CCEA Approves Creation of Agri-Market Infrastructure Fund for Development and Upgradation (Download PDF)

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The Cabinet Committee of Economic Affairs gave approval for the creation of a corpus of Rs. 2000 crore for Agri-Market Infrastructure Fund (AMIF) to be created with NABARD for development and up-gradation of agricultural marketing infrastructure in Gramin Agricultural Markets and Regulated Wholesale Markets.

Image of Agri Market Infrastructure Fund

Image of Agri Market Infrastructure Fund

Image of Agri Market Infrastructure Fund

AMIF will provide the State/UT Governments subsidized loan for their proposal for developing marketing infrastructure in 585 Agriculture Produce Market Committees (APMCs) and 10,000 Grameen Agricultural Markets (GrAMs).

  • States may also access AMIF for innovative integrated market infrastructure projects including Hub and Spoke mode and in Public Private Partnership mode. In these GrAMs, physical and basic infrastructure will be strengthened using MGNREGA and other Government Schemes.

  • After approval of AMIF Scheme, the interest subsidy will be provided by DAC&FW to NABARD in alignment with annual budget releases during 2018 - 19 and 2019 - 20 as well as upto 2024 - 25.

  • The Scheme being demand driven, its progress is subject to the demands from the States and proposals received from them.

About AMIF

  • It is well known that small farmers do not have economic strength to retain produce with them till the market prices are favourable. A network of rural godowns will enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales.

  • Accordingly, Government of India has launched ‘Grameen Bhandaran Yojana’ w. e. f. 01.04. 2001. The scheme has been subsumed into capital investment subsidy sub-scheme “Agricultural Marketing Infrastructure (AMI) ” of Integrated Scheme for Agricultural Marketing (ISAM) scheme w. e. f 01.04. 2014. AMI scheme is temporarily stopped w. e. f. 05.08. 2014 for general category promoters due to exhaustion of funds. However, the scheme is open for SC/ST promoters and for promoters in North-Eastern Region.

Objective of the Scheme

Main objectives of scheme include creation of scientific storage capacity with allied facilities in rural areas to meet out various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc. , and prevention of distress sale by creating the facility of pledge loan and marketing credit.

- Published/Last Modified on: May 7, 2019

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