Warehousing-Capital Subsidy

Storage Infrastructure in Agricultural Marketing

Introduction :

Storage infrastructure is crucial in agricultural marketing as it helps in preserving the quality and extending the shelf life of agricultural produce. Efficient storage systems reduce post-harvest losses, stabilize market prices, and ensure year-round availability of food products.

Objectives :

The key objectives of developing storage infrastructure in agriculture include:

Reducing post-harvest losses by providing adequate and timely storage facilities.

Stabilizing prices in the agricultural market by regulating supply flows.

Enhancing farmers' income by enabling them to store produce until market conditions are favorable.

Improving the overall food security of the country.

Quantum of Assistance :

The subsidy for storage infrastructure is calculated based on the capacity of the facility and varies by region and the category of the promoter. It is provided as a percentage of the capital cost of the project, subject to specific ceilings per metric to and overall financial limits.

North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, and hilly areas: Subsidy Rate: 33.33%

Subsidy Ceiling per Metric Ton: ₹1,333.20

Maximum Ceiling: ₹133.20lakhs

Other Areas:

For Registered FPOs, Panchayats, Women, SC/ST entrepreneurs, or their cooperatives, and Self-help groups:

Subsidy Rate: 33.33%

Subsidy Ceiling per Metric Ton:

₹1,000 for more than 1000 MT up to 10,000 MT Maximum Ceiling: ₹100.00 lakhs

For All Other Categories of Beneficiaries:

Subsidy Rate: 25%

Subsidy Ceiling per Metric Ton:

₹750 for more than 1000 MT up to 10,000 MT Maximum Ceiling:₹75.00 lakhs.

Conditions for Subsidy :

Eligibility:

The subsidy is available for new storage infrastructure projects or for expanding the capacity of existing facilities.

Credit Linkage:

The subsidy is linked to institutional credit, which means that the project must be financed by are cognized financial institution to qualify.

Project Approval:

Projects must be approved and conform to specific guidelines and technical specifications related to agricultural storage.

Eligible Activities :

Eligible activities under storage infrastructure development typically include:

Construction of new warehouses and silos.

Upgrading existing storage facilities to enhance their capacity and efficiency.

Implementation of controlled atmosphere storage for perishable products.

Introduction of technologies for monitoring and maintaining the quality of stored products.

Implementation Period :

The implementation period refers to the time allotted from the start of the project (typically the sanctioning of the loan or approval of the project) to its completion, during which the infrastructure must be fully constructed and ready for operational use. Standard Implementation Timeline For storage infrastructure projects, the standard timeline for completion is generally defined by the following criteria:

Disbursement of First Instalment of Loan:

The clock starts ticking from the date of disbursement of the first instalment of the loan. The project should progress according to the milestones set in the loan agreement.

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Submission of Documents:

The completion of the project is typically validated through the submission of specific documents such as completion certificates and expenditure reports from a chartered accountant.

Specific Time Limits :

18 Months from Loan Disbursement:

The project must be completed within 18 months from the date of the first loan disbursement. This is the standard period given to complete the construction and set up the necessary infrastructure for storage facilities.

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Extended Time Limit with Penalty:

If the project is not completed within the prescribed 18 months, an extension of up to 6 additional months may be granted, but this extension comes with a penalty. The penalty involves a reduction in the subsidy rate by 0.5% for each month of delay or part thereof.

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Consequences of Non-Completion Non-Eligibility for Subsidy:

If the project is not completed within the total extended period (24 months including the 6-monthextension), it will not be eligible for the subsidy. Furthermore, any advance subsidy that was released would need to be refunded.

Eligibility Criteria :

Eligibility for funding storage infrastructure projects may extend to:

Farmers and farmer groups.

Cooperatives and farmer producer organizations (FPOs).

Agri-businesses and private enterprises involved in agricultural storage.

State and local government bodies promoting agricultural infrastructure.

Application and Documentation:

Applications for funding must be accompanied by a detailed project report that outlines the objectives, expected outcomes, budget, and technical specifications of the storage facility. Additional documentation such as land ownership details, environmental clearance, and local government approvals may also be required.

Procedure for Disbursement and Appeals :

Funding disbursement for storage infrastructure projects is typically milestone-based, with funds released as specific stages of the project are completed. An appeals process is generally available to address grievances related to funding disbursement, eligibility decisions, or compliance with project specifications.

Conclusion :

Storage infrastructure is a cornerstone of effective agricultural marketing, playing a pivotal role in reducing wastage, stabilizing markets, and increasing the profitability of farming operations. By investing in advanced storage solutions, stakeholders in the agricultural sector can significantly enhance the efficiency and sustainability of food production and distribution systems.

Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting could provide crucial support to entities in setting up storage infrastructure under the AMI scheme. They can guide stakeholders, including government departments, PSUs, NGOs, cooperatives, SHGs, private companies, and FPOs, through the scheme's eligibility requirements, preparing and submitting applications, and ensuring compliance with the scheme’s guidelines. Their support would help entities maximize financial incentives and ensure efficient project implementation.

Impact of the Scheme on Industrial Growth :

The AMI scheme is designed to boost the agricultural sector by improving storage infrastructure, which is vital for reducing post-harvest losses, enhancing market access, and increasing the incomes of farmers. This initiative supports the construction of godowns, cold storages, and silos, thereby enhancing the overall storage capacity and efficiency in the agricultural supply chain.

Future Prospects and Enhancements :

Future enhancements could include increasing the capacity limits for storage projects, expanding the financial support limits, and broadening the eligibility criteria to cover more types of storage infrastructure. This could lead to better integration with digital marketing platforms like e-NAM, thereby improving transparency and profitability in agricultural marketing.

FAQs?

What is the focus of the AMI scheme regarding storage infrastructure?

The AMI scheme focuses on creating scientific storage capacity for agricultural produce to reduce losses and improve market access.

Who is eligible for this scheme?

Eligible entities include individuals, farmer groups, FPOs/FPCs, partnerships/proprietary firms, and various government and private stakeholders involved in agricultural storage.

How does an entity apply for this scheme?

Applications for storage infrastructure under the AMI scheme must include detailed project reports and are submitted through approved financial institutions linked with the scheme.

What are the financial benefits of participating in this scheme?

The scheme offers substantial financial incentives through back-ended capital subsidies for storage infrastructure, with specific rates and ceilings based on the type of beneficiary and location.

What happens if incorrect information is provided in the application?

Providing incorrect or fraudulent information can lead to the cancellation of financial support and potential legal consequences.

How does Rapid Consulting assist in this process?

Rapid Consulting ensures that applicants navigate the scheme's requirements effectively, from application to final approval and implementation, helping them to avoid common pitfalls and manage documentation and compliance requirements efficiently.

Target Sectors in India :

The Agricultural Marketing Infrastructure (AMI) sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM) includes initiatives to develop storage infrastructure. This initiative is vital for reducing post-harvest losses and enhancing the marketing of agricultural produce. The scheme supports the creation of various storage facilities such as godowns, silos, and cold storage units, which are essential for maintaining the quality and extending the shelf-life of produce, particularly in regions with surplus production.

Eligibility for Existing Businesses and New Ventures :

Entities eligible for creating storage infrastructure under this scheme include individuals, Farmer Producer Organizations (FPOs), cooperatives, private and public companies, and various governmental and non-governmental organizations. The eligibility extends to those who can demonstrate a need for improved storage facilities to aid in the effective marketing of agricultural products.

Integration with Other Subsidies and Incentives :

The storage infrastructure component of the AMI scheme allows for integration with other government subsidies and financial assistance programs, aiming to improve the overall efficiency and effectiveness of agricultural marketing. This includes incentives for creating infrastructure that can reduce losses and enhance the marketability of agricultural produce.

Application Process :

Applicants seeking to establish storage facilities must submit detailed project proposals through the designated application channels. These proposals are assessed based on their technical and economic feasibility, including their potential impact on reducing post-harvest losses and improving the marketing capabilities of agricultural producers.

Geographical Preferences in India :

The scheme prioritizes the establishment of storage infrastructure in regions that produce significant quantities of agricultural products, especially perishables, to help stabilize prices and reduce losses. Special attention is given to areas with inadequate existing storage facilities, aiming to balance regional disparities in agricultural marketing infrastructure.

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.

End-to-End Assistance:

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

Maximized Benefits:

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

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 agri-warehouse and storage infrastructure projects against the scheme criteria.

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.

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.

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.

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.

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.

How to Reach Us?

Website :

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

Direct Contac t:

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

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, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.

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