Integrated Scheme for Agricultural Marketing

Integrated Scheme for Agricultural Marketing

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Integrated Scheme for Agricultural Marketing

The Government of India has approved the proposal of the Department of Agriculture and Cooperation for the continuation and integration of on-going Central Sector Schemes as Integrated Scheme for Agricultural Marketing (ISAM). The ISAM consists of the following sub schemes namely

  • Agricultural Marketing Infrastructure (AMI)
  • Marketing Reseach and Information Network (MRIN)
  • Strengthening of Agmark Grading Facilities (SAGF)
  • Agribusiness Development (ABD) through Venture Capital Assistance (VCA) and Project Development Facility (PDF)
  • Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM)

The Government has launched this scheme to keep in pace with the growing production and marketing surplus.

Objectives of ISAM

  • To enhance the creation of agricultural marketing infrastructure by providing backend support to the State, cooperative and private sector investments.
  • To develop the creation of scientific storage capacity and to promote pledge financing to boost the farmer’s income.
  • To promote Integrated Value Chains to provide vertical integration of farmers with primary processors.
  • To use ICT as a vehicle extension to sensitise and orient farmers to respond to new challenges in agricultural marketing.
  • To establish a nation-wide information network system for speedy collection and dissemination of market information and data on arrivals and prices for its efficient and timely utilisation by farmers and other stakeholders.
  • To support the framing of grade standards and quality certification of agricultural commodities to assist farmers in advancing with profitable prices for their graded produce.
  • To catalyse private investment to set up agribusiness projects and thereby provide an assured market to producers and strengthen backward linkages of agriculture projects with producers and their groups.
  • To undertake and promote training, research, education, extension and consultancy in the agri marketing sector.

Budget Allocation

The overall budgetary allocation for ISAM is Rs. 4548 Crores. The sub-scheme break up of the budget provision is Rs. 4000 Crores for AMI, Rs. 12 Crores for MRIN, Rs. 6 Crores for SAGF, Rs. 500 Crores for ABD and Rs. 30 Crores for NIAM.

Overview of Sub-schemes

Agricultural Marketing Infrastructure: For the creation of Agricultural Marketing Infrastructure, Grameen Bhandaran Yojana (GBY) along with Scheme for Development/ Strengthening of Agricultural Marketing Infrastructure, Grading and Standardisation (AMIGS) are coordination. Under the Integrated Scheme for Agriculture Marketing, these two schemes are subsumed into one subscheme known as Agricultural Marketing Infrastructure.

Marketing Research and Information Network: The availability and dissemination of complete and accurate marketing information is the primary requirement for operational and pricing efficiency in the marketing system. In order to completely utilise the new emerging marketing opportunities for the benefit of the farming community, Agricultural Marketing Information Network is being established.

Strengthening of Agmark Grading Facilities: SAGF aims to help the DMI to implement the Agricultural Produce Act 1937 including the meeting expenditure for the purchase of equipment, renovation and repair works in the Agmark laboratories/ Regional and Sub-offices of DMI.

Agribusiness Development (ABD) through Venture Capital Assistance (VCA) and Project Development Facility (PDF): This facilitates in setting up of agribusiness ventures in association with every Financial Institutions that are notified by the Reserve Bank of India, where the ownership of the Central/ State Government is more than 50%. The financial institutions include nationalised banks, SBI and its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRB and State Financial Corporation.

Choudhary Charan Singh National Institute of Agricultural Marketing: The institution undertakes and promotes the study of applied and operational research in problem areas of agricultural marketing and to serve as a national level nodal point for co-ordination of several research studies and dissemination of technologies that are relevant to agricultural marketing across the nation.

Policy Formulation

The Marketing Division in the Department of Agriculture acts as the authority for policy formulation of the agricultural marketing sector. The Directorate of Marketing and Inspection (DMI), implements three sub-schemes called Agricultural Marketing Infrastructure, Marketing Research and Information Network and Strengthening of Agmark Grading Facilities. An autonomous organisation known as Small Farmers Agribusiness Consortium (SFAC) implements the subscheme of Agribusiness Development (ABD) through Venture Charan Singh National Institute of Agriculture Marketing (NIAM). Having said this, this institution is an autonomous organisation under the Department that provides training, research and consultancy to stakeholders in the agri marketing sector.

Implementation of ISAM

An Empowered Committee authorised by the Chairmanship of Additional Secretary (DAC) comprising of Joint Secretary (Marketing)/ Agricultural Marketing Adviser, Director (Marketing), Joint Agricultural Marketing Adviser and Director/ Deputy Secretary (Finance), IFD, DAC are appointed to resolve difficulties and issues that are faced during the implementation of the scheme.

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