The Agricultural Marketing Infrastructure (AMI) Scheme is a government initiative designed to enhance and modernize the marketing infrastructure in the agriculture sector. It was initially introduced as a sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM), operated by the Ministry of Agriculture and Farmers Welfare, Government of India. The scheme’s primary goal is to develop better marketing infrastructure for agricultural products, including storage facilities, cold chains, and grading and sorting facilities, to reduce post-harvest losses and improve market access for farmers.

By focusing on modernizing agricultural marketing infrastructure, the scheme helps farmers get better prices for their produce, reduces wastage, and supports the development of value-added activities in the agriculture supply chain.

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Objectives of the Agricultural Marketing Infrastructure (AMI) Scheme

1. Reduce Post-Harvest Losses:

• Develop marketing and storage infrastructure to minimize post-harvest losses caused by poor storage facilities and inadequate market access.

1. Improve Farmer Access to Markets:

• Help farmers gain better access to local, national, and international markets through improved infrastructure, enabling them to fetch better prices for their produce.

1. Promote Value Addition:

• Support the creation of facilities for grading, sorting, packaging, and processing, allowing farmers to add value to their produce and earn higher revenues.

1. Facilitate Direct Marketing:

• Encourage farmers and producers to market their products directly to consumers, bypassing middlemen and intermediaries, resulting in better price realization.

1. Boost Rural Employment:

• By supporting the establishment of infrastructure projects like storage units, cold chains, and processing units, the scheme generates employment opportunities in rural areas.

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Key Features of the Agricultural Marketing Infrastructure (AMI) Scheme

1. Financial Assistance/Subsidy:

• The scheme provides financial assistance to individuals, cooperatives, farmer groups, and other entities to establish marketing infrastructure, such as storage facilities, rural godowns, cold chains, and processing units.
• Subsidies are provided at the following rates:
  • 33.33% of the project cost for NE States, Hilly States, Women, SC/ST entrepreneurs, and their cooperatives, up to a maximum of ₹75 lakh.
  • 25% of the project cost for other categories, up to a maximum of ₹50 lakh.
  • The maximum project cost eligible for subsidy is capped at ₹500 lakh.

1. Eligible Infrastructure Projects:

• Rural Godowns: Construction of new storage facilities or expansion of existing ones to store agricultural produce.
• Cold Storage and Cold Chains: Establishment of cold storage units and refrigerated transport to extend the shelf life of perishable produce such as fruits, vegetables, and dairy products.
• Marketing Infrastructure: Creation of marketing yards, collection centers, and rural haats, as well as facilities for grading, sorting, and packaging of produce.
• Processing Units: Infrastructure for the primary processing of agricultural products, including cleaning, grading, and packaging facilities.

1. Eligible Beneficiaries:

• The scheme targets a wide range of entities involved in agriculture and allied sectors. These include:
  • Farmers (both individual and groups)
  • Farmer Producer Organizations (FPOs)
  • Cooperative Societies
  • Self-Help Groups (SHGs)
  • Agri-entrepreneurs
  • Marketing Boards
  • State and local agencies
  • Private sector entities involved in agricultural marketing and storage.

1. Loan Assistance:

• Projects seeking to avail subsidies under the AMI scheme must be financed through institutional credit, such as loans from commercial banks, regional rural banks (RRBs), or cooperative banks.
• A minimum margin money of 10%-25% of the project cost must be contributed by the beneficiary, depending on the type of entity.
• The remaining funds will be provided through loans by financial institutions, and the subsidy will be credited directly to the loan account.

1. Credit-Linked Subsidy:

• The scheme follows a credit-linked subsidy model, which means that beneficiaries must first secure a loan from an approved financial institution before they are eligible for the subsidy.

1. Interest Subvention:

• The scheme also provides an interest subvention component, wherein a percentage of the interest on loans availed for infrastructure projects is covered by the government.

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Application Process for AMI Scheme

1. Submission of Proposal:

• The interested applicant (individual farmer, FPO, cooperative, etc.) submits a detailed project proposal to a financial institution (bank or other eligible financial entities) for financing.

1. Project Appraisal by Bank:

• The financial institution appraises the project proposal based on its feasibility and viability and sanctions the loan accordingly.

1. Subsidy Application:

• Once the loan is sanctioned, the applicant applies for the subsidy through the respective state or central nodal agency responsible for the AMI scheme.
• The application is submitted along with documents such as the loan sanction letter, project plan, and other relevant certificates.

1. Subsidy Approval and Disbursement:

• The subsidy is disbursed in stages directly to the loan account of the beneficiary. The project must adhere to all compliance requirements, and the nodal agency will monitor the progress of the project.

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Subsidy Pattern under the AMI Scheme

Category	Subsidy Rate	Maximum Subsidy
Women, SC/ST Entrepreneurs, NE States, Hilly States	33.33% of project cost	₹75 lakh
Other Entrepreneurs (Individuals, Private Firms)	25% of project cost	₹50 lakh
Maximum Eligible Project Cost	₹500 lakh	—

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Eligible Infrastructure Projects Under the AMI Scheme

Infrastructure	Details
Rural Godowns/Storage Facilities	– Storage units for grains, pulses, seeds, and other agricultural produce.
	– Can be new construction or expansion of existing storage facilities.
Cold Storage Units	– Cold chains and cold storage units for perishable produce.
	– Refrigerated transport infrastructure to reduce post-harvest losses.
Processing Units	– Grading, sorting, packaging, and processing facilities for primary products.
	– Agro-processing units to add value to raw produce.
Market Infrastructure	– Creation of marketing yards, rural haats, and collection centers for farmers.
	– Infrastructure for e-markets, retail markets, and rural wholesale markets.

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Benefits of the Agricultural Marketing Infrastructure Scheme

1. Reduction in Post-Harvest Losses:

• By developing modern storage facilities, cold chains, and processing units, the scheme reduces post-harvest losses that occur due to improper handling and storage of agricultural produce.

1. Enhanced Market Access:

• The scheme creates direct market linkages for farmers, reducing their dependence on middlemen and enabling them to sell their produce at fair prices.

1. Value Addition:

• Facilities for grading, sorting, and packaging add value to agricultural products, allowing farmers to sell higher-quality produce and earn better prices.

1. Improvement in Income and Livelihoods:

• With better infrastructure, farmers can store and market their produce more effectively, leading to better price realization and improved livelihoods.

1. Promotion of Private Investment:

• By offering subsidies and financial support, the scheme encourages private entrepreneurs and businesses to invest in agricultural marketing infrastructure, contributing to overall sector growth.

1. Rural Employment Generation:

• The establishment of new infrastructure creates direct and indirect job opportunities in rural areas, supporting economic development and reducing migration to cities.

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Challenges and Recommendations

Challenges:

1. Awareness and Outreach:

• Many small farmers and rural communities are unaware of the benefits and opportunities provided by the AMI scheme. This limits its reach, particularly in remote areas.

1. Access to Credit:

• Farmers and small entrepreneurs sometimes face challenges in accessing institutional credit due to cumbersome processes or lack of collateral.

1. Project Execution and Monitoring:

• Ensuring that projects are completed on time and that the infrastructure is used efficiently can be challenging, particularly in states with lower administrative capacities.

Recommendations:

1. Improved Awareness Campaigns:

• The government should focus on increasing awareness through targeted campaigns, involving local agricultural offices, cooperatives, and farmers’ groups to educate farmers about the scheme’s benefits.

1. Streamlining Credit Access:

• Simplifying the process for securing loans under the scheme, possibly by collaborating with microfinance institutions or state agencies, can improve the uptake of credit.

1. Effective Monitoring and Evaluation:

• Strengthening monitoring mechanisms to ensure that infrastructure projects are completed on time and used effectively will enhance the scheme’s overall impact.

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Conclusion

The Agricultural Marketing Infrastructure (AMI) Scheme is a vital initiative aimed at modernizing the agricultural supply chain in India by developing world-class marketing infrastructure. By improving the availability of storage, processing, and marketing facilities, the scheme helps reduce post-harvest losses, enhances farmer incomes, and facilitates access to better markets. With continued focus on implementation,

awareness, and credit facilitation, the AMI scheme has the potential to transform the agricultural marketing landscape in India, contributing to a more efficient and profitable agricultural sector.

Here’s a detailed explanation of the Agricultural Marketing Infrastructure (AMI) Scheme presented in a tabular format:

This table provides a clear, structured overview of the Agricultural Marketing Infrastructure (AMI) Scheme, summarizing its key features, benefits, and the process involved.