Agricultural Marketing Infrastructure (AMI) in Agri Infrastructure Loan
Agricultural Marketing Infrastructure (AMI) is a crucial element for ensuring timely and efficient market linkages for farmers, allowing them to get better prices for their produce. The Government of India recognizes this and is implementing the Agricultural Marketing Infrastructure (AMI) scheme, a sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM).
The AMI scheme aims to improve storage capacity for agricultural produce in rural areas. Beneficiaries include farmer groups, self-help groups, agricultural cooperatives, and village panchayats. The scheme provides subsidies of 25% and 33.33% on the capital cost of eligible projects, based on the category of beneficiary.
Eligibility
To be eligible for the subsidy, project costs must be incurred within two years of the sanction date and must be completed within three years. Completed projects must meet certain standards to qualify for the subsidy, which is detailed in the scheme guidelines available on the Ministry of Agriculture and Farmers‘ Welfare website.
Project Standards
Completed projects must meet certain standards in order to qualify for the subsidy. These standards are detailed in the scheme guidelines, which are available on the Ministry of Agriculture and Farmers’ Welfare website.
Application Process
Interested applicants can submit their proposals to the concerned State Department of Agriculture/Horticulture/Animal Husbandry/Dairy Development/Fisheries, along with the required documents. Proposals will be evaluated by a committee constituted by the respective State Government, and successful applicants will be selected based on the committee’s recommendations.
AMI Loan Scheme
The Agricultural Infrastructure Loan, also offered by the Ministry of Agriculture and Farmers’ Welfare, provides financial assistance for setting up or upgrading agricultural marketing infrastructure, including storage facilities, both pre-and post-harvest. The loan can be used for civil works, purchase/installation of machinery/equipment, and working capital, with a maximum loan amount of Rs. 200 crores.
Eligibility Criteria for AMI Loan Scheme
To be eligible for the loan, the minimum size of the project must be 10 hectares and the maximum loan amount per hectare is Rs. 1 crore. The loan has a repayment period of 15 years, including a moratorium of 5 years on principal repayments. The interest rate on the loan will be linked to the prevailing interest rate of the lead bank in the borrowing state.
Collateral and Funding Ratio
It is important to note that the project should be of a certain size and commercial viability to be eligible for the loan, and adequate collateral security will be required. The project cost will be funded through a mix of equity and debt in a ratio of not less than 1:1.
Conclusion
In conclusion, the Agricultural Marketing Infrastructure (AMI) in agri infrastructure loan is a great opportunity for farmers to improve their businesses. This program will help connect rural communities with the necessary resources they need to be successful. We should take advantage of this program and apply for an agri infrastructure loan today!
Meri Policy Mere Hath
