab, Haryana and western Uttar Pradesh, and were repealed by Parliament in November 2021. Views on the reforms remain divided: supporters argued they would give farmers more choice and better prices, while critics raised concerns about the future of minimum support prices and farmers’ bargaining power with large buyers.
What It Means for Agri Brands and Rural Marketers
The package’s lasting impact has been to direct investment into the parts of the agri economy that sit between the farm and the market. This has created new customer groups and new opportunities for agri businesses.
1. Growing Demand for Post-Harvest Infrastructure
Thousands of new cold stores, warehouses, sorting and grading units, primary processing centres and custom hiring centres are being built. This creates demand for equipment, machinery, building materials, refrigeration, solar solutions and financing, and for brands that can explain their value to first-time investors.
2. FPOs as Customers and Channels
Farmer producer organisations are major beneficiaries of AIF and other schemes. For agri-input, equipment and services companies, FPOs are both bulk buyers and trusted channels for reaching member farmers. Building relationships with FPO leadership is now an important part of agri marketing.
3. Opportunities in Allied Sectors
Investment in dairy, fisheries, poultry, beekeeping and animal health has increased demand for cattle feed, veterinary products, vaccines, milking equipment, aquaculture inputs and cold chain solutions. Brands in these categories need communication tailored to livestock farmers and fish farmers, not just crop growers.
4. Formalising Small Food Businesses
The micro food enterprise scheme is helping small processors upgrade, register and build brands. This opens opportunities for packaging suppliers, machinery makers, financial services providers and marketing partners.
5. Better Credit Access Supports Input Purchases
Wider Kisan Credit Card coverage and concessional credit help farmers invest in quality seeds, crop protection, fertilisers and equipment. Agri brands can work with banks and dealers to link product promotion with financing options.
How Brands Can Reach These Audiences
Many farmers, FPOs and rural entrepreneurs are still unaware of the schemes available to them or unsure how to apply. Brands that help them understand these opportunities earn trust and build long-term relationships. Practical approaches include:
- Scheme awareness communication in local languages, explaining eligibility, benefits and how a product fits into a funded project.
- Farmer meets and field demonstrations showing equipment, storage solutions or inputs in real conditions.
- Activations at mandis and haats, where farmers and traders gather. See Ascent’s article on mandis as a touch point to reach farmers.
- Dealer and FPO engagement programmes that train channel partners to explain products and financing.
- Regional-language video and WhatsApp communication to extend reach after on-ground activity. See Ascent’s articles on how rural India is consuming YouTube and WhatsApp marketing.
- Rural call centres to handle enquiries and follow up on leads. See Ascent’s rural call centre service.
- Clear measurement of leads, conversions and sales by district. See Ascent’s guide on measuring the ROI of a rural marketing campaign.
Ascent’s Experience in Agri Marketing
Ascent has more than 25 years of experience working with agri-input, seed, crop protection, fertiliser, farm equipment and animal feed brands across India. Our work includes product communication for four hybrid seed launches under the “Khet Se Bazaar Tak” campaign, farmer engagement for Syngenta Paahi (HPH 2050) and Syngenta Kioto capsicum hybrid seed, and social media marketing for Godrej Agrovet’s cattle feed brand.
You can explore more of our work in agriculture, agrochemicals, agriculture equipment and animal feed.
Frequently Asked Questions
What was the ₹20 lakh crore package?
It was an economic package announced by the Government of India in May 2020 under the Atmanirbhar Bharat Abhiyan to support the economy during the COVID-19 pandemic. Worth about 10 per cent of GDP, it combined new measures with earlier relief and RBI liquidity support.
How much of the package was for agriculture?
The third tranche, dedicated to agriculture and allied sectors, included measures worth about ₹1.5 lakh crore. The second tranche separately provided ₹2 lakh crore in concessional credit through Kisan Credit Cards and ₹30,000 crore in additional working capital through NABARD.
What is the Agriculture Infrastructure Fund?
It is a ₹1 lakh crore financing facility launched in 2020 for post-harvest infrastructure and community farming assets, such as cold storage, warehouses and processing units. It offers a 3 per cent interest subvention and credit guarantee support for eligible loans.
What happened to the farm reforms announced in the package?
The reforms were enacted as three farm laws in September 2020. After prolonged farmer protests, Parliament repealed them in November 2021.
How does the package affect agri businesses today?
It has driven investment in post-harvest infrastructure, dairy, fisheries, animal husbandry and food processing. This has created new customers such as FPOs and rural entrepreneurs, and new demand for equipment, inputs, building materials and financial services.
Conclusion
The ₹20 lakh crore package was announced in a moment of crisis, but several of its agriculture measures have had a lasting effect. The Agriculture Infrastructure Fund in particular has channelled large-scale investment into storage, processing and aggregation, changing how produce moves from farm to market.
For agri brands, this has opened new opportunities with FPOs, rural entrepreneurs, livestock farmers and food processors. The brands that benefit most will be those that understand these audiences, speak their language and help them turn government support into productive investment.
Ascent helps agri and rural brands plan and execute strategic rural marketing programmes that reach farmers, FPOs and channel partners with clarity and credibility.
