Central Sector Scheme for Strengthening of Agri. Marketing Infrastructure, Grading and Standardization (Scheme to continue till 31.03.2012)
The main objectives of the Scheme are:
- To provide additional agricultural marketing infrastructure to cope up with the large expected marketable surpluses of agricultural and allied commodities including dairy, poultry, fishery, livestock and minor forest produce.
- To promote competitive alternative agricultural marketing infrastructure by inducement of private and cooperative sector investments that sustain incentives for quality and enhanced productivity thereby improving farmers’ income.
- To strengthen existing agricultural marketing infrastructure to enhance efficiency.
- To promote direct marketing so as to increase market efficiency through reduction in intermediaries and handling channels thus enhancing farmers’ income.
- To provide infrastructure facilities for grading, standardization and quality certification of agricultural produce so as to ensure priceto the farmers commensurate with the quality of the produce.
- To promote grading, standardization and quality certification system for giving a major thrust for promotion of pledge financing andmarketing ,credit, introduction of negotiable warehousing receipt system and promotion of forward and future markets so as to stabilize market system and increase farmers’ income.
- To promote direct integration of processing units with producers.
- To create general awareness and provide education and training to farmers, entrepreneurs and market functionaries on agricultural marketing including grading, standardization and quality certification.
‘Marketing Infrastructure’ for the purpose of the scheme may comprise of any of the following:
- Functional infrastructure for collection/ assembling, drying, cleaning, grading, standardization, SPS (Sanitary & Phytosanitary) measures and quality certification, labeling, packaging, ripening chambers, retailing and wholesaling, value addition facilities (without changing the product form) etc. Transportation facility will not be covered under the scheme. However, reefer vans, or any other refrigerated vans used for transporting agricultural produce, which are essential for maintaining cold supply chains, shall be eligible for assistance under the Scheme.
- Market user common facilities in the project area like shops/offices, platforms for loading/ unloading/ assembling and auctioning of the produce, parking sheds, internal roads, garbage disposal arrangements, boundary walls, drinking water, sanitation arrangements, weighing & mechanical handling equipments, etc.;
- Infrastructure for Direct marketing of agricultural commodities from producers to consumers/processing units/ bulk buyers, etc.
- Infrastructure for supply of production inputs and need-based services to the farmers;
- Infrastructure (equipment, hardware, gadgets, etc) for E-trading, market intelligence,extension and market oriented production planning; and
- Mobile infrastructure for post-harvest operations (excluding transport equipment) will be eligible for assistance under the scheme. However, reefer vans, or any other refrigerated vans used for transporting agricultural produce, which are essential for maintaining cold supply chains, shall be eligible for assistance under the Scheme.
The assistance will be available to individuals, Group of farmers/ growers/ consumers, Partnership/ Proprietary firms, Non-Government Organizations (NGOs), Self Help Groups (SHGs), Companies, Corporations, Autonomous Bodies of the Government, Cooperatives, Cooperative Marketing Federations, Local Bodies, Agricultural Produce Market Committees &Marketing Boards in the entire country.
LAND AND LOCATION : Under the scheme, the entrepreneur will be free to locate the marketing infrastructure project at any place of his choice determined on the basis of economic viability and commercial considerations. The entrepreneurs in addition to providing compulsory direct service delivery to producers/farming community in post-harvest management/marketing of their produce may also have an opportunity to use the infrastructure for their own purpose during the lean period.
Cost of land in infrastructure projects will be restricted to a maximum of ten per cent of the project cost in rural areas and to twenty per cent in municipal areas and it would form part of the owner’s contribution.
The entrepreneur will not alienate the land during the period of the loan for any purpose other than the purpose for which the loan is sanctioned.
CREDIT LINKED ASSISTANCE: Assistance under the scheme would be credit linked and subject to sanction of the infrastructure project by Commercial/ Cooperative/ Regional Rural Banks based on economic viability and commercial considerations. However, the stipulation of credit linkage and sanction of the infrastructure project by the Commercial/ Cooperative/ Regional Rural Banks will be optional for the infrastructure project taken up by the State Marketing Boards/ APMCs and other State agencies.
Assistance under the scheme shall be available on capital cost of the project only. Banks/National Cooperative Development Corporation (NCDC) will, however, be free to finance other activities/working capital requirement to meet various requirements of the farmers/entrepreneurs.
SUBSIDY: Rate of subsidy shall be 25% of the capital cost of the project. Maximum amount of subsidy shall be restricted to `50 lakh for each project.In case of North Eastern States, in the States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas, and to entrepreneurs belonging to Scheduled Caste (SC)/Scheduled Tribe (ST) and their cooperatives, the rate of subsidy shall be 33.33% of the capital cost of the project, maximum amount of subsidy shall be `60 lakh for each project.
The amount of Central Assistance/subsidy availed of for the project or any of its components from any other Central Scheme shall be deducted from the amount of subsidy admissible under this scheme.
NO INTEREST CHARGEABLE ON SUBSIDY PORTION: The subsidy admissible to the promoter under the scheme will be kept in the Subsidy Reserve Fund Account (Borrower-wise) in the books of the financing banks. No interest would be charged on this by the bank.
IMPLEMENTATION PERIOD: The scheme was implemented w.e.f.20.10.2004 and will be in operation till 31.03.2012.
IMPLEMENTING AGENCY: The scheme shall be implemented by the Directorate of Marketing & Inspection (DMI), an Attached Office of Department of Agriculture and Cooperation.
- For Projects Financed Through Banks / Nabard
Pattern of funding
Source of finance Other than NE States, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas*/SC & ST Entrepreneurs and their cooperatives. NE States, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas*/ SC & ST entrepreneurs and their cooperatives Subsidy from Central Government 25% 33.33% Institutional loan from commercial/cooperative banks etc., Minimum 50% Minimum 46.67% Owner’s contribution** Rest of the project cost Rest of the project cost
- Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.
- Tribal areas are areas notified/declared as tribal area by the Central/concerned State Government
- Cost of land not exceeding 10% in rural areas and 20% in municipal areas of the project cost can form part of the owner’s contribution.
Other information: For the details of mode of release of subsidy and other information etc.
You may visit GOI website www.agmarknet.nic.in.