Agricultural Marketing Infrastructure in India, Know More About It

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Agricultural Marketing Infrastructure in India

In a concerted effort to bolster the income of farmers by facilitating value addition and processing at the grassroots level, the Ministry of Agriculture & Farmers Welfare, Government of India, has launched the Agricultural Marketing Infrastructure (AMI) sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM). This initiative aims to empower farmers to sell more marketable and processed produce in the market. The scheme, continuing until March 31, 2026, focuses on creating robust Agricultural Marketing Infrastructure, including scientific storage capacity.

Overview table of Agricultural Marketing Infrastructure

Aspect	Details
Scheme Name	Agricultural Marketing Infrastructure (AMI)
Implementing Authority	Ministry of Agriculture & Farmers Welfare, Government of India
Duration	Until March 31, 2026
Objective	Empower farmers to sell more marketable and processed produce in the market
Sub-scheme	Integrated Scheme for Agricultural Marketing (ISAM)
Eligible Beneficiaries	Individuals, Agri-preneurs, farmers, FPOs, Cooperatives, State agencies
Subsidy Structure	25% for plain areas; 33.33% for Northeast, hilly areas, Women/SC/ST promoters, and FPOs
Scope of Assistance	– Development of Agricultural Marketing Infrastructure – Infrastructure for Rural Haats – Common Facilitation Centre for FPOs – Marketing infrastructures in market yards – Infrastructure for direct marketing – Mobile infrastructure for post-harvest operations – Stand-alone cold storages – Integrated Value Chain (IVC) Projects up to the primary processing stage
Benefits	– Ensuring Remunerative Prices – Diversification of Marketing Channels – Encouraging Small Processing Units – Reducing Post-harvest Losses – Facilitating Market Access – Strengthening Market Linkages
Application Process	– Term Loan Application – Loan Sanction – Advance Subsidy Application – Subsidy Sanction and Release – Project Completion – JMI Process – Final Subsidy Release
Documents Required	Forwarding letter, Advance subsidy claim application, Project report, Approved plan/map, Loan sanction letter, Land documents, Certifications, Affidavits
Conclusion	The AMI scheme uplifts the agricultural sector by enhancing marketing infrastructure and empowering farmers. It ensures remunerative prices, promotes alternative marketing channels, and reduces post-harvest losses, fostering inclusive growth and sustainable development.

Details of the AMI Scheme

Capital Subsidy for Infrastructure Projects

Under the AMI scheme, the government is offering a capital subsidy to encourage the creation of Agricultural Marketing Infrastructure, with a specific emphasis on scientific storage capacity. This includes projects related to storage infrastructure (ranging from 50 to 5,000 MT for Private & Cooperatives and 50 to 10,000 MT for State agencies) and other marketing infrastructure projects, excluding storage.

Eligibility and Subsidy Structure

The AMI scheme operates as an open-ended, demand-driven, credit-linked, back-ended subsidy scheme. Various beneficiaries, including Individuals, Agri-preneurs, farmers, FPOs, Cooperatives, and state agencies, are eligible for assistance. The subsidy rates stand at 25% for plain areas and 33.33% for regions like the Northeast, hilly areas, Women/SC/ST promoters, and FPOs.

Scope of Assistance

The assistance under the sub-scheme extends to a diverse range of projects, such as the development of Agricultural Marketing Infrastructure, Infrastructure for Rural Haats, Common Facilitation Centre for FPOs, Marketing infrastructures in market yards, Infrastructure for direct marketing, Mobile infrastructure for post-harvest operations, Stand-alone cold storages, and Integrated Value Chain (IVC) Projects up to the primary processing stage.

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Benefits of the AMI Scheme

Ensuring Remunerative Prices: The scheme aims to secure remunerative prices for farmers’ produce.
Diversification of Marketing Channels: It promotes alternative and competitive marketing channels.
Encouraging Small Processing Units: The scheme supports the growth of small-sized processing units.
Reducing Post-harvest Losses: Efforts are made to minimize post-harvest and handling losses.
Facilitating Market Access: The scheme promotes pledge financing and market access for farmers.
Strengthening Market Linkages: It establishes farmer-consumer market linkages and integrates Grameen Agricultural Markets (GrAMs) with the e-NAM portal.

Agricultural Marketing Infrastructure Apply Online

The application process for the AMI scheme involves several steps:

Term Loan Application: The promoter applies for a Term Loan (TL) to a Financial Institution (FI).
Loan Sanction: The Term Loan is sanctioned by the Financial Institution.
Advance Subsidy Application: Within 90 days of disbursal of the first installment of TL, the FI applies for Advance Subsidy through the ENSURE portal of NABARD.
Subsidy Sanction and Release: NABARD sanctions and releases the Advance Subsidy to the FI.
Project Completion: After completing the project, the FI submits the final subsidy claim to NABARD and requests Joint Monitoring Inspection (JMI).
JMI Process: NABARD initiates action for the conduct of JMI, and Geo-tagged photographs taken during JMI are uploaded to the ENSURE Portal.
Final Subsidy Release: NABARD sanctions and releases the final subsidy to the FI.

Documents Required for Agricultural Marketing Infrastructure

The documentation process for the AMI scheme involves the submission of several essential documents, including a forwarding letter, advance subsidy claim application, project report, approved plan/map, loan sanction letter, land documents, and various certifications and affidavits.

Conclusion: Agricultural Marketing Infrastructure

The Agricultural Marketing Infrastructure (AMI) scheme emerges as a pivotal initiative in uplifting the agricultural sector by enhancing marketing infrastructure and empowering farmers. By ensuring remunerative prices, promoting alternative marketing channels, and reducing post-harvest losses, the scheme contributes to the overall welfare of the farming community. Any interested individual or entity can apply for the scheme, thereby fostering inclusive growth and sustainable development in the agricultural sector.

Frequently Asked Questions

Q1) What is the Agricultural Marketing Infrastructure (AMI) scheme?

Ans: The AMI scheme is a sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM), launched by the Ministry of Agriculture & Farmers Welfare, Government of India. It aims to enhance the income of farmers by facilitating value addition and processing at the grassroots level.

Q2) Who is eligible to benefit from the AMI scheme?

Ans: Various beneficiaries including individuals, agri-preneurs, farmers, Farmer Producer Organizations (FPOs), Cooperatives, and state agencies are eligible for assistance under the AMI scheme.

Q3) What types of projects does the AMI scheme support?

Ans: The scheme supports a diverse range of projects including the development of agricultural marketing infrastructure, infrastructure for rural haats, common facilitation centers for FPOs, marketing infrastructures in market yards, infrastructure for direct marketing, mobile infrastructure for post-harvest operations, stand-alone cold storages, and integrated value chain projects up to the primary processing stage.

Q4) How does the application process for the AMI scheme work?

Ans: The application process involves steps such as term loan application, loan sanction, advance subsidy application, subsidy sanction and release, project completion, Joint Monitoring Inspection (JMI) process, and final subsidy release.

Q5) What are the key benefits of the AMI scheme?

Ans: The scheme aims to ensure remunerative prices for farmers’ produce, promote diversification of marketing channels, encourage small processing units, reduce post-harvest losses, facilitate market access for farmers, and strengthen market linkages, among other benefits.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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