Agriculture Marketing Infrastructure Scheme

Agriculture Marketing Infrastructure Scheme

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.

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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 

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%1333.201333.20400

For Registered FPOs, Women, Panchayats,

 SC, ST beneficiaries or Self-help groups

33.33%1166.551000300
For all Other categories of beneficiaries25%875750225

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

Category

 

Rate of

Subsidy

 

Subsidy Ceiling 

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%1333.201333.20400

For Registered FPOs, Women, Panchayats, 

Scheduled Caste(SC)/ Scheduled Tribe (ST) 

beneficiaries or their cooperatives/Self-help groups

33.33%1166.551000300

For all Other categories of 

beneficiaries

25%875750225

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).  

Documents Required

The documents required for Agriculture Marketing Infrastructure Scheme is listed as follows:

  • Forwarding letter of Controlling or nodal office of the financing branch
  • The complete address with telephone or fax numbers of the controlling or nodal office as well as the financing branch
  • The advance subsidy claim application form of financing branch
  • A copy of the claim form along with all required documents 
  • Advance subsidy claim application 
  • Copy of detailed project report with item-wise details of costs, loan, total outlay and margin furnished by the promoter with the technical and financial appraisal report from the Financial Institution
  • The approved plan and civil drawings indicating the dimensions and capacity of the infrastructure project.
  • The loan sanction letter of the financial institution along with the copies of invoices for purchase of machinery or infrastructure project
  • Land-related documents where the project is going to be established
  • Financial Institution certificate on the category of the Promoter. In case of SC/ST beneficiaries and Cooperative, certification by the Competent Authority 
  • Notorised Affidavit executed by the promoter on a nonjudicial stamp paper
  • Copy of registered partnership deed, if it is a partnership firm, 
  • Memorandum and Articles of Association (MOA) and certificate of incorporation, in case of Company

Agriculture Marketing Infrastructure Scheme Application Procedure

The application procedure for the Agriculture Marketing Infrastructure Scheme is explained in detail below:

Step 1: The promoter will have to submit the project proposal for term loan including subsidy to the financial institution on the prescribed application form. 

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Step 2: On sanction of the term loan, the Financial Institution will issue sanction letter and all other instructions.

Step 3: Financial Institution will procure a copy of instruction duly signed by the promoter as a token of their acknowledgement.

Step 4: Financial Institution will respond within 90 days of disbursal of the first instalment of the loan, forward to RO, NABARD, through its controlling office, a brief project profile-cum-claim form for advance subsidy in the prescribed form 

Step 5: A copy of the claim form along with all related documents should also be submitted to the Regional Office or Sub-Office of DMI.

Step 6: Financial Institution will also inform the promoter about the submission of the proposal to NABARD and DMI. 

The release of advance subsidy

Subject to availability of funds, NABARD will release advance subsidy to the Financial Institution for keeping the same in the Subsidy Reserve Fund (SRF) account of the applicant. 

RO, NABARD will also forward the copy of sanction and release letter for each project to the Regional or Sub-office of DMI. 

The Release of the Final subsidy

After completion of the project, the promoter has to inform the Financial Institution of the same and also submit documents including completion certificate signed by approved engineer/registered architect and item-wise actual expenditure by the chartered accountant signed by the promoter and countersigned by the Branch Manager to the Financial Institution within the prescribed time limit. 

Within 60 days of the receipt of supporting documents from the promoter, the FI will submit to RO, NABARD and Regional office of DMI, final subsidy claim along with necessary documents, complete in all respects and also request for Joint Inspection of the project. 

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