Agriculture Marketing Infrastructure Scheme

For the creation of agricultural marketing infrastructure, Directorate of Marketing & Inspection, Ministry of Agriculture and Farmers Welfare, Government of India has launched ‘Agriculture Marketing Infrastructure (AMI) scheme as a sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM) scheme. Main objectives of the scheme include the creation of scientific storage capacity with allied facilities in rural areas to meet out various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc., and prevention of distress sale by creating the facility of pledge loan and marketing credit. In this article, we will look at the Agriculture Marketing Infrastructure Scheme in detail. Know more about the Green Revolution – Krishonnati Yojana

Objectives of Agriculture Marketing Infrastructure Scheme

The primary objective of the Agriculture Marketing Infrastructure (AMI) Scheme is listed as follows:

For developing the agricultural marketing infrastructure by effectively managing the marketable surplus of agriculture including horticulture and of allied sectors including poultry fishery, dairy, livestock and minor forest produce.
For promoting the latest technologies in the agriculture marketing
To create general awareness and give training to entrepreneurs, farmers, market functionaries and other stakeholders on various aspects of agricultural marketing including grading, standardisation and quality certification.
Encouraging the private and cooperative sector investments to promote competitive alternative agricultural marketing infrastructure
Promoting direct marketing and increase market efficiency through reduction in intermediaries and handling channels thus enhancing farmers’ income.
To promote the creation of scientific storage capacity for storing the farm produces, processed farm produce agricultural inputs and to reduce post-harvest and handling losses.
To provide infrastructure facilities for standardisation, grading and quality certification of agricultural products to protect a price and promote pledge financing and marketing credit, negotiable warehousing receipt system and promotion of forward and futures markets to increase farmers’ income.

Eligibility Criteria

Assistance under the Agriculture Marketing Infrastructure Scheme will be available to following beneficiaries

Individuals
Group of farmers, growers
Partnership, Proprietary firms, Companies, Corporations.
Registered Farmer Producer Organisations (FPOs).
Self Help Groups (SHGs)
Non-Government Organizations (NGOs)
Autonomous Bodies of the Government, Local Bodies
Cooperatives, Cooperative Marketing Federations
Corporations for storage infrastructure projects,
State agencies including the State Government Departments and autonomous
An organisation or State-owned corporations such as Agricultural Produce Marketing Committees and Marketing Boards, State Warehousing Corporations, State Civil Supplies Corporations etc.

Promoter’s Contribution and Term Loan

Minimum promoter’s contribution should be 20% of the project cost.
Minimum Term loan including the subsidy to be sanctioned by the Financial Institution (FI) should be 50% of the project cost.
Promoter’s contribution for storage infrastructure projects of State Government and State Government agencies financed under Rural Infrastructure Development Fund (RIDF) or Warehouse Infrastructure Fund (WIF) of NABARD will be relaxed as per the respective fund guidelines.
Promoter’s Contribution in case of own funded State agency projects will be 75%/66.67% of the project cost

Subsidy Pattern

The Agriculture Marketing Infrastructure Scheme envisages back-ended capital subsidy for investment in available storage and marketing infrastructure projects as given below: For Storage Infrastructure Projects

Category	Rate of Subsidy	Subsidy Ceiling
Category	Rate of Subsidy	Up to 1000 MT	More than 1000 MT and up to 30000 MT	Maximum ceiling (`Lakhs)
The North Eastern States, Sikkim, Andaman & Nicobar and Lakshadweep Islands, hilly areas	33.33%	1333.20	1333.20	400
For Registered FPOs, Women, Panchayats, SC, ST beneficiaries or Self-help groups	33.33%	1166.55	1000	300
For all Other categories of beneficiaries	25%	875	750	225

The capital cost of the project for a subsidy will be calculated based on the project cost:

Category	Rate of Subsidy	Subsidy Ceiling
Category	Rate of Subsidy	Up to 1000 MT	More than 1000 MT and up to 30000 MT	Maximum ceiling (`Lakhs)
A. North Eastern States, Sikkim, Andaman & Nicobar and Lakshadweep Islands, hilly areas	33.33%	1333.20	1333.20	400
For Registered FPOs, Women, Panchayats, Scheduled Caste(SC)/ Scheduled Tribe (ST) beneficiaries or their cooperatives/Self-help groups	33.33%	1166.55	1000	300
For all Other categories of beneficiaries	25%	875	750	225

Time Schedule for Completion of Projects

Financial Institution will within 90 days of disbursal of the first instalment of the loan, submit to RO, NABARD, through its controlling office, a brief project profile-cum claim form for advance subsidy in the prescribed form along with the documents as per checklist. A copy of the claim application form along with supporting documents should also be submitted to the Regional Office/Sub-Office of DMI. Financial Institution will also inform the promoter about the submission of the proposal to RO, NABARD and DMI. NABARD will, compile a list of all proposals every quarter, that have not been furnished in time and forward the same to DMI, RO/ SO. RO, NABARD will forward the matter before the State Level Banker’s Committee (SLBC).