The Government is implementing Agricultural Marketing Infrastructure (AMI), a sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM). AMI aims to improve storage capacity for agriculture produce in rural areas. The scheme offers subsidies of 25% and 33.33% on the capital cost of eligible projects.
Eligible beneficiaries include farmer groups, self-help groups, agricultural cooperatives, and village panchayats. 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 in order to qualify for the subsidy. You can further find these standards on the Ministry of Agriculture and Farmers’ Welfare website.
Interested applicants can submit their proposals to the concerned State Department State Government will evaluate the proposal. Then, they will select the successful applicants.
What The Scheme Offers More & Why Do We Need it?
Agricultural marketing infrastructure (AMI) is vital for ensuring timely and efficient market linkages for farmers so that they can get better prices for their produce. The Agricultural Infrastructure Loan 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 also be used for civil works, purchase/installation of machinery/equipment, and working capital. The maximum loan amount is Rs. 200 crores.
For eligibility, 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 & the prevailing interest rate of the lead bank will link together in the borrowing state.
The lending institution will collateral for the loan. A mix of equity and debt in a ratio of not less than 1:1 will find the project cost. It is also a great financial assistance option for those looking to set up or upgrade agricultural marketing infrastructure. It is important to note that the project should be of a certain size and commercial viability to be eligible for the loan and that adequate collateral security will be required.
The Agricultural Marketing Infrastructure (AMI) in Agri infrastructure loan is a great opportunity for farmers to improve their businesses. Moreover, this program will help connect rural communities with the necessary resources they need to be successful. All in all, we should take advantage of this program and apply for an Agri infrastructure loan today!
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