AMI Warehouse Subsidy Scheme - NABARD

Analysis of the Agricultural Marketing Infrastructure (AMI)

Scheme Introduction: ‍

The AMI scheme, part of the broader Integrated Scheme for Agricultural Marketing (ISAM), was revised and re-introduced in 2018 to enhance agricultural marketing infrastructure in India. It focuses on strengthening the post-harvest management and marketing infrastructure, directly connecting farmers to markets to boost their income and reduce intermediaries

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Objectives:

‍The primary objectives of the AMI scheme are - Develop marketing infrastructure to handle marketable surpluses efficiently, Promote innovative technologies in post-harvest and marketing infrastructure, Develop alternative marketing channels through private and cooperative sectors, Benefit farmers through farm-level processing and marketing of produce, Promote creation of scientific storage capacity to reduce losses, Enhance direct farmer-consumer connections through upgraded rural hats (GRAMs). Incentivize infrastructure for grading, standardization, and quality certification of agricultural produce.

Quantum of Assistance :

‍The scheme offers substantial financial support in the form of capital subsidy linked to credit.

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Subsidy Rates

25% Subsidy

‍Typically offered to most projects under the scheme.

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33.33%Subsidy

Provided for projects located in special areas such as the North-Eastern states, hilly regions, and tribal areas, reflecting the additional challenges and investment needs in these regions.

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Maximum Subsidy Caps:

‍The subsidy cap varies significantly based on the category of the project, its location, and the type of beneficiary.

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For example:

North Eastern States, Sikkim, UTs, and hilly areas :

Up to 33.33% of the capital cost with maximum subsidy ceilings that can reach up to ₹133.20 lakh depending on the project size and type.

‍Other Areas: For general beneficiaries, the subsidy is typically capped at 25% of the capital cost, with maximum amounts being lower compared to special area projects.

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Types of Projects Eligible

Storage Infrastructure:

‍This includes godowns, silos, and other facilities for storing agricultural produce. The subsidy supports the creation of facilities that enhance the storage capacity, helping to reduce post-harvest losses and stabilize market prices by managing supply.

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Marketing Infrastructure:

Development of physical market infrastructure such as wholesale markets, rural hats (markets), and other marketing platforms that facilitate direct selling and buying, reducing the number of intermediaries and improving price realization for farmers.

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Value Addition Infrastructure:

Facilities that enable primary processing of agricultural produce, such as grading, sorting, and packaging units. These processes do not change the basic nature of the produce but make it more marketable and ready for further processing or direct sale.

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Eligible Activities :

‍Eligible activities under the AMI scheme include the development and upgradation of physical marketing infrastructure, establishment of GRAMs, storage facilities, and infrastructure for direct marketing. It also supports the setting up of facilities for grading, sorting, and packaging which add value to the agricultural produce and help in achieving better market prices.

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Implementation Period :

‍The revised guidelines for the AMI scheme were effective from October 22,2018, to March 31, 2026. This specific implementation period was set to ensure structured development within a definite timeframe, allowing for focused and measurable impacts on the agricultural marketing infrastructure.

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Eligibility Criteria :

‍Eligibility for the scheme includes a wide range of entities such as individual farmers, Farmer Producer Organizations (FPOs),private companies, cooperatives, and government agencies. This broad eligibility is designed to include a diverse set of stakeholders within the agricultural value chain, facilitating widespread improvements in marketing infrastructure.

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Application and Documentation :

‍Applications for financial assistance under the AMI scheme must be submitted through designated financial institutions which then liaise with NABARD or other specified agencies. The detailed documentation required includes project proposals, detailed project reports, and proofs of eligibility and compliance with various scheme criteria.

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Procedure for Disbursement and Appeals :

‍The subsidy disbursement is closely monitored and involves several stages, including the application review, project inspection, and post-implementation audits. Appeals and grievances related to project approvals and subsidy disbursements are handled through structured channels, ensuring transparency and accountability.

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Conclusion:

‍The AMI sub-scheme under ISAM represents a critical step towards modernizing India's agricultural marketing infrastructure. By facilitating better linkages between farmers and markets and supporting infrastructural advancements, the scheme aims to improve the economic conditions of farmers, reduce wastage of agricultural produce, and streamline the agricultural supply chain in India.

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Rapid Consulting's Role in Facilitating the Process :

‍Rapid Consulting could play a significant role in assisting various stakeholders such as farmers, Farmer Producer Organizations (FPOs), and agricultural enterprises by providing expertise in navigating the AMI sub-scheme. They could help stakeholders understand eligibility criteria, assist in preparing and submitting project proposals, and ensure compliance with the scheme’s requirements to optimize the utilization of financial incentives and infrastructural improvements offered.

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Impact of the Scheme on Industrial Growth : ‍

he AMI sub-scheme aims to enhance India's agricultural sector by improving marketing infrastructure and farmer-market linkages. By providing financial assistance for creating and upgrading rural hats into Gramin Agricultural Markets (GRAMs), and by promoting farmer-consumer markets, the scheme supports the development of amore efficient agricultural marketing system. This facilitates better pricing, reduced losses, and improved market access for farmers, which in turn, promotes sustainable agricultural growth and rural development.

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Future Prospects and Enhancements :

‍Looking ahead, the scheme could be enhanced by expanding its scope to include more advanced and diversified infrastructural projects, such as high-tech storage facilities or integrated cold chains. Further integration with digital marketing platforms and e-commerce could enhance market reach and efficiency. Additionally, broadening eligibility and increasing financial incentives could attract more participants and investments into the agricultural sector.

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FAQs

What is the Agricultural Marketing Infrastructure sub-scheme ?

The AMI sub-scheme under ISAM provides financial support for developing and upgrading marketing infrastructure in the agricultural sector, aiming to improve market linkages and price realization for farmers.

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Who is eligible for this scheme ?

Eligible entities include individuals, groups of farmers, FPOs, private and cooperative sectors, and various state agencies involved in agricultural marketing.

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How does an entity apply for this scheme ?

Entities must submit detailed project proposals along with required documentation to eligible financial institutions or through online portals specified by the scheme.

What are the financial benefits of participating in this scheme ?

The scheme offers back-ended capital subsidies for investment in eligible storage and marketing infrastructure projects, aimed at reducing post-harvest losses and improving market access.

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What happens if incorrect information is provided in the application ?

In corrector fraudulent information can result in the revocation of granted subsidies, repayment demands, and potential exclusion from future benefits under the scheme.

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How does Rapid Consulting assist in this process ?

Rapid Consulting can facilitate the entire application process, helping stakeholders meet project guidelines and compliance requirements to maximize benefits from the scheme.

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Target Sectors in India :

The Agricultural Marketing Infrastructure (AMI) sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM) focuses on developing marketing infrastructure for agricultural and allied produce across India. It aims to support the establishment and upgrade of GRAMs (Gramin Agricultural Markets), storage facilities, and direct farmer-consumer linkages.

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Eligibility for Existing Businesses and New Ventures :

‍Eligibility for AMI benefits extend to a variety of entities including individual farmers, Farmer Producer Organizations (FPOs), private companies, and state agencies. The projects must aim at creating or enhancing infrastructure that supports agricultural marketing, storage, and processing.

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Integration with Other Subsidies and Incentives :

‍The AMI sub-scheme is designed to be integrated with other government initiatives to enhance its reach and efficacy. This integration allows for leveraging additional resources and incentives available under different governmental programs, enhancing the overall investment in agricultural marketing infrastructure.

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Application Process :

‍Applications for the AMI sub-scheme are submitted through designated financial institutions which then coordinate with NABARD or NCDC for funding and subsidy disbursement. The application process includes detailed project reports and eligibility proof to ensure compliance with the scheme's objectives.

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Geographical Preferences in India :

‍The AMI sub-scheme is implemented nationwide, with special emphasis on upgrading rural marketing facilities into GRAMs, enhancing farmer-market linkages. It prioritizes regions where agricultural marketing infrastructure is underdeveloped, aiming for a balanced and inclusive development approach across all states and territories.

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Why Choose Rapid Consulting ?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes, ensuring you get the most out of your investment.

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End-to-End Assistance:

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

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Maximized Benefits:

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability.

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Here's how we assist our clients through our comprehensive service:

Consultation and Eligibility Assessment:

We begin by conducting thorough consultations to understand our clients' requirements and determine their eligibility for the subsidy. We assess their proposed warehouse and storage infrastructure projects against the scheme criteria.

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Documentation Preparation:

Our team assists in compiling all necessary documentation required for the subsidy application. This includes financial records, project details, investment plans, and any other relevant information needed for submission to NABARD.

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Application Management:

We manage the entire application process, ensuring that all documents are submitted accurately and on time. Our experts liaise with NABARD and other relevant authorities to streamline the submission process.

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Negotiation and Follow-up:

We handle negotiations and responses to any queries or requests for additional information from NABARD. Our goal is to ensure a smooth process and address any concerns promptly.

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Subsidy Disbursement:

Upon approval, we facilitate the disbursement of the subsidy amount to our clients. We ensure that all procedural formalities are completed efficiently for the timely release of funds.

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Post-Subsidy Support:

Our services extend beyond subsidy acquisition. We provide ongoing assistance with compliance requirements, reporting obligations, and any other post-subsidy concerns.

With Rapid Consulting, clients can rely on our expertise and experience to navigate the complexities of the AMI Warehouse Subsidy Scheme by NABARD. We aim to maximize benefits and facilitate the development of efficient and sustainable Agri-warehouse and storage infrastructure for our clients.

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How to Reach Us ?

Website:

Visit our official website for detailed information, service offerings, and to schedule an online consultation.

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Direct Contact:

‍Call us at +91-9467248028 / 9416506136 or email info@rapidconsulting.into discuss your needs directly with our experts.

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Office Visit:

Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar,Haryana-125001.

Here, youcan meet with our consultants who can provide personalized guidance tailored toyour business's specific circumstances.Engage with Rapid Consulting today toleverage their expertise in enhancing your business's financial and operationalperformance through the Collateral Free Credit Guarantee Scheme and otherbeneficial state initiatives. Whether online, over the phone, or in person,Rapid Consulting is ready to assist you in advancing your business goals inHaryana.

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