SCHEME FOR DEVELOPMENT / STRENGTHENING OF

AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING &

STANDARDIZATION (AMIGS)

CENTRAL SECTOR SCHEME LAUNCHED ON 20.10.2004.

OBJECTIVES Creation of agricultural marketing infrastructure to meet

the requirement of post harvest operations. Strengthening of existing agricultural marketing

infrastructure to enhance efficiency. Facilitate commensurate price to producers through

projects of grading, standardization and quality certification of agricultural produce.

Promotion of backward and forward linkages and creating scope for negotiable warehousing receipt system and promoting forward and future markets.

Promotion for direct integration of processing units with producers.

Creation of general awareness and provide education and training on agricultural marketing to farmers, entrepreneurs and market functionaries.

IMPLEMENTATION

• It is a credit linked back ended subsidy Scheme. • The scheme is reform linked and is being implemented in those

states/ UTs which have amended their APMC Act to permit-a) To allow Direct Marketing,b) To allow Contract Farming,c) To permit setting up of Private & Co-operatives markets.

• 28 States/ U.Ts namely Madhya Pradesh, Tamil Nadu, Kerala, Manipur, Andaman and Nicobar islands, Himachal Pradesh, Punjab, Andhra Pradesh, Sikkim, Rajasthan, Chattisgarh, Nagaland, Dadra and Nagar Haveli, Daman & Diu, Lakshadweep, Arunachal Pradesh, Orissa, Maharashtra, Bihar, U.T. of Chandigarh, Assam, Tripura, Gujarat, Karnataka, Goa, Jharkhand, Mizoram and Uttarakhand have been permitted to take benefits of the Scheme.

• W.B., U.P., Haryana, J&K, Meghalaya, Delhi and Pondicherry have not amended their APMC Act and as such not permitted to take benefits of the Scheme

Release of Subsidy:

Subsidy is released through NABARD for the projects financed by the Participating Banks and other institutions eligible for refinance from NABARD.

Subsidy is released through NCDC for cooperative sector projects financed by NCDC or by Cooperative Banks.

Subsidy is released by DMI for the own funded projects promoted by the State Agencies (APMCs etc.).

IMPLEMENTATION

IMPLEMENTATION

• State Agencies projects are considered provided the State has waived market fee in respect perishable horticultural commodities (effective from 25.02.2010).

• Project should provide direct service delivery to the producers / farmers.

• Change in product form of Agricultural Produce is not permitted.• Transportation facilities are not covered under the Scheme. However,

refer vans as part of Cold Chain are permitted.

Beneficiaries under the Scheme include –

Individuals/ Group of Farmers /Growers / ConsumersPartnership / Propriety firmsNon Government Organisations (NGOs), Self Help Groups (SHGs)Companies, Corporations, Co-operatives etc.Agricultural Produce Market Committees (APMCs) and Marketing

Boards etc.

Rate of subsidy

Subsidy

NE States, States of Uttarakhand, Himachal

Pradesh, Jammu & Kashmir, hilly and tribal

areas/ SC & ST entrepreneurs and their

Cooperatives

Other than NE States, States of Uttarakhand, Himachal

Pradesh, Jammu & Kashmir, hilly and tribal areas/SC & ST

Entrepreneurs and their Cooperatives.

Percentage 33.33% 25%

Ceiling* Rs.60 lakh Rs.50 lakh

• There is no Ceiling for subsidy for State Agency Projects.

* 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.

Term Loan

Minimum 50% of the project cost. 46.67% in case of NE states, hilly and tribal areas and for

entrepreneurs belonging to SC/ST and their cooperatives. As the subsidy is back-ended, eligible amount of the subsidy

would initially be allowed as term loan to the beneficiary. The repayment schedule will be drawn on the total loan

amount (including subsidy) in such a way that the subsidy amount is adjusted after liquidation of net bank loan (excluding subsidy).

The repayment schedule prescribed at the time of sanction of the project will not be allowed to be altered by the financing bank without the prior approval of the Head Office of the DMI on the recommendation of NABARD/NCDC.

ADJUSTMENT OF SUBSIDY IN BORROWER’S ACCOUNT

The subsidy released to the bank for an individual project will be kept in a separate borrower-wise account.

The repayment schedule will be drawn on the loan amount in such a way that the total subsidy amount is adjusted after the full bank loan component with interest is liquidated.

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.

Mode of Release of Subsidy 50% of the subsidy amount will be released to the participating banks in

advance on submission of a project profile-cum-claim form for keeping the same in a SRFA of the concerned borrowers, to be adjusted finally against loan amount of the bank on completion of the project.

The remaining 50% of the subsidy amount would be disbursed to the participating bank after a Joint Inspecting Committee comprising of officers from NABARD, participating bank and Directorate of Marketing & Inspection (DMI) to conducts an inspection.

No Joint Inspection shall be undertaken by the staff of NABARD and DMI, where the Total Financial Outlay (TFO) of the project is less than Rs.10.00 lakh. For such projects, remaining 50% of the subsidy amount would be disbursed to the participating bank on receipt of completion certificate from financing bank.

For projects having TFO of less than Rs.10.00 lakh and involving one time investment only, the total subsidy would be disbursed to the participating bank in one installment on completion and submission of completion report by the financing bank.

For these projects, a sample of ten per cent of random inspection shall be done.

MARKETING INFRASTRUCTURE

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.

Mobile infrastructure for post-harvest operations. Transportation facility will not be covered under the scheme. However, reefer vans, or any other refrigerated vans used for maintaining cold supply chains, shall be eligible.

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 (equipment, hardware, gadgets, etc) for E-trading, market intelligence, extension and market oriented production planning.

Illustrative List of Infrastructure Projects:

Market user common facilities like market yards, platforms for loading, assembling and auctioning of the produce, weighing and mechanical handling equipments, etc.

Functional Infrastructure for assembling, grading, standardization and quality certification, labeling, packaging, value addition facilities (without changing the product form)

Infrastructure for Direct Marketing from producers to consumers/processing units/bulk buyers etc.

Infrastructure for E-trading, market extension and market oriented production planning.

Mobile infrastructure for post harvest operations viz. grading, packaging, quality testing etc., (excluding transport equipment)

Reefer vans, or any other refrigerated vans used for transporting agricultural produce, which are essential for maintaining cold supply chains.

TIME LIMIT FOR COMPLETION

A time limit of 18 months is prescribed for completion of the project from the date of disbursement of the first installment of loan by the financial institution.

However, if reasons for delay are justified, a further grace period

of 6 months may be allowed by the financial institution .

In case of large integrated agricultural marketing infrastructure projects involving total outlay of Rs.2 crore or more and requiring phasing, a time limit of maximum of 36 months may be prescribed for completion of the project from the date of disbursement of the first installment of loan by the financial institution.

If the project is not completed within the stipulated period benefit of subsidy shall not be available and advance subsidy will have to be refunded forthwith.

OTHER CONDITIONS

It will be the responsibility of the owner to have the insurance of the project unit.

A signboard at the site “Assisted under the Scheme of Agricultural Marketing Infrastructure of Ministry of Agriculture, Government of India” will be exhibited.

Government’s interpretations of various terms will be final.

Government reserves the right to modify, add and delete any term and condition without assigning any reason.

PROGRESS OF THE SCHEME - PHYSICAL

PLAN YEAR

NUMBER OF PROJECTS SANCTIONED

TOTALByNABARD

ByNCDC

OF STATE AGENCY

Xth PLAN

2005-06 178 01 0 179

2006-07 1362 62 45 1469

TOTAL 1540 63 45 1648

XIth PLAN

2007-08 1161 514 144 1819

2008-09 564 207 62 833

2009-10 473 206 24 703

2010-11 754 419 0 1173

2011-12 798 475 44 1317

TOTAL 3750 1821 274 5845

XIIth PLAN

2012-13 841 418 0 1259

Grand Total 6131 2302 319 8752

PROGRESS OF THE SCHEME - FINANCIAL

PLAN YEAR

RELEASE OF SUBSIDY TOTAL

ThroughNABARD

ThroughNCDC

To STATE AGENCY

Xth PLAN

2005-06 4.00 0.15 0.00 4.15

2006-07 23.97 1.07 17.29 42.33

TOTAL 27.97 1.22 17.29 46.48

XIth PLAN

2007-08 51.00 3.28 56.64 110.92

2008-09 62.04 5.00 9.76 76.80

2009-10 49.89 10.00 14.48 74.37

2010-11 83.13 11.41 15.94 110.48

2011-12 166.81 10.09 0.38 177.28

TOTAL 412.87 39.78 97.20 549.85

XIIth PLAN

2012-13 178.05 9.69 13.15 200.89

Grand Total 618.89 50.69 127.64 797.22

(Rs in Crore)

FINANCIAL PROGRESS OF AMIGS SCHEME

TOTAL SUBSIDY RELEASED DURING DIFFERENT YEARS (Rs in Crore)

4.15

42.33

110.92

76.80 74.37

110.48

177.28

200.89

0

50

100

150

200

250

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

S. No. State / U.T.

Total Sanction

No. of Projects

TFOTotal Subsidy

Released

1 Maharashtra 901 1462.31 239.69

2 Madhya Pradesh 1094 1290.63 153.403 Andhra Pradesh 793 845.99 84.674 Punjab 1318 692.60 80.305 Gujarat 2184 564.50 53.756 Tamil Nadu 1122 562.68 36.187 Rajasthan 376 502.71 62.67

States taken maximum benefit of the Scheme since inception (in descending order based on Subsidy released) as on

31.03.2013.(Rs. in Crores)

Category-wise Projects Sanctioned up to XIth Plan(Rs. in Crores)

Category of Project Type of Projects No of Project

Subsidy Released

1.Primary Processing and Value Addition Facility

Primary Processing Plants, Parboiling Units, Cotton ginning and pressing units, Seed Primary Processing and Testing Centers, Drying

Yards/Automatic Bulk Dryers931 165.64

2. Cleaning, Grading, Storage and Packaging Unit

Cleaning, Grading, Storage Units, Waxing and Packaging Units, Packaging Lines, Grain Colour Sorter, Pack Houses, Quality Testing

/ Grading Laboratories, Milk Packaging Unit, Milk Quality Testing Lab, Plastic Crates.

1837 174.65

3. Pre-cooling/Cold chain facility

Pre-cooling Units, Ripening Chambers, Curing Chambers, Milk Collection & Chilling Centre, Bulk Chilling Unit, Pasteurization

Plant, Cold Chain Projects with Reefer Vans Fish Chilling Plant, Fish Storage, Individual Quick Frozen (IQF) Plant, Cold Storage as a part

of Integrated Marketing Infrastructure.

1269 90.97

4. Market User Common Facility

Auction Platforms, Electronic Weighing Centers, Electronic Display Boards, Shop cum Godowns, Internal Roads, Automatic Produce

Handling Plants.179 85.97

5. Mobile InfrastructureCombined Harvester, Threshers, Groundnut Decorticator, Fishing

Boat, Fish Trawler. 3045 58.04

6.Establishment of private markets/ Purchase/ Collection Centres

Market Yards, Purchase Centre/ Collection Centre and other related market infrastructures.

201 19.04

7. Other InfrastructuresAutomatic Milking Machines, Fishing Net, Honey Extraction Centre,

Shellac Processing Unit.31 2.02

Grand Total 7493 596.33

Category-wise Projects Sanctioned – Gujarat

(Rs. in Crores)

Category of ProjectNo. of Projects

Subsidy released

1. Primary Processing and Value Addition Facility

28 5.33

2. Cleaning, Grading, Storage and Packaging Unit

932 16.77

3. Pre-cooling/Cold chain facility 816 16.61

4. Market User Common Facility 12 0.35

5. Mobile Infrastructure 202 6.80

6. Establishment of private markets/ Purchase/ Collection Centres

0 0.00

7. Other Infrastructures 0 0.00

Total 1990 45.86

Time limit for submission of final subsidy claims to NABARD (AMIGS & RGS)

Advance Subsidy released by NABARD

Time limit

Up to March, 2007 30.11. 2013

2007-08 31.12.2013

2008-09 31.01.2014

2009-10 28.02.2014

2010-11 31.03.2014

2011-12 30.04.2014

THANKS