Agricultural Marketing
12.3 Integrated Scheme for Agricultural Marketing (ISAM)
12.3.1 Agricultural Marketing Infrastructure (AMI)
To develop Agricultural Marketing Infrastructure including storage infrastructure, the Ministry of Agriculture & Farmers’
Welfare is implementing a capital investment subsidy sub-scheme Agricultural Marketing Infrastructure (AMI) of the Integrated Scheme for Agricultural Marketing (ISAM).
The erstwhile two schemes viz. (i) Grameen Bhandaran Yojana (GBY) implemented since 01.04.2001 and (ii) Scheme for Strengthening/
Development of Agricultural Marketing Infrastructure, Grading & Standardization (AMIGS) implemented since 20.10.2004 have been subsumed into one scheme known as Agricultural Marketing Infrastructure (AMI) w.e.f. 01.04.2014.
The AMI sub-scheme of ISAM was sanctioned for the XII Plan Period (2012-17). The scheme had been stopped after 05.08.2014 for new projects of General category and after 31.12.2016 for new projects of SC/ST/NER category.
Now the Government has re-launched the scheme w.e.f. 22.10.2018 with certain modifications for the period coterminous with the 14th Finance Commission i.e. upto 2019- 20 with the following objectives:
Objective:
(i) To develop marketing infrastructure to effectively handle and manage marketable surpluses of agricultural and allied produce including horticulture, livestock, poultry, fishery, bamboo, minor forest produce etc. supportive to enhance farmers’ income.
(ii) To promote innovative and latest technologies in post-harvest and agricultural marketing infrastructure.
(iii) To develop alternative & competitive marketing channels for agricultural and allied produce through incentivizing private and cooperative sectors to make investments there for.
(iv) To benefit farmers individually and collectively through FPOs from farm level processing and marketing of processed produce along with promotion of small processing units.
(v) To promote creation of scientific storage capacity for storing farm produce, processed farm produce and agricultural inputs etc. to reduce post- harvest & handling losses, promote pledge financing and market access.
(vi) To incentivize developing and upgrading of Gramin Haats as GrAMs to make better farmer-consumer market linkages and also to assist in integration of GrAMs with the e-NAM portal so as to improve transparency in trading and better price discovery.
(vii) To provide infrastructure facilities for grading, standardization and quality certification of agricultural and allied produce with the objectives of (a) ensuring produce quality based value realization to farmers and: (b) promoting pledge financing , e-NWRS and futures trading .
(viii) To promote Integrated Value Chains through minimal processing /value addition to make the produce more marketable, which includes washing, sorting, cleaning, grading, waxing, ripening, packaging, labelling etc.
wherein the product form is not changed.
(ix) To undertake publicity and awareness campaign among stakeholders including farmers, agri. preneurs, market functionaries and on other various aspects and functions of agricultural marketing including grading, standardization, quality certification, regulation, reforms , e-trading, promoting farmers facilitation centres for market information & intelligence by FPOs etc . Brief of the scheme
Under the AMI sub-scheme, there are two components (i) Storage Infrastructure (ii) Marketing Infrastructure other than storage.
The main objective of the scheme is to promote development of agricultural marketing infrastructure including storage infrastructure in the country. The scheme is meant for holistic development of the agricultural value chain critically focusing each linkage of the post- harvest value chain. The AMI sub scheme is a back ended capital subsidy scheme and subsidy is provided on the capital cost of the project to develop agricultural marketing infrastructure and storage infrastructure including infrastructure for development/
upgradation of Rural Haats as Gramin Agricultural Market (GrAMs) , Common Facilitation Centre for FPOs, marketing infrastructure in market yards, infrastructure for direct marketing, mobile infrastructure for post-harvest operations including reefer vans, stand-alone cold storages up to 1000 MTs, Integrated Value Chain (IVC) projects up to primary processing stage etc.
The scheme is demand driven, credit linked with provision of back-ended subsidy. The scheme is also reform linked for non-storage infrastructure projects of State/UT agencies and allowed under the scheme for those States/Union Territories that have undertaken the following reforms in their respective APMC Acts (i) direct marketing ; (ii) contract farming; (iii) setting up of wholesale market for
agricultural and allied produce in the private and cooperative sector, (iv) e-trading; (v) unified single trading license valid across the State/UT and (vi) single point levy of market fee across the State/UT.
a) The provisions with admissible rate of subsidy, subsidy pattern etc under revised Operational Guidelines of the Scheme are as follows:
- Eligible Beneficiaries under the Scheme:
Individuals, Group of farmers / growers, FPOs/FPCs registered under the respective Companies Act/Cooperatives Societies Act/ Societies Registration Act (with minimum 50 number of farmer members); Partnership/ Proprietary firms, Companies, Corporations; Non- Government Organization (NGO), Self Help Group (SHG); Cooperatives, Cooperative Marketing Federation;
Autonomous Bodies of the Government, Local Bodies, Panchayat, State agencies including State Government Departments and autonomous organization / State owned corporations such as Agricultural Produce Market Committees & Marketing Boards, State Warehousing Corporations, State Civil Supplies Corporations etc.
- Subsidy pattern under the Scheme including women farmers and entrepreneurs are as follows:
AMI scheme is a back ended Capital Subsidy scheme in which the rate of subsidy varies from 25% to 33.33% based on the category of eligible beneficiary and provided on the capital cost of the project. However in respect of women farmers/entrepreneurs irrespective of the category, the rate of subsidy admissible is 33.33%. The detail of subsidy pattern is as under:
FOR STORAGE INFRASTRUCTURE PROJECTS:
Category Rate of Subsidy (on capital cost)
Subsidy ceiling 50- 1000 MT
in Rs./MT
More than 1000 MT and up to
10,000 in Rs./MT
Maximum ceiling (Rs. Lakhs)
A) North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* areas
33.33% 1333.20 1333.20 133.20
B) In other Areas
1. For Registered FPOs, Panchayats, Women, Scheduled Caste (SC)/
Scheduled Tribe (ST) entrepreneurs or their cooperatives**/ Self-help groups
33.33% 1166.55 1000.00 100.00
2. For all other categories of
beneficiaries 25% 875/- 750/- 75.00
* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.
** SC/ ST Cooperatives to be certified by the concerned officer of the State Government.
FOR INFRASTRUCTURE PROJECTS OTHER THAN STORAGE (NON-STORAGE) INFRASTRUCTURE INCLUDING FARMER-CONSUMERS MARKET AND DEVELOPMENT AND UPGRADATION OF RURAL HAATS/RPMs into GrAMs
Category Rate of Subsidy
(on capital cost)
Maximum Subsidy Ceiling (Rs. in lakhs) A) North Eastern States, Sikkim, States of Uttarakhand, Himachal
Pradesh, UTs of Jammu & Kashmir, Ladakh, Andaman &
Nicobar and Lakshadweep Islands, hilly* and tribal areas
33.33% 30.00
B) In Other Areas
1. For Registered FPOs, Panchayati Raj Institutions, Women farmers/ entrepreneurs, Scheduled Caste(SC)/ Scheduled Tribe (ST) entrepreneurs and their cooperatives**
33.33% 30.00
2. For all other categories of beneficiaries 25% 25.00
*Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.
** SC/ ST Cooperatives to be certified by the concerned officer of the State Government.
Mini oil expeller for extraction of edible vegetable oil (as per FSSAI but without refining) from indigenous oilseeds (viz.
mustard seed, sesame seed, ground nut, linseed, mahua, safflower, nigerseed oil, coconut, almond and olive only) and mini dal mill for primary processing of pulses, which includes cleaning, grading, sorting, splitting, packaging and labelling for promoting direct marketing, are also eligible.
Infrastructure for setting up of Common Facilitation Centres by FPOs/FPCs are eligible under the scheme.
Further, infrastructure projects other than storage (non-storage) infrastructure including farmer-consumer market and development and up-gradation of rural haats/RPMs into GrAMs are also eligible under the scheme.
b) Progress of the Scheme:
Since inception of the scheme up to 31.12.2019, a total number of 38,964 storage infrastructure projects (godowns), with storage capacity of 65.54 million MT were sanctioned under the scheme and subsidy of Rs. 2957 crore has been released. Similarly, 18,565 other marketing infrastructure projects have also been sanctioned and subsidy of Rs.1816 crore has been released so far.
The detailed Operational Guidelines 2018 is available at https://dmi.gov.in/Schemeamigs.
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